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POLICY
What is Exim Policy?
It contains policies in the sphere of Foreign trade i.e.
with respect to import & export from the country
and more especially export promotion measures,
policies and procedure related there to.
Export means selling abroad and import as bringing
into India, any goods and services.
EXIM Policy is a set of guidelines and instructions
established by the DGFT in matters related to the
import and export of goods in India.
DGFT-Directorate General of Foreign Trade
Objective of Exim
Policy
Accelerating the countrys 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
Encouraging the attainment of internationally accepted
standards of quality
Providing consumers with good quality products and
services at reasonable prices.
Advantages of Import
Reduce dependence on existing markets
Exploit international trade technology
Extend sales potential of existing products
Maintain cost competitiveness in your
domestic market
Disadvantages Of
Import
Importation of items from other
countries can increase the risk of getting
them which is no more common in the
warm weather.
it leads to excessive competition
It also increases risks of other diseases
from which the country is exporting the
goods.
Advantages Of Export
Exporting is one way of increasing your
sales potential
Financial Risk
Market Information
STRATEGIC OPTIONS FOR TRADE
POLICY
A Free trade policy is one which does not impose any
restriction on the exchange of goods and services between
different countries. A free trade policy involves complete absence
of tariffs, quotas, exchange restrictions, taxes and subsidies on
production, factor use and consumption.
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Organisations
Various organisations of Imports and Exports are:
WTO(World Trade Organisation)
IMF(International Monetary Fund)
ADB(Asian Development Bank)
WTO is major international trade board for liberalisation.
WTO came into in the year 1995 jan 1st.
GATT agreement required to be member of WTO.
Major part of WTO is FTRB(Foreign Trade Review Body).
FERA AND FEMA
Import procedures
Trade enquiry
Procurement of import license
Obtaining foreign exchange
Placing the indent
Dispatching a letter of credit
Obtaining necessary documents
Customs formalities and clearing of goods
Making the payment
Export procedures
Registration procedure
Pre shipment procedure
Shipment procedure
Realizing export incentives
Post-shipment procedure
Pre 1991 Trade
Policy
In eighties, Export
promotion
schemes were
In 1960s and implemented-
70s, imports Export Promotion
were partly Council, The trade
Second Year liberalised with Fair Authority of
Plan- Highly several India, cash
Inward Looking Restrictive conditions. compensatory
Development Policy. schemes etc.
Strategy- Import
Substitution
Strategy
The 1991 Trade policy
Liberalisation of imports and exports
No improvement in exports.
Year Import Export Trade
(Cr.) (Cr.) Bal.(Cr.)
Excess of import due to setting of steel
1956-61 1080 613 -467 plants,heavy expansion & renovation on
railways & modernization of many
industries.
Export lower than occur in second plan
which shows that export promotion drive
did not materialize.
Excess of import due to-
1961-66 1224 747 -477 Rapid industrialization needs capital
goods as raw material.
Defence needs had increased due to
aggression by China & Pakistan.
Need of foodgrains due to failure of
crops in 1965-66.
Year Import Export Trade
(Cr.) (Cr.) Bal.(Cr.)
Devaluation was resorted to essentially-
1966-69 5775 3708 -2067 To reduce volume of import.
(Annual- To boost export.
Create favourable balance of trade and
plans) balance of payment.