India is among the world’s largest economies and has been continuously making efforts to expand its foreign trade relations. The government of India is soon to unveil the new Foreign Trade Policy (FTP) 2023, which is expected to bring about significant changes in the country’s foreign trade landscape. In this article, we will discuss the expectations from the new Foreign Trade Policy 2023 of India.
- Promoting exports and reducing the trade deficit: One of the significant objectives of the new FTP is to promote exports and reduce the trade deficit. India has been facing a widening trade deficit, and this new policy is expected to provide a roadmap to tackle this issue. The policy is likely to offer incentives to exporters and remove the regulatory and procedural hurdles in the export process. By doing so, the policy aims to increase the country’s export competitiveness and provide a boost to the economy.
- Diversification of exports: India’s export basket is heavily reliant on a few sectors like textiles, pharmaceuticals, and chemicals. The new policy is expected to promote the diversification of exports and encourage the export of non-traditional items. This will help in reducing the dependence on a few sectors and mitigate the risks associated with it.
- Improving ease of doing business: The new FTP is expected to simplify the regulatory framework for foreign trade and provide a conducive environment for foreign investors. This will help in improving the ease of doing business and attract more foreign investment in the country. The policy may also provide a mechanism for resolving disputes related to foreign trade quickly.
- Strengthening trade relations with strategic partners: The new FTP is expected to prioritize strengthening trade relations with strategic partners. India has been working towards deepening its trade ties with countries like the United States, Japan, and Australia. The policy is likely to provide a framework for further enhancing these relations and explore new avenues for collaboration.
- Promoting digital trade: The COVID-19 pandemic has accelerated the adoption of digital technologies in various sectors, including foreign trade. The new policy is expected to promote digital trade and create an enabling environment for e-commerce. This will help in reducing the transaction costs and provide a more efficient and transparent system for foreign trade.
New Foreign Trade Policy 2023 of India is expected to provide a roadmap for promoting exports, diversifying the export basket, improving the ease of doing business, strengthening trade relations with strategic partners, and promoting digital trade. The policy is likely to provide a much-needed boost to the Indian economy and help the country emerge as a significant player in the global trade landscape.