Conventionally typecast as an import-dependent country with limited exports and consequent high trade deficit, India has been trying hard to break free from this stereotype lately. The long-delayed rollout of the Foreign Trade Policy (FTP) of India, 2023, can still be said to be a timely move. The new FTP holds relevance in two contexts — India’s newfound ambition to dominate the export market and the slump in global trade. It would be interesting to see how the policy adapts to these aspects. The FTP has set for itself an ambitious target of USD 2 trillion exports by 2030, with equal emphasis on services and merchandise trade. For the sake of comparison, the combined goods and services exports for FY23 are projected to stand at USD 770 billion — substantively lower than the envisaged target of FTP 2015-20 to boost exports from USD 465 billion in 2013-14 to USD 900 billion in 2019-20. Notably, by the end of FY 2019-20, India’s combined export stood at USD 527 billion. Against this backdrop, from a policy perspective, one expected a more targeted and sector-specific approach for the fulfilment of the lofty objectives. The FTP document falls short on this front. A more well-defined roadmap could have made the path of implementation smoother and optimally productive. Interestingly, the trade policy, this time around, has come without the five-year deadline — a decision that has been welcomed by exporters with open hearts. On one hand, this move has lent some degree of certainty to the exporters as they no longer need to worry about the discontinuation of beneficial schemes like RoDTEP (Remission of Duties and Taxes on Exported Products) and RoSCTL (Rebate on State and Central Taxes and Levies). This will instil confidence in them to do their business without any hassles. At the same time, the government’s decision to collect inputs from various stakeholders towards revising the policy continuously will make the process inclusive and dynamic. Amid the fast-evolving world, it is indeed reassuring to see a trade policy framework that has the scope to incorporate market dynamics in a more synchronised manner. Additionally, this will also leave the Indian market well-placed to absorb global shocks in future — the likelihood of which cannot be ruled out. Another striking feature of the new FTP has been the shift from fiscal incentives to a regime of duty remission and exemption schemes which would facilitate duty-free imports of inputs while being compliant with WTO norms. The FTP has also come up with a one-time Amnesty Scheme which will provide relief to exporters who have been unable to meet their obligations under Export Promotion Credit Guarantee (EPCG) and Advance Authorisations (AA) schemes and is expected to lead to faster dispute resolution. Furthermore, the introduction of merchanting trade reforms, permitting Indian intermediaries to move shipment of goods from one foreign country to another without touching Indian ports, will enable trade in restricted items. Another unmistakable focus of the FTP 2023 has been on Medium and Small Enterprises (MSMEs). This is one area that truly has the potential to transform India’s export landscape while increasing employment prospects domestically. Apart from reducing user charges for MSMEs under Advance Authorisations and EPCG scheme, the new FTP has also brought down the threshold of minimum exports required for the recognition of exporters as Status Holders, which comes with its own set of benefits. The FTP also seems very optimistic and passionate about increasing the share of e-commerce exports to the overall basket. Furthermore, four towns — Faridabad for apparel, Moradabad for handicrafts, Mirzapur for handmade carpets, and Varanasi for handloom and handicrafts — have been added to the list of 39 towns that enjoy the status and perks of being Towns of Export Excellence (TEEs). Emphasis on promoting districts as export hubs, refinement of Special Chemicals, Organisms, Materials, Equipment and Technologies (SCOMET) licensing procedure, and expansion of CSP and EPCG schemes are also among the major highlights of the FTP. In totality, the FTP 2023 is a promising document that seeks to align itself with the changing nature of trade and commerce. Sector-specific interpretations and due vigilance are needed to ensure the successful implementation of the policy document.