On March 31, 2023, India announced Foreign Trade Policy (FTP) 2023. The policy takes effect from April 1, 2023, starting the fiscal year 2023-2024.

Notably in this Foreign Trade Policy 2023, India announced an export target of 2,000 billion USD by 2030, of which the goods export target is 1,000 billion USD and the service export target is 1,000 billion USD. by 2030. According to this target, India's annual export growth is expected to reach 10%. In fact, by the end of the 2022-2023 fiscal year (April 2022 - March 2023), India's total import-export turnover of goods has reached 1161 billion. Of which, exports reached 447 billion USD, an increase of 6% compared to the 2021-2022 fiscal year; Imports reached 714 billion USD, an increase of 16.5% compared to the 2021-2022 fiscal year.

India's Foreign Trade Policy 2023 will also be associated with India simplifying business operations through online management, licensing and approval of documents, cutting administrative procedures and cutting costs. costs of implementing administrative procedures for businesses. India hopes to promote and facilitate business and trade activities, helping to save time and finance for businesses; Promote and create favorable conditions for domestic production activities to realize the "Make in India" Strategy.

In the context of India's 2023 Foreign Trade Policy with many notable points as above, while promoting the creation of a favorable business environment to promote domestic production, India is expected to continue to increase trade. Importing raw materials and accessories for production activities for domestic consumption and export. Commodities and product groups that India is forecast to continue to increase imports include agricultural and aquatic products, spices, agricultural production goods, and agricultural machinery and equipment.

This will be a good opportunity for Vietnamese businesses interested in and wishing to promote exports to the Indian market, especially for Vietnam's strong products such as agricultural products (coffee, pepper, cashew nuts, cinnamon, anise, ginger, turmeric...), seafood raw materials, fertilizers, chemicals, agricultural machinery, consumer products...

Businesses interested in the Indian market can contact the Ministry of Industry and Trade (Asia-Africa Market Department) or the Vietnam Trade Office in India to find out more information as well as for advice and support.

India is currently Vietnam's 8th largest trading partner. Vietnam - India trade turnover accounts for about 80% of Vietnam's total turnover with other South Asian countries. Meanwhile, Vietnam is currently the 23rd largest trading partner in the world and the 4th largest in the ASEAN region of India. In 2022, bilateral trade turnover between Vietnam and India will reach 15 billion USD, the highest level ever. Vietnam and India still have a lot of potential and advantages for cooperation in fields such as agriculture, fisheries, industrial production, textiles, garments, and footwear.

In the first 4 months of 2023, Vietnam's total import-export turnover with India reached 4.9 billion USD, down 11% compared to the same period in 2022. Of which, Vietnam's exports to India reached 2,000,000 USD. 7 billion USD, down 5% over the same period in 2022. However, Vietnam's potential export products to India still have increased turnover over the same period, specifically: wood and wood products (reached 21 million USD, an increase of 171%); footwear of all kinds (reaching 73 million USD, up 20%); textiles and garments (reaching 44.6 million USD, up 2.7%); rubber products (reached 5.2 million USD, up 21%); coffee (reached 27 million USD, up 73%); iron and steel of all kinds (reaching 142 million USD, an increase of 590%)...

Minh Toan