The Foreign Trade Policy (FTP), 2023, is a policy framework and a set of procedures, not a legislative act, that guides India's imports and exports. It was announced on March 31, 2023, and became effective on April 1, 2023, replacing the earlier FTP (2015-2020), which had been extended due to the COVID-19 pandemic. The policy's primary objective is to boost India's goods and services exports to a target of US$2 trillion by 2030 and simplify trade processes.
The FTP 2023 is administered by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry, and its legal foundation is the Foreign Trade (Development and Regulation) Act, 1992. A major change from its predecessor is the shift from a fixed five-year term to a dynamic, open-ended framework that will be updated as needed. The policy also shifts its focus from an incentive-based regime to a remission and entitlement-based regime to ensure compliance with WTO guidelines.
Key mechanisms include the continuation of schemes like the Advance Authorisation Scheme and the Export Promotion Capital Goods (EPCG) Scheme, but with greater automation and reduced user charges for Micro, Small, and Medium Enterprises (MSMEs). The policy introduces a one-time Amnesty Scheme to allow exporters to regularize past defaults in export obligations. It also focuses on emerging areas by facilitating e-commerce exports, promoting the internationalization of the Indian Rupee (INR) for trade settlement, and developing Districts as Export Hubs. Provisions were also introduced to facilitate merchanting trade, positioning India as a global trading intermediary.