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Exim Policy 2004 2009
Exim Policy 2004 2009
Exim Policy
The foreign trade of India is guided by the Export-Import
policy of the Government of India Exim policy contain various policy decisions with respect to import and exports from the country Exim Policy is prepared and announced by the central government Exim Policy of India aims to developing export potential, improving export performance, encouraging foreign trade and creating favorable balance of payment position
Indian Industry. To Encourage the attainment of high and internationally accepted standards of quality. To augment export by facilitating access to raw material, intermediate, components, consumables and capital goods from the international market. To promote internationally competitive import substitution and self-reliance.
Agricultural Sector:
Agriculture has the potential to bring prosperity in rural areas, and also has the largest potential for promoting employment. Some special provisions for the agricultural sector under the EXIM policy are as follows: a) Vishesh Krishi Upaj Yojana b) Import of Capital Goods c) Agri Export Zones d) Import of seeds
embellishments and footwear components for leather industry increased to 3% of FOB value of exports. Duty free import of specified items for leather sector increased to 5% of FOB value of exports. Machinery and equipment for Effluent Treatment Plants for leather industry shall be exempt from Customs Duty.
Special Schemes for Export Promotion: Vishesh Krishi Upaj and Gram Udyog Yojna Target Plus Focus Product and Focus Market Scheme Served from India Duty-Entitlement Pass Book Scheme Duty-Free Import Authorisation Scheme
Objective: The objective is to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency. The scheme envisages creation of world-class infrastructure for warehousing of various products, state-of-the-art equipment, transportation, handling facilities etc. The Free Trade & Warehousing Zones (FTWZ) shall be a special category of Special Economic Zones with a focus on trading and warehousing Functioning: The scheme envisages duty free import of all goods Such goods shall be permitted to be re-sold. Payment of duty will become due only when goods are sold. Packing or re-packing without processing and labelling as per customer or marketing requirements could be undertaken within the FTWZ. The maximum period that goods shall be permitted to be warehoused within the FTWZ will be two years.
Procedural Simplification
Bank Gurantee
Second-hand-capital goods Validity of all lincences No. of Returns and forms has been
Board of Trade:
The role is to advising government on relevant
issues connected with Foreign Trade Policy. The Board of Trade shall be revamped and given a clear and dynamic role. An eminent person or expert on trade policy shall be nominated as President of the Board of Trade, which shall have a Secretariat and separate Budget Head, and will be serviced by the Department of Commerce.
Other Provisions:
Pragati Maidan Convention center
Implications on Agriculture
Implications on Leather and Footwear Industry Implications Implications on Gem and on Service Jewellery Industry Sector
Highlights of Supplement
DUTY ENTITLEMENT PASSBOOK SCHEME (DEPB)
REFUND OF SERVICE TAX INCOME TAX ON EOUs SECTORAL INITIATIVES
Supplement in gist
Thus from the supplement, I am pleased to say that our achievements have exceeded our expectations. Not only have we fulfilled our promises in substantial measure, but we have achieved these remarkable results in just four years, instead of five.
Supplement Cont.
In 2004 our exports stood at a little over US $ 63 billion. In 2007-08, they have exceeded US $ 155 billion; our exports are not just double what they were 4 years ago, but 2 times that. We have managed an average cumulative annual growth rate (CAGR) of 23%, year on year, way ahead of the average growth rate of international trade.
The task is difficult, but the prize is great. If we achieve it, India will once more become the trading superpower it was two centuries ago
Towns of Export-Excellence
Export of services Setting up of Free Trade and Warehousing
Evaluation Cont..
Setting up of Special Economic Zones-SEZs Procedural Simplification Boost for Small, Cottage and Handicraft Industries Boost for Agriculture Sector More Incentives for Higher Growth Rate in Exports Diversification of Exports
Evaluation Cont.
Liberal Imports
Encouragement to Gems and Jewellery Setting up of Bio-Tech-Parks Income tax concessions and exemptions.
Evaluation Cont.
DEMERITS
Burden of export promotion schemes Danger of circular trading Risk of importing outdated machinery Policy fails to take a holistic view of
trade
Conclusion:
The EXIM Policy 2004-2009 is one of the most ambitious policies of the government to liberalise the Indian economy and the government has also come a long way in achieving the same. However the current policy also has its flaws which are not only because lack of radical thinking by the government but also because of the global scenario. Some of the flaws are as follows: i) No concrete solution o reduce delays and transaction costs. ii) Software Technology Parks of India not given income tax exemption. iii) Poor export in growth, in rupee terms, and in volume terms, ignored. iv) The rising crude oil prices and inflationary pressures in the economy. v) Due to global economic slowdown and recession in the USA economy, Indias largest trading partner, uncertainty of the rupee-dollar exchange rate continues which in turn affects the economy.
References:
http://www.eximkey.com
http://www.eximinfo.com http://www.eximbankindia.in/ http://exim.indiamart.com/index.html http://dgft.gov.in
http://finmin.nic.in/
Thank You