The Directorate General of Foreign Trade (DGFT) has recently amended the Foreign Trade Policy (FTP) 2023. This amendment introduces new provisions aimed at enhancing stakeholder engagement in the formulation and amendment of trade policies. The changes reflect the Government of India’s commitment to improving the Ease of Doing Business (EoDB) by ensuring that various stakeholders, including importers, exporters, and industry experts, can contribute their insights.
Stakeholder Consultation Requirement
The amendment adds Para 1.07A and 1.07B to the FTP. These paragraphs mandate consultations with stakeholders before any policy changes. This requirement aims to gather diverse views and suggestions from those directly impacted by trade policies. The government seeks to create a more inclusive decision-making process.
Mechanism for Feedback
The new provisions establish a mechanism for informing stakeholders about the reasons for accepting or rejecting their feedback. This transparency is intended to build trust and encourage more active participation from stakeholders. The government acknowledges that differing opinions may arise and aims to handle these constructively.
Right to Suo Moto Decision-Making
While encouraging stakeholder involvement, the government reserves the right to make suo moto decisions in exceptional circumstances. This ensures that the government can respond swiftly to urgent issues without being hindered by prolonged consultations. Such provisions are essential for maintaining the smooth functioning of trade.
Objectives of the FTP 2023
The FTP 2023 is built upon four key pillars – incentive to remission, export promotion through collaboration, ease of doing business, and emerging areas like e-commerce. These pillars aim to create a robust framework for trade that supports sustainable growth and adaptation to new challenges.
Long-term Goals for Export Growth
One of the primary objectives of the FTP 2023 is to increase India’s total exports to $2 trillion by 2030. To achieve this ambitious target, the goods and services sectors must grow , with annual growth rates of 10.86% and 17.15%, respectively. This growth is crucial for reaching the overall export growth target of 13.23% per annum.
- FTP 2023 aims for $2 trillion exports by 2030.
- Stakeholders include importers, exporters, and industry experts.
- Suo moto decisions allow quick government responses.
- Four pillars of FTP include e-commerce and collaboration.
- Export growth rates needed are 10.86% and 17.15%.
The Importance of Feedback Mechanisms
The FTP 2023 integrates feedback mechanisms to ensure adaptability to emerging challenges. This approach acknowledges exporters as partners in development. It reflects a shift from previous policies that operated on a fixed five-year cycle, promoting continuity and responsiveness to market demands.
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