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EXIM Policy of India

Contents

What is EXIM policy?


Brief history about EXIM
Objectives of EXIM policy
Indian imports and exports
Highlights of EXIM Policy 2015-2020
SUMMRY AND
What is EXIM policy?
Also knows as Foreign Trade Policy
The foreign trade of India is guided by the Export-Import
policy of India
The Ministry of Commerce and Industry, Government of India,
pronounces the Indian EXIM policy or Export-Import policy of India.
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 to it.
Export means selling abroad and import as bringing into India, any
goods and services.
The Government of India advises the Exim Policy of India for a phase of
five years under Section 5 of the Foreign Trade Development and
Regulation Act, 1992.
The Exim Policy is renewed every year on the 31st of March and the
revisions, improvements and new proposals become effective from 1st
April of every year.
What is exim policy?

The Union Commerce Ministry,


Government of India announces the
integrated Foreign Trade Policy (FTP) in
every five year. This is also called EXIM
policy.
This policy is updated every year with
some modifications and new schemes.
New schemes come into effect on the first
day of financial year i.e. April 1, every
year. The Foreign trade Policy which was
announced on August 28, 2009 is an
integrated policy for the period 2009-14.
Brief History about EXIM

In the year 1962, the Government of India selected a special Exim


Policy Committee to review the government preceding policies of
export import (Indian Exim policy).
The committee was afterward permitted by the Government of India.
Mr. V. P. Singh, the then Commerce Minister and pronounced the
new Exim Policy of India on the 12th of April, 1985.
Primarily the Export-Import Policy of India was launched for the
period of three years with main intention to boost the export
business in India.
Objectives of EXIM Policy

To establish the framework for globalisation.


To promote the productivity, competitiveness
of Indian industry.
To encourage the attainment of high &
internationally accepted standards of quality.
To increase export by facilitating access to raw materials,
intermediate components, consumables and capital goods from the
international market
To generate new employment.
To provide quality consumer products at reasonable prices.
Indian top Imports and Exports

Agricultural products
Automobiles
Chemicals
Food and beverage products
Industrial goods
Pharmaceuticals and
biotechnology
Defense products, etc.
Indias Foreign Trade
Indias share in Global Trade

According to the WTO, in merchandise trade,


India was the 19th largest exporter in the world with
a share of 1.7 percent and the 12th largest importer
with a share of 2.5 percent in 2013.
In commercial services, India was the 6th largest
exporter in the world with a share of 3.2 percent
and the 9th largest importer with a share of 2.8
percent.
Export Import Policy, 2009-14
Legal Framework
General Provisions regarding Import and Export
Special Focus Initiatives
Promotional Measures
Duty Exemption / Remission Schemes
Export Promotion Capital Goods Scheme
Export Oriented Units (EOUs) etc
Special Economic Zones
Deemed Exports
Aims is General

The policy aims at been battered by the


developing export global recession
potential, improving A fall in exports has led
export performance, to the closure of several
boosting foreign trade small- and medium-scale
and earning valuable export-oriented units,
foreign exchange. FTP resulting in large-scale
assumes great unemployment.
significance this year as
India's exports have
Legal Framework
The Foreign Trade Policy (FTP) 2009-14 operated with effect from
27th August 2009 till 31st March 2014
An annual supplement is issued and forms part of the FTP.
The Central Government can make any amendment in the FTP by
issuing a notification in the public interest
Authorizations issued before commencement of FTP shall continue
to be valid for the purpose and duration for which such authorization
was issued
In case an export or import which is permitted freely under FTP, is
subsequently subjected to any restriction or regulation, such export
or import will ordinarily be permitted not withstanding such
restriction or regulation.
Special Focus Initiatives
The Chapter on Special
Focus Initiatives is Leather and Footwear
broadly classified into:
Marine Sector
Market Diversification
Electronics and IT Hardware
Technological Upgradation Manufacturing Industries
Support to status holders Sports Goods and Toys
Agriculture and Village Green products and
Industry technologies
Handlooms
Incentives for Exports from
Handicrafts the North Eastern Region
Gems & Jewellery
Promotional Measures
Assistance to States for Developing Export Infrastructure and Allied
Activities (ASIDE)
The objective of scheme is to establish a mechanism for involving
the State governments to participate in funding of infrastructure
critical for growth of exports by providing export performance linked
financial assistance to them
Market Access Initiative (MAI)
Financial assistance is provided for export promotion activities on focus
country, focus product basis. The Government may provide financial
assistance ranging from 25% to 100% of total cost. A whole range of
activities can be funded under MAI scheme. These include:
1) Market survey/studies
2) Setting up of showroom houses
3) Participation in international trade fairs
4) Brand promotion
5) Publicity campaigns, etc.
Promotional Measures
Export and Trading Houses: Status Category

Served From India Scheme (SFIS)

Focus Market Scheme (FMS)

Focus Product Scheme (FPS)

Market Linked Focus Products Scrip (MLFPS)

Status Holders Incentive Scrip (SHIS)

Incremental Exports Incentivization Scheme

Vishesh Krishi And Gram Udyog Yojana (VKGUY)


Duty Exemption/Remission Schemes
The schemes initiated by the Government under this category
are as follows:

Export Promotion Capital Goods Scheme (EPCG)

Advance Authorization Scheme

Duty Free Import Authorization Scheme (DFIA)

Duty Entitlement Passbook (DEPB) Scheme

Duty Drawback (DBK) Scheme


Export Promotion Capital Goods Scheme (EPCG)

This scheme has been discussed in Foreign Trade


Policy under following headings:
Zero duty EPCG Scheme
Concessional 3% duty EPCG Scheme
EPCG for projects
EPCG for Retail Sector

EPCG Authorization for Annual Requirement


Export Obligation
Provisions for BIFR Units
Highlights of EXIM Policy 2015-2020

1st April 2015 to 31st March 2020.


Vision, Mission and objectives:
The vision is to make India a significant partner in world trade
by 2020.
Government aims to increase Indias exports of merchandise and
services from USD 465.9 billion in 2013-14 to approximately
USD 900 billion by 2019-20.
Raise Indias share in world exports from 2 percent to 3.5
percent.
Initiatives such as Make in India, Digital India and Skills
India to create an Export Promotion Mission to provide a
stable and sustainable policy environment for foreign trade.
The Mega Agreements: Implications for India
Trans Pacific Partnership,
Trans-Atlantic Trade and Investment Partnership and
Regional Comprehensive Economic Partnership (RCEP)
These will add a completely new dimension to the global
trading system.
ANNOUNCEMENT FOR LEATHER EXPORT

On the payment of 50% applicable export duty,


Leather sector shall be allowed re-export of unsold
imported raw hides and skins and semi finished
leather from public bounded warehouse.
ANNOUNCEMENTS FOR TEA EXPORTS

The existing minimum value addition under


advance authorisation scheme for export of tea is
100%. To 50%.
DTA (domestic tarriff area) sales limit to instant
tea by EOU units increased from 30% to 50 %.
Export of tea has been included under VKGUY
Scheme benefits.
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