Foreign Trade Policy 2023 Explained: A Complete Guide for Exporters

Every export you make from India happens under the Foreign Trade Policy. It decides whether your product can leave the country freely or needs an authorisation, which duty-free import schemes you can use, what remission you can claim, and what documents you must file.

The Foreign Trade Policy 2023 came into effect on 1 April 2023, replacing FTP 2015-20. But the most important thing to understand about it is not what it contained on day one — it is that FTP 2023 has no end date.

Previous policies ran in fixed five-year blocks. FTP 2023 is open-ended and amended continuously through notifications. That changes how you should use it: the version you read once is not the version in force today.

The Legal Framework: How FTP Actually Works

FTP 2023 is issued by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry, operating within the legal framework of the Foreign Trade (Development and Regulation) Act, 1992 — the FTDR Act.

Four instrument types matter, and knowing which is which saves you a lot of confusion:

The Handbook of Procedures (HBP) sits alongside the FTP. The FTP tells you what the policy is; the HBP tells you how to comply. Appendices and Aayat Niryat Forms complete the set.

What Changed in 2023: Four Structural Shifts

1. From fixed-term to dynamic

The most consequential change. FTP 2023 has no expiry date and is revised as needed rather than replaced every five years. The intent is policy continuity plus responsiveness — the government can act on emerging situations without waiting for a new policy cycle.

What this means practically: always check for amendments. An FTP summary written in 2023 is now substantially out of date, and paragraph numbers you cite in a contract may have been amended since.

2. From incentives to remission

FTP 2023 formalised the shift away from incentive-based subsidies toward remission and entitlement — refunding taxes and duties actually borne rather than granting export subsidies. This is what makes the regime WTO-compatible, and it is why MEIS and SEIS were retired in favour of RoDTEP and RoSCTL.

3. Stakeholder consultation became mandatory

An amendment inserted Para 1.07A and 1.07B into the FTP, requiring DGFT to consult stakeholders before policy changes, and to give reasons where feedback is not accepted.

This matters more than it sounds: it means proposed amendments are published for comment before they take effect, so exporters and associations get advance warning of change — and a route to influence it.

4. Trade settlement in rupees

FTP was amended to allow export benefits to be claimed where payment is settled in Indian rupees, not only in foreign currency, supporting the RBI's rupee trade settlement mechanism.

The Core Machinery: What FTP 2023 Governs

Classification: Free, Restricted, Prohibited, STE

Every item is classified under the ITC (HS) schedule into one of four categories:

• Free — the default; most goods, no authorisation needed
• Restricted — export or import permitted only with DGFT authorisation
• Prohibited — not permitted at all
• STE — only through designated State Trading Enterprises

The governing principle is that trade is free unless specifically regulated. Your first compliance step for any new product is checking its ITC (HS) status.

Duty exemption and remission schemes

FTP 2023 houses the schemes most exporters actually use:

• Advance Authorisation — duty-free import of inputs physically incorporated into export products, governed by SION norms. FTP 2023 extended the special advance authorisation scheme to apparel and clothing.
• EPCG — duty-free import of capital goods against an export obligation
• Duty Drawback — rebate of customs duties on imported inputs
• RoDTEP / RoSCTL — remission of embedded taxes not covered by GST

→ See our Top 10 Government Schemes Every Indian Exporter Should Know in 2026 for how these work in practice.

Registration and documentation requirements

Para 2.57 currently requires an RCMC or Certificate of Registration for exporters seeking authorisations, benefits or concessions under the FTP.

Para 2.62 governs Certificates of Origin — amended in April 2026 to restrict issuance to DGFT-authorised agencies and to require matching invoice numbers on the CoO and shipping bill.

→ See How to Get a Certificate of Origin in India — Step by Step.

E-commerce and courier exports

FTP 2023 extended FTP benefits to e-commerce exports and raised the courier consignment value limit from ₹5 lakh to ₹10 lakh, targeting substantial growth in e-commerce exports by 2030.

Districts as Export Hubs

An initiative to decentralise export capability, identifying export potential at district level and building the institutional support to realise it — aimed at states and districts that have historically contributed little to national exports.

Where FTP 2023 Stands in 2026: Recent Amendments

This is the part most FTP explainers miss. Here is what has changed recently.

The Export Promotion Mission — the biggest development

The Export Promotion Mission (EPM) was approved by the Union Cabinet and launched on 20 February 2026, with an outlay of ₹25,060 crore across FY 2025-26 to FY 2030-31. DGFT is the nodal implementing agency.

It operates through two sub-schemes:

• Niryat Protsahan (financial enablers) — interest subvention on pre- and post-shipment credit, export factoring, collateral guarantees, credit cards for e-commerce exporters, and credit enhancement support
• Niryat Disha (non-financial enablers) — export quality, testing and compliance support, international branding and packaging, trade fair participation, export warehousing and logistics, inland transport reimbursement for remote districts, and trade intelligence

⚠️ Critical for anyone relying on older guidance: EPM consolidates the Interest Equalisation Scheme (IES) and the Market Access Initiative (MAI). If you have been planning around IES or MAI as standalone schemes, check how they now operate within EPM before assuming the old terms apply.

A separate Credit Guarantee Scheme for Exporters adds up to ₹20,000 crore in export credit with government guarantee via NCGTC, enabling collateral-free lending.

Certificate of Origin tightened (April 2026)

Notification No. 05/2026-27 amended Para 2.62: only DGFT-authorised agencies may issue CoOs, and IEC holders must use identical invoice numbers on the CoO and shipping bill for automated verification. Public Notice No. 01/2026-27 amended Para 2.90 of the HBP to mandate electronic issuance only.

Export Obligation extension (March 2026)

DGFT extended the Export Obligation period for Advance Authorisation and EPCG authorisations expiring between 1 March and 31 May 2026 to 31 August 2026, citing geopolitical disruption to shipping routes and supply chains. The extension was automatic — no application, no composition fee.

RELIEF for West Asia disruption (March–April 2026)

Notification No. 65/2025-26 dated 19 March 2026 introduced RELIEF under the EPM, providing enhanced ECGC cover and freight/insurance reimbursement for exporters hit by Gulf corridor disruption. Egypt and Jordan were added to eligible destinations in April 2026.

Proposed: RCMC exemption for low-value exports (July 2026)

Trade Notice No. 14/2026-27 dated 20 July 2026 opened stakeholder consultation on inserting a new Para 2.57(c), which would remove the RCMC requirement for export consignments with an FOB value up to ₹10,000. Items classified as Restricted under ITC (HS) would be excluded.

Status: proposal, not law. This is a consultation under the Para 1.07A mechanism, not an enacted amendment. It is a good illustration of the consultation process working — and a reminder to watch trade notices, not just notifications.

Other 2025-26 changes worth noting

• Amendments to Para 2.03(A)(iii) on applicability of Quality Control Orders and BIS requirements to SEZ units and developers
• Import policy revisions for ITC (HS) Chapter 71 (gems and jewellery), synced with the Finance Act
• RoDTEP schedule alignment following changes to the Customs Tariff Act
• New Para 2.20A prohibiting certain goods from specified origins
• Amendments to Appendices 2B and 2E updating the lists of agencies authorised to issue preferential and non-preferential Certificates of Origin

How to Stay Current With FTP 2023

Because the policy is dynamic, treat compliance as ongoing rather than one-time:

1. Check the DGFT website (dgft.gov.in) for notifications, public notices and trade notices — they are published continuously
2. Watch trade notices for consultations, which give advance warning of proposed changes under Para 1.07A
3. Subscribe through your Export Promotion Council, which typically circulates relevant changes filtered for your sector
4. Re-verify paragraph numbers before citing FTP provisions in contracts or claims — amendments change content while preserving numbering
5. Confirm scheme status before planning around it — as the IES and MAI consolidation into EPM shows, schemes can be restructured with little warning

Frequently Asked Questions

Is FTP 2023 still in force in 2026? Yes. FTP 2023 took effect on 1 April 2023 and has no end date. It remains in force, amended continuously through DGFT notifications rather than replaced on a fixed cycle.

When does the Foreign Trade Policy 2023 expire? It doesn't. Unlike FTP 2015-20, it is open-ended and remains in force until amended or replaced.

What is the difference between the FTP and the Handbook of Procedures? The FTP sets policy — what is allowed and under what conditions. The HBP sets procedure — the forms, timelines and steps to comply. FTP is amended by notifications; the HBP by public notices.

What replaced MEIS and SEIS? MEIS was replaced by RoDTEP, reflecting the shift from incentives to WTO-compatible remission. SEIS was discontinued under FTP 2023 with no direct scrip-based replacement for service exporters.

Do I need an RCMC under FTP 2023? Currently yes, under Para 2.57, for authorisations and scheme benefits. A July 2026 proposal would exempt consignments up to ₹10,000 FOB value, but that is still at consultation stage.

How do I know if my product is freely exportable? Check its status in the ITC (HS) schedule on the DGFT portal. Most goods are Free; some are Restricted, Prohibited or STE-only. SCOMET items have their own authorisation regime.

Where do I find the latest FTP amendments? The DGFT website publishes all notifications, public notices, trade notices and circulars. Your Export Promotion Council usually circulates sector-relevant ones.

The Bottom Line

FTP 2023's defining feature is that it is a living document. The shift from fixed-term to dynamic policy gives government flexibility to respond to disruption — as the 2026 Export Obligation extensions and the RELIEF intervention both demonstrate — but it transfers a monitoring burden onto exporters.

The practical discipline: know which paragraphs govern your operations (2.57 for RCMC, 2.62 for Certificates of Origin, the Chapter 4 and 5 schemes for duty exemption), and check for amendments before relying on any of them. The Export Promotion Mission's absorption of IES and MAI in 2026 is the clearest recent example of why an out-of-date understanding of the FTP can cost real money.

This article is for general guidance and reflects the position as of July 2026. FTP 2023 is amended continuously — verify current provisions on the official DGFT portal at dgft.gov.in before acting.