India’s Foreign Trade Policy 2023: Can It Help Achieve the $2Tn Trade Target?

The Indian government has set a target of achieving $2 trillion in foreign trade by 2030, which is an ambitious goal considering the current economic conditions and geopolitical situation. To achieve this target, the government has announced the Foreign Trade Policy (FTP) 2023, which is a comprehensive roadmap for boosting exports and reducing imports.

The FTP 2023 has identified several key areas for boosting India’s foreign trade, including improving the infrastructure, simplifying procedures, increasing access to credit, and promoting innovation and technology. The policy also aims to promote trade with new and emerging markets, diversify the export basket, and reduce dependence on a few traditional markets.

One of the key components of the FTP 2023 is the focus on digitalization and e-commerce. The policy aims to create a robust digital ecosystem for foreign trade, which will reduce the time and cost of transactions and make it easier for small and medium enterprises to participate in global trade.

The policy also includes several measures to promote exports, such as providing incentives for high-value-added products, promoting the development of clusters for specific sectors, and creating a single-window clearance system for exporters.

However, the policy has also been criticized for its lack of focus on reducing imports and promoting domestic manufacturing. Critics argue that the policy should have included measures to promote import substitution and reduce the dependence on imports for critical goods such as electronics, pharmaceuticals, and machinery.

Overall, the FTP 2023 is a positive step towards boosting India’s foreign trade and achieving the ambitious goal of $2 trillion in foreign trade by 2030. The policy identifies several key areas for improvement and includes measures to promote exports and digitalization. However, there is still room for improvement, particularly in reducing imports and promoting domestic manufacturing, to make India truly self-reliant in the global economy.

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