Trade Policy and Regulation of India
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Trade strategies affect the consumption pattern and entrepreneurial and business behavior. There are two trade policies namely outward oriented and inward oriented. India follows the inward oriented ...

Trade strategies affect the consumption pattern and entrepreneurial and business behavior. There are two trade policies namely outward oriented and inward oriented. India follows the inward oriented policy. Internet has opened up new facilities for creating a relationship with global customers, potential customers, suppliers and channel members.

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Trade Policy and Regulation of India Presentation Transcript

  • 1. Chapter 19Trade Policy And Regulation Of India International Marketing Chapter-19 Trade Policy And Regulation Of India
  • 2. Objectives What are trade strategies What is the trade strategy of India What are the features of economic policy liberalization in India What is Exim policy What is the outcome of the policies How to regulate and promote foreign trade. What is the role of Foreign Trade Act, 1992 International Marketing Chapter-19 Trade Policy And Regulation Of India
  • 3. Trade Strategies The trade strategy of a nation has impact not only on the volume and composition of foreign trade, but also on the pattern of investment and direction of development, entrepreneurial and business behavior, consumption pattern etc. There are mainly two trade strategies; outward oriented and inward oriented. International Marketing Chapter-19 Trade Policy And Regulation Of India
  • 4. An outward oriented or outwardstrategy is one in which trade andindustrial policies do not discriminatebetween production for the domesticmarket and exports, nor betweenpurchase of domestic goods and foreigngoods. International Marketing Chapter-19 Trade Policy And Regulation Of India
  • 5. An inward oriented or inward lookingstrategy is characterized by the bias of thetrade and industrial policies in favor ofdomestic production and against foreigntrade.As import substitution is the key elementof the inward oriented strategy, it is oftendescribed as the import substitutionindustrialization strategy. International Marketing Chapter-19 Trade Policy And Regulation Of India
  • 6. Trade Strategy Of India In the four decades since the commencement of planned development in 1951, India followed a strong inward-oriented policy. The inward-oriented strategy has had very adverse effects on India’s export performance and economic development. International Marketing Chapter-19 Trade Policy And Regulation Of India
  • 7. Period Of Export Pessimism The export pessimism and the resultant indifference to export development in the earlier plans resulted in the neglect of several sectors with tremendous export potential like textiles, fisheries etc. Further, even after recognizing the export potential of many products, the failure of effectively harness the potential has been more conspicuous than achievements in several case. International Marketing Chapter-19 Trade Policy And Regulation Of India
  • 8. Era Of Export Promotion AndImport Restriction The period of about three decades, 1961- 91, extending from the beginning of the Third Five Year Plan to the eve of the Eighth Plan is characterized by import restriction and the adoption of a number of measures for export promotion. The early part of this period, particularly, also witnessed vigorous import substitution efforts. Marketing International Chapter-19 Trade Policy And Regulation Of India
  • 9. Although there was some liberalizationof the imports since the mid 1980s,imports were, in general, highlyrestricted.Many of the import liberalizationmeasures were for export promotion. International Marketing Chapter-19 Trade Policy And Regulation Of India
  • 10. Economic Policy LiberalizationIn India1. Abridgement of the role of public sector and expansion of the scope of private sector.2. Removal of entry and growth restrictions3. Liberalization of foreign investment4. Import liberalization5. Reform of trade policy And International Marketing Chapter-19 Trade Policy Regulation Of India
  • 11. Objectives Of Exim Policy1. To facilitate sustained growth in exports to attain a share of at least 1% of global merchandise trade.2. To stimulate sustained economic growth by providing access to essential raw materials, intermediated, components, consumables and capital goods required for augmenting production and providing services. International Marketing Chapter-19 Trade Policy And Regulation Of India
  • 12. 3. To enhance the technological strength and efficiency of Indian agriculture, industry and services.4. To provide consumers with good quality goods and services at internationally competitive prices while at the same time creating a level playing field for the domestic International Marketing producers. Chapter-19 Trade Policy And Regulation Of India
  • 13. Other Initiative Agricultural exports SEZ Towns of export excellence Special focus on cottage sector and handicrafts Reduction in transaction time, costs Assistance to states for infrastructural development for exports Market access initiative International Marketing Chapter-19 Trade Policy And Regulation Of India
  • 14. An Evaluation Of The PoliciesThe liberalization of capital goods importswill help reduce project and productioncost and may encourage technologicalupgradation.The increasing competition from abroadas well as from within is provoking manyIndian firms to give an added thrust toexports. Some companies even viewexports as a counter-competitive strategy. International Marketing Chapter-19 Trade Policy And Regulation Of India
  • 15. Because of the imports which they canmake with their foreign exchangeearnings several companies pay specialattention to exports. International Marketing Chapter-19 Trade Policy And Regulation Of India
  • 16. Regulation And Promotion OfForeign Trade The Export-Import policy reflects the foreign trade policy of India. The policy is implemented mostly by means of regulatory framework provided by the Foreign Trade Act,1992. Control of foreign trade in India dates back to the early years of the Second World War. Chapter-19 Trade Policy And International Marketing Regulation Of India
  • 17. The Foreign Trade (Developmentand Regulation) Act, 1992Objective : the objective of the Act is to provide for the development and regulation of foreign trade by facilitating imports into, and augmenting exports from India and for matters connected therewith or incidental thereto. International Marketing Chapter-19 Trade Policy And Regulation Of India
  • 18. Summary Trade strategies affect the pattern of development, entrepreneurial and business behavior, consumption pattern etc. Outward oriented and inward oriented are two trade strategies. India follows inward oriented policy. The important features of Exim Policy are; the mission, objectives, agricultural export, SEZ, towns of export excellence, special focus on cottage sector and handicrafts, reduction in transaction time, cost, market access initiative and conclusion International Marketing Chapter-19 Trade Policy And Regulation Of India