India aims to achieve an ambitious goal of $2 trillion in annual exports by 2030 and position itself as a global trading hub akin to Dubai and Singapore, which facilitate trade between producers and consumers by relying on their infrastructure and business-friendly environment.
The government’s new Foreign Trade Policy (FTP) 2023 aims to develop India as a significant merchanting trade hub by incorporating rules for such trade. Merchanting trade involves the shipment of goods from one foreign country to another foreign country through an Indian intermediary but without touching Indian ports.
“Third-party exports are a big exporting activity in places like Dubai, Singapore and Hong Kong. Because we didn’t have a clear policy on how merchanting trading would happen for restricted and prohibited items, RBI and bankers were reluctant to deal with this. We, for the first time ever, are putting an explicit provision in our FTP for merchanting trade," director general of foreign trade (DGFT) Santosh Kumar Sarangi told reporters on Friday after unveiling the policy. “Using these intermediaries based in India can export items from a second country to a third country without touching ports of India. This is likely to help India in making itself a big trading hub in the future," Sarangi added.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Quick Edit: The market's green role
The world needs to bend its rising curve of carbon emissions, a goal that's proving elusive. Adding to the challenge, US climate policy is likely to flip back into neglect mode next year.
Growth shouldn't suffer for want of a market fix
Packaged food companies should drive a food-processing revolution and run a campaign for substitution of fresh-veggie demand. It'll crush price volatility and open up space for rate cuts
We should reform import tariffs to boost Make in India!
Tariff reforms to resolve duty inversions can arrest the 'cost competitiveness leak' of Indian manufacturing
Trying to quantify everything may worsen human decisions
'Quantification fixation' is real—and we should learn to resist it
Hope has sprung anew amid the thick haze hovering over COP-29
The climate summit has seen rules being ratified for a carbon market, progress on finance and high corporate participation
Trump's return is set to send the world scouting for fresh options
His confrontational stand on issues will ruffle feathers and make nations review their alignments
Why national pride has not helped clean up Delhi's air
A sense of shame was expected to get it done. That hasn't worked. Do we lack the will and talent?
SEBI CAN DO MORE TO DISSUADE RETAIL F&O SPECULATION
A recent Securities and Exchange Board of India (Sebi) report highlighted the significant losses individual traders have incurred in the equity futures and options (F&O) segment between FY22 and FY24.
Is filing ITR in old regime still valid?
I am with the Indian Army. Until last year, we received Form 16 under the old tax regime, including allowances such as HRA, travel and uniform.
Avoid common mistakes in NRO, NRE accounts: A guide for NRIs
Tips on using NRE and NRO accounts to effectively manage funds, repatriate money and remain tax-compliant
