Union Commerce Minister Shri Piyush Goyal recently released the Foreign Trade Policy 2023 (FTP 23) that aims to bring new territories, products and entrepreneurs in its fold. FTP 23 changes the focus from giving Incentives to building infrastructure so that even aspirational small exporters in remote areas of the Country can get their goods and services to international markets. The attached presentation gives an overview of the policy and its impact on MSMEs & Startups. Your feedback, queries and suggestions are welcome at mdoffice@posiview.in CA Vinit Deo CA Prajakta Shetye-Deo #Posiview #PosiviewVentures #LanguageOfGrowth #Innovation #Startups #StartupIndia #MSME #ForeignTrade #ForeignInvestment #AtmanirbharBharat #MakeinIndia

1. Foreign Trade
Policy, 2023
Overview & Opportunity
for MSMEs & Startups
CA Vinit Deo
CA Prajakta Shetye-Deo
April 2023
Series No.3 / 2023

2. Dear Reader,
Union Commerce Minister Shri Piyush Goyal recently released the Foreign
Trade Policy (FTP) 2023. The Policy has an approach of Local to Global.
The central theme of this policy seems to be widening India's export base
by bringing new territories, products and entrepreneurs in its fold. It
changes the focus from giving Incentives to building infrastructure so that
that even aspirational small exporters in remote areas of the Country can
get their goods and services to international markets.
The Policy aims to build on the gains made in the FTP 2015-20 in the area
of Ease of Doing Business and make the export process completely
digital, self-certification driven and cost-effective.
We hope this Guide to FTP 2023 will enable you to make the most of this
forward looking policy and encourage you to participate in the
Government's target of achieving USD 2 trillion exports by 2030.
From the Founder's Desk
CA Vinit Deo
CA Prajakta Shetye-Deo

3. Global USD Bn
FY 2016 FY 2022
30,000
20,000
10,000
0
India USD Bn
FY 2016 FY 2022 FY 2023 (Projected)
800
600
400
200
0
India's Export Growth
India recorded 2x growth in export trade in the 2016-22 period despite 2 years of
covid and slowdown in global economy.
56% Growth
75% Growth
28% Growth

4. Sector
FY 2016
(USD Bn)
Growth
(%)
FY 2022
(USD Bn)
Engineering 62 81% 112
Agriculture 31 61% 50
Pharma 17 45% 25
Electronics 6 162% 16
Marine 5 63% 8
Stars of India's Exports
Highlights
India's export growth is
spread across sectors
Services Exports are still
concentrated around
Technology
Opportunity to add several
new categories of goods &
services to export basket

5. Pillars of Export Policy
REMISSION
Approach will
move from giving
Incentives to Tax
Remissions
COLLABORATION
Export promotion
through
collaboration:
Exporters, States,
Districts
EASE OF DOING
BUSINESS
Greater Trade
facilitation through
technology,
automation, and
continuous process
re-engineering
EMERGING
AREAS
Focus on new areas
such as E- Commerce
Exports, Developing
Districts as Export
Hubs, Streamlining
SCOMET policy et al.

6. Ease of Doing
Business
Part 1:

7. Permission type Current processing
time
Automatic route
processing time
Advance authorization issuance
3 to 7 days 1 day
Export Promotion Capital
Goods (EPCG) issuance
3 to 7 days 1 day
Revalidation of authorizations 3 days to 1 month 1 day
Extension of Export Obligation
period
3 days to 1 month 1 day
Reduction in Processing Time

8. Permission type User charges for
non- MSMEs
Reduced User
charges for
MSMEs
Up to Rs 1 crore Rs 1 per 1000 Rs 100
Rs 1 crore to Rs 10 crores Rs 1 per 1000 Rs 5,000
Above Rs 10 crores
Rs 1 per 1000
Cap at Rs 1,00,000
Rs 5,000
Reduction in processing cost for MSMEs
Will benefit 55-60% of exporters who are MSMEs.
Application fee being reduced for Advance Authorization and EPCG Schemes

9. Focus on Self Certification & Online Process
Self- Certification
Revamp of the e-Certificate
of Origin (CoO) platform.
proposed. To provide for
self- certification of CoOs
as well as automatic
approval of CoOs, where
feasible.
Partner Countries
Initiatives for electronic
exchange of CoO data with
partner countries
envisaged.
Paperless Filing
All authorisation
redemption applications
to be paperless. Entire
lifecycle of the
authorization shall
become paperless.

10. Export
Promotion
Initiatives
Part 2

11. Status House
Category
Existing Export
Performance
Threshold
Revised Export
performance Threshold
One Star 3 3
Two Star 25 15
Three Star 100 50
Four Star 500 200
Five Star 2000 800
Status Holder Export Thresholds Rationalised
This will enable
more exporters
to achieve higher
status and
reduced
transaction cost
for exports.
(In USD Million)

12. Focus on Self Certification & Online Process
Merchanting
Activities
Merchanting trade involves
shipment of goods from
one foreign country to
another foreign country
without touching Indian
ports. This will be given a
boost.
Rupee payment
FTP benefits extended for
rupee realisations through
special Vostro accounts
setup as per RBI circular
issued on 11 July 2022
Towns of Export
Excellence*
4 new towns of export
excellence (TEE)
(Faridabad, Moradabad,
Mirzapur, Varanasi),are
in addition to the already
existing 39 towns of
export excellence.
* Benefits of TEE Scheme in next slide

13. Towns of export excellence
Recognition TEEs are industrial clusters that are recognized based on
their export performance. Recognition to these industrial
clusters is granted with a view to maximize their
potential and enable them to move up the value chain
and to tap new markets.
Market Access
Initiative
Such units can get financial assistance to visit various
trade exhibitions/fairs for exploring more marketing
avenues.
Common Service
Provider facility
Common Service Providers in TEE are entitled for
Authorisation under EPCG Scheme which can help in
increasing the competitiveness of the cluster and
provide enabling environment. This arrangement gives
facility to exporters to not own all the infrastructure for
conversion from inputs to final export products.

14. Districts as
Export
Hubs
initiative
Part 3

15. Districts as partners in export promotion
Identification of
products/services in all
the districts.
Identifying Products
Bring a greater level of
awareness and
commitment regarding
exports at the district
level.
Awareness
Districts as Export Hubs
aims to boost India's
foreign trade by
decentralizing export
promotion.
Decentralizing Exports
Make States and Districts
meaningful stakeholders
and active participants.
Stakeholders
Preparation of District
Export Action Plans
(DEAPs) outlining the
action plan to promote
identified products and
services.
District Plan
State Export Promotion
Committee & District
Export Promotion
Committee.
Institutional Mechanism

16. Capacity building at District Level
IDENTIFICATION
Identification of
new exporters
and identification
of new markets.
EXPORT PLANS
Regional Authorities
of DGFT working
with the States/UTs
to prepare District
specific Export
Plans.
TRAINING
Training,
handholding, and
outreach programs
by Director General
Foreign Trade
(DGFT) field offices
in coordination with
District Industries
Centers.
BRANDING
Export promotion
outreach programs in
districts to focus on
branding, packaging,
design and marketing
of identified product
& services.

17. E-Commerce
Exports
Part 4

18. Facilitation for e-Commerce exports
FTP BENEFITS
All FTP benefits to
be extended to
e-Commerce
exports.
TRAINING
Special outreach
and training
activities for small
e-commerce
exporters
GUIDELINES
Guidelines being
formulated in
consultation with
other ministries to
facilitate further
exports under
e-Commerce.
SUPPORT
Handholding through
industry and
knowledge partners

19. Dak Ghar Niryat Kendras shall be
operationalised throughout the country to
work in a hub-and-spoke model with
Foreign Post Offices (FPOs)
Objective will be to facilitate cross-border
e-Commerce and to enable artisans,
weavers, craftsmen, MSMEs in the
hinterland and land-locked regions to
reach international markets.
Dak Niryat
(Post Office Exports)
facilitation

20. Designated hubs with warehousing facility
to be notified, to help e-commerce
aggregators for easy stocking, customs
clearance and returns processing.
Processing facility to be allowed for last
mile activities such as labelling, testing,
repackaging etc.
E-Commerce Export
Hubs

21. Boost to
Manufacturing
Part 5

22. Steps to Boost Manufacturing - 1
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).
Dairy Dairy sector to be exempted from maintaining Average
Export Obligation – to support dairy sector to upgrade
the technology.
Green
Technologies
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 EPCG Scheme

23. Steps to Boost Manufacturing - 2
Apparel and
Clothing
Special Advance Authorisation Scheme extended to
export of Apparel and Clothing sector on self-declaration
basis to facilitate prompt execution of export orders –
Norms would be fixed within fixed time-frame.
Self-
Ratification
Benefits of Self-Ratification Scheme for fixation of Input-
Output Norms extended to 2 star and above status
holders in addition to Authorised Economic Operators at
present.
Fruits and
Vegetables
Fruits and Vegetables exporters are being included for
double weightage for counting export performance
under eligibility criteria for Status House certification.
This is in addition to existing MSME sector who also get
double weightage.

24. Policy for export of dual use items under
SCOMET consolidated at one place for ease of
understanding and compliance by industry.
Focus on simplifying policies to facilitate export
of dual use high end goods/technology such as
UAV/Drones, Cryogenic Tanks, Certain
chemicals etc.
General authorizations for export of certain
SCOMET items to streamline licensing of these
items to make export of SCOMET items globally
competitive.
Focus on Special Chemicals,
Organisms, Materials,
Equipment and Technologies
(SCOMET)

25. Opportunity for
MSMEs &
Startups
Part 6

26. Opportunity for MSMEs & Startups
REDUCED COST
Costs & time for
permits have been
substantially
reduced which will
make it viable for
small businesses
to manufacture
certain products.
District-wise planning
& capacity building
programs will help
identify new
products & services
for exports & get the
benefits of policy to
grassroots.
EASE OF DOING
BUSINESS
Government is
moving towards self-
certification & online
approvals which will
enable entrepreneurs
even in smaller towns
to explore export
markets.
GREEN
TECHNOLOGIES
Emphasis has been
placed on promoting
manufacturing of
green, sustainable
products both for
domestic & export
markets.
DISTRICT LEVEL
PLANNING

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