New FTP heralds major policy shift: IBT Newsletter, April 3-7, 2023

India's much awaited Foreign Trade Policy was finally released last week. Signaling the government's intent to achieve the US$ 2 trillion export target by 2030, the FTP notified some key policy decisions, including the RoDTEP scheme, doubling of permissible value for courier exports, merchanting and facilitation of rupee trade. At the same time, it also indicated the broad direction that trade policy is expected to take going forward.

Firstly, the FTP does not carry an end date, which means the government wants to retain the flexibility to make new announcements and incremental changes depending on the situation. This is pertinent considering the pace of disruption we witness across the global business landscape at present, which necessitates this flexibility.

Secondly, as has been aptly stated multiple times in the past, the government wants the industry to focus on competitiveness and not on incentives. It is truly the way forward if India aspires to be a global business hub. And finally, the FTP emphasised on the criticality of centre-state collaboration as it aims to identify potential export products and services in all districts and create institutional mechanisms to promote them.

Global trade declined in Q4, but there are some green shoots (literally!) in the data, that should provide room for optimism.

Two commodities are in focus this week. This week, India Business & Trade analyses the ongoing volatility in gold prices, global and domestic cues that are driving it, and the expected future trajectory. Steel is similarly hot with potential, especially with the government's plans for a sharp rise in capex post 2024.

In our perspectives section, Dr Vivek Suneja, Dean Faculty of Management Studies - University of Delhi and Member, Committee for Advanced Trade Research, TPCI, analyses gets into the brass tacks of strategy, and how it creates winning businesses.

Dr Sunitha Raju , Professor, Indian Institute of Foreign Trade and Member, Committee for Advanced Trade Research, TPCI, emphasizes on the need for new policy tools and objectives to ensure that digitisation works to address the specific needs of MSMEs.

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