The document summarizes key initiatives in India's proposed Foreign Trade Policy 2023, including establishing export hubs, promoting e-commerce exports at the district level, streamlining approvals and certification processes, boosting manufacturing sectors like textiles and dairy, and providing incentives to MSME exporters. It also covers plans to develop 50 districts as export hubs through central and state funding, enable partnerships between Indian and foreign post offices to aid cross-border trade, and introduce an amnesty scheme for exporters defaulting on obligations.

1. Speaker-
Dr Vikash Pawariya
Assistant Professor
(Agricultural Economics)
College of Agriculture, Nagaur
Agriculture University, Jodhpur
Email id-
vikashpawariya@gmail.com

4. Foreign Trade Policy 2023
• India’s Foreign Trade Policy 2023:
• Establishing export hubs
• Collaboration between exporters, states, and
districts
• Promotion of e-commerce at the district level
• Strengthening infrastructure and logistics
ecosystem
• Thrust to cluster based economic development

5. Ease of doing business
• Online approvals without physical interface
• E-certificate of origin issuance
• Paperless filing
• Consultative mechanism to be introduced to
resolve trade and industry grievances and
concerns

6. Boosting manufacturing and
production
• Textiles – Prime Minister Mega Integrated Textile
Region and Apparel Parks (PM
MITRA) scheme has been added as an additional
scheme eligible to claim
benefits under CSP (Common Service Provider)
Scheme of Export
Promotion capital Goods Scheme(EPCG).
Special Advance Authorization Scheme extended to
export of Apparel and Clothing sector under para 4.07
of HBP on self-declaration basis to facilitate prompt
execution of export orders – norms would be fixed
within fixed time-frame.

7. • Dairy – Sector exemption from maintaining Average Export Obligation to
enable technology upgradation.
• Fruits and vegetables – Status House Certification extended.
• Battery electric vehicles (BEV) of all types, vertical farming equipment,
wastewater treatment and recycling, rainwater harvesting system and
rainwater filters, and green hydrogen are added to Green Technology
products – will now be eligible for reduced Export Obligation requirement
under the EPCG Scheme.
• Benefits of Self-Ratification Scheme for fixation of Input-Output Norms
extended to 2 star and above status holders in addition to Authorized
Economic Operators at present.

8. Faster Online Processing under FTP
2023

9. Reduction in user charges for MSMEs
• There will be a reduction in user charges for
micro, small, and medium-sized enterprises
(MSMEs) under Advance Authorization (AA)
scheme and the Export Promotion Capital
Goods (EPCG) scheme.
• This will benefit 55-60 percent of exporters
who come under the MSME category.

11. Certificate of origin
• There is a proposal to reform the e-Certificate
of Origin platform to allow self-certification of
Certificate of Origin (CoO) and its automatic
approval – where feasible.
• Another initiative being considered is the
electronic exchange of CoO data with partner
countries.

12. Export promotion initiatives
• Status holder export thresholds have been
rationalized
• This will enable more exporters to gain higher
status due to revised performance thresholds
and reduced costs for exporters.

14. Merchanting trade reform
• To enhance merchanting activities, India will allow
merchanting trade that involves shipping goods from
one foreign country to another foreign country, through
an Indian intermediary, without going through Indian
ports. This will need to be in compliance with Reserve
Bank of India (RBI) guidelines.
• However, this will not be available for goods and items
listed under CITES (Convention on International Trade
in Endangered Species of Wild Fauna and Flora) and
SCOMET (Special Chemicals, Organism, Materials,
Equipment and Technologies) categories. SCOMET
items are dual-use having potential for civilian
applications and as weapons of mass destruction.

15. Internationalization of rupee
• Foreign Trade Policy benefits have been
extended to include rupee realizations through
special Vostro accounts that have been set up
according to the RBI circular released on July
11, 2022.

16. Towns of export excellence

18. • Recognized associations of units in Towns of
Export Excellence can avail financial assistance
under Market Access Initiative (MAI) scheme, on
priority basis, for export promotion projects for
marketing, capacity building and technological
services.
• Common Service Providers in the Towns of
Export Excellence are entitled for Authorization
under Export Promotion Capital Goods (EPCG)
Scheme.

19. Districts to be recognized and
promoted as export hubs
• This strategy will decentralize export promotion by
meaningfully engaging with states and districts as partners.
It will result in the identification of district-level products
and service offerings. This will necessitate the creation of
institutional mechanisms.
• Districts would need to prepare District Export Action Plans
(DEAPs) to promote identified products and services
exports. To achieve this, capacity building will be required,
and training, handholding, and outreach programs are
envisaged by DGFT field offices in coordination with
District Industries Centers.
• Export promotion outreach to focus on a) branding, b)
packaging, c) design and marketing of the identified product
and service items.

20. • Districts as Export Hubs is the first such
initiative of Government of India which tries
to Target Export Promotion, Manufacturing
and Employment Generation at Grass Root
Level and has made States and Districts
accountable for the Export Growth from the
Districts in the Country.

23. Districts as Export Hubs :
• Institutional or Policy Interventions Following are Institutional
or Policy Interventions taken.
• ♦ Preparation of State Export Strategy / Policy by all State /
UT Governments
• ♦ Product/Service identification in each District
• ♦ Constitution of District Export Promotion
Committees(DEPC)
• ♦ Preparation of District Export Action Plans(DEAPs)
• ♦ Monitoring implementation of DEAPs
• ♦ Identifying Agricultural Clusters in the Districts
• ♦ Mapping GI product in each District
• ♦ Export Development Centres ( E-Commerce in Districts)

24. • Govt. to develop 50 Districts as Export Hubs: Under the
proposed scheme, the government will select 50 districts
through a challenge, and they will receive ₹50 crore each. The
districts will be assessed on parameters such as plans for
exports, efforts to plug infrastructure and logistics gaps, and
cluster approach to exports. As it will be a centrally sponsored
scheme, the Directorate General of Foreign Trade (DGFT) has
proposed that the Centre pays 60% of the estimated cost, with
the rest borne by the respective states.

26. • Boost to e-commerce exports
• All FTP benefits will be extended to e-
commerce exports. IT systems at the
department of commerce, post, and CBIC are
to be undertaken over the upcoming 6-month
period.
• Guidelines are being prepared to facilitate e-
commerce exports in consultation with various
ministries.

27. • Enabling partnerships between Indian and foreign
post offices to boost trade at local, MSME level
• To facilitate cross-border e-commerce and enable
artisans, weavers, craftsmen, and MSMEs in land-
locked regions and hinterlands to access global
markets, a hub-and-spoke model will be
employed by operationalizing Dak Ghar Niryat
Kendras throughout the country in conjunction
with Foreign Post Offices (FPOs).

28. • Enabling partnerships between Indian and foreign
post offices to boost trade at local, MSME level
• To facilitate cross-border e-commerce and enable
artisans, weavers, craftsmen, and MSMEs in land-
locked regions and hinterlands to access global
markets, a hub-and-spoke model will be
employed by operationalizing Dak Ghar Niryat
Kendras throughout the country in conjunction
with Foreign Post Offices (FPOs).

29. • Amnesty scheme for default on export obligations
• To support trade and industry and encourage exporters,
relief will be provided to those who are unable to fulfill
their Export Obligations (EO) against the Export
Promotion Capital Goods (EPCG) and Advance
Authorization schemes.
• An amnesty scheme will be introduced for a one-time
settlement of defaults in EO by holders of Advance
Authorization and EPCG Authorization. Authorization
holders can regularize all pending cases of default in
EO by paying all customs duties exempted in
proportion to the unfulfilled EO.

30. • The maximum interest will be capped at 100
percent of such duties exempted, while no
interest will be payable on the portion of
Additional Customs Duty and Special
Additional Customs Duty.
• The amnesty scheme will be available for a
limited period until September 30, 2023, and
cases under investigation for fraud and
diversion are not eligible.