Foreign Trade Policy of India

41,988 views

Published on

Foreign Trade Policy of India

Published in: Education

Foreign Trade Policy of India

  1. 1. WELCOME
  2. 2. FOREIGN TRADE POLICY OF INDIA
  3. 3. CONTENT Introduction Foreign trade policy before 1991 Foreign trade policy after 1991 Conclusion Reference
  4. 4. Introduction Before independence, India did not have a clear trade policy, it was after the independence, that a trade policy, as a part of general economic policy of development was formulated.
  5. 5. Foreign trade policy of India is classified into two: Foreign trade policy before 1991 Foreign trade policy after 1991
  6. 6. Phase of foreign trade policy of India before 1991 Phase I 1947-48 : 1955-56 Phase II 1956-57 : 1967-68 Phase III 1968-69 : 1974-75 Phase IV 1975-76 : 1989-90
  7. 7. Main features/highlights of phase I Liberalization of foreign trade was adopted as the goal of trade policy Export control was relaxed Export duties are relaxed Export quotas were abolished Incentive was provided in order to enhance export
  8. 8. Main highlight of phases II Import substitution strategy was followed to lesson dependence of foreign countries Self sufficient in heavy and capital goods industry Very restrictive import policy and vigorous export promotion policy was adopted It provide long lasting solution to balance of payment problem.
  9. 9. Highlight of phase III Increase allocation of raw material to export oriented industries Income tax relief to export earning Export promotion through import entitlement Removal of disincentives Settling up of export promotion advisory council , a ministry of international trade.
  10. 10. New Trade Policy 1991 Foreign trade policy 1991 Export- import policy 1992-97 Export- import policy 1997-2002 Export- import policy 2002-2007 Export- import policy 2003-2004 Export- import policy 2004-2009 Foreign trade policy 2009-2014
  11. 11. Main features of foreign trade 1991 Export promotion and import liberalization by strengthening export incentive. Removing quantitative restriction Current account and trade account convertibility has been introduced Tariff structure has been rational Cash compensatory support system has replaced by a scheme of value based advance licensing system.
  12. 12. Objective of Export Import Policy 1997-2002 To derive maximum benefit from expanding global opportunity. To enhance economic growth by provide raw material, intermediates, consumable and capital good for production. To enhance technological strength and efficiency or Indian agriculture, industry and service. To provide consumers with goods quality product at reasonable prices. To simplify the procedural formalities and follow the expanding freely importable list.
  13. 13. Export –Import policy 2002-2007 Objectives To facilitate sustained growth in export to attain a share of at least 1 % of global merchandise trade. To stimulate economic growth by provide access to essential raw material, intermediate, and capital goods for production and provide service. To enhance technology strength and efficiency of Indian agriculture, industry and service. To provide consumers with good quality goods and service at internationality competitive price.
  14. 14. Policy measures Comprehensive package for development of special economic zone. Decontrol and deregulation of agriculture sector. De reservation from small scale industries. Technological up gradation. Reduction in peak customs duty from 35% to 20%.
  15. 15. Highlights of Foreign Trade Policy 2004-2009 Push to export to garner 1.5% of world share by export $150 billion worth of merchandise. Hundred percent FDI would be permitted for develop infrastructure. FDI permitted up to 100 percent to establish and develop free trade and warehousing zone, each to have a Rs.100 crore outlay. Import of seed, bulbs and fibers liberalized. New policy exempts all goods and service export form service tax.
  16. 16. Foreign Trade Policy 2009-2014 objectives The main objective of policy is to achieving an annual export growth of 15% with an annual export target of us $ 200 billion by march 2011. In remaining 3 years of foreign trade policy up to 2014, the country should be able to come back on the high export growth of around 25%p.a. By 2014, the expect to double India’s export of goods and service. The long term policy objective for the government is to double India’s share in global trade in 2020.
  17. 17. Policy measures Technological Up gradation EPCG Scheme Relaxation Marine Sector Agriculture Sector
  18. 18. Reference Foreign Trade and Investments in India, Policies and Performance Neeta Tripathi Economic Reforms and India’s Foreign Trade Zafar Ahmad Sultan www.degft.gov.in
  19. 19. THANKY OU

×