INTRODUCTION:

The term policy means all the activities that govern the trading behavior of any country. They
policies are called EXIM policy. It is a kind of policy adopted by an exporter for his industry and
a policy that is adopted by whole of the country. It means the set of policies which governs
external sector of economy. The Ministry of Commerce announces these policies on 31 st of
March every year on annual basis. During the time of deciding the trade policy of any
organization, the businessman is required to give well thoughts and clear goals. The exports
should be based on specific areas where one would be capable to supply to other countries at a
competitive price and quality. After the identification, the organization should plan to commit
resources for achieving the goals.

Developed countries in the world have used their trade policy to set a bar on their imports and
promote exports. The restricted imports provided a sheltered market for their own industries and
they could develop rapidly. The EXIM policies play an important role in rapid growth of any
country.

Pre-Independence, India did not have any clear policy but after independence this policy became
a part of general policy of development formulated by India. In a developing country like India,
trade policy is one of the many economic instruments, which is used to suit the requirements of
economic growth. Trade policies cover both export and import sector. The solution of the
balance of payments problem of a country depends considerably on the policies adopted by the
country.

India’s EXIM policy can be classified into two parts i.e. the pre-reforms period and post reforms
period i.e., the period prior to 1991 and the period after 1991.
OBJECTIVES OF IMPORT EXPORT POLICY:

1. To boost the economy by taking it to the global level and expanding the opportunities to
derived maximum benefits.
2. To increase the technical strength and efficiency of primary sectors like agriculture and
industries by providing a stage for competition.
3. To provide consumer a wide range of products in reasonable and cheaper price.
4. To excite sustained economic growth by making available essential raw material,
components, capital and consumer goods to the industrialists for increasing better
production.
5. To closely monitor the transactions that are done in global level and ensure the benefit of
domestic entrepreneurs.