Foreign Trade Policy of India

WELCOME

FOREIGN TRADE POLICY OF INDIA

CONTENT

Introduction

Foreign trade policy before 1991

Foreign trade policy after 1991

Conclusion

Reference

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.

Foreign trade policy of India is classified into two:

Foreign trade policy before 1991

Foreign trade policy after 1991

Phase of foreign trade policy of India before 1991

Phase I 1947-48 : 1955-56

Phase II 1956-57 : 1967-68

Phase III 1968-69 : 1974-75

Phase IV 1975-76 : 1989-90

Main features/highlights of phase I

Liberalization of foreign trade was adopted as the goal of trade policy

Export control was relaxed

Export duties are relaxed

Export quotas were abolished

Incentive was provided in order to enhance export

Main highlight of phases II

Import substitution strategy was followed to lesson dependence of foreign countriesSelf sufficient in heavy and capital goods industryVery restrictive import policy and vigorous export promotion policy was adoptedIt provide long lasting solution to balance of payment problem.

Highlight of phase III

Increase allocation of raw material to export oriented industriesIncome tax relief to export earningExport promotion through import entitlementRemoval of disincentivesSettling up of export promotion advisory council , a ministry of international trade.

New Trade Policy 1991

Foreign trade policy 1991

Export- import policy 1992-97





Foreign trade policy 2009-2014

Main features of foreign trade 1991

Export promotion and import liberalization by strengthening export incentive.Removing quantitative restrictionCurrent account and trade account convertibility has been introducedTariff structure has been rationalCash compensatory support system has replaced by a scheme of value based advance licensing system.

Objective of Export Import Policy 1997-2002

To derive maximum benefit from expanding global opportunity.To enhance economic growth by provide raw material, intermediates, consumable and capital good for production.To enhance technological strength and efficiency or Indian agriculture, industry and service.To provide consumers with goods quality product at reasonable prices.To simplify the procedural formalities and follow the expanding freely importable list.

Export –Import policy 2002-2007Objectives

To facilitate sustained growth in export to attain a share of at least 1 % of global merchandise trade.To stimulate economic growth by provide access to essential raw material, intermediate, and capital goods for production and provide service.To enhance technology strength and efficiency of Indian agriculture, industry and service.To provide consumers with good quality goods and service at internationality competitive price.

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%.

Highlights of Foreign Trade Policy 2004-2009

Push to export to garner 1.5% of world share by export $150 billion worth of merchandise.Hundred percent FDI would be permitted for develop infrastructure.FDI permitted up to 100 percent to establish and develop free trade and warehousing zone, each to have a Rs.100 crore outlay.Import of seed, bulbs and fibers liberalized.New policy exempts all goods and service export form service tax.

Foreign Trade Policy 2009-2014objectives

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

Reference

Foreign Trade and Investments in India, Policies and Performance

Neeta Tripathi

Economic Reforms and India’s Foreign Trade

Zafar Ahmad Sultan

www.degft.gov.in

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Foreign Trade Policy of India