EXPORT & IMPORT POLICY OF

INDIA

Presented By Group No. 1

1. Abhishek Yadav(20423BIB001)
2. Adarsh Bhardwaj(20423BIB002)
3. Akash Guha Roy(20423BIB003)
Presented To: Dr. Ashutosh Mohan
 INTRODUCTION
• Trade policy governs exports from and imports into a country.

• Guided by the Export-Import (EXIM) Policy of the government of India.

• Regulated by the Foreign Trade (Development and Regulation) Act, 1992.

• Contains various policy with respect to imports and exports i.e. export promotional measures, policies and procedures related
thereof.

• Prepared and announced by the Central Government (Ministry of Commerce and Industry) for every 5 years of span.
 HISTORY OF EXIM POLICY OF INDIA
• The foreign trade policy (FTP) also known as EXIM (export-import) policy is regulated by the Foreign Trade
Development and Regulation Act, 1992. The main governing body in the matters concerning the EXIM policy is
DGFT (Directorate General of Foreign Trade).

• Directorate General of Foreign Trade (DGFT) is the main governing body related to Exim Policy.
• Foreign Trade Act replaced the earlier law known as the “Imports and Exports (Control) Act 1947”.
• In the year 1962, the Government of India appointed a Special Exim Policy Committee to review the government
previous export import policies.
• The committee was later approved by the Government of India.
• Exim policy Committee to review the government previous export import policies. The committee was later on
approved by the Government of India. Mr. V. P. Singh, the then Commerce Minister and announced the Exim Policy
on the 12th of April, 1985. Initially the EXIM Policy was introduced for the period of three years with main
objective to boost the export business in India.
• Initially the EXIM Policy was introduced for the period of three years..
 OBJECTIVE OF EXIM POLICY
• Sustained growth in exports to attain a share of global trade.
• Providing access to essential raw materials, intermediates, components, consumables and capital goods
required for augmenting production and providing services.
• To enhance the technological strength and efficiency of all sectors of the economy.
• To generate new employment.
• To provide consumers with good quality goods and services at internationally competitive prices.
• Making a market space for domestic product.
• To accelerate the economy from low level of economic activities to high level of economic activities.

• To facilitate sustained growth in exports from India and import in India.

• To provide clients with high-quality goods and services at globally competitive rates. Canalization is an important
feature of Exim Policy under which certain goods can be imported only by designated agencies. For an example,
an item like gold, in bulk, can be imported only by specified banks like SBI and some foreign banks or designated
agencies.
 EXIM INFRASTRUCTURE
• About 95% of India’s merchandise trade (by volume) is handled by its maritime transport. Jawaharlal Nehru
Port Trust (JNPT) in Maharashtra is India’s largest port, handling 55% of container cargo across all major
ports. Currently, the country has a presence of 290 inland container depots and freight stations for trade
(includes those under implementation).
• To reduce the logistics cost for cargo and promote port-led industrial development, the Government of India
launched the Sagarmala Programme under which 6 new major ports and 14 coastal economic zones have
been identified for development. The Programme four main pillars are port-modernization, better port-
connectivity, port-led industrialization and coastal community development. With a targeted construction of
40 km of national highway every day during 2018-19, the world’s 2nd largest road network in India is aiming
to reach the pinnacle soon. For efficient movement of goods and better district-level connectivity, the project
of Bharatmala Pari yojana was launched by the Government of India in 2015. The Project aims to develop
50 new industrial corridors, add 34,800 km of road network in its Phase-I, including 10,000 km of the
residual road network under NHDP and connect 550 districts through four-lane national highways.
• Trade through railways in India is also prominent, with the Indian Railways transporting over 1.2 bn tons of
freight in 2017-18. There are 6 high-capacity, high-speed freight corridors coming up in the country to
support the Indian Railways to manage 40% modal freight share of the economy.
Exim Policy Of India Stages

Exim Policy 1992-1997

Exim Policy 1997-2002

Exim Policy 2002-2007

Exim Policy 2004-2009

Exim Policy(Interim) 2009-

2010

Exim Policy 2010-2015

New Exim Policy 2015-2020

 INDIA EXPORT & IMPORT FIGURE FROM 2010-2019
VALUES IN US $
600,000,000,000.00

500,000,000,000.00

400,000,000,000.00

300,000,000,000.00

200,000,000,000.00

100,000,000,000.00

0.00
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

-100,000,000,000.00
-96,377,879,772
-129,620,890,936 -129,434,178,559 -126,363,727,774
-149,687,863,674 -155,633,002,687
-200,000,000,000.00 -141,824,821,346
-160,919,540,603 -199,411,609,049
-185,123,633,130
Total Export Value Total Import Value Trade Deficit
 EXIM POLICY 1992-1997

• In order to liberalize imports and boost exports, the Government of India for the first time introduced
the Indian Exim Policy on April I, 1992. In order to bring stability and continuity, the Export Import
Policy was made for the duration of 5 years. However, the Central Government reserves the right in
public interest to make any amendments to the trade Policy in exercise of the powers conferred by
Section-5 of the Act. Such amendment shall be made by means of a notificaion published in the
Gazette of India. Export Import Policy is believed to be an important step towards the economic
reforms of India.
 MAJOR STEPS TAKEN UNDER EXIM POLICY 1992-1997
• Liberalize imports and boost exports.
• Bring stability and continuity.

• The Central Government reserves the right to make any amendments to the trade Policy under Section-5 of the Act
in the Gazette of India.
• Export Import Policy is believed to be an important step towards the economic reforms of India.
• 542 items have been removed from restricted list.
• Out of which 392 items have been placed on the free list and other 150 items on Special Import License (SIL) list.
• 60 items have been transferred from SIL list to free list.
 EXIM POLICY 1997-2002
• The Government of India introduced a New Exim Policy for the year 1997-2002.This policy has further simplified the
procedures and reduced the interface between exporters and the Director General of Foreign Trade (DGFT) by reducing
the number of documents required for export by half. Import has been further liberalized and better efforts have been made
to promote Indian exports in international trade.

Objective of EXIM POLICY 1997-2002

• To accelerate the economy from low level of economic activities to high level of economic activities.
• To motivate sustained economic and to improve the technological strength.
• To create new employment.
• To give quality consumer products at reasonable prices.
 HIGHLIGHTS OF THE EXIM POLICY 1997-2002
• Period of the Exim Policy: This policy is valid for five years instead of three years as in the case of earlier policies. It is
effective from 1st April 1997 to 31st March 2002.

• Liberalization: A very important feature of the policy is liberalization.It substantially eliminated licensing,
quantitative restrictions and other regulatory and discretionary controls. All goods, except those coming under
negative list, may be freely imported or exported.

• Imports Liberalization: Of 542 items from the restricted list 150 items have been transferred to Special Import
License (SIL) list and remaining 392 items have been transferred to Open General Licence (OGL) List.
• Export Promotion Capital Goods (EPCG) Scheme: The duty on imported capital goods under EPCG scheme has
been reduced from 15% to 10%. Under the zero duty EPCG Scheme, the threshold limit has been reduced from Rs.
20 crore to Rs. 5 crore for agricultural and allied Sectors.
• Advance Licence Scheme: Under Advance License Scheme, the period for export obligation has been extended
from 12 months to 18 months. A further extension for six months can be given on payment of 1 % of the value of
unfulfilled exports.
• Duty Entitlement Pass Book (DEPB) Scheme: Scheme an exporter may apply for credit, as a specified percentage of FOB value
of exports, made in freely convertible currency. Such credit can be can be utilized for import of raw materials, intermediates,
components, parts, packaging materials, etc. for export purpose.
 IMPACT OF EXIM POLICY 1997-2002

• Globalization of Indian Economy.

• Provided Boost to Indian Industry.

• Provided Boost to Indian Agriculture sector.

• Encouraged Foreign Investment.

• Product Quality Upgradation.

• Helped in Self Reliance Economy.

 EXIM POLICY 2002-07
Objective Of EXIM Policy 2002-2007:

• Augmenting exports of farm goods, the small scale sector, textiles, gems and jewellery, electronic hardware etc.

• Reduce transaction cost to trade through a number of measures to bring about procedural simplifications.

• Removal of quantitative restrictions (QRs) on exports, except a few sensitive items.

 HIGHLIGHT OF EXIM POLICY 2002-2007
• Help in Flourishment of Hardware and Software Industry.
• Helped in Flourishment of Gems and Jewellery sector.
• Removal Of Quantitative Restriction.
• Special Economic Zone Scheme.
• Status Holder.
• Service Exports.
• Export Oriented Scheme (EOU) Scheme.
• Export Promotion Capital Goods (EPGC) Scheme.
• Duty Entitlement Pass Book (DEPB) Scheme.
• Duty Free Replenishment Certificate (DFRC)Scheme.
 EXIM POLICY 2004-2009
Main Element of EXIM Policy 2004-2009 are:
• Preamble.
• Legal Framework.
• Special Focus Initiatives.
• Board Of Trade.
• General Provisions Regarding Imports And Exports.
• Promotional Measures.
• Octroi Exemption.
• Duty Exemption / Remission Schemes.
• Export Promotion Capital Goods Scheme.
• Export Oriented Units (EOUs),Electronics Hardware Technology Parks (EHTPS), Software Technology Parks
(STPs) and Bio-Technology Parks (BTPs).
• Special Economic Zones.
• Free Trade & Warehousing Zones.
• Deemed Exports
SPECIAL ECONOMIC ZONE
 OBJECTIVE OF EXIM POLICY 2004-2009

• To advise Government on Policy measures for preparation and implementation of both short and long
term plans for increasing exports in the light of emerging national and international economic
scenarios.
• To review export performance of various sectors, identify constraints and suggest industry specific
measures to optimize export earnings.
• To examine existing institutional framework for imports and exports and suggest practical measures
for further streamlining to achieve desired objectives.
• To review policy instruments and procedures for imports and exports and suggest steps to rationalize
and channelize such schemes for optimum use.
• To examine issues which are considered relevant for promotion of India’s foreign trade, and to
strengthen international competitiveness of Indian goods and services.
• To commission studies for furtherance of above objectives.
 PROMOTIONAL MEASURES OF EXIM POLICY 2004-2009
• The Government of India has set up several institutions whose main functions are to help an exporter in his work. It would be advisable for an
exporter to acquaint him with these institutions and the nature of help that they can provide so that he can initially contact them and have a
clear picture of what help he can expect of the organized sources in his export effort. Some of these institution are as follows:
1. Export Promotion Council.
2. Commodity Boards.
3. Marine Products Export Development Authority.
4. Agricultural & Processed Food Products Export Development Authority.
5. Indian Institute of Foreign Trade.
6. India Trade Promotion Organization (ITPO).
7. National Centre for Trade Information (NCTI).
8. Export Credit Guarantee Corporation (ECGC).
9. Export-Import Bank.
10. Export Inspection Council.
11. Indian Council of Arbitration.
12. Federation of Indian Export.
13. Department of Commercial Intelligence and Statistic.
14. Directorate General of Shipping.
15. Freight Investigation Bureau.
 EXIM POLICY 2009-2014
Objective Of EXIM Policy 2009-2014:
• To arrest and reverse declining trend of exports.

• To double India's share in global merchandise trade by 2020.

• Simplification of the application procedure for availing various benefits.
• To set in motion the strategies and policy measures which catalyze the growth of exports.

• To encourage exports through a “mix of measures” including fiscal incentives, institutional changes, procedural
rationalization.
• Efforts for enhance market access across the world.
 MAJOR ANNOUNCEMENT OF EXIM POLICY 2009-2014
• Technological Upgradation.
• EPCG Scheme Relaxation.
• Marine Sector:Fisheries have been included in the sectors which are exempted from maintenance of average EO under EPCG Scheme,
subject to the condition that Fishing Trawlers, boats, ships and other similar items shall not be allowed to be imported unde r this provision.
This would provide a fillip to the marine sector which has been affected by the present downturn in exports.
• Gems & Jewelry Sector: To neutralize duty incidence on gold Jewellery exports, it has now been decided to allow Duty Drawback on such
exports. A new facility to allow import on consignment basis of cut & polished diamonds for the purpose of grading/ certification purposes
has been introduced.. To promote export of Gems & Jewellery products, the value limits of personal carriage have been increased from
US$ 2 million to US$ 5 million in case of participation in overseas exhibitions. The limit in case of personal carriage, as samples, for export
promotion tours, has also been increased from US$ 0.1 million to US$ 1 million.
• Agriculture Sector: To reduce transaction and handling costs, a single window system to facilitate export of perishable agricultural
produce has been introduced. The system will involve creation of multi-functional nodal agencies to be accredited by APEDA.
• Leather Sector: Leather sector shall be allowed re-export of unsold imported raw hides and skins and semi finished leather from public bonded ware
houses, subject to payment of 50% of the applicable export duty.

• Tea : Minimum value addition under advance authorisation scheme for export of tea has been reduced from the existing 100% to 50%..
Export of tea has been covered under VKGUY Scheme benefits.
• Pharmaceutical Sector: Export Obligation Period for advance authorizations issued with 6-APA as input has been increased from the
existing 6 months to 36 months, as is available for other products.Pharma sector extensively covered under MLFPS for countries in Africa and Latin
America; some countries in Oceania and Far East.

• Handloom Sector: To simplify claims under FPS, requirement of ‘Handloom Mark’ for availing benefits under FPS has been removed.
 NEW EXIM POLICY: 2015-2020

Introduction

The Government of India, Ministry of Commerce and Industry announced New Foreign Trade Policy on 01st April
2015 for the period 2015-2020, earlier this policy known as Export Import (Exim) Policy. After five years foreign
trade policy needs amendments in general, aims at developing export potential, improving export performance,
encouraging foreign trade and creating favorable balance of payments position. The Export Import Policy (EXIM
Policy) or Foreign Trade Policy is updated every year on the 31st of March and the modifications, improvements
and new schemes becomes effective from April month of each year.
 OBJECTIVE OF NEW POLICY 2015-2020
• The vision is to make India a significant participant in world trade by the year
2020 and to enable the country to assume a position of leadership in the
international trade discourse. Government aims to increase India‟s exports of
merchandise and services from USD 465.9 billion in 2013-14 to approximately
USD 900 billion by 2019-20 and to raise India‟s share in world exports from 2
percent to 3.5 percent.

● To provide a stable and sustainable policy environment for foreign trade in

merchandise and services.
● To link rules, procedures and incentives for exports and imports with other initiatives such as
"Make in India", Digital India and Skill India to create an ‘Export Promotion Mission’ for India.
● To promote the diversification of India’s export by helping various sectors of the Indian economy
to gain global competitiveness with a view to promote exports.
● To create an architecture for India’s global trade engagement with a view to expanding its
markets and better integrating with major regions, thereby increasing the demand for India’s
product and contributing to the government’s flagship "Make in India" initiative.
● To provide a mechanism for regular appraisal in order to rationalise imports and reduce the trade
imbalance.
 HIGHLIGHT OF NEW EXIM POLICY 2015-2020
• Merchandise Exports from India Scheme (MEIS).
• Service Exports from India Scheme (SEIS)
• Chapter -3 Incentives (MEIS & SEIS) to be available for SEZs.
• Duty credit scrips to be freely transferable and usable for payment of custom duty, excise duty and service tax.
• Boost to "MAKE IN INDIA”.
• Online filing of documents/ applications and Paperless trade in 24x7 environment.
• Online inter-ministerial consultations.
• Simplification of procedures/processes, digitization and e-governance.
• Forthcoming e-Governance Initiatives.
• Facilitating & Encouraging Export of dual use items (SCOMET).
• e-Commerce Exports
• Duty Exemption
• Additional Ports allowed for Export and import
• Duty Free Tariff Preference (DFTP) Scheme
• Quality complaints and Trade Disputes
• Vishakhapatnam and Bhimavaram added as Towns of Export Excellence
 MERCHANDISE EXPORT FROM INDIA SCHEME
(MEIS)
• Earlier there were 5 different schemes (Focus Product Scheme, Market Linked Focus Product
Scheme, Focus Market Scheme, Agri. Infrastructure Incentive Scrip, VKGUY) for rewarding
merchandise exports with different kinds of duty scrips with varying conditions. Now all
these schemes have been merged into a single scheme, namely Merchandise Export from
India Scheme (MEIS).
• In this scheme, the incentives are to be provided in the form of duty scrips as % of FOB {free
on board} value of exports. It varies from 2%-5%.
• The Duty free scrips are provided to the exporters under various export promotion
schemes of the government. Policy of 2015 makes all duty free scrips freely transferable.
These scripts can be used for payment of custom duty, excise duty and service tax also.
 SERVICE EXPORT FROM INDIA SCHEME (SEIS)

• Served From India Scheme (SFIS) has been replaced with Service Exports from India Scheme
(SEIS). SEIS shall apply to ‘Service Providers located in India’ instead of ‘Indian Service
Providers’. Thus SEIS provides for rewards to all Service providers of notified services, who are
providing services from India, regardless of the constitution or profile of the service provider.
• The benefits of this scheme will be based on net foreign exchange earned. Here duty credit
varies from 3%-5%.
• The reward issued as duty credit scrip, would no longer be with actual user condition and will
no longer be restricted to usage for specified types of goods but be freely transferable and
usable for all types of goods and service tax debits on procurement of services.
 EXPORT STATUS HOLDERS
• Business leaders who have excelled in international trade and have successfully contributed to country’s
foreign trade are proposed to be recognized as Status Holders and given special treatment and privileges
to facilitate their trade transactions, in order to reduce their transaction costs and time.

Status Exports in million

USD
One Star Export 3
House
Two Star Export 25
House

Three Star Export 100

House

Four Star Export 500

House

Five Star Export 2000

House
 BOOST TO "MAKE IN INDIA"
TOWN OF EXCELLENCE SCHEME
• Here, towns that produce and exports goods worth a minimum value and above in the identified
sectors will be given towns of export status. Usually towns are declared as export excellence
because of their specialization in the export of key items like handloom, agriculture, handicraft,
fisheries etc.

NIRYAAT BANDHU SCHEME

• The objective of the Niryat Bandhu Scheme is to reach out to the new and potential exporters and
mentor them through orientation programmes, counselling sessions, individual facilitation, etc., for
being able to get into international trade and boost exports from India.
EXPORT PROMOTION CAPITAL GOODS SCHEME
• The objective of the Export Promotion Capital Goods (EPCG) Scheme is to facilitate import of
capital goods for producing quality goods and services and enhance India’s manufacturing
competitiveness. EPCG Scheme allows import of capital goods for pre-production, production and
post-production at zero customs duty.
MDA SCHEME
• Marketing Development Assistance (MDA)is a government grant available to exporters for
their export promotion activities like participation in EPC led international Trade Fairs/Exhibition
to explore new markets for export of their specific product(s)
MAI SCHEME
• Market Access Initiative (MAI) Scheme is an Export Promotion Scheme envisaged to act as a
catalyst to promote India’s exports on a sustained basis. The scheme is formulated on focus
product-focus country approach to evolve specific market and specific product through market
studies/survey.
 TRADE FACILITATION & EASE OF DOING
BUSINESS
• DGFT already provides facility of Online filing of various applications under FTP by the
exporters/importers
• As a measure of ease of doing business, landing documents of export consignment as proofs for
notified market can be digitally uploaded.
• It is proposed to have Online inter-ministerial consultations for approval of export of items, Norms
fixation, Import Authorisations, Export Authorisation, in a phased manner, with the objective to
reduce time for approval.
• For resolving disputes at a faster pace, a Committee on Quality Complaints and 18 Trade Disputes
(CQCTD) is being constituted in 22 offices.
• Export obligation period for export items falling in the category of defence, military store, aerospace
and nuclear energy shall be 24 months from the date of issue of authorization or co-terminus with
contracted duration of the export order, whichever is later.
 CONCLUSION

• With the help of foreign trade policies, a country can lead to equality of pricing to ensure a
stable demand and supply situation within the economy. Therefore, the Foreign Trade
Policy in India is a complete policy to enhance the position of India in the international
market and create benefits for all.

• In today’s world, globalization is a reality. There is no element of doubt that threats from
globalization exists which may harm the domestic industries but from the past experience, it
can also be concluded that in the absence of competition, quality of production deteriorates
and complacency hampers the economy.

• Thus in order to increase the efficiency of the nation’s economy and to assure the increasing
consumer surplus and producer’s income, one must endeavor to formulate the foreign trade
policy in such a manner which raises the country’s productivity and not merely aimed at
increasing exports and decreasing imports.