Foreign Trade Policy 2023—progressive, growth-oriented, and right :TEXPROCIL Chairman Sunil Patwari
Mumbai : Sunil Patwari, Chairman, TEXPROCIL, praised the New Foreign Trade Policy 2023, saying, “The FTP 2023 provides continuity with a responsive framework and progressive, growth oriented,...
Mumbai : Sunil Patwari, Chairman, TEXPROCIL, praised the New Foreign Trade Policy 2023, saying, “The FTP 2023 provides continuity with a responsive framework and progressive, growth oriented, and in the right direction.”
Patwari highlighted the fact that the FTP 2023 has no end date and allows for any dynamic or real-time amendments as a major selling point. The exporters will be helped by the Policy’s emphasis on emerging areas like e-commerce and export hubs, as well as its transition from incentives to remission, its focus on Export Promotion through collaboration with exporters, states, districts, and Indian Missions, and its promotion of ease of doing business.
For one-time payment of export obligation defaults by Advance and EPCG authorisation holders, the FTP has introduced the New Amnesty Scheme. Boosting the ease of doing business and decreasing transaction costs for exporters, the government’s plan to digitise applications related to Advance Authorisation/EPCG/DFIA/Import & Export Licensing, automatic system-based approvals of applications, and reduction of application fee for Advance Authorisation & EPCG Schemes for MSMEs will provide a renewed thrust for new growth areas.
He also expressed his satisfaction with the government’s decision to revise the export performance threshold, which he believes will lead to improved public perception of Status Holder brands while cutting down on the fees paid by exporters.
Shri Patwari added that internationalising the Indian rupee would benefit from the recent push to make the currency a global one and from allowing international trade settlement in the domestic currency. Provision for merchanting trade has been introduced under FTP, which will make India a trade hub and increase merchanting activity from India. E-commerce exports, which are now eligible for FTP benefits, are expected to reach USD 200-300 billion by 2023.
While the FTP 2023 does take some steps in the right direction, such as addressing many of the challenges faced by exporters, there are still some areas that need to be addressed immediately in order to boost cotton textile exports.
Shri Patwari requested that the government increase the RoDTEP rates for certain categories of made-up products (Home Textiles) falling under Chapter 94 and extend the facility of duty-free imports of trimmings, embellishments, and fabrics. He also requested that the government remove the import duty on Raw Cotton and reinstate the Interest Equalization Scheme to its original levels of 3% for 410 items and 5% for SME units, in addition to cotton yarns and fibres.
