Trade policy governors exports for and imports into acountry. It is one of the various policy instrumentused by a country to attended goal of economicdevelopment.
The trade policy of export import is formulated by theMinistry of Commerce and Government of India interms of section 5 of Foreign Trade Act, 1992.
Besides the Government of India also announced onJanuary 30,2002 a Medium Term Export strategy, toguide the Export Import Policy.
The foreign trade of India is guide by the Export ImportPolicy of Government of India arid is regulated by theforeign trade Act 1992.
EXIM Policy contains various policy decision taken byGovernment in the spheres of foreign trade i. e withrespect to Export and Import of the Country and moreexport promotion measure policy and procedure relatedthereto.
India EXIM Policy, in general, aims at developing exportpotential, improving export performance, encouragingforeign trade and creating favorable balance ofposition.
General objective of EXIMpolicy:-
There are two aspect of the trade policy, import policywhich concerned management and regulation importand export policy, which is concerned with export notonly promotion but also regulation.
The main objective of EXIM policy is promote export tothe maximum extent.
Promoting Export and foreign exchange earning.
Regulating export wherever it necessary for thepurpose of either avoiding competition among theIndian exporters or ensuring domestic availability ofessential items of mass consumption at reasonableprices.
EXIM policy 2002-07.
Agriculture removal of quantitative and packingrestriction on wheat and its product.
It is estimated by some economists that every one percent switch in the terms of trade in favor of agriculturewill result in diversion of about Rs.8,500 croresannually in favor of agriculture from the non-agriculture sector.
According to the International Grain Council reports, inrespect of wheat export, we are at the 7th positionamongst the wheat exporting countries.
Gems & Jewellery:-
Customs duty on import of rough diamonds is beingreduced to zero per cent. Import of rough diamonds isalready freely allowed.
Duty free imports of trimmings and embellishments upto3% of the FOB value hitherto confined to leather garmentsextended to all leather products.
EXIM Policy 2009-2014:-
In the last five years our exports witnessed robust growthto reach a level of US$ 168 billion in 2008-09 from US$ 63billion in 2003-04. Our share of global merchandise tradewas 0.83% in 2003; it rose to 1.45% in 2008 as per WTOestimates.
Our share of global commercial services export was 1.4%in 2003; it rose to 2.8% in 2008. India¶s total share in goodsand services trade was 0.92% in 2003; it increased to1.64% in 2008.
On the employment front, studies have suggested thatnearly 14 million jobs were created directly or indirectly asa result of augmented exports in the last five years.
We would like to set a policy objective of achieving anannual export growth of 15% with an annual export targetof US$ 200 billion by March 2011.
In the remaining three years of this Foreign Trade Policyi.e. up to 2014, the country should be able to come backon the high export growth path of around 25% perannum.
Highlights of the New Foreign TradePolicy 2009-2014:-