Government vows swifter nod for exporters
#GS03
Context:
- New foreign trade policy aims at tripling goods and services exports by 2030; apart from a one-time amnesty, no major schemes announced
Points to ponder:
- The Government of India revealed a new Foreign Policy that shifts away from giving incentives to exporters while lowering a few costs for smaller firms and promising faster approvals, as well as a one-time amnesty plan for export duty defaults. The new strategy will go into effect in 2023-24, to nearly triple India’s goods and services exports to $2 trillion by 2030, up from an expected $760 billion in 2022-23.
- New growth Areas: The strategy has included “merchanting trade” within its ambit, opening up a new field of possible exports. Exporters in India can obtain products from another nation and ship them to a third country without leaving Indian territory. This will also allow for the export of prohibited products.
- One-year amnesty: Exporters who have failed to meet their responsibilities under the EPCG and advance authorization programs. This is the first amnesty plan since 2011-2012, and it can assist exporters in meeting unfulfilled duties and increasing shipments in the future.
- A special advance approval system for the clothing and textile industry is being introduced for them to respond to market demands and fashion trends more quickly. Other methods for recognizing exporters, such as star ratings, will be redesigned to reduce qualifying thresholds.
- Four Uttar Pradesh cities, Faridabad, Moradabad, Mirzapur, and Varanasi, have been designated as hubs of international excellence for their success in apparel, handicrafts, handmade carpets, and handlooms, respectively. As a result of the new trade strategy, all PM Mitra textile farms will be qualified for benefits as common service providers.
