Foreign Trade Policy to Motivate MSMEs: Industry

The Foreign Trade Policy was announced today by the government in order to boost exports amid slowing global trade. On this context, Nisschal Jaain, Founder and CEO, Shypmax - India’s first crossborder Logistics Platform as a Service (LPaaS) providing shipping solutions to B2B, B2C and C2C audiences, has shared an overview on this development.

Mr Jaain said, “Amid the interim slowdown in the otherwise booming global trade especially with regards to the Indian Exim landscape, the Foreign Trade Policy (FTP) 2023 provides the right impetus to EXIM, e-commerce, as well as logistics stakeholders to boost exports. The new policy entails the roadmap to take India's goods and services exports to $2 trillion by 2030. The move to focus on emerging areas like e-commerce and export hubs while promoting ease of doing business through collaboration with exporters, states, districts, and Indian Missions, is commendable. The decision to increase the value limit for exports through courier services from INR 5 lakh to INR 10 lakh per consignment, provides the much needed boost to the logistics sector. With this, the e-commerce exports are expected to grow to USD 200-300 billion by 2030.

By minimising the export license fees from around 100,000 to 5,000, MSMEs have been given their due share of relief. This will also expand the horizons of the export market in India and make India’s a far more competitive ecosystem. Another factor which strengthens India’s footing in the global market is the internationalisation of rupee which comes off as very beneficial for exporters. Their dependency on dollar pricing will start to decline. Additionally, 4 new towns of excellence along with 39 existing towns will focus on exports of handicrafts, handlooms supporting the small-scale artisans.

All in all, when these orders come into effect, logistics stakeholders including logistics players will witness a competitive environment in terms of export orders, trade and employment opportunities. This has to be the FTP of Amrit Kaal due to its focus on small and new-age businesses (e-commerce).”