India’s Export-Import
UNIT 15 INDIA’S EXPORT-IMPORT POLICY
Objectives
This unit helps you to understand: what is trade policy; kinds of trade policy; phases of liberalisation in trade policies in the process of economic development; trends in India’s exim policies; salient features of India’s import regime during 1950-91; characteristics of India’s export promotion policies; and India’s Trade Policy reforms in the 90s.
Structure
15.1 15.2 15.3 15.4 15.5 15.6 15.7 15.8 15.9 15.10 15.11 15.12 15.13 15.14 Introduction India’s Exim Policy : A Backdrop The Foreign Trade Regime : Analytical Phases and Changes Overtime India’s Exim Policy : Phases and Changes India’s Import Regime (1950-89) : Major Features Export Policies and Incentives (1950-89) EXIM Policies in the 90s Export-Import Policy (1997-2002) Export-Import Policy (2002-2007) Trade Policy Reforms Summary Key Words Self Assessment Questions Further Readings
15.1 INTRODUCTION
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 policy 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
Objectives
This unit helps you to understand: what is trade policy; kinds of trade policy; phases of liberalisation in trade policies in the process of economic development; trends in India’s exim policies; salient features of India’s import regime during 1950-91; characteristics of India’s export promotion policies; and India’s Trade Policy reforms in the 90s.
Structure
15.1 15.2 15.3 15.4 15.5 15.6 15.7 15.8 15.9 15.10 15.11 15.12 15.13 15.14 Introduction India’s Exim Policy : A Backdrop The Foreign Trade Regime : Analytical Phases and Changes Overtime India’s Exim Policy : Phases and Changes India’s Import Regime (1950-89) : Major Features Export Policies and Incentives (1950-89) EXIM Policies in the 90s Export-Import Policy (1997-2002) Export-Import Policy (2002-2007) Trade Policy Reforms Summary Key Words Self Assessment Questions Further Readings
15.1 INTRODUCTION
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 policy 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