Question 1 · 175 words written
Opening · a figure
India's foreign trade consists of 18% of total GDP. With recent Foreign Trade Policy 2023, India aims to achieve 3 trillion USD of exports by 2030, which will be a significant contribution to GDP.
Body · points
Potential of Foreign Trade Policy 2023
- Creation of Towns of Export Excellence ↳ To promote export of specialised products with high global demand.
- Integrated digital technology in export process → promote e-Commerce based export.
- Streamline tax framework → to ensure zero-rated export & global competitiveness.
- Focus on export of capital goods ↳ higher earnings & more employment generation.
- Focus on free trade agreements to boost exports.
Challenges -
- Limited value addition focus
- Need of diversification of export destinations - explore South America & African market
- Need to promote MSMEs, which contributes to 40% of export.
- Other logistics & infrastructure related issues not addressed.
Close · a way forward
However, Foreign Trade Policy 2023 complemented with National Logistics Policy, Bharatmala & Sagarmala like schemes will boost exports in coming years to achieve 5 trillion $ economy.