FTP 2023: Can it navigate the new world order?

Critical policies like import barriers, providing PLIs, keeping out of mega trading blocs of RCEP and IPEF call for a mandatory review before new policy formulations

India unveiled its new foreign trade policy (FTP) on March 31, 2023 with the objective of taking exports to $2 trillion by 2030 (from the current level of about $750 billion). This is sought to be achieved through “four pillars”: (i) shifting from incentive-based regime to “remission-based” regime, to make it WTO-compliant (ii) “collaboration” of exporters, states, districts and Indian missions (iii) improving “ease of doing business” and (iv) focus on “emerging areas” like e-commerce, developing districts as export hubs and streamlining SCOMET items (special chemicals, organism, materials, equipment and technologies, which are of dual-use – for civilian applications as well as weapons of mass destruction).

Time will tell how well the FTP 2023 translates into reality. The most glaring gaps seem to be the missing efforts to develop understanding and insights into India’s and global trade trends of the past few years – especially in view of the Russia-Ukraine war leading to global trade re-alignments, sanctions etc. That is essential to identify the challenges and opportunities and also devise appropriate strategic responses. Lack of such analysis means the basis for the policy formulations may not be known. A mere presentation of a wish-list for process improvements and listing of “emerging areas” of trade don’t qualify for a new policy – which is strange given that it is late by two years.

Source : fortuneindia.com/ For More Details

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