Foreign Trade Policy 2023 Highlights: Key Features & Updates
India’s Foreign Trade Policy 2023 Highlights reflect a shift towards easier trade procedures, technology-driven processes, export promotion and stronger collaboration between exporters, states, districts and Indian Missions.
Launched on 31 March 2023 and effective from 1 April 2023, the Foreign Trade Policy (FTP) 2023 was designed as a dynamic and open-ended policy framework rather than a policy with a fixed expiry date. The policy can be revised when required to respond to changing trade conditions and industry requirements.
The policy aims to make Indian exports more competitive by reducing transaction costs, simplifying procedures, expanding digital processes and supporting emerging areas such as e-commerce exports and high-end technology trade.
What is the Foreign Trade Policy 2023?
The Foreign Trade Policy 2023 is India’s framework for regulating and facilitating international trade. It provides the policy direction for imports and exports and lays down measures intended to make international trade easier for Indian businesses.
Unlike a policy that remains unchanged for a fixed period, FTP 2023 was designed to be responsive to the changing needs of exporters and the global trading environment. The government can introduce amendments and updates whenever required.
The policy is administered primarily through the Directorate General of Foreign Trade (DGFT) under the Department of Commerce.
When did Foreign Trade Policy 2023 come into effect?
Foreign Trade Policy 2023 was launched on 31 March 2023 and came into effect from 1 April 2023.
One important point is that FTP 2023 should not be understood as a policy that automatically ends after a fixed five-year period. At launch, the government described it as dynamic and open-ended, with revisions to be made whenever necessary.
What are the four pillars of Foreign Trade Policy 2023?
The Foreign Trade Policy 2023 highlights are built around four broad pillars:
- Incentive to Remission
- Export promotion through collaboration
- Ease of doing business and reduction in transaction costs
- Emerging areas such as e-commerce, Districts as Export Hubs and SCOMET
These pillars represent the policy’s broader approach towards facilitating exports rather than relying only on traditional incentive-based measures.
1. Incentive to Remission
FTP 2023 focuses on facilitating exports through remission-based mechanisms and continuing established export facilitation schemes.
Schemes such as RoDTEP, Advance Authorisation and EPCG remain important parts of India’s export ecosystem, subject to their respective rules, notifications and amendments.
Exporters should therefore check the latest DGFT notifications and applicable scheme conditions rather than relying only on the original 2023 policy text.
2. Export promotion through collaboration
FTP 2023 places greater emphasis on collaboration between:
- Exporters
- State governments
- District administrations
- Export Promotion Councils
- Indian Missions abroad
- Other trade and industry stakeholders
This approach recognises that export growth is not limited to central government policy. Local products, manufacturing clusters and district-level capabilities can also contribute to India’s export growth.
3. Ease of doing business and digital processes
One of the major Foreign Trade Policy 2023 highlights is the emphasis on technology, automation and process re-engineering.
The policy aims to reduce manual intervention and transaction costs through online systems, automated processes and risk-based approaches.
For exporters, this can mean:
- More online applications and approvals
- Reduced paperwork
- Greater use of electronic records
- Automated or system-based processes
- Risk-based scrutiny
- Lower transaction costs
The policy also continued the move towards a more paperless and technology-enabled export environment.
Automatic Status Holder recognition
A notable development under FTP 2023 was the introduction of system-based automatic Status Holder certificates.
In October 2023, DGFT announced that eligible exporters could receive Status Holder recognition based on available electronic export data and applicable risk parameters, reducing the need for a separate manual application.
4. Emerging areas of international trade
FTP 2023 gives specific attention to areas that are becoming increasingly important in global commerce.
These include:
- E-commerce exports
- Developing Districts as Export Hubs
- SCOMET policy
- High-end and dual-use technologies
- Merchanting trade
This reflects the changing nature of international trade, where digital commerce, technology products and cross-border supply chains are becoming increasingly significant.
What does FTP 2023 say about e-commerce exports?
E-commerce is an important part of the policy’s emerging-area focus.
The government has worked towards bringing e-commerce exporters within the broader export-promotion ecosystem and supporting district-level e-commerce exports through collaboration among government departments, logistics providers, banks, e-commerce platforms and other stakeholders.
This is particularly relevant for MSMEs and small businesses that want to access international customers without relying entirely on traditional export channels.
What are Districts as Export Hubs?
The Districts as Export Hubs initiative aims to identify products and services with export potential in different districts and address the challenges that prevent them from reaching international markets.
The approach focuses on:
- Identifying export-potential products
- Addressing local bottlenecks
- Supporting exporters and manufacturers
- Improving market access
- Encouraging local businesses to participate in international trade
The initiative is intended to make districts active participants in India’s export growth.
How does FTP 2023 support Towns of Export Excellence?
FTP 2023 continues the Towns of Export Excellence (TEE) approach, under which towns with significant production and export capabilities can receive recognition and support.
The objective is to strengthen established export clusters and help them improve their global competitiveness.
The policy also encourages recognition of exporters through the Status Holder Scheme.
What is the Amnesty Scheme under FTP 2023?
One of the major measures announced with FTP 2023 was a one-time Amnesty Scheme for exporters with certain pending export obligations under old authorisations.
The objective was to allow eligible exporters to close legacy matters and move forward with their businesses.
However, this was a time-bound, one-time measure introduced with the launch of FTP 2023. It should not be presented as an ongoing general facility for exporters in 2026.
Therefore, exporters dealing with old authorisations should check the latest DGFT provisions rather than assuming that the original Amnesty Scheme is still open.
How did FTP 2023 change Advance Authorisation and EPCG processes?
FTP 2023 continued established schemes such as Advance Authorisation and EPCG, while placing greater emphasis on automation and process simplification.
Advance Authorisation enables eligible exporters to import inputs without payment of customs duty, subject to the applicable conditions and export obligation requirements.
The policy also introduced greater use of technology and searchable databases to make the process of fixing and applying input-output norms more efficient.
Importantly, these schemes are subject to subsequent DGFT notifications and amendments. Exporters should always verify the latest applicable provisions before making commercial decisions.
What is the role of SCOMET under FTP 2023?
SCOMET stands for Special Chemicals, Organisms, Materials, Equipment and Technologies.
FTP 2023 focuses on streamlining the SCOMET framework, particularly for high-end and dual-use technologies.
The objective is to facilitate legitimate exports of sensitive technologies while maintaining the necessary controls over items that may have strategic or security implications.
How does FTP 2023 support merchanting trade?
FTP 2023 introduced provisions aimed at facilitating merchanting trade from India.
Merchanting trade generally involves an Indian intermediary purchasing goods from one foreign country and arranging their sale to another foreign country without the goods necessarily entering India.
The policy framework was intended to help position India as a merchanting trade hub, subject to applicable restrictions and regulatory requirements.
What are some important FTP 2023 updates after its launch?
An important point for exporters is that FTP 2023 has continued to evolve after its original launch.
For example, in March 2026, DGFT amended Para 9.05 of FTP 2023 to remove the ₹10 lakh per-consignment value limit for exports through courier service, with effect from 1 April 2026. The exportability of goods continues to be governed by the applicable FTP and export policy provisions.
In April 2026, DGFT also amended Para 2.62 relating to the issuance of Certificates of Origin, including provisions concerning authorised agencies and electronic processes.
These updates demonstrate why exporters should treat FTP 2023 as a continuously updated framework, rather than relying solely on the original policy announced in 2023.
Why is Foreign Trade Policy 2023 important for exporters?
The policy is important because it affects the way Indian businesses approach international trade, including:
- Export authorisations
- Export promotion schemes
- Duty remission and exemption mechanisms
- Digital trade processes
- E-commerce exports
- Exporter recognition
- District-level export development
- Technology and SCOMET exports
- Merchanting trade
- Import and export policy conditions
For exporters, understanding the policy is only the first step. The applicable DGFT notifications, public notices, Handbook of Procedures and scheme-specific conditions should also be checked before acting on any provision.
What should exporters keep in mind in 2026?
The most important takeaway from the Foreign Trade Policy 2023 Highlights is that FTP 2023 is not a static document.
Its provisions can be amended in response to economic conditions, industry requirements and changes in international trade.
For example, recent DGFT notifications continue to refer to FTP 2023 “as amended from time to time”, demonstrating that exporters need to monitor current notifications rather than rely only on information published at the policy’s launch.
Before claiming an export benefit or following a particular procedure, businesses should verify:
- The latest FTP provision
- The applicable Handbook of Procedures
- Relevant DGFT notifications or public notices
- ITC(HS) export/import policy conditions
- Scheme-specific eligibility requirements
- Applicable Customs and other regulatory requirements
How can exporters manage foreign exchange while handling international trade?
Foreign exchange is another important consideration for businesses involved in exports and imports.
Exchange-rate movements can affect the value of export receipts, import payments and overall trade margins. Businesses should therefore monitor relevant currency rates and understand their foreign-exchange exposure.
For reference-rate and market intelligence, IBRLIVE’s FXPRESS platform provides live interbank reference rates, forward premiums and related foreign-exchange information. It is intended as a reference and information platform and does not itself book or execute currency forward contracts.
You can also explore IBRLIVE’s resources on:
- RoDTEP and RoSCTL: RoDTEP & RoSCTL services
- E-BRC and export realisation: Print E-BRC and understand the process
- Exchange Rate API: IBRLIVE Exchange Rate API
- FXPRESS: IBRLIVE FXPRESS
Frequently Asked Questions
What is the Foreign Trade Policy 2023?
Foreign Trade Policy 2023 is India’s framework for regulating and facilitating international trade. It focuses on export promotion, ease of doing business, digital processes, collaboration and emerging areas such as e-commerce and SCOMET.
When was FTP 2023 launched?
FTP 2023 was launched on 31 March 2023 and came into effect on 1 April 2023.
Is Foreign Trade Policy 2023 still applicable in 2026?
Yes. FTP 2023 continues to serve as the operative policy framework, with amendments and updates issued from time to time. Recent DGFT notifications in 2026 continue to amend provisions of FTP 2023.
What are the four pillars of FTP 2023?
The four pillars are Incentive to Remission; Export Promotion through Collaboration; Ease of Doing Business and reduction in transaction costs; and Emerging Areas, including e-commerce, Districts as Export Hubs and SCOMET.
Does FTP 2023 have a fixed expiry date?
No. The government described FTP 2023 as a dynamic and open-ended policy, with changes to be introduced whenever required.
What is the Districts as Export Hubs initiative?
It is an export-promotion initiative that identifies products and services with export potential at the district level and works to address local barriers to international trade.
What is SCOMET?
SCOMET stands for Special Chemicals, Organisms, Materials, Equipment and Technologies. It governs the export of specified sensitive and dual-use items and technologies.
What was the Amnesty Scheme under FTP 2023?
The Amnesty Scheme was a one-time measure introduced with FTP 2023 to help eligible exporters close certain pending obligations under old authorisations. It should not be treated as an ongoing 2026 scheme.
Conclusion
The Foreign Trade Policy 2023 Highlights show a clear move towards technology-driven trade facilitation, lower transaction costs, export promotion through collaboration and support for emerging areas such as e-commerce and advanced technology.
For exporters, the most important point is that FTP 2023 is dynamic and continues to be amended. The original 2023 policy provides the foundation, but current DGFT notifications, public notices and applicable procedures determine how specific provisions operate today.
Businesses involved in exports and imports should therefore monitor DGFT updates regularly and evaluate each export incentive, authorisation or trade procedure against the latest applicable rules.
Official reference: DGFT – Foreign Trade Policy