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EXPORT Derived from the conceptual meaning as to ship the goods and services out of the port of a country. Countries all over the world are interdependent, which necessitated foreign trade. IMPORT Derived from the conceptual meaning as to bring in the goods and services into the port of a country. Import of goods normally requires involvement of the customs authorities in both the country of import and the country of export and are often subject to import quotas, tariffs and trade agreements.
Composition of India’s Exports
Agricultural & Allied Products
Ores & Minerals
Fuel & Lubricants
Composition of India’s Imports
Pearls & Precious Stones
Iron & Steel
Aim ◦ developing export potential ◦ improving export performance ◦ encouraging foreign trade ◦ creating favorable balance of payment position.What is Export Import Policy? Export Import (Exim) Policy or Foreign Trade Policy (FTP) is a set of guidelines and instructions in matters related to the import and export of goods in India. Prepared and announced by the central government. Established by the Directorate General of Foreign Trade (DGFT) Regulated by The Foreign Trade Development and Regulation Act 1992 Exim policy contains various policy decisions with respect to import and exports of the country. .
Objectives of EXIM Policy Accelerating the country’s transition to a globally oriented vibrant economy with a view to derive maximum benefits from expanding global market opportunities Stimulating sustained economic growth Enhancing the technological strength and efficiency Attainment of internationally accepted standards of quality Providing good quality products and services at reasonable prices .
5% from 1950s to1980s Import of Industrial raw material was canalized through various PSUs Between 1985-90 huge trade balance compelled Govt. were effectively nationalized in the mid-1950s Low annual growth rate.Liberalization INDIA (1947-1990) Indian economic policy post independence influenced by Colonial experience Strong emphasis on Import substitution in labour & financial markets Elaborate licenses .Pre. to approach World Bank. Many industries.stagnated around 3. applied brakes on the licensing policy of imports . regulations & the accompanying red tape Five-Year Plans of India resembled central planning in the Soviet Union. IMF for loan Govt.
introduced number of measures in trade policy ◦ Allowed exim scripts ◦ Abolished cash compensatory support (CCS) sharp reductions in the number of goods subject to licensing and other non-tariff barriers reductions in export restrictions. and tariff cuts across all industries higher levels of competition within the Indian economy .Post Liberalization (1991 onwards) Govt.
Procedure 5. Compliance with law 3. Restricted Goods 8. Authorization not a Right 10. Principles of Restriction 7. . Terms and Conditions of a license/Certificate 9. Penalty 1. Exemption from Policy 6.General Provisions regarding Export Import Exports and Imports free unless regulated 2. Interpretation of Policy 4.
Importer Exporter code number 12. Clearance of goods from custom 11. Actual User condition 16. Transit facility 14. Scrap/Waste in SEZ 18. Trade with Russia under Debt Repayment Agreement 15. . Sale on High Seas 20. Import of samples 19. Trading with neighboring countries 13. Second hand goods 17.
Export Promotion Measures Policy measures Institutional Set up Import facilitation for Export Production Cash subsidies Fiscal incentives Foreign Exchange facilities Export incentives ◦ Duty Exemption ◦ Duty Drawback Scheme ◦ Duty Free Replenishment Certificate (DFRC) ◦ Duty Entitlement Pass Book ◦ Deemed Exports Export production units .
License for jobbing. Advance Release Order vii. Back to Back Inland Letter of Credit . for re-export v. Advance License ii.Import facilitation for Export Production Export Promotion Capital Goods Scheme Special Import Licenses Duty free licenses under Duty free Exemption Scheme Duty free licenses are issued as : i. Advance Intermediate License iii. repairing. etc. License under export production program vi. Special Imprest License iv.
INDIA’S FOREIGN TRADE POLICY 2009-14 .
Objectives of FTP 2009-14 Arrest and reverse declining trend of exports Double India's exports of goods and services by 2014 Double India's share in global merchandise trade by 2020. Simplification of the application procedure for availing various benefits To set in motion the strategies and policy measures which catalyze the growth of exports To encourage exports through a "mix of measures including fiscal incentives. institutional changes. procedural rationalization and efforts for enhanced market access across the world and diversification of export markets .
fixation of Annual Average Export Obligation for a particular financial year in which there is decline in exports from the country. . etc. the facility of Re. has been extended for the 5 year Policy period 2009-14. Target Export Target : $ 200 Billion for 2010-11 Export Growth Target : 15% for next 2 years and 25% thereafter EPCG Scheme Obligation under EPCG scheme relaxed. EPCG Scheme at Zero Duty has been introduced. To aid technological up gradation of export sector. Export obligation on import of spares. under EPCG Scheme has been reduced by 50% Re-fixation of Annual Average Export Obligation Taking into account the decline in exports. moulds .
5.25% to 2% Extra products included in the scope of benefits under FPS MLFPS expanded by inclusion of products like • Pharmaceuticals • auto components • textile fabrics • motor cars • rubber products • bicycle • glass products FPS benefit extended for export of ‘green products ‘ and some products from the North East. 3. FMS. 4. MLFPS: 1. 7. FMS. . 2. MLFPS and VKGUY.Announcements for FPS. 6. A common simplified application form has been introduced to apply for the benefits under FPS.5 % to 3 % Incentive available under FPS raised from 1. Announcements for MDA & MAI: Higher allocation for Market Development Assistance (MDA) and Market Access Initiative (MAI) has been announced. 27 new markets added Incentives under FMS raised from 2.
Towns of Export Excellence (TEE) The following cities have been recognized as towns of export excellence (TEE) Handicrafts : Jaipur. Srinagar and Anantnag Leather Products : Kanpur. Dewas and Ambur Horticultural Products: Malihabad .
. has been already extended for the financial year 2010-11 in the Budget 2009-10.Extension of Income Tax Exemption to EOU and STPI Income Tax exemption to 100% EOUs and to STPI units under Section 10B and 10A of Income Tax Act.
300.5 to 3% Technological Upgradation EPCG at Zero duty has been introduced and has been simplified Agriculture and Village Industry • • Vishesh Krishi and Gram Udyog Yojana (VKGUY) Capital goods imported under EPCG will be permitted to be installed anywhere in AEZ Handlooms and Handicrafts Duty free import of old pieces of hand knotted carpets on consignment basis for reexport after repair is permitted. Gems and Jewellery • • Import of gold of 18k and above is allowed under replenishment scheme. Duty free import entitlement of commercial samples shall be Rs.000 .SPECIAL FOCUS INITIATIVES SECTORS Market Diversification INITIATIVES • • 27 new countries have been included in Focus Market Scheme The incentives have increased from 2.
EPCG 4. Service Export 5. Advance Licensing Scheme 8. DFRC 9. Agriculture Export 6.Highlights of the Annual Supplement to EXIM Policy Inter State Trade Council 2. Package for Marine Sector 7. Removal of Export Cess 3. EDI Initiatives 1. .
India’s Foreign Trade in June 2011 .
16 percent of exports. • Gems and jewellery constitute the single largest export item. leather manufactures and services. engineering goods. United Arab Emirates and China . chemicals. United States.• India exports were worth 29. • Exports amount to 22% of India’s GDP. • India’s main export partners are European Union. • India is also leading exporter of textile goods.213 Millions USD in June of 2011.
INDIA’S EXPORTS (January 2009 – July 2011) .
WORLD MERCHANDIZE EXPORTS (As a percentage of total world exports) 12 Percentage of exports 10 8 6 4 2 0 2003 2009 India UK USA China Countries Japan Brazil .
INDIA’S IMPORTS (January 2009 – July 2011) .
WORLD MERCHANDIZE IMPORTS (As a percentage of total world imports) 18 16 14 Percentage of imports 12 10 8 6 2003 2009 4 2 0 India UK USA China Countries Japan Brazil .
000 1.000 600.400.000 400.200.000.000 0 2004-05 2005-06 2006-07 2007-08 Export 2008-09 Import 2009-10 .000 1.000 1.600.000 800.000 200.Foreign Trade Trends in India 1.
Imports A positive balance of trade is known as a trade surplus A negative balance of trade is known as a trade deficit or.Balance of trade Balance of trade = Exports . . gems. a trade gap. India reported a trade deficit equivalent to 7659 Millions USD in June of 2011. fertilizers and chemicals. informally. India is poor in oil resources and is currently heavily dependent on coal and foreign oil imports for its energy needs. Other imported products are: machinery.
INDIA’S BOT (January 2009 – July 2011) .
This is special thrust area in this policy. vegetables.Duty free imports of other inputs would give a further boost to this sector. . Implications on Handlooms and Handicraft: Establishment of Handicraft SEZ and Handicraft Export Promotion Council would promote development of Handloom and Handicraft Industry. and their value added products. flowers. Implications on Gem and Jewellery Sector : 1. 2.Implications of The Foreign Trade Implications on Agriculture: Special Agricultural Produce Scheme has been introduced for promoting the export of fruits.
Exemption on customs duty on equipment for effluent treatment plants would help promoting export form this sector. . 2.Develop strategic market access programs like brand building in coordination with sectorial players and recognize nodal bodies of the service industry. 2. Implications on Service Industry : 1.An exclusive service promotion council has been set up in order to map the opportunities for key services in key market.Implications on Leather and Footwear Industry : 1.Duty free import as a specified percentage of exports.
News on India’s Foreign Trade .
the US turbulence will further worsen the level of global trade activities as well as India's international trade. . some labour-oriented sectors like leather.S. This has created a fear to recession.S. Combined with the slowing down China and the tsunami ravaged Japan. The downgrade deprived U. Besides IT. of AAA rating. a coveted status the Country had held for 70 years. In the 1st week of August. to 'AA+' from 'AAA' because of its out-of-control spending and poor fiscal and monetary policies . 2011 S&P downgraded the longterm sovereign credit rating on the U. gems and jewellery would be hit hard. said Federation of Indian Export Organization (FIEO).
. The higher taxes will in turn further shrink the disposable incomes of American people and reduce their demand. India’s exports to the US will also be hit because of US likely to raise taxes for reducing its deficits as part of the recent deal to increase its overall debt ceiling. The Centre should immediately help the exports sector with interest subsidy. The weakening of the US dollar resulting from the downgrade would make India’s exports less competitive even while imports to India would become cheaper and put further pressure on domestic manufacturers. The world largest economy is entering into depression while the Eurozone is in debt crisis. reduction in transaction cost and upgrading infrastructure particularly ports and roads. The worst fear is that exports in third and fourth quarter (of this fiscal) will be affected.
THANK YOU PRESENTED BY: PARUL JAIN (8154) SAKSHI AGARWAL (8158) PRIYANKA KESERWANI (8160) NAMRATA MENON (8173) .
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