India's Foreign Trade Policy aims for $2 trillion in exports by 2030

IAs global demand slumps and exports of goods are sharply declining, India's Foreign Trade Policy (FTP) was announced on March 31. India seems hopeful despite the World Trade Organization's (WTO) forecast that global trade will grow by only 1 percent in 2023 due to global uncertainty.

The policy is focused on boosting India’s exports to $2 trillion by 2030, with a shift from incentives to remission and an entitlement-based regime.

In spite of all the challenges many countries are facing, Piyush Goyal said India is a bright spot. The export market is expected to reach $2 trillion by 2030, according to me. This is India's moment and we will not lose it,” he said unveiling the policy.

Key measures have been introduced to tide over this dip and boost exports to tide over the dip. A sharp focus on emerging sectors for exports, such as e-commerce, developing districts as export hubs, internationalisation of trade in rupee, an amnesty scheme for a one-time settlement, and doing away with the five-year timeline for FTPs, making the policy dynamic with revisions to be done as and when required will be key steps in its aim to reach $2 trillion in exports. Merchanting trade reforms to boost merchanting activities from India is another announcement that industry players say will be significant in reaching these numbers.

According to Santosh Sarangi, Director General (DG), Directorate General of Foreign Trade (DGFT), India's economy remains in a relatively sweet spot amid global turmoil.

The prior FTP for 2015-2020 had aimed for an export target of $900 billion by 2020, which, along with the policy, was extended for three years. India is likely to end this fiscal year with total exports of $760-770 billion as against $676 billion in 2021-22. Minister Piyush Goyal insisted that India was “on the right path”.