MBA (EXEC.

)IB - 4108
Foreign Trade Policy

Objective
The paper aims at acquainting the students with the theoretical foundations of international trade and enhance them learn
the pattern, structure and policy guidelines of Indian foreign trade and the future prospect of Indian policy framework.

Course Contents:
UNIT-1
Instruments of Trade Policy: Tariffs quotas and other measures and their effects; Arguments for and against protection;
Trade regulations and WTO; Trade policy and developing countries.
India’s Foreign Trade policy: The national and Global Context; Structure and Equilibrium of India’s Balance of Payments,
India’s foreign trade in the ear of neo-liberal globalization.
UNIT-2
Thrust Area Commodities: Trend, Problems and Prospects; Major Competitors; Major Import Commodity Groups; Trade
Control in India.
Legal and regulatory authority: Foreign Trade (Development and Regulation) act, Import and Export Control Orders; Import
and Export Licensing System; Exchange Control in India; Blanket Permit System.
UNIT-3
Institutional Support for Export Promotion: Import Substitution and Export Promotion Policies; Export Incentives: Financial
and Fiscal; Deferred Payment System and the Role of EXIM Bank of India; Export Credit Insurance.
Unit-4
Export Promotion Councils; Commodity Boards/ Product Export Development Authorities; Specific Service Institutions.
UNIT-5
Role of State Trading Organizations in Foreign Trade: Export Processing Zones; Export Oriented Units and Export and
Trading House Schemes; Multilateralism and Bilateralism in India’s International Business. The trade policy prospects in the
world and its influences in India.

Suggested Text
 Mathur, Vibha, Foreign Trade Policy and Trends in India: 1947-48 to 2008-09, Neha Publishers & Distributors, 2009,
 Mathur, Vibha, Foreign Trade, Export-Import Policy and Regional Trade Agreements of India, New Century
Publications, 2012.

Additional Readings
 DGFT (Director General of Foreign Trade), Hand book of Procedures, Vol I &II, Government of India. www.dgft.gov.in.
 Bhalla, V.K., “International Business Environment and Management”, 8th Ed. Anmol, Delhi, 2001.
 Nayyar, Deepak, India’s Export and Policies in the 1960s, Cambridge University Press, 1976.
 Foreign trade policy and notices at DGFT, ministry of Commerce, government of India website