The foundation of the FTP 2023 is made up of four pillars: growing regions, export promotion through collaboration, convenience of doing business, and incentives for remission.
Source: TwitterPrior FTPs prioritised compensating exporters based on their export performance. Transferrable scrips served as the reward. These might be employed to cover customs duty. Additionally, there were numerous exemption plans.
These essentially allowed duty-free imports of products as long as they were applied to the production of goods that were exported. Whether this was the best strategy to encourage exports was the subject of constant discussion.
As a violation of the terms of the Agreement on Subsidies and Countervailing Measures, the United States challenged the exemptions from or reductions in customs charges as well as the granting of freely transferable trademarks in the World Trade Organization (WTO) in 2019. (ASCM). India is a party to this agreement, which effectively prohibits member nations from providing export subsidies outside of specific circumstances.
The WTO ruled against India and determined that (i) the Merchandise Exports from India Scheme (MEIS), (ii) the Export Promotion Capital Goods (EPCG) Scheme, (iii) the Special Economic Zones (SEZ) Scheme, (iv) the Duty-Free Imports for Exporters Scheme (DFIS), and (v) the Export-Oriented Units Schemes and Sector-Specific Schemes are in fact in violation of ASCM. Although India appealed the ruling, corrective action has already been taken.
The necessity for trade facilitation is a key theme of the FTP. Through automated IT systems with risk management systems for multiple clearances in the new FTP, exporters are receiving more trust. The government also emphasises the necessity of fostering relationships based on trust and lowering litigation. To overcome export obligation default, the FTP 2023 introduces a unique one-time amnesty scheme.
Source: Study IQ IASExporters meet demand on a worldwide scale. The world economy will begin to strengthen. Exporters should prioritise quality, prompt delivery, and post-sale support. The India brand won’t be developed till then. It is crucial for our embassies abroad to make sure exporters have access to markets. This year, we anticipate exports to reach $760 billion. It is a challenging goal to export $1 trillion in goods and $1 trillion in services by 2030. Focus, dedication, and support have helped us reach higher goals. The whole trade balance, which is currently above $100 billion, must ultimately be reduced. That will be the exporters of India’s test.
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