A topper · GS3 · 48 pages

Sandeep Singh Shekhawat: GS3 answer copy

20 answers by Sandeep Singh Shekhawat, as written in the test. Each question opens a page with how other toppers answered it.

The questions

The answers

Question 1 · 10 marks · 252 words written

Foreign trade is an important milestone on the path of becoming a 5 trillion USD economy. In this context, analyse the potential of the recently released Foreign Trade Policy, 2023 in revamping India's participation in global trade.

Opening · a restatement

Foreign trade is a vital driver of economic growth. As India aims to become a 5 trillion USD economy, trade policy plays a critical role in enhancing competitiveness and export capacity. The Foreign Trade Policy (FTP) 2023 marks a significant shift from incentive-based to remission-based schemes.

Body · points

Potential of FTP 2023 in Revamping Participation

  1. Shift towards Ease of Doing Business:

    • FTP 2023 focuses on process re-engineering and automation, reducing transaction costs and time for exporters.
    • Transitioning from an incentive-based regime to a remission-based regime (e.g., RoDTEP) complies with WTO norms, ensuring sustainable export growth.
  2. Export Hubs and Decentralization:

    • By emphasizing 'Districts as Export Hubs', the policy aims to tap into the potential of grassroots-level manufacturing, promoting indigenous products and local clusters.
  3. Trade Promotion through Collaboration:

    • It encourages cooperation between state governments and exporters, addressing local-level bottlenecks and infrastructure gaps.
  4. E-commerce and Digitization:

    • The policy gives a major push to e-commerce exports through designated e-commerce hubs and simplified courier services, helping MSMEs reach global markets directly.
  5. Focus on Emerging Sectors:

    • By identifying 'Towns of Export Excellence' and focus areas like green hydrogen and renewable energy, India aims to align its exports with global demand shifts.

Conclusion

Close · a way forward

While the FTP 2023 provides a robust framework, the true impact depends on the effective implementation of infrastructure improvements (logistics) and addressing supply-side constraints. Continued focus on trade facilitation and international cooperation will be vital for India to significantly increase its share in global trade.