Accordingly the export-import policies (Exim policy were announced by the government first in 1985 and then in 1988 for three year period. Again the exim policy was revised in 1990. All these policies made necessary for provision for extension of import liberalisation measures. All these policies made necessary provision for import of capital goods and raw materials for industrialisation of REP (Registered Exporters Policy) licenses, liberal import of technology and policy for Export and Trading Houses. The Exim policy 1985 was designed to facilitate production and thus make provision for easier and quicker access to imported inputs, strengthening export production base, technological up-gradation and arranging savings in imports. Accordingly, import of 53 items were decanalised : (a)201 items of industrial machinery were placed on OGL; “Import-Export Pass Book Scheme” was introduction; (b) import of 67 items of raw materials and components was transferred to limited permissible list and (c)adoption of two tier policy for import of computer and computer based systems. Exim Policy, 1988
On March 30, 1988 the Import-Export Policy (Exim Policy) was modified. Accordingly, (a) 745 items were placed on OGL; (b) scope for import replenishment was widened; (c) import of 26 items decanalised; (d) eligibility limit for export and trade houseswas fixed etc. Exim Policy, 1990
On April 30, 1990 the Government announced a new Import-Export Policy for a three year period, terminating the previous policy. The provisions made in this new policy include the following (a)OGL list of imports expanded and 82 capital goods items were included; (b) import of certain raw materials have been canalised : (c) introduction of automatic licensing upto 10 per cent of the value of previous imports; (d) expansion of REP licensing scheme; (e) providing additional licenses to Export and Trading Houses to import raw materials and components; (f) introducing star trading houses for granting additional licenses at the rate of 15 per cent foreign exchanged earned; (g) introduction of Duty Exemption Scheme and Blanket advances Scheme; and (h) withdrawing the scheme of Import-Export Pass Book. Export-Import (Exim) Policy, 1991
In July-August, 1991 the Narasimha Rao Government announced the certain major reforms in Exim-Policy, 1990 after making some necessary review in it. All these reforms strengthened the export incentives, eliminated a considerable volume of import licensing and optimal import compression. The main features of this policy were as follows: 1. Introduction of major change in the import licensing system through the replacement of administered licensing of imports through import entitlement. The system of supplementary licenses was discontinued and unlisted OGL category abolished. All these import henceforth met through Exim scripts. 2. The new policy strengthened the system of advance license provided to exporters with duty free access to inputs. 3. The procedure followed for the import of capital goods was simplified. 4. The list of restricted items was reviewed and accordingly 98 items were shifted from the restricted list to limited permissible list and 37 items were also shifted from limited permissible list to OGL list. 5. The policy aimed at progressive reduction in the extent of canalisation 6. The policy permitted Export Houses, Trading Houses and Star T rading Houses to import a wide range of items 7. Export Processing Z ones (EPZ) and 100 percent . Export Oriented Units (EOUs) were granted several consessions . 8. The scheme of cash compensatory support (CCS) was abolished.
Import substitution in India
The term ‘IMPORT SUBSTITUTION’ means a policy of replacement or substitution of imports by domestic production. Here the substitution of imports by indigenously produced goods can serve the two definite...