Import Export Policy of India

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Abhijeet Bansode.

For India to become a major player in world trade, an all encompassing, and comprehensive view needs to be taken for the overall development of the country's foreign trade. While increase in exports is of vital importance, we have also to facilitate those imports which are required to stimulate our economy. Coherence and consistency among trade and other economic policies is important for maximizing the contribution of such policies to development. Thus, while incorporating the existing practice of enunciating an annual Exim Policy, it is necessary to go much beyond and take an integrated approach to the developmental requirements of India's foreign trade. This is the context of the new Foreign Trade Policy.

Trade is not an end in itself, but a means to economic growth and national development. The primary purpose is not the mere earning of foreign exchange, but the stimulation of greater economic activity. The Foreign Trade Policy is rooted in this belief and built around two major objectives. These are: 1. To double the percentage share of global merchandise trade within the next five years. The trade (i.e. Exports less imports) as per 1.09.2004 was $ 60 US while during 31.03.2009; it is expected to grow to $ 120 US.

2. To act as an effective instrument of economic growth by giving a thrust to employment generation. During the period between the years 2004 and 2005, employment generation was 10 lacs jobs which rose to 20 lacs in the years 2006-2007. In the year 2009 it is expected to be 50 lacs.

These objectives are proposed to be achieved by adopting, among others, the following strategies: 1.Unshackling of controls and creating an atmosphere of trust and transparency to unleash the innate entrepreneurship of our businessmen, industrialists and traders. 2.Simplifying procedures and bringing down transaction costs. 3.Neutralizing incidence of all levies and duties on inputs used in export products, based on the fundamental principle that duties and levies should not be exported. 4.Facilitating development of India as a global hub for manufacturing, trading and services. 5.Identifying and nurturing special focus areas which would generate additional employment opportunities, particularly in semi-urban and rural areas, and developing a series of ‘Initiatives' for each of these. 6.Facilitating technological and infrastructural upgradation of all the sectors of the Indian economy, especially through import of capital goods and equipment, thereby increasing value addition and productivity, while attaining internationally accepted standards of quality. 7.Upgrading our infrastructural network, both physical and virtual, related to the entire Foreign Trade chain, to international standards.

The Preamble spells out the broad framework and is an integral part of the Foreign Trade Policy.

In exercise of the powers conferred under Section 5 of The Foreign Trade (Development and Regulation Act), 1992 (No. 22 of 1992), the Central Government hereby notifies the Foreign Trade Policy for the period 2004-2009 incorporating the Export and Import Policy for the period 2002-2007, as modified. This Policy shall come into force with effect from 1st September, 2004 and shall remain in force upto 31st March, 2009, unless as otherwise specified.

The Central Government reserves the right in public interest to make any amendments to this Policy in exercise of the powers conferred by Section-5 of the Act. Such amendment shall be made by means of a Notification published in the Gazette of India

Any Notifications made or Public Notices issued or anything done under the previous Export/ Import policies, and in force immediately before the commencement of this Policy shall, in so far as they are not...
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