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The foreign trade of India is guided by the Export
Import policy of govt. of India.
Regulated by the foreign trade development and
regulatory Act 1992.
Exim policy contain various policy decission with
respect to import and export from the country.
It is prepared and announced by the central
•EXIM Policy is the export import policy of the
government that is announced every five years.
• It is also known as the Foreign Trade Policy.
•This policy consists of general provisions
regarding exports and imports, promotional
measures, duty exemption schemes, export
promotion schemes, special economic zone
programs and other details for different sectors.
•Every year the government announces a
supplement to this policy.
GENERAL OBJECTVE OF
It aims to developing export potential, improving
export performance, encourage foreign trade &
creating favourable balance of payment position.
To establish the framework for globalization.
To promote internationally competitive import
subsitution and self reliance
To encourage the attainment of high & internationally
accepted standards of quality.
The Foreign Trade Policy for the period 2009-2014
was announced on 27th August 2009 at a time when
the world was emerging from the shadow of a
challenging economic period, the worst we have seen
in the last 7 decades.
Economies and markets across the world were in
turmoil, causing sharp contraction in international
trade, adversely impacting global investment flows,
rendering over 50 million people jobless.
The world trade witnessed an unprecedented
contraction of over 12%.
EXIM POLICY- 2009-2014
OBJECTIVES OF 2009-14
The key objective for the Foreign Trade Policy was
to arrest the declining exports and reverse the trend.
To double India’s exports of goods and services by
To double India’s share in global merchandise trade
by 2020 as long term aim of this policy. India’s
share in global merchandise export was 1.45% in
Simplification of the application procedure for
availing various benefits.
To set in motion the strategies and policy measures
which catalyse the growth of exports.
To incourage exports through a “ mix of measures
including fiscal incentives, institutional charges,
procedural rationalisation and efforts for enhance
market access around the world and diversification
of export markets.
AIMS IN GENERAL
The policy aims at developing export potential ,
improving export performance, boosting foreign
trade and earning valuable foreign exchange.FTP
assumes great significance this year as Indai’s
export have battered by the global recession.
A fall in exports have led to the closure of several
small and medium-scale export oriented units,
resulting in large scale unemployment.
Export target : $ 200 billions for 2010-2011.
Export growth rate :15% for next two years and 25%
In an endeavour to make India a diamond
international trading hub, it is planned to establish
Obligation under EPCG scheme relaxed.
To aid technological up gradation of export sector ,
EPCG scheme at Zero Duty has been introduced.
Export obligation on import of spares , mould etc.
under EPCG Scheme has reduced by 50%.
26 new market s added in this scheme.
Incentives under FMS raised from 2.5% to 3%.
Incentives available under Focus Product
Scheme(FPS) Raised from 1.25% to 2%.
Extra products included in the scope of benefits
ANNOUNCEMENT FOR MARINE SECTOR
Fisheries exempted from maintenance of
average EO under EPCG Scheme (along with 7
sectors) however Fishing Trawlers, boats, ships,
and other similar items shall not be allowed for this
Additional flexibility under Target Plus Scheme /
Duty free certificate of Entitlement Scheme for the
GEMS AND JEWELLERY
Duty Drawbacks is allowed on Gold Jewellery
Exports to neutralize duty incidence.
Plan to establish “Diamond Bourse (s ) with an aim
to make India an International Trading Hub
Introduction of a new facility to allow import on
consignment basis of cut and polished diamonds for
the purpose of grading / certification.
Introduction to a single window system to facilitate
export of perishable agricultural produce with an aim
to reduce transaction and handling costing.
This system will involve creation of multi-functional
nodal agencies .These agencies will be accredited
On the payment of 50% applicable export duty,
Leather sector shall be allowed re-export of unsold
imported raw hides and skins and semi finished
leather from public bounded warehouse.
ANNOUNCEMENTS FOR TEA
The existing minimum value addition under
advance authorisation scheme for export of tea is
100%. To 50%.
DTA (domestic tarriff area) sales limit to instant tea
by EOU units increased from 30% to 50 %.
Export of tea has been included under VKGUY
Export Obligation Period for advance authorization
issued increased from existing 6 months to 36
Pharma sector included under MLFPS for
countries in Africa and Latin America and some
countries in Oceania and Far East.
ANNOUNCEMENT FOR HANDLOOM EXPORTS
The claim under Focus Product Scheme, the
requirement of “Handloom mark” was required
earlier. This has been removed.
ANNOUNCEMENT FOR AUTOMOBILE INDUSTRY
Those automobile industrie which have R & D
establishment will be allowed free import of
reference fuels upto a maximum of 5
kl/annum,which are not manufactured in India.
Simplification in EPCG for automobile
SET UP OF DIRECTORATE OF
TRADE REMEDY MEASURE
A Directorate of Trade Remedy Measure shall be
set up , which will enable support to Indian industry
and exporters , especially the Micro Small &
medium Enterprises MSMEs in availing their rights
through trade remedy instruments.
Restricted items can be imported now against
transferred DFIAs as the present DFRC scheme.
There is provision for state run banks to provide
The Export-Import Bank of India The Export-Import
Bank of India, also known as Exim Bank of India
leading export finance institution in the country.
The bank was set up in the year 1982 under the
Export-Import Bank of India Act 1981.
The bank offers wide-ranging services for enhancing
the prospect of Indian project exports.
It plays the role of source of financial, promoter
,coordinator & consultation of India’s Foreign Trade.