To inspire exporters to dream big, the new Foreign Trade Policy (2022-27), expected to be announced later this week, is likely to feature a ‘vision statement’ laying the road-map for increasing India’s share in world trade to 10 per cent of global trade by 2047 and 3 per cent by 2027 from the existing 2.1 per cent, a source has said.
Other goals to be achieved over the next 25 years include building 100 Indian brands as global champions, attaining 10 per cent share in creative economy and niche products, supporting set up of economic zones outside India as an extension of ‘Aatmanirbhar Bharat’ initiative and creating Customs ‘ONE’ to provide import/export clearance within one hour of arrival at entry points/customs ports, according to a presentation made by the Commerce Department at the recent Board of Trade meeting.
“There will not be any big new scheme in the FTP 2022-27, providing fiscal support as input duty remission schemes, such as the RoDTEP and the RoSCTL are already in place, and one also needs to stay within WTO’s given parameters. But all efforts are being made to improve infrastructure support, cut down on costs, promote R&D, improve e-commerce and prop up MSMEs through the new policy, in step with the policy vision. Pharmaceuticals, gems and jewellery, marine and & agriculture, textiles, leather, engineering goods, electronics & telecom products and chemicals will be focus sectors for scaling up production and exports,” per the vision document.
“Becoming top 3 in global services trade in tourism, IT & ITES, business services and financial services including fintech, healthcare & wellness, education & AV services,” is another priority listed in the document for the next 25 years.
India achieved goods and services exports worth $650 billion in 2021-22 and the Commerce Department has targeted exports worth $2 trillion by 2030. The goals in the vision statement is in line with this,” the source said.
The new five-year FTP was to be announced in 2020 but got delayed due to the Covid-19 disruptions. It will now be implemented from October 1, and is likely to be for a full five-year period, till 2027, to give the much-needed policy stability to exporters.