EXIM POLICY: AN INTRODUCTION

The Foreign Trade Policy of India guided by export & import is known as EXIM Policy It is regulated by the Foreign Trade Development and Regulation Act, 1992 The objective of this act is to provide the development and regulation of foreign trade by facilitating imports into, and augmenting exports from India Foreign Trade Act has replaced the earlier law known as the imports and Exports (Control) Act 1947

EXIM POLICY

It contains various policy related decisions taken by the government in the sphere of Foreign Trade especially export promotion measures, policies and procedures related thereto. This policy is prepared and announced by the Central Government (Ministry of Commerce). It aims at developing export potential, improving export performance, encouraging foreign trade and creating favorable balance of payments position.

OBJECTIVES OF EXIM POLICY

To accelerate the economy from low level of economic activities to high level of economic activities by making it a globally oriented vibrant economy To derive maximum benefits from expanding global market opportunities. To stimulate sustained economic growth by providing access to essential raw materials, intermediates, components, consumables and capital goods required for augmenting production.

OBJECTIVES OF EXIM POLICY

To enhance the techno local strength and efficiency of Indian agriculture, industry and services, thereby, improving their competitiveness. To generate new employment. Encourage the attainment of internationally accepted standards of quality. To provide quality consumer products at reasonable prices

EXIM POLICY UPDATES

The EXIM Policy is updated every year on the 31st of March Modifications, improvements and new schemes related to the EXIM Policy are normally announced by the Union Minister of Commerce and Industry who co-ordinates with the Ministry of Finance, the Directorate General of Foreign Trade

AMENDMENTS IN POLICY

To liberalize imports and boost exports, EXIM Policy on April I, 1992 was introduced to bring stability and continuity for which it was made for the duration of 5 years. The Central Government reserves the right in public interest to make any amendments to the policy Such amendment shall be made by means of a Notification published in the Gazette of India.

Institutions
Institutions dedicated for promoting foreign trade have played an important role towards enhancing the process of internationalisation of Indian companies, viz.
y Export-Import Bank of India, y Export Credit Guarantee Corporation, y Indian Institute of Foreign Trade

Lines of Credit

Overseas Governments Govt. Agencies Commercial Banks Regional Financial Institutions Particularly relevant for SMEs Eligible items all items permissible under Exim Policy
 Engineering Goods  Consumer Durables  Commodities

Exim Bank

For providing financial assistance to exporters and importers Coordinating the working of institutions engaged in financing export and import of goods Services with a view to promoting the countrys international trade

EXIM POLICY
Special package for agriculture  Duty free imports of capital goods  Exports of medicinal plants & herbal products facilitated

Textile sector incentives

 Duty free entitlement for garments &

handicrafts


Will help exporters to move up the value chain

 Handicraft Special Economic Zone to be

established


Will contribute to strong growth in handicraft exports  Will generate employment opportunities

EXIM POLICY
Export Promotion Schemes


Scheme introduced will further boost exports from the successful exporters

Other Observations
Import of second hand capital goods allowed without age restrictions  No outdated technology should be imported


OBJECTIVES : NEW EXIM POLICY 2004-09

To encourage economic growth of India by providing supply of essential raw materials, intermediates, components, consumables and capital goods required for augmenting production and providing services. To improve the technological strength and efficiency of Indian agriculture, industry and services

OBJECTIVES : NEW EXIM POLICY 2004-09

Improving the competitive strength by generating new employment opportunities Encourage the attainment of internationally accepted standards of quality To provide consumers with good quality products and services at internationally competitive prices Creating a level playing field for the domestic producers

EXIM PROCESS
Technology Capital (Foreign Investment) Raw Materials Capital Goods


Final Products Capital Goods Capital (Overseas Ventures)

Product Development Production Marketing

 

Board of Trade (Advisor to GOVT.)

To advise Government on Policy measures for preparation and implementation of both short and long term plans for increasing exports in the light of emerging national and international economic scenarios To review export performance of various sectors, identify constraints and suggest industry specific measures to optimize export earnings

Board of Trade of EXIM Policy

To examine existing institutional framework for imports and exports and suggest practical measures to achieve desired objectives To review policy instruments and procedures for imports and exports and suggest steps to rationalize and channelize them for optimum use To examine issues which are considered relevant for promotion of Indias foreign trade, and to strengthen international competitiveness of Indian goods and services