Export Import Policy of India

8/4/2019 Export Import Policy of India

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EXPORTXPORTIMPORTMPORTPOLICYOLICYOFFINDIANDIA


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INTRODUCTIONNTRODUCTIONEXPORT Derived from the conceptual meaning as to ship the

.goods and services out of the port of a country ,Countries all over the world are interdependent which

.necessitated foreign tradeIMPORT Derived from the conceptual meaning as to bring in

.the goods and services into the port of a country Import of goods normally requires involvement of

the customs authorities in both the country ofimport and the country of export and are often

,subject to import quotas tariffs and trade.agreements


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hat is Export Importhat is Export ImportPolicy?olicy? Export Import (Exim) Policy or Foreign Trade Policy (FTP) is

a set of guidelines and instructions in matters related tothe import and export of goods in India.

Established by the Directorate General of Foreign Trade(DGFT)

Regulated by The Foreign Trade Development andRegulation Act 1992

Exim policy contains various policy decisions with respectto import and exports of the country.

Prepared and announced by the central government.

Aim

developing export potential

improving export performance

encouraging foreign trade

creating favorable balance of payment position.


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bjectives of EXIM Policybjectives of EXIM Policy Accelerating the country s transition to a globally

oriented vibrant economy with a view to derive

maximum benefits from expanding global market

opportunities

Stimulating sustained economic growth

Enhancing the technological strength and efficiency

Attainment of internationally accepted standards of

quality

Providing good quality products and services at

reasonable prices


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- ( -re Liberalization INDIA 1947( -re Liberalization INDIA 1947)990)990 ndian economic policy post independence influenced byolonial experience &trong emphasis on Import substitution in labour

inancial markets , &laborate licenses regulations the accompanying red

tape -ive Year Plans of India resembled central planning in the

. ,oviet Union Many industries were effectively-ationalized in the mid 1950s

- . %ow annual growth rate stagnated around 3 5 from 1950sto1980s

mport of Industrial raw material was canalized througharious PSUs

- .etween 1985 90 huge trade balance compelled Govt to,pproach World Bank IMF for loan

.ovt applied brakes on the licensing policy of imports


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(ost Liberalization 1991(ost Liberalization 1991)nwards)nwards .ovt introduced number of measures in trade policy

llowed exim scripts ( )bolished cash compensatory support CCS

harp reductions in the number of goods subject to-icensing and other non tariff barriers ,eductions in export restrictions and tariff cutscross all industries igher levels of competition within the Indianeconomy


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eneral Provisions regardingeneral Provisions regardingxport Importxport Import. xports and Imports free unless regulated. ompliance with law. nterpretation of Policy. Procedure. xemption from Policy. rinciples of Restriction.3 estricted Goods.4 /erms and Conditions of a license Certificate.5 uthorization not a Right.6 Penalty.11


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.1 mporter Exporter code number.2 rading with neighboring countries

.3 ransit facility.4 rade with Russia under Debt RepaymentAgreement.5 ctual User condition.6 econd hand goods

.7 /crap Waste in SEZ.8 mport of samples.9 ale on High Seas.0 learance of goods from custom


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xport Promotionxport PromotionMeasureseasures olicy measures nstitutional Set up mport facilitation for Export Production ash subsidies iscal incentives oreign Exchange facilities xport incentives

uty Exemption uty Drawback Scheme ( )uty Free Replenishment Certificate DFRC uty Entitlement Pass Book eemed Exports

xport production units


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mport facilitation for Exportmport facilitation for ExportProductionroduction xport Promotion Capital Goods Scheme pecial Import Licenses uty free licenses under Duty freexemption Scheme

uty free licenses are:ssued as.i dvance License.i dvance Intermediate License.ii pecial Imprest License.v , ,icense for jobbing repairing. -tc for re export. icense under export productionprogram.i dvance Release Order.ii ack to Back Inland Letter ofCredit.viii


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NDIA S FOREIGN TRADE POLICYNDIA S FOREIGN TRADE POLICY-009 14-009 14


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-bjectives of FTP 2009 14-bjectives of FTP 2009 14 rrest and reverse declining trend of exports ouble India's exports of goods and services by

2014 ouble India's share in global merchandise trade by

.020 implification of the application procedure for

vailing various benefits o set in motion the strategies and policy measures

hich catalyze the growth of exports "o encourage exports through a mix of measures

,ncluding fiscal incentives institutional,hanges procedural rationalization and efforts

or enhanced market access across the world andiversification of export markets


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Target : -xport Target $ 200 Billion for 2010 11 : %xport Growth Target 15 for next 2 years

%nd 25 thereafter

PCG Scheme .bligation under EPCG scheme relaxed o aid technological up gradation of export

,ector EPCG Scheme at Zero Duty has been.ntroduced , ,xport obligation on import of spares moulds.tc under EPCG Scheme has been reduced by%0

-e fixation of Annual Average ExportObligation ,aking into account the decline in exports the-acility of Re fixation of Annual Averagexport Obligation for a particular financialear in which there is decline in exports from,he country has been extended for the 5 year

- .olicy period 2009 14


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, , :nnouncements for FPS FMS MLFPS.1 27 new markets added.2 . % %Incentives under FMS raised from 2 5 to 3.3 . % %Incentive available under FPS raised from 1 25 to 2.4 Extra products included in the scope of benefits under FPS.5 MLFPS expanded by inclusion of products like

Pharmaceuticalstextile fabricsrubber productsglass products

.6

FPS benefit extended for export of green products and some

.products from the North East.7 A common simplified application form has been introduced to

, , .apply for the benefits under FPS FMS MLFPS and VKGUY

& :nnouncements for MDA MAI( )Higher allocation for Market Development Assistance MDA

( ) .and Market Access Initiative MAI has been announced

auto componentsmotor carsbicycle


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he following cities have been recognized as( )owns of export excellence TEE :andicrafts ,Jaipur Srinagar and Anantnag :eather Products ,Kanpur Dewas and Ambur :orticultural Products Malihabad

( )owns of Export Excellence TEE


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xtension of Income Taxxtension of Income Taxxemption to EOU and STPIxemption to EOU and STPI

%ncome Tax exemption to 100 EOUs and to STPI units,nder Section 10B and 10A of Income Tax Act has been-lready extended for the financial year 2010 11 in the

- .udget 2009 10


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PECIAL FOCUS INITIATIVESPECIAL FOCUS INITIATIVESSECTORS INITIATIVESMarket Diversification 27 new countries have been included in Focus Market

SchemeThe incentives have increased from 2.5 to 3%

Technological Upgradation EPCG at Zero duty has been introduced and has beensimplified

Agriculture and Village Industry

Vishesh Krishi and Gram Udyog Yojana (VKGUY)Capital goods imported under EPCG will be

permitted to be installed anywhere in AEZ

Handlooms and Handicrafts Duty free import of old pieces of handknotted carpets on consignment basis for re-exportafter repair is permitted.

Gems and Jewellery Import of gold of 18k and above is allowed underreplenishment scheme.Duty free import entitlement of

commercial samples shall be Rs. 300,000


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ighlights of the Annualighlights of the Annualupplement to EXIM Policyupplement to EXIM Policy.1 Inter State Trade Council.2 Removal of Export Cess.3 EPCG.4 Service Export.5 Agriculture Export.6 Package for Marine Sector.7 Advance Licensing Scheme.8 DFRC

.9 EDI Initiatives


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ndia s Foreign Trade inndia s Foreign Trade inune 2011une 2011


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India exports were worth ,9 213 Millions USD in.June of 2011 % .Exports amount to 22 of India s GDP

ems and jewellery constitute the single largest, .export item 16 percent of exports

,India is also leading exporter of textile goods, ,engineering goods chemicals leather manufactures

.and services

,India s main export partners are European Union,United States United Arab Emirates and China


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NDIA S EXPORTSNDIA S EXPORTS(January 2009 July 2011)


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ORLD MERCHANDIZE EXPORTSORLD MERCHANDIZE EXPORTS(As a percentage of total world exports)


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NDIA S IMPORTSNDIA S IMPORTS(January 2009 July 2011)


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ORLD MERCHANDIZE IMPORTSORLD MERCHANDIZE IMPORTS(As a percentage of total world imports)


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alance of tradealance of trade Balance of trade = Exports - Imports A positive balance of trade is known as a trade

surplus

A negative balance of trade is known as a tradedeficit or, informally, a trade gap.

India reported a trade deficit equivalent to 7659Millions USD in June of 2011.

India is poor in oil resources and is currently heavilydependent on coal and foreign oil imports for itsenergy needs.

Other imported products are: machinery, gems,fertilizers and chemicals.


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NDIA S BOTNDIA S BOT(January 2009 July 2011)


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mplications of The Foreignmplications of The ForeignTraderade Implications on Agriculture:

Special Agricultural Produce Scheme has been introduced for promotingthe export of fruits, vegetables, flowers, and their value added products.

Implications on Handlooms and Handicraft:Establishment of Handicraft SEZ and Handicraft Export PromotionCouncil would promote development of Handloom and Handicraft

Industry.Implications on Gem and Jewellery Sector :1.This is special thrust area in this policy.2.Duty free imports of other inputs would give a further boost to thissector.


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Implications on Leather and Footwear Industry :1.Duty free import as a specified percentage of exports.2.Exemption on customs duty on equipment for effluent treatmentplants would help promoting export form this sector.

Implications on Service Industry :1.An exclusive service promotion council has been set up in order tomap the opportunities for key services in key market.2.Develop strategic market access programs like brand building in co-ordination with sectorial players and recognize nodal bodies of the

service industry.


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ews on India s Foreignews on India s ForeignTraderade


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In the 1st week of August, 2011 S&P downgraded thelong-term sovereign credit rating on the U.S. to'AA+' from 'AAA' because of its out-of-controlspending and poor fiscal and monetary policies .

The downgrade deprived U.S. of AAA rating, acoveted status the Country had held for 70 years.This has created a fear to recession.

Combined with the slowing down China and the

tsunami ravaged Japan, the US turbulence willfurther worsen the level of global tradeactivities as well as India's international trade,said Federation of Indian Export Organization(FIEO).

Besides IT, some labour-oriented sectors likeleather, gems and jewellery would be hit hard.


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The weakening of the US dollar resulting from thedowngrade would make Indias exports lesscompetitive even while imports to India wouldbecome cheaper and put further pressure on

domestic manufacturers.

Indias exports to the US will also be hit because ofUS likely to raise taxes for reducing its deficits aspart of the recent deal to increase its overall debt

ceiling. The higher taxes will in turn further shrinkthe disposable incomes of American people andreduce their demand.

The world largest economy is entering intodepression while the Eurozone is in debt crisis. The worst fear is that exports in third and fourthquarter (of this fiscal) will be affected.

The Centre should immediately help the exportssector with interest subsidy, reduction in


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THANK YOUTHANK YOU

PRESENTED BY:PARUL JAIN (8154)

SAKSHI AGARWAL (8158)

PRIYANKA KESERWANI (8160)NAMRATA MENON (8173)

Documents

Export Import Policy of India