Import Export Policy India
History of exim policy
- From 1950-91 There was a closed economy
- From 1991 to 2004 (open economy)
- 1991 -> export promotion
- 2004 -> product branding
- 2004 to 2009(revolutionary Era for trade)
- Increased global participation price
- Each person will get economic profit
- 100 billion export goal
- 2009 to 2014
- To increase global participation
- 200 billion trade goal
- Beginning of E- trade
- 2015 to 2020
- to increase global partition and up to 3.5 %
- 900 billion dollar export trade
|● Merchandise export from India scheme ( MEIS)
● Service export from India scheme (SEIS)
- 2021- 2026 (current trade policy)
Closed economy import export policy
No policy for export
- In the year 1962, the Government of India appointed a special Exim Policy Committee to review the government previous export import policies.
- In 1985 Mr VP Singh( commerce ministry) announced A trade policy initially it was for the period of three years with main objective to boost the export business in India.
- Policy of India is guided by the Export Import in known as in short EXIM Policy of the Indian Government and is regulated by the Foreign Trade Development and Regulation Act, 1992.
- DGFT (Directorate General of Foreign Trade) is the main governing body in matters related to Exim Policy.
- Foreign Trade Act has replaced the earlier law known as the imports and Exports (Control) Act 1947.
There are two kind of trade policy
- Free trade policy
- protectionist trade policy
What is India’s Foreign Trade Policy?
The foreign trade policy is essentially a set of guidelines for the import and export of goods and services. These are established by the Directorate General of Foreign Trade (DGFT), the governing body for the promotion and facilitation of exports and imports under the Ministry of Commerce and Industry. The policy is notified for a period of five years. It is updated every year on March 31, and the changes come into effect from April 1.
While the trade policy covers both imports and exports, its primary objective is to facilitate trade by reducing transaction cost and time, thereby making Indian exports more globally competitive.
What are the objectives of foreign trade policy
- Accelerate economic activity and Tapping global market opportunities
- Encourage sustained economic growth by providing access to raw materials, components, intermediates goods, consumables and capital goods required for production
- Strengthen Indian agriculture, industry and services
- Generate employment
- Encourage stakeholders to strive for international standards of quality
- Provide quality consumer products at reasonable prices
Roadmap to $5 trillion by 2025
To achieve this accomplishment, it needs to:
- Register a GDP growth rate of 12% or more in the next few years.
- Triple its exports to $1 trillion by 2025
- Current around the $300-billion mark since 2011-2012.
- Battered by the pandemic, exports for the April-November 2020 period stood at around $312 billion.
Note :: The country’s GDP reached $ 2.88 trillion in 2019–2020.
Some of the suggestion to reaching the goal
- Urgent reform of labour laws
- Easing of regulatory controls
- Lowering the cost of capital
- Selection of right trading partners (given India’s unhappy experience with FTAs)
- Sector-specific strategies to drive exports
- especially in pharmaceuticals
- biotechnology, textiles and electronics
- The formation of a special committee to take quick decisions on foreign direct investment (FDI)
- Identifying and attracting potential investors
The Ministry of Commerce announced some of its strategy to reach $5 trillion economy
- District Export Hubs: In all of districts
- Identify potential products and services in
- Identify agricultural and toy clusters
- Map GI products
- Set up district export promotion panels
- District export action plans as part of this initiative targeted at small businesses and farmers.
- To reducing “domestic and overseas constraints related to the policy, regulatory and operational framework for lowering transaction costs and enhancing ease of doing business”.
- Efficient, cost-effective and adequate logistical and utilities infrastructure”.
If FTP 2021-2026 runs through its full potential on the government’s commitments and lives up to industry’s expectations, India as a $5-trillion is not very far.
This article is compiled by Sarvesh Nagar (UGC NET Qualified).
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