Criticisms of Foreign Trade Policy 2023

Criticisms of Foreign Trade Policy 2023

News: This article is in continuation of recently covered FTP 2023 and highlights criticisms of the same.

What are main points citing issues with FTP 2023?

Basis of criticism	Description
On the lines of 1992 Foreign Trade Act	The FTP is notified by the Central Government under the Foreign Trade (Development & Regulation) Act, of 1992. However, this act still focuses on regulating and restricting trade, rather than facilitating it.
Lack of focus on Quality and Efficiency	It continues to rely on export incentives rather than improvements in product quality and production efficiencies, which are the new trade policy instruments.
Restrictions on the Directorate General of Foreign Trade (DGFT)	It still imposes import “prohibitions” or “restrictions” on the DGFT, instead of reducing its regulatory functions and making it a facilitator.
Inclusion of e-commerce	Sends wrong signals that India is ready to engage with WTO in this context
Developing Districts as Export Hubs	The new policy lacks commitment and necessary efforts to support the infrastructure component of the programme to develop Districts as export hubs.
Failure to address weakness of RoDTEP Scheme	The scheme exempts or gives back the taxes and levies (levied on the exported products) to the exporters. It fails to address the lower-than-desirable rates of remission of duties under the RoDTEP scheme