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Both imports and exports are made free. Quantitative restrictions on 714 items removed by the EXIM policy of 2000-01and on the remaining 715 items removed by EXIM policy of 2001-02. In WTO regime, quantitative restrictions on all import items have been withdrawn.

2. Tariff structure rationalised. In 1993 Raja Chelliah Committee recommended rationalization. By 1998-99 import duties were rationalized and drastically reduced. In budgets import duties has been reduced by stages.

3. The EXIM policy for 1992-97 decanalised imports of a number of items including news print and natural rubber. The monopoly of public sector is considerably reduced.

4. Current Account Convertibility. Substantial capital account liberalization measures have been introduced, though there is no full convertibility in capital account. However there is full convertibility in current account. Since March 1993 the exchange policy in India has been pegged to a market related system. The exchange rate now is market determined.

5. The new trade policy has recognized five categories of trading houses, especially export houses: a. Export house, b. Star export house c. Trading house d. Star trading house e. Premium trading house. These houses are granted a number of benefits and concessions including self certification under the advance license system permitting duty free imports for exports.

6. SEZs. Under the SEZ Act of 2005 which came into effect on Feb 10, 2006 the following objectives are being envisaged: a. Generation of additional activity, b. Promotion of exports. c. Creation of employment and d. Development of infrastructure

7. There are Agriculture Export Zones for cluster approach for identifying potential beneficiaries. The AEZs are given extra benefits and concession for post harvest operation, plant protection, processing, packaging, storage and R&D.

8. Since 2003 selected services have been given the benefit of number of measures such as duty free imports and access to foreign exchange.

9. The Foreign Trade policy 2004-09 announced 5 thrust sectors, namely agriculture, handicrafts, handlooms, gems and jewelry, leather and footwear these thrust sectors are given special focus initiatives.

10. The Foreign Trade Policy of 2009 introduced a new scheme for establishing Free Trade and Warehousing Zones to create trade related infrastructure to facilitate both imports and exports. For this purpose FDI is permitted up to 100% in the development of FTWZs and infrastructure facilities.

11. Foreign Trade Policy of 2004-09 announced a number of measures to reduce transaction cost. Procedures for bank lending are also simplified.

12. A large number of tax benefits and exemptions have been granted to liberalize imports and to promote exports. However these are altered in Union Budgets depending upon prevailing circumstances.

1. Relative importance of home market is not properly considered. Deepak Nayyar has pointed out that the Foreign Trade Policy is to be geared to the needs of industrialization. As he says in the ultimate analysis large economies like India must try to internalise external markets.

2. The state intervention is to be reduced carefully. Deepak Nayyar suggests that the domestic capitalists are to protected against the foreign competition in the home market.

3. The issue of technology is to be attended without ignoring the development of indigenous technology. Deepak Nayyar in his book on Foreign Trade Sector, Planning and Industrialization in India argues that the role of govt. is crucial in planning for technological development and over time.

This policy has both the short term and long term objectives. The run short objective is to arrest and reverse the declining trend of Indian Exports. This is a measure of protection in the period of recession in developed world.

The long term objective is to double Indias share in global trade by 2020. It should increase from 1.64% in 2008 to 3.28% in 2020.

1. The focus market scheme is to be expanded new markets in Latin America, South Africa, Brazil and Mexico are to be explored. This calls for diversification of export markets for increasing export earnings.

2. There are 2 schemes namely Focus Market Scheme(FMS) and Focus Product Scheme(FPS) the engineering goods, musical instruments, value added plastic products, jute and jute products are included in FPS for extending special incentives.

3. Zero duty free import of capital goods for engineering and electronics products was introduced which remained in effect until March 31st, 2011.

4. Export oriented units have been allowed to sell products in the domestic market also in view of the need for internalizing external markets.

5. Steps to simplify procedures and reducing transaction costs have been taken. Customs duties have been rationalized an lowered. The Commerce Ministry is using electronic systems to help the export oriented units.

K T Chacko, Director of Delhi based Indian Institute of Foreign Trade observes that the three periods of Foreign Trade growth are infrastructure, reimbursement of duties and reduction in transaction costs. He has commented that the FTP 2009-14 has concentrated on sustaining the current level of exports instead of raising the level of exports. The cost of Bank finance for exporters should be reduced considerably because this cost is much less in countries which are competitors foe India.