Export push

THE value of India’s exports in 2022-23 is likely to touch $760-770 billion, up from $676 billion in the previous fiscal. The new foreign trade policy eyes a quantum leap to $2 trillion by 2030. The positive, robust outlook would be put to the test as the slump in global demand continues. Besides a one-time amnesty for default in export obligation, a five-year end date has been done away with to make the policy dynamic, with revisions to be done as and when required. Also garnering attention are the plans to make the rupee a global currency. India aims to offer it as an alternative for trade to countries that are facing a shortage of dollars. The internationalisation of trade in rupees is a bold and pragmatic step forward.

Advertisement

A key feature of the new policy is the extension of benefits to e-commerce exports, which are predicted to reach $200-300 billion by 2030 from the current $5 billion a year. The value limit for exports through courier service is being doubled to Rs 10 lakh per consignment. Apparel hub Faridabad joins the list of Towns of Export Excellence or TEE and is in line for a major growth-oriented district export action plan. Real-time policy review, it is hoped, will allow proactive participation of the industry in decision-making with regard to reducing the compliance burden on exporters or simplifying regulations.

The previous foreign trade policy, unveiled in 2015, had aimed for an export target of $900 billion by 2020. The policy was repeatedly extended during the past three years in view of the volatile global economic and geopolitical situation. The pandemic contributed to the shortfall, but a massive trade outreach, involving Indian missions abroad, is in the works. The intent to reduce the systemic friction is visible in the policy. Boosting domestic manufacturing, strengthening the export base and encouraging the ease of doing business are interlinked. The focus has to be multi-pronged.