The Directorate General of Foreign Trade (DGFT) has made changes to the Foreign Trade Policy (FTP) 2023 to increase involvement from businesses and experts in shaping trade policies.
Here's a simple explanation:
What is the DGFT? It's a government organization in India that handles foreign trade policies.
What is the FTP 2023? It's India's plan for how it will handle imports and exports.
What are the key changes? The DGFT has added new rules that require the government to consult with stakeholders before making changes to trade policies.
Who are the stakeholders? Importers (those who bring goods into India), exporters (those who send goods out of India), and industry experts.
Why are these changes being made? To improve the "Ease of Doing Business" by getting input from those directly affected by trade policies.
What are the new rules about?
Mandatory Consultations: The government must now talk to stakeholders before changing any trade policies.
Feedback Mechanism: The government must explain why they accepted or rejected feedback from stakeholders.
Suo Moto Decisions: The government can still make quick decisions on its own in urgent situations.
What are the main goals of the FTP 2023?
Incentive to Remission: Providing benefits and reducing taxes for exporters.
Export Promotion through Collaboration: Working with other countries and organizations to boost exports.
Ease of Doing Business: Making it easier for businesses to trade internationally.
Emerging Areas like E-commerce: Focusing on new areas of trade, such as online sales.
What is the long-term goal for exports? To increase India's total exports to $2 trillion by 2030.
What growth rates are needed to achieve this?
Goods: 10.86% annual growth.
Services: 17.15% annual growth.
Overall export growth target: 13.23% per year.
Why is feedback important? It helps the government make better policies that address real-world challenges faced by businesses. It also makes the policy more adaptable to changing market conditions.
In simple terms: The Indian government is making it easier for businesses involved in importing and exporting to have a say in how trade policies are made. They are now required to consult with these businesses before making changes and explain how they used the feedback they received. This is all part of a larger plan to boost India's exports and make it easier to do business internationally.