INDIAN FOREIGN INDIAN FOREIGN TRADE POLICYTRADE POLICY

INDIAN FOREIGN INDIAN FOREIGN TRADE POLICYTRADE POLICY

POST INDEPENDENCE POLICIES

1. PROTECTIONISM2. LICENCE RAJ3. HINDU RATE OF GROWTH

POST 90’S SCENARIO• Introducing the SEBI act of 1992• Opening up in 1992 of India's equity markets

to investment by foreign institutional investors and permitting Indian firms to raise capital on international markets by issuing Global Depository Receipts (GDRs).

• Starting National Stock Exchange(NSE) as a computer based trading system

• Reducing tariffs from an average of 85 percent to 25 percent

Cont…• Encouraging foreign direct investment

by increasing the maximum limit on share of foreign capital in joint ventures from 40 to 51 percent .

• Opening up to foreign investment.• Reforming capital markets.• Deregulating domestic business.

Cont….

• reducing the fiscal deficit• Privatization of the public sector • increasing investment in

infrastructure

FOREIGN TRADE FOREIGN TRADE POLICYPOLICY

FOREIGN TRADE FOREIGN TRADE POLICYPOLICY

1997-20021997-2002

OBJECTIVES OF THE EXIM POLICY 1997 -2002

• To accelerate the economy from low level of economic activities to high level of economic activities.

• To stimulate sustained economic growth.• To enhance the strength and efficiency of

Indian agriculture, industry and services.• To generate new employment opportunities

and encourage the attainment of internationally accepted standards of quality.

• To provide quality consumer products at reasonable prices.

HIGHLIGHTS OF THE EXIM POLICY 1997-

2002 • Liberalisation • Export Promotion Capital Goods (EPCG)

Scheme • Advance License Scheme • Duty Entitlement Pass Book (DEPB) Scheme • Special Import License• Deemed Exports • Software • Computerization of DGFT Offices

IMPLICATIONS OF THE EXIM POLICY 1997 –

2002 • Globalization of Indian Economy • Impact on the Indian Industry • Impact on Agriculture • Impact on Foreign Investment • Impact on Quality Upgradation • Impact on Self-reliance

FOREIGN TRADE FOREIGN TRADE POLICYPOLICY

FOREIGN TRADE FOREIGN TRADE POLICYPOLICY

2002-20072002-2007

OBJECTIVES• To stimulate sustained economic

growth • To enhance the technological

strength • Good quality products and

services

IMPLICATIONS• Special Economic Zones (SEZs)• Agricultural Sector • Development of Cottage Industries • Small Scale Industry • Gem and Jewellery Industry • Industrial Sector • Technology Upgradation • Procedural Formalities

FOREIGN TRADE FOREIGN TRADE POLICYPOLICY

FOREIGN TRADE FOREIGN TRADE POLICYPOLICY

2004-20092004-2009

RATIONALE

• Rationality and consistency among trade and other economic policies

• Past policies should also be integrated

OBJECTIVES

Global merchandise tradeEconomic growth

STRATEGIES

Simplification of proceduresReduction in transaction costNeutralization of incidence of levies

and duties on inputs used for exportsDevelopment of global hubs for

manufacturing, trading and services

THRUST AREAS

• Agriculture,• Handloom and handicrafts,• Marine products,• Leather and footwear, and• Gems and Jewellery

INITIATIVESFocus Market Scheme and Focus Product

SchemeExport promotion schemesInitiatives in plantation sector – North-EastSpecial Economic Zones (SEZs)Use of information and communication

technologyGrievance Redressal CommitteeInternational Trade Agreements

Annual Supplement (2008-09)

to theForeign Trade Policy

2004-2009

HIGHLIGHTS

•To promote modernization of our manufacturing and services exports, the import duty under the EPCG scheme is being reduced from 5% to 3%.

•Refund of tax on a large number of services relating to exports has already been announced by the Government.

•To promote export of sports and toys, an additional duty credit of 5% over and above the credit under Focus Product Scheme is being provided.

•Interest relief already granted for sectors affected adversely by the appreciation of the rupee is being extended for one more year.

• The DEPB scheme is being continued till May 2009.

• Our export of fresh fruits and vegetables and floriculture suffers from high incidence of freight cost. To neutralize this disadvantage, an additional credit of 2.5% over and above the credit available under VKGUY is proposed.

SPECIAL FOCUS AREAS

•Hi-tech products Export Promotion Scheme•Electronics and IT Hardware Manufacturing Industries•Sports Goods and Toys

MAIN FEATURES•General provisions regarding imports and exports•Promotional measures (ASIDE, MAI, MDA, TEE, SFIS, VKGUY, FMS, FPS, HTPEPS)•Duty exemption & remission schemes (Advance Authorization, DEPB, DFIA schemes)•Export promotion capital goods (EPCG) scheme•Export oriented units (EOUs), electronics hardware technology parks (EHTPs), software technology parks (STPs) and bio-technology parks (BTPs)•Special economic zones•Free trade & warehousing zones

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PRASHANT SAXENA