“Foreign Trade Policy 2023  – progressive, growth oriented and in the right direction” – Shri Sunil Patwari, Chairman, TEXPROCIL

City/ state

Shri Sunil Patwari, Chairman – TEXPROCIL

Mumbai (Maharashtra) [India], April 5: Welcoming the New Foreign Trade Policy 2023, Shri Sunil Patwari, Chairman, TEXPROCIL said “The FTP 2023 provides continuity with a responsive framework and progressive, growth oriented and in the right direction”.

One of the key highlights of the FTP 2023, Shri Patwari said, is that the FTP has no end date with allowance provided for any dynamic or real time amendments. He also added that other Policy features like moving from incentives to remission, focussing on Export Promotion through collaboration with exporters, states, districts and Indian Missions, promoting ease of doing business and emphasising on emerging areas like e-commerce and export hubs will provide necessary relief to the exporters who are badly hit due to the various disruptions in the economic activities.

The FTP has further introduced the New Amnesty Scheme for one-time settlement of defaults in export obligation by Advance and EPCG authorisation holders. The Government’s approach to bring digitization of applications related to Advance Authorisation/EPCG/DFIA/Import & Export Licensing, automatic system-based approvals of applications, reduction of application fee for Advance Authorisation & EPCG Schemes for MSMEs will improve the ease of doing business and reduce transaction costs for exporters and thus provide a renewed thrust for new growth areas.

He also welcomed the decision of the Government in revising the export performance threshold as it will ensure higher recognition and brand image for Status Holders and reduce transaction cost incurred by the exporters.

Shri Patwari also said that the move to make Indian rupee a global currency and allowing international trade settlement in the domestic currency will help in internationalizing the Indian currency in the long run. To boost merchanting activity from India, provision for merchanting trade has been introduced under FTP which will make India a trade hub. The FTP benefits have been extended to e-commerce exports, which are estimated to grow to USD 200-300 billion by 2023.

Though there are many initiatives in the FTP 2023 that are positive and in the right direction  addressing many of the issues faced by exporters, there are still some areas that need to be addressed immediately to promote exports of cotton textiles.

Shri Patwari urged the Government for enhancing the time period for availing Pre & Post Shipment Credit to exporters, removal of import duty on Raw Cotton, re-instatement of Interest Equalization Scheme to original levels of 3% for 410 items and 5% SME units along with cotton yarns and fibres, increase in RoDTEP rates for certain categories of made-up products (Home Textiles) falling under Chapter 94 and extend the facility of duty-free imports of trimmings, embellishments and other specified items to exporters of made-ups.

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