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Introduction: Redefining India's Trade Ambitions
Foreign trade has always been a cornerstone of India's economic policy, shaping not only the country's global integration but also its domestic industrial growth. Traditionally, India's foreign trade policies were framed with fixed timelines, usually five years, offering exporters and importers a sense of predictability, but they often struggled to keep pace with shifting global dynamics. Against this backdrop, the Foreign Trade Policy 2023 (hereinafter referred to as "FTP 2023"), notified on 31 March 2023 and effective from 1 April 2023, represents a structural shift in approach. It abandons the fixed-term model and embraces an openended, flexible framework designed to evolve with emerging trade realities.
What makes FTP 2023 particularly significant is its pivot from an incentive-led regime to a remission-based system that seeks to align with WTO commitments while making Indian exports more competitive. The policy is anchored in four broad pillars, promoting ease of doing business through greater digitalisation and process automation, boosting collaboration between government and industry, nurturing new growth avenues such as e-commerce exports and export hubs, and broadening participation by supporting MSMEs and new towns of export excellence. Together, these measures signal an intent to create a trade ecosystem that is not only more efficient but also more inclusive.
The policy also reflects India's long-term ambition of scaling up merchandise exports to USD 1 trillion by 2030. By rationalising thresholds for export house recognition, streamlining authorisations under schemes, and extending parity of benefits to e-commerce exporters, FTP 2023 widens the base of participants in global trade. At the same time, initiatives such as merchanting trade facilitation, recognition of new districts as export hubs, and targeted support for green and high-tech exports point towards a vision of building future-ready capabilities. In essence, FTP 2023 is not just a policy document but a roadmap that combines flexibility, innovation, and responsiveness to drive India's export growth in a rapidly changing world.
Evolution from past FTPs: A Strategic Shift
India's FTP has evolved from being static and tenure-bound to becoming dynamic, digital, and globally aligned. The transition from FTP 2015–20 to FTP 2023+ marks a strategic reorientation in how trade is facilitated, monitored, and expanded.
| Feature | FTP 2015–20 | FTP 2023+ |
| Tenure | Fixed for 5 years | Open-ended, responsive to change |
| Mode | Static policy book | Dynamic, portal-driven and interactive |
| Focus | Primarily physical exports | Physical + e-commerce + services |
| Schemes | MEIS, SEIS (incentive-heavy, WTO-challenged) | RoDTEP, remission-based, sectoral tweaks |
| Monitoring | Limited, manual reporting | Data-led trade dashboards, real-time analytics |
The scope of coverage has widened, with the now there being equal focus on e-commerce, digital trade, and services. Alongside this, WTO-challenged schemes like MEIS and SEIS have been phased out, replaced by remission-based mechanisms such as RoDTEP that are globally compliant yet competitive. Monitoring too has been transformed, from manual oversight to datadriven trade intelligence that supports sharper policy responses.
Thus, the transition from FTP 2015–20 to FTP 2023 embodies a calculated pivot toward flexibility, digital integration, and broader inclusivity, equipping India's exporters to navigate global trade complexities more effectively.
General Provisions Regarding Imports and Exports
Chapter 2 of the Foreign Trade Policy 2023 outlines the foundational rules governing India's imports and exports. It establishes that most goods and services are freely tradable unless specifically prohibited, restricted, or reserved for State Trading Enterprises, as detailed in the Indian Trade Classification (Harmonised System). The chapter emphasises compliance with domestic laws, technical standards, and quality norms, while providing exemptions for inputs used in export manufacturing under schemes such as Advance Authorisation, EOU, and SEZ. It details the mandatory documentation for import and export transactions, principles for imposing restrictions, and the process for obtaining and maintaining an Importer-Exporter Code (IEC).
Special provisions address trade prohibitions with specific countries and entities, import policies for second-hand goods and metallic scrap, and procedures for bonded warehousing, merchanting trade, and lease financing. Para 2.31 of the FTP lays down the following restrictions and conditions for the import of second-hand goods:
| SI. | Categories | Import Policy | Conditions |
| I(a) | Desktop Computers; Refurbished/ reconditioned spares of PCs/Laptops; Air Conditioners; Diesel generating sets | Restricted | Importable against Authorisation |
| I(b) | All electronics and IT Goods notified under Electronics and IT Goods (Requirements of Compulsory Registration) Order, 2021 | Restricted |
(i) Importable against restricted import authorization as per Order 2021 (ii) Unregistered/non-compliant products - Prohibited |
| I(c) | Refurbished/ reconditioned spares of Capital Goods | Free | Chartered Engineer certificate required - spares must have at least 80% residual life |
| I(d) | All other second-hand capital goods | Free | - |
| I(e) | Used IT Assets (laptops, desktops, monitors, printers) - SEZ to DTA | Restricted |
Free if:
|
| II. | Second Hand Goods (other than capital goods) | Restricted | Importable against Authorisation |
| III. | Second Hand Goods for repair/ refurbishing/ reconditioning/ re-engineering | Free | Waste treated per domestic laws; item must be re-exported per Customs Notification |
The chapter also covers export facilitation measures, including third-party exports, export of samples, gifts, passenger baggage, and replacement or repaired goods. Payment and receipt mechanisms, including INR settlement and export credit insurance, are explained, along with the roles of Export Promotion Councils and the Registration-cum-Membership Certificate (RCMC). Finally, it describes grievance redressal, policy interpretation, and exemptions, ensuring that trade is regulated, compliant, and responsive to evolving global and domestic requirements.
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