Import - Export Policy of

India
Why do we need export ?
Export means trade across the political boundaries of different nation. No Nation
is self sufficient and had all the goods that it needs. This happens because of
climatic variation & unequal distribution of natural resources. As a result,
countries all over the world have become interdependent, which necessitated
foreign trade. A developing country like India with its fast growing agricultural
production to keep pace with the population to keep pace with the population
growth and growing Industrial infrastructure needs high-import and this can be
sustained only with fast export growth.
To meet the oil import bill, export is unavoidable. Thus, it is evident that export
promotion continues to be a major thrust area for the government. Several
measures have been under taken in the past for improving export performance of
the country. In India, Govt. has come out from time to time with various policies on
foreign trade to promote export thereby increasing the “Foreign Exchange
Reserve”. These policies are termed as “Exim Policy”
Brief history
Import export act was introduced by govt. during second world war and it lasted
for around 45 yrs and in June 1992 this act was superseded by the Foreign Trade
(Development & Regulation Act), 1992. . The basic objective of this new act was
to give effect to the new liberalized export and import policy of the Govt. till 1985
annual policies were made but from 1985-92, three year policy was made and
then 5 yr policy was made coinciding with 5 yr plans 1992-97, 1997-02, 2002-07.
 Introduction
Before independence, India did not have a clear trade policy, it was after the
independence, that a trade policy, as a part of general economic policy of
development was formulated.

EXIM POLICY
The foreign trade of India is guided by the Export Import policy of govt. of
India.
Regulated by the foreign trade development and regulatory Act 1992.
Ex-im policy contain various policy decision with respect to import and
export from the country.
It is prepared and announced by the central government.

•EXIM Policy is the export import policy of the government that is announced every
five years.

• It is also known as the Foreign Trade Policy.

•This policy consists of general provisions regarding exports and imports,
promotional measures, duty exemption schemes, export promotion schemes,
special economic zone programs and other details for different sectors.
•Every year the government announces a supplement to this policy.
GENERAL OBJECTVE OF EXIM
POLICY
It aims to developing export potential, improving export performance,
encourage foreign trade & creating favourable balance of payment position.
To establish the framework for globalization.
To promote internationally competitive import subsitution and self reliance
To encourage the attainment of high & internationally accepted standards
of quality.
• To facilitate sustained growth in exports to attain a share of atleast 1 % of global
merchandise TRADE.
•
• To stimulate sustained economic growth by providing ACCESS to essential raw materials,
intermediates, components, consumables and capital goods required for augmenting
production and providing services.

• To enhance the technological strength and efficiency of Indian agriculture, industry and
services, thereby improving their competitive strength while generating new EMPLOYMENT
OPPORTUNITIES, and to encourage the attainment of internationally accepted standards of
quality.

• To provide consumers with good quality goods and services at internationally competitive
prices while at the same time creating a level PLAYING field for the domestic produce.
 EXIM POLICY- 2009-2014

The Foreign Trade Policy for the period 2009-2014 was announced on 27th
August 2009 at a time when the world was emerging from the shadow of a
challenging economic period, the worst we have seen in the last 7 decades.

Economies and markets across the world were in turmoil, causing sharp
contraction in international trade, adversely impacting global investment flows,
rendering over 50 million people jobless.

The world trade witnessed an unprecedented contraction of over 12%.

OBJECTIVES OF 2009-14
The key objective for the Foreign Trade Policy was to arrest the declining exports and
reverse the trend.
To double India’s exports of goods and services by 2014.
To double India’s share in global merchandise trade by 2020 as long term aim of this
policy. India’s share in global merchandise export was 1.45% in 2008.
Simplification of the application procedure for availing various benefits.
Foreign trade policy of India is
classified into two:

Foreign trade policy before 1991

Foreign trade policy after 1991
New Trade Policy 1991

Foreign trade policy 1991

Export- import policy 1992-97
Export- import policy 1997-2002
Export- import policy 2002-2007
Export- import policy 2003-2004
Export- import policy 2004-2009
Foreign trade policy 2009-2014
Main features of foreign trade 1991
Export promotion and import liberalization by strengthening export
incentive.
Removing quantitative restriction
Current account and trade account convertibility has been
introduced
Tariff structure has been rational
Cash compensatory support system has replaced by a scheme of
value based advance licensing system.
Policy measures
Comprehensive package for
development of special economic
zone.
Decontrol and deregulation of
agriculture sector.
De reservation from small scale
industries.
Technological up gradation.
Reduction in peak customs duty from
35% to 20%.
Foreign Trade Policy 2009-2014
objectives
The main objective of policy is to achieving an
annual export growth of 15% with an annual
export target of us $ 200 billion by march 2011.
In remaining 3 years of foreign trade policy up to
2014, the country should be able to come back on
the high export growth of around 25%p.a.
By 2014, the expect to double India’s export of
goods and service.
The long term policy objective for the government
is to double India’s share in global trade in 2020.
Policy measures

Technological Up gradation
EPCG Scheme Relaxation
Marine Sector
Agriculture Sector