exim policy.pdf

export-import policy

1. EXIM Policy
EXIMpolicyisimportexportpolicythatcontains
rulesandregulationsregardingdoingimportsand
exports.
https://theintactone.com/2019/03/24/tbft-u1-topic-2-determinants-of-indian-foreign-trade-
policy-salient-features-of-exim-policy/

2. EXIM Policy
•India’s largest trade partners are US and Europe
•Middle East turmoil will impact India’s Export
•Target to increase export from $ 21.35 billion to $
900 billion by 2020.
•Trade Deficit of $ 9.7 billion
•Non-oil and Non-gold import decline
https://theintactone.com/2020/01/05/role-of-government-in-regulation-and-development-
of-business/

3. Trade Deficit of $ 9.7 billion (import of $ 31.12
billion –export of $ 21.35 billion)
Current data
Export-USD 27.65 billion as per Feb, 2020
Import -USD 41.1 billion as per Feb, 2020
Trade deficit-USD 13.45 billion

4. EXIM POLICY
•ForeignTradePolicyisasetofguidelinesand
instructionsestablishedbytheDGFTin
mattersrelatedtotheimportandexportof
goodsinIndia.
•TheForeignTradePolicyofIndiaisguidedby
theExportImportinknownasinshortEXIM
PolicyoftheIndianGovernmentandis
regulatedbytheForeignTradeDevelopment
andRegulationAct,1992.

5. EXIM Policy
•IndianEXIM Policycontains various policy
related decisions taken by the government in
the sphere of Foreign Trade, i.e., with respect
to imports and exports from the country and
more especially export promotion measures,
policies and procedures related thereto.

6. •TradePolicyispreparedandannouncedby
theCentralGovernment(Ministryof
Commerce).India'sExportImportPolicyalso
knowasForeignTradePolicy,ingeneral,aims
atdevelopingexportpotential,improving
exportperformance,encouragingforeign
tradeandcreatingfavorablebalanceof
paymentsposition.

7. History of EXIM Policy of India
•In the year 1962, the Government of India
appointed a special EXIM PolicyCommittee 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.

8. •Initially the EXIM Policy was introduced for the
period of three years with main objective to
boost theexport businessin India

9. Governing Body of Exim Policy
•TheGovernmentofIndianotifiestheEXIM
Policyforaperiodoffiveyears(1997-2002)
underSection5oftheForeignTrade
(DevelopmentandRegulationAct),1992.The
currentExportImportPolicycoversthe
period2015-2020.
•TheEximPolicyisupdatedeveryyearonthe
31stofMarchandthemodifications,
improvementsandnewschemesbecame
effectivefrom1stAprilofeveryyear.

10. •All types of changes or modifications related
to the EXIM Policy is normally announced by
the Union Minister of Commerce and Industry
who co-ordinates with the Ministry of
Finance, the Directorate General of Foreign
Trade.

11. Objectives Of EXIM Policy
•Governmentcontrolimportofnon-essential
itemsthroughtheEXIMPolicy.Atthesame
time,all-outeffortsaremadetopromote
exports.Thus,therearetwoaspectsofEXIM
Policy
A)theimportpolicywhichisconcernedwith
regulationandmanagementofimports
B)theexportpolicywhichisconcernedwith
exportsnotonlypromotionbutalso
regulation.

12. •To generate new employment.
•Opportunities and encourage the attainment
of internationally accepted standards of
quality.
•To provide quality consumer products at
reasonable prices.

13. •To accelerate the economy from low level of
economic activities to high level of economic
activities by making it a globally oriented
vibrant economy and to derive maximum
benefits from expanding global market
opportunities.

14. •To stimulate sustained economic growth by
providing access to essential raw materials,
intermediates, components,' consumables
and capital goods required for augmenting
production.

15. •Toenhancethetechnolocalstrengthand
efficiencyofIndianagriculture,industryand
services,thereby,improvingtheir
competitiveness.

16. EXIM POLICY, 2015-2020
INTRODUCTION
Anewpolicywasannouncedon1
st
april
,2015,nearlyayearafterNarendraModi
assumedasthenewGovernmentneeded
timetorecastthepolicy.
CommerceministerNirmala Sitharaman
statedthatitisinlinewithinitiatives“Makein
India”,“digitalIndia”and“skillIndia”
announcedbytheGovernmentearlier.

17. OBJECTIVES EXIM POLICY,2015-
2020
•It aims at making the country a bigger player
in global trade by improving the BE and
simplifying trade transactions.
•It seeks to provide a stable and sustainable
policy environment for foreign trade.
•Diversification of India’s export market.

18. Features
1)Exportgrowthtarget-itaimsatalmost
doublingtheexportsofIndiai.e.$900billion
byraisingIndia’sshareinworldexportsfrom2
%to3.5%duringthisperiod.

19. 2)Simplification and restructuring of Reward
scheme
•Ithasrestructuredexistingincentivescheme
andintroducedcertainnewschemes.
•Earliertherewerefivedifferentschemesfor
rewardingMerchandiseExport.Nowallhave
beenmergedintoasinglescheme,namely
Merchandise Exportfrom India
Scheme(MEIS).

20. Cont…
•ServiceExportsfromIndiaScheme(SEIS)
replacedServedfromIndiaScheme(SFIS).
ThusSEISprovidesforrewardstoallservice
providersofnotifiedservices,whoare
providingservicesfromIndia.
•IncentivesMEISandSEIShavebeenextendto
unitslocatedinSEZ’salso.

21. 3) New Trade Promotion Agency –Apart from
existing Board of Trade , a council for Trade
Development and Promotion will be set up
comprising representatives from states and
union territories.

22. 4)Status holders
•Foralongtime,Gov.hasbeenrecognizing
largeexportersasstatusholdersandspecial
treatmentandprivilegesgiventofacilitate
theirtrade.
•Thecriteriaforexportperformancefor
recognitionofstatusholderhavebeen
changedfromRupeestoUSdollarearnings.
Thenewcriteriaisasunder:

23. Status category Export Performance FOB / FOR (as
converted) Value (in USD million) during
current and previous
One StarExport house 3
TwoStarExport house 25
Three StarExport house 100
Four StarExport house 500
Five StarExport house 2000

24. 5) Boost to “MAKE IN INDIA”
•HigherlevelofrewardsunderMEISforexport
itemswithhighdomesticcontentandvalue
additionlikedefence,pharmaand
environment-friendlyproduct.
•TheGOV.willalsofocusonbrandingIndia’s
productsincludingpharma,engineering,
handloomsandyogaservices.

25. 6) New initiatives for EOUs, EHTPs and STPs
EOUs(export oriented unit)
EHTPs(electronic hardware technology park)
STP(software technology park)
•EOUs, EHTPs and STPs are allowed to share
infrastructural facilities among themselves.
•Inter-unit transfer of goods are allowed
among EOUs, EHTPs and STPs.

26. •EOUs are allowed facility to set up warehouses
near the port of export.
•EOUs, EHTPs and STPs are allowed to use duty
free equipments for training purposes of their
employees.

27. EVALUATION
•BJP GOV. took only one year to do required in
previous policy
•It reflects the general trend of past of
rationalizing existing export promotion
schemes .
•Make in India, digital India and skill India are
more or less extension of past policy

28. •Proceduralsimplificationanddigitalization
havebeencarriedfurtherforwardbythe
currentpolicy.
•ThereplacementofAnnualReviewbyMid-
termReviewmaynotbeappreciatedby
everyone.