The newly launched Foreign Trade Policy in India, which was presented by Union Minister of Commerce and Industry Piyush Goyal, is expected to assist the pharmaceutical industry in retaining its dominant status in international markets.
The Indian government believes that the recently implemented Foreign Trade Policy will aid in achieving the target of $2 trillion in exports by 2030. The policy stresses the importance of promoting and regulating commerce. To ensure exporters and importers have stability and continuity amid the rapidly changing geopolitical landscape, the policy has excluded the sunset clause and end period.
Dr. Sanjit Singh Lamba, who manages Trillyum Consulting, states that the newly introduced Foreign Trade Policy 2023 will enhance the resilience of India's exports in the global trade environment, and increase India's market share.
The primary focus of FTP 2023 is to make the policy more adaptable to changing dynamics, intending to establish the Indian Rupee as a global currency and enable international trade settlements in Indian Rupees. This policy is expected to make India a leader in specific sectors, including pharmaceuticals, engineering goods, and textiles. Although no specific benefits have been introduced for the pharmaceutical industry, the policy will create competition and facilitate a more business-friendly environment, resulting in reduced uncertainty and increased continuity and stability in India's trade. According to Dr. Lamba, this policy might lead to increased trade in the UAE and Australian regions, based on recent Free Trade Agreements.
According to pharma specialist Kaushik Desai, the new policy has arrived at a convenient time. Despite the ongoing global economic downturn, the policy is well-positioned to achieve its objectives with minimal difficulties. Although the Indian pharmaceutical industry saw a 2.62 percent decrease in February 2023, with sales reaching $1.99 billion compared to $2.04 billion reported in the same period the previous year, the industry is hopeful.
Sunil Attavar, former president of the Karnataka Drugs and Pharmaceutical Manufacturers Association, expressed his belief that the Foreign Trade Policy 2023 is well-designed to meet the requirements for future export growth. He found the emphasis on process re-engineering and automation to be particularly encouraging. These changes would enhance compliance while also allowing businesses to focus on their primary operations, making access to export incentives more straightforward and increasing competitiveness, ultimately resulting in higher export revenues.
According to the Ministry of Commerce, the new Foreign Trade Policy includes several additions, such as E-commerce, the internationalization of the Indian Rupee, the creation of District Export Hubs, and Merchanting Trade reform. Additionally, a one-time Amnesty Scheme has been introduced under the FTP 2023 to settle tax disputes amicably, following the government's Vivaad se Vishwaas initiative. The scheme is available from April 1 to September 30, 2023, to address default on export obligations by closing old pending authorizations and starting anew.