Foreign Trade Policy 2023-28: Key Benefits and Opportunities for Indian Exporters

India's Foreign Trade Policy 2023-28 (FTP 2023) is not just a government document - it is the most comprehensive framework of export benefits, duty incentives, and trade facilitation measures available to Indian businesses today. Launched on April 1, 2023, by the Ministry of Commerce and Industry, the FTP 2023 represents a transformative shift in how India supports its exporters - moving away from the older incentive-driven model towards a facilitation-first, collaboration-led, and technology-powered ecosystem.

With the headline target of growing India's total exports to USD 2 trillion by 2030, the foreign trade policy india 2023-28 packs in a rich array of benefits: duty exemption and remission schemes, upgraded export promotion tools, a one-time amnesty scheme for pending obligations, expanded e-commerce export support, new district-level export initiatives, and significantly streamlined compliance processes - all with no fixed end date, making it a living policy that evolves with global trade realities.

For Indian exporters - whether you are a large manufacturer, an MSME, an e-commerce seller, or a first-time exporter - understanding and accessing every benefit under the india ftp 2023 export benefits framework is the difference between leaving money on the table and maximising your export profitability.

This comprehensive guide by Law Exim - among the most trusted foreign trade policy consultants india has to offer - explains every key provision, scheme, and opportunity under the FTP 2023-28 that matters to your business.

What Is the Foreign Trade Policy 2023-28?

The Foreign Trade Policy 2023-28, formally notified by the Ministry of Commerce and Industry on March 31, 2023, governs all aspects of India's import and export trade. It is implemented by the Directorate General of Foreign Trade (DGFT) and covers:

• Duty exemption and remission schemes for exporters
• Export obligation management and compliance
• Export promotion capital goods support
• Export incentive and recognition frameworks
• Trade facilitation and digitisation initiatives
• Sector-specific and geography-specific export development programs

A landmark change in FTP 2023: unlike previous policies (FTP 2015-20 had a fixed 5-year cycle and was extended multiple times), the FTP 2023 has no fixed expiry date. It will remain in force until amended, with targeted modifications issued through notifications as trade conditions evolve. This provides greater policy stability and predictability for India's export community.

The policy is built on four strategic pillars:

1. Incentive to Remission: Transitioning from outright fiscal incentives to WTO-compliant duty remission mechanisms.
2. Export Promotion via Collaboration: Bringing together exporters, states, districts, and Indian missions abroad to co-create export growth strategies.
3. Ease of Doing Business and Cost Reduction: Process re-engineering, automation, reduced transaction costs, and paperless trade environment.
4. Emerging Areas: E-commerce exports, SCOMET (dual-use high-technology goods), and Rupee internationalisation.

Key Schemes and Benefits Under the Foreign Trade Policy India 2023-28

1. Duty Exemption Schemes - Advance Authorization and DFIA

The most direct cost-saving benefit for manufacturer-exporters under the india ftp 2023 export benefits framework is the duty exemption available through:

Advance Authorization Scheme: Allows eligible manufacturer exporters and merchant exporters to import raw materials, components, fuel, and packaging materials at zero customs duty - before or during export production. The exporter must fulfil an Export Obligation within 18 months. Under FTP 2023-28, the scheme has been significantly simplified with online processing, self-declaration options, and a government fee cap of Rs 5,000 for all applicants.

Duty-Free Import Authorisation (DFIA): A post-export scheme that allows the import of inputs used in already-executed exports on a duty-free basis. Unlike Advance Authorization, DFIA is issued after the export is completed. It is transferable after the Export Obligation is met, making it a valuable tool for exporters who did not apply in advance.

Under FTP 2023-28, both schemes have been enhanced with 2025 amendments enabling imports of QCO (Quality Control Order) compliant inputs and additional flexibility for Advance Authorization holders under Para 2.03(A).

2. Remission of Duties and Taxes on Exported Products (RoDTEP)

RoDTEP is the flagship duty remission scheme under the foreign trade policy india 2023-28, replacing the earlier MEIS (Merchandise Exports from India Scheme). RoDTEP operates on the globally accepted principle that taxes and duties should not be exported - it provides a rebate on all embedded taxes and levies borne on the export product that are not refunded through other mechanisms (GST refunds, duty drawbacks, etc.).

Key features of RoDTEP under FTP 2023-28: - Rebate rates are product-specific, notified by the Government, and credited as scrips to exporters' ICEGATE accounts. - RoDTEP benefits were extended to Export Oriented Units (EOUs) and SEZ units from June 1, 2025. - The scheme has been expanded to cover chemicals, pharmaceuticals, and articles of iron and steel. - Rebate amounts, though modest per shipment, accumulate significantly for high-volume exporters and can be transferred or used for duty payments.

3. Export Promotion Capital Goods (EPCG) Scheme

The EPCG Scheme under FTP 2023-28 allows eligible manufacturer exporters, merchant exporters, and service providers to import capital goods - machinery, equipment, components, spare parts, and accessories - at zero customs duty, provided they commit to an Export Obligation of 6 times the duty saved over 6 years.

Key improvements in EPCG under FTP 2023-28: - The government fee for EPCG licence applications has been reduced, particularly benefiting MSMEs. - The dairy sector has been exempted from maintaining average export obligations under EPCG - a significant relief for dairy exporters. - Export obligation for green technology products (solar energy, electric vehicles, etc.) has been reduced to 75% of the standard obligation. - Post-Export EPCG Scheme has been removed, streamlining the framework.

The EPCG Scheme is especially powerful for capital-intensive manufacturers who regularly upgrade machinery - it enables technology upgradation without the customs duty burden.

4. One-Time Amnesty Scheme for Pending Export Obligations

One of the most impactful india ftp 2023 export benefits for businesses with legacy compliance issues is the One-Time Amnesty Scheme. This scheme allows exporters who had defaulted on Export Obligations under Advance Authorization or EPCG authorisations issued prior to FTP 2023 to settle these pending obligations at a concessional composition fee.

Why this matters: Thousands of Indian businesses had outstanding Advance Authorization or EPCG obligations from previous years - partly due to global disruptions (COVID-19, geopolitical crises) and partly due to administrative complexities. The Amnesty Scheme gives them a clean slate to regularise their compliance position and re-access FTP benefits without the threat of full duty recovery plus punitive interest.

5. Status Holder Scheme - Rewarding Export Performance

Under FTP 2023-28, the Status Holder Scheme recognises exporters for their export performance with star-based status ratings:

• One Star Export House: USD 3 million in FOB export value
• Two Star Export House: USD 25 million
• Three Star Export House: USD 100 million
• Four Star Export House: USD 500 million
• Five Star Export House: USD 2,000 million

Benefits for Status Holders include: - Self-certified copies of documents accepted for authorisation issuance - Permission to maintain two accounts per bank - Priority processing at DGFT and Customs - 24x7 customs clearance at designated ports - Exemption from furnishing bank guarantees for duty-free schemes - Two-star and above status holders can avail the Self-Ratification Scheme for input-output norms under the Advance Authorization framework - Under FTP 2023-28, two-star and above status holders are partners in capacity-building and trade training initiatives

For Delhi NCR-based exporters, achieving Status Holder recognition under the foreign trade policy india 2023-28 is a gateway to faster, cheaper, and more flexible trade operations.

6. Towns of Export Excellence (TEE) - New Cluster-Based Support

The FTP 2023-28 expanded the Towns of Export Excellence programme, adding four new towns - Faridabad, Mirzapur, Moradabad, and Varanasi - to the existing 39, taking the total to 43+ TEEs across India.

Towns with export-oriented production of Rs 750 crore or more can be designated as TEEs. Businesses located in TEEs receive: - Priority access to export promotion funds under the Market Access Initiative (MAI) scheme - Common Service Provider (CSP) benefits under the EPCG Scheme for export fulfilment - Enhanced market development and brand promotion support - Global recognition and credibility for their products

The TEE initiative is particularly relevant for Delhi NCR-based exporters dealing in handicrafts, textiles, engineering goods, and leather products.

7. Districts as Export Hubs (DEH) - Grassroots Export Development

The Districts as Export Hubs initiative under FTP 2023-28 aims to identify and develop every district of India as a hub for at least one export product. District Export Action Plans (DEAPs) are prepared in collaboration with State Export Promotion Committees and District Export Promotion Committees.

For small exporters and artisans, this initiative means: - Identification of high-potential export products at the district level - Targeted market access support - Logistical and infrastructure development for export-ready production - Training and capacity-building support through state and district machinery

This is one of the most inclusive provisions of the foreign trade policy india 2023-28, directly benefiting small manufacturers and craftspeople who have never been part of the organised export ecosystem.

8. E-Commerce Export Promotion

Recognising the explosive growth of cross-border digital commerce, FTP 2023-28 made landmark changes for e-commerce exporters:

• The consignment-wise cap on e-commerce exports through courier was doubled from Rs 5 lakh (USD ~6,091) to Rs 10 lakh (USD ~12,183), with provisions to increase further based on exporter feedback.
• All FTP export benefits - including RoDTEP, RoSCTL, Advance Authorization, EPCG, and DFIA - are to be extended to e-commerce exports through appropriate IT platforms.
• Dedicated e-commerce export hub zones with warehousing facilities are being developed.
• ICEGATE integration for courier and postal exports to allow FTP benefit claims.

For Indian sellers on Amazon Global Selling, Etsy, eBay, and other international e-commerce platforms, this is a transformative development under india ftp 2023 export benefits.

9. Rupee Internationalisation and Alternate Currency Trade

FTP 2023-28 actively promotes the settlement of international trade in Indian Rupees (INR), reducing India's dependence on the USD for trade transactions. For exporters:

• Export proceeds realised in Indian Rupees are now eligible for counting towards export obligation fulfilment under Advance Authorization and EPCG schemes (subject to RBI guidelines).
• This reduces foreign exchange risk for exporters trading with countries in the Global South where bilateral Rupee trade is growing.

What Has Changed from FTP 2015-20 to FTP 2023-28?

Understanding the shift from the older policy helps exporters appreciate the new framework:

The FTP 2015-20 was primarily incentive-driven - schemes like MEIS and SEIS provided direct fiscal support to exporters as a percentage of FOB value. However, these faced WTO compliance challenges. The FTP 2023-28 replaces these with WTO-compliant remission-based schemes (RoDTEP, RoSCTL) that refund only embedded duties and taxes.

Key changes include: - MEIS (Merchandise Exports from India Scheme) replaced by RoDTEP - Post-Export EPCG Scheme discontinued - Advance Authorization simplified with reduced fees and self-declaration options - One-Time Amnesty Scheme introduced for legacy EO defaults - Merchanting trade from India facilitated - Indian intermediaries can now manage trade between two foreign countries without goods touching Indian ports, opening a new revenue stream - FTP 2023-28 is dynamic and open-ended - no fixed expiry date

How FTP 2023-28 Specifically Benefits MSMEs

The foreign trade policy india 2023-28 places special emphasis on making export benefits accessible to India's 63 million MSMEs:

• User charges under Advance Authorization and EPCG schemes capped at Rs 5,000 (down from much higher levels in some cases)
• Self-declaration of input-output norms removes the bottleneck of waiting for DGFT Norms Committee approvals
• Simplified online processes through the DGFT portal reduce dependence on expensive intermediaries for routine filings
• Districts as Export Hubs programme directly targets MSME artisans, craftspeople, and small manufacturers
• E-commerce export support brings global market access to small online sellers
• Dairy sector MSMEs exempted from annual average EO maintenance under EPCG
• Reduced documentation requirements enable faster authorisation issuance

Compliance Obligations for Exporters Under FTP 2023-28

Accessing FTP 2023-28 benefits comes with defined compliance obligations that every exporter must manage:

• IEC Annual Update: All IEC holders must confirm their IEC details on the DGFT portal every year between April 1 and June 30. Failure results in automatic IEC deactivation (June 30, 2026 is the current deadline for FY 2025-26).
• Export Obligation Fulfilment: Advance Authorization and EPCG licences carry time-bound export obligations that must be met within the specified period (18 months for AA, 6 years for EPCG).
• EODC Filing: Formal closure of authorisations through Export Obligation Discharge Certificate applications.
• RCMC Renewal: Registration Cum Membership Certificates must be renewed with the relevant Export Promotion Council.
• RoDTEP Claim Filing: Scrips credited to ICEGATE accounts must be monitored and utilised before expiry.
• Annual Report to DGFT Regional Authority: EPCG holders must submit an annual performance report by April 30 each year.

Non-compliance with any of these obligations can result in duty recovery, IEC deactivation, or loss of scheme benefits - making professional DGFT compliance management essential.

Why Law Exim Is the Right Partner for Your FTP 2023-28 Compliance

Navigating the foreign trade policy india 2023-28 - with its multiple schemes, compliance timelines, and scheme interdependencies - requires deep expertise, not just Google searches. Law Exim brings you that expertise as one of the most trusted foreign trade policy consultants india trusts:

• End-to-End DGFT Services: IEC registration and annual updates, Advance Authorization applications, EPCG licence management, RoDTEP claim assistance, RCMC registration, Status Holder Certificate applications, EODC filings, and complete FTP 2023-28 compliance management.
• Scheme Eligibility Analysis: We assess your exports and identify every FTP scheme you are eligible for but may not currently be using - turning untapped benefits into real savings.
• DGFT Portal Expertise: Our team handles all DGFT portal applications with zero errors, ensuring your authorisations are issued correctly the first time.
• Compliance Calendar Management: We track all your DGFT deadlines - IEC annual update, EO periods, BG validity, RCMC renewals, EODC filing windows - proactively, so you never miss a compliance milestone.
• Amnesty Scheme Assistance: If you have legacy pending EOs or lapsed authorisations, Law Exim helps you navigate the One-Time Amnesty Scheme to regularise your compliance position cleanly.
• Delhi NCR Presence: As a DGFT consultancy firm based in Delhi NCR, Law Exim provides both portal-based services and in-person consultation support for businesses across the Delhi-Gurgaon-Noida-Faridabad corridor.

Frequently Asked Questions (FAQs)

Q1. What is the Foreign Trade Policy 2023-28 of India?

India's Foreign Trade Policy 2023-28 (FTP 2023) is the comprehensive government framework governing all aspects of India's international trade, notified on March 31, 2023, and effective from April 1, 2023. Administered by DGFT under the Ministry of Commerce and Industry, it covers export promotion schemes, duty exemption and remission mechanisms, trade facilitation measures, export recognition programmes, and compliance frameworks for importers and exporters. Unlike previous FTPs, FTP 2023 has no fixed expiry date - it is dynamic and open-ended. The policy's headline goal is growing India's total exports to USD 2 trillion by 2030 through four key pillars: incentive to remission, export promotion through collaboration, ease of doing business, and emerging trade areas.

Q2. What are the key benefits of the Foreign Trade Policy 2023-28 for Indian exporters?

India ftp 2023 export benefits include duty-free import of raw materials through the Advance Authorization Scheme, zero-duty import of capital goods through the EPCG Scheme, duty remission on embedded taxes through RoDTEP, export performance recognition through the Status Holder Scheme, district-level export support through Districts as Export Hubs, doubled consignment limits for e-commerce exports, a one-time Amnesty Scheme for legacy Export Obligation defaults, simplified compliance processes with reduced fees for MSMEs, and facilitation for Rupee-denominated trade. The policy also expanded the Towns of Export Excellence programme, adding new trade hubs including Faridabad and Varanasi, directly benefiting clusters in Delhi NCR and UP.

Q3. What is the RoDTEP scheme under FTP 2023-28?

RoDTEP - Remission of Duties and Taxes on Exported Products - is the flagship duty remission scheme under FTP 2023-28, replacing the older MEIS scheme. It refunds embedded taxes and duties borne on exported goods that are not covered by other refund mechanisms (GST refunds, duty drawbacks). Rebates are product-specific, notified by the government, and credited as transferable scrips to exporters' ICEGATE accounts. RoDTEP operates on the globally accepted WTO-compliant principle that taxes should not be exported. Under FTP 2023-28, RoDTEP has been extended to chemicals, pharmaceuticals, iron and steel products, and to EOUs and SEZ units from June 1, 2025.

Q4. What is the One-Time Amnesty Scheme in FTP 2023-28?

The One-Time Amnesty Scheme under FTP 2023-28 allows exporters who defaulted on Export Obligations under Advance Authorization or EPCG authorisations issued under earlier FTPs to regularise their compliance position at a concessional composition fee. This applies to non-fraudulent defaults - cases where the exporter failed to fulfil EO due to genuine business challenges, global disruptions, or administrative complexity. The scheme provides relief from full duty recovery with punitive 15% annual interest. Businesses with legacy EO defaults should urgently assess their pending authorisations and consult a foreign trade policy consultant india to determine eligibility and file under the amnesty window before it closes.

Q5. How does FTP 2023-28 benefit MSME exporters?

The foreign trade policy india 2023-28 has several provisions specifically designed to make export benefits accessible to MSMEs. Government fees under the Advance Authorization and EPCG schemes are capped at Rs 5,000 for all applicants, making high-value scheme applications affordable. The self-declaration option for input-output norms under Advance Authorization removes the need to wait for DGFT Norms Committee approvals, speeding up authorisation issuance. Districts as Export Hubs brings market development support directly to small manufacturers and artisans at the district level. E-commerce export benefits bring global market access to small online sellers. The dairy sector - dominated by MSME cooperatives - has been exempted from annual average EO maintenance under the EPCG Scheme.

Q6. What is the Status Holder Scheme under FTP 2023-28?

The Status Holder Scheme under FTP 2023-28 recognises exporters based on cumulative FOB export performance over the preceding two financial years. Five tiers exist from One Star (USD 3 million) to Five Star Export House (USD 2,000 million). Status Holders receive significant privileges including self-certification of documents, priority processing at DGFT and Customs, 24x7 customs clearance, bank guarantee exemptions for scheme applications, and the ability to use the Self-Ratification Scheme for Advance Authorization norms (available to two-star and above). Under FTP 2023, two-star and above status holders are also partners in trade training initiatives. Achieving Status Holder recognition is a strategic goal for growing export businesses.

Q7. What is Districts as Export Hubs under FTP 2023-28?

Districts as Export Hubs (DEH) is an initiative under FTP 2023-28 that aims to make every district in India an export hub by identifying each district's key specialty export products and developing them for global markets. District Export Action Plans (DEAPs) are prepared through State and District Export Promotion Committees in collaboration with local exporters, trade bodies, and industry associations. Benefits for DEH-designated products include access to Market Access Initiative (MAI) funds, branding and market development support, logistical infrastructure improvements, and trade training. This initiative is particularly impactful for handicrafts, handlooms, agro-products, and traditional manufacturing clusters across India's smaller cities and towns.

Q8. What are the e-commerce export benefits under FTP 2023-28?

FTP 2023-28 significantly boosted support for e-commerce exporters. The consignment limit for e-commerce exports through courier has been doubled from Rs 5 lakh to Rs 10 lakh per consignment, with provisions for further enhancement. All major FTP export benefits - including RoDTEP, RoSCTL, Advance Authorization, EPCG, and DFIA - are being extended to e-commerce exports through ICEGATE integration with courier and postal export systems. Dedicated e-commerce export hub zones with warehousing facilities are being developed. Training and capacity-building support is available for small artisans and craftspeople to onboard e-commerce platforms. This makes the india ftp 2023 export benefits framework directly accessible to thousands of small online sellers exporting internationally.

Q9. How is FTP 2023-28 different from the old FTP 2015-20?

The most fundamental shift from FTP 2015-20 to FTP 2023-28 is the move from incentive-based schemes to WTO-compliant remission-based mechanisms. MEIS (which provided outright cash incentives as a percentage of FOB value) was replaced by RoDTEP (which only refunds actual embedded taxes and duties). SEIS for service exporters was restructured. Post-Export EPCG was discontinued. The Advance Authorization Scheme was simplified with self-declaration, reduced fees, and an expanded Self-Ratification Scheme. Importantly, FTP 2023-28 has no fixed end date - it is a living policy. The One-Time Amnesty Scheme, Rupee internationalisation provisions, and Merchanting Trade framework are entirely new elements not present in FTP 2015-20.

Q10. Why should I hire a Foreign Trade Policy consultant for FTP 2023-28 compliance?

The foreign trade policy india 2023-28 offers substantial financial benefits - but only to exporters who actively apply for and correctly manage each scheme. Many businesses fail to access Advance Authorization, EPCG, RoDTEP, and Status Holder benefits simply because they do not know they are eligible or find the DGFT application process complex. An experienced foreign trade policy consultant india like Law Exim provides eligibility assessment across all FTP schemes, handles all DGFT portal applications accurately, manages scheme compliance timelines proactively, assists with the Amnesty Scheme for legacy defaults, and ensures that every applicable benefit under india ftp 2023 export benefits is fully utilised - directly impacting your export profitability and competitive position.

Conclusion: FTP 2023-28 Is an Opportunity - Are You Claiming It?

India's Foreign Trade Policy 2023-28 is the most forward-looking, comprehensive, and accessible export policy the country has ever had. From duty-free raw material imports and zero-duty capital goods to e-commerce export support, MSME-friendly fees, district-level export hubs, and an amnesty for past defaults - the FTP 2023-28 removes virtually every barrier that has historically held Indian exporters back.

But policy benefits do not automatically translate into business savings. They require active engagement - applying for the right authorisations, maintaining clean compliance records, and managing scheme lifecycles with precision. That is where Law Exim's expertise as one of the best DGFT consultants in Delhi NCR makes a measurable difference.

Whether you are a first-time exporter trying to understand the foreign trade policy india 2023-28, an MSME looking to access Advance Authorization for the first time, a manufacturer managing EPCG obligations, or an established export house seeking complete FTP compliance management - Law Exim is your one-stop expert partner.

Contact Law Exim today at lawexim.co.in and start claiming every benefit the Foreign Trade Policy 2023-28 has built for you.