•India's Exim Policy : A Backdrop
•The Foreign Trade Regime: Analytical Phases and Changes over Time •India's Exim Policy : Phases of Changes
•Export Import Policy 2002-07 : Objectives
•General Provision Regarding Imports and Exports
•Duty Exemption / Remission Scheme
•Export Promotion Capital Goods Scheme
•EOUs, EPZs, EHTPs, STPs
Export-Import (EXIM) Policy alternatively known as Trade Policy, refers to Policies adopted by a country with reference to exports and imports. Trade; Policy can be free trade policy or protective trade policy. A free trade 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. Though free trade, theoretically, offers several advantages, in reality, particularly underdeveloped countries were at a disadvantage in such a system of international trade. As a result, in the early 20th century, international economy saw the emergence of protective trade policies. A protective trade policy pursued by a country seeks to maintain a system of trade restrictions with the objective of protecting the domestic economy from the competition of foreign products. Protective trade policy constituted an important plank in the commercial policies of underdeveloped countries during the 50s, 60s, and 70s and to some extent in the 80s. Many of the underdeveloped countries continue to have protective trade policies even today. Trade policies may be outward looking or inward looking. An outward looking trade policy encourages not only free trade but also the free movement of capital, workers, enterprises and students, a welcome to the multinational enterprises, and an open system of communications. An inward looking trade 5 6 Policy Framework and Procedural Aspects policy stresses the need for a country to evolve its own style of development and to be the master of its own fate, with restrictions on the movement of goods, services and people in and out of the country. An inward looking trade Policy encourages the development of indigenous technologies appropriate to a country resource endowment. Given these, a developing country may adopt commodity specific trade Polices such as the following :
Primary outward looking polices: Aimed at encouraging agricultural and raw material exports Secondary outward looking policies: Aimed at promoting manufactured exports
Primary inward looking polices: Objective is to achieve agricultural self sufficiency Secondary inward looking polices: Objective is attaining manufactured commodity self-sufficiency through import substitution. Trade Policy will strongly influence the direction, trend and growth of foreign trade of a country. This, in turn, will have a bearing on the economic development process. Therefore, trade policy is an important economic instrument which can be used by a country, with suitable modifications from time to time, to achieve its long-term objectives.
INDIA'S EXIM POLICY : PHASES OF CHANGES :-
In the early fifties (1950-56) there was a rough equilibrium in the balance of payments, with import demand more or less equaling export earnings. During this period, there was no clear exim policy and import restrictions of any kind were not in use. The conditions were, more or less, similar to Phase IV. In the second half of the fifties (1956-61), due to heavy industry oriented industrial planning, the rapid rise in imports put pressure on India's balance of payments. The Government imposed quantitative restrictions were selective so as to encourage the development of particular industries through import licenses. Import substitution was stimulated while...