New Delhi [India], March 31 : The Foreign Trade policy (FTP) 2023, which was released on Friday will make exporters more competitive, said Santosh Sarangi, the Director General of Foreign Trade (DGFT).
Talking to on the sidelines of the release of FTP 2023, Sarangi said, "Our exporters should adopt the principles of self-reliant India and try to be competitive in the global market. It has also been seen that incentives were given to exporters, but if the people in the supply chain do not work to straighten them, then there is no impact. So there is a lot of thrusts given on Production Linked Scheme (PLI), National Logistics Policy".
"Gradually our suppliers will be more competitive and our logistics cost will come down. This will make our exporters more competitive globally. If you see the last two-and-a-half years, more thrust has been given on this," he added.
Talking about the focus given on trading in India Rupee by the foreign countries in FTP 2023, Sarangi said that at present, special Vostro accounts are being opened with the approval of the RBI and the Central Bank of that country.
"Around 30 Vostro accounts have been opened in 60 banks in 18 countries. As soon as this special Vostro account is opened, the importers and exporters will come to know about it and transactions in rupee will increase," he said.
He further added, "International Trade Settlement in INR allowed and changes introduced in the FTP 2023 for grant of export benefits and fulfilment of export obligation for export realizations in INR as per RBI".
The FTP 2023 has also talked about formulating policies for e-commerce export hubs.
Talking about the e-commerce export hubs, Sarangi said, "An inter-ministerial committee is working for e-commerce. The officials from the Department of Revenue, Department of Posts, and Commerce Ministry are working together on this".
"The idea behind the e-commerce export hub is to facilitate processing, packaging, and to simplify the return policy, how to facilitate its banking channel," he added.
FTP 2023 estimates have suggested that e-commerce exports are expected to grow to 200-300 billion USD by 2030.
"Designated zone with warehousing facility to be created, designed to help e-commerce aggregators for easy stocking, customs clearance and returns processing. Processing facility to be allowed for last mile activities such as labelling, testing, and repackaging. Simplified return process into the zone," the FTP 2023 stated.
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