from the country and more especially export promotion measures,policies and procedures related thereto. It is prepared and announcedby the Central Government (Ministry of Commerce). India's EXIMpolicy, in general, aims at developing export potential, improvingexport performance, encouraging foreign trade and creating favourablebalance of payments position.
LEGAL FRAMEWORK FOR FOREIGN TRADE OF INDIA:-
In India, the legal framework for the regulation of foreign trade ismainly provided by the Foreign Trade (Development and Regulation)Act, 1992, Garments Export Entitlement Policy: 2000-2004, Export(Quality Control and Inspection) Act, 1963, Customs and CentralExcise Duties Drawback Rules, 1995, Foreign Exchange ManagementAct, 1999 -and the Customs and Central Excise Regulations. The main objective of the Foreign Trade (Development and Regulation)Act is to provide for the development and regulation of foreign trade byfacilitating imports into, and augmenting exports from India. This Acthas replaced the earlier law namely, the imports and Exports (Control)Act1947. A comparison of the nomenclature of the two Acts makes itvery dear that there is a shift in the focus of the law from control todevelopment of foreign trade. This shift in the focus is the outcome of the emphasis on liberalisation and globalisation as a part of theprocess of economic reforms initiated in India since June 1991. The application of the provisions of the Foreign Trade (Development &Regulation) Act 1992 has been exempted for certain trade transactionsvide Foreign Trade (Exemption from application of Rules in certaincases) Order 1993
GENERAL OBJECTIVES OF THE EXIM POLICY: -
Government control import of non-essential items through an importpolicy. At the same time, all-out efforts are made to promote exports. Thus, there are two aspects of trade policy; the import policy which isconcerned with regulation and management of imports and the exportpolicy which is concerned with exports not only promotion but alsoregulation. The main objective of the Government policy is to promoteexports to the maximum extent. Exports should be promoted in such amanner that the economy of the country is not affected by unregulatedexports of items specially needed within thecountry. Export control is, therefore, exercised in respect of a limitednumber of items whose supply position demands that their exportsshould be regulated in the larger interests of the country. In otherwords, the policy Aims at1(i) Promoting exports and augmenting foreign exchange earnings;and2(ii) Regulating exports wherever it is necessary for the purposes of either avoiding competition among the Indian exporters or ensuring