SlideShare a Scribd company logo
1 of 43
EXIM POLICIES WITH RESPECT
TO FOREIGN TRADE POLICY
2015-2020
8/17/2015 2
8/17/2015 3
OVERVIEW
Composition & Direction of Foreign Trade
 Foreign Trade Policy
 India’s Foreign Trade Policy
 Foreign Trade Policy 2015 – 2020
 FERA& FEMA
COMPOSITION & DIRECTIONOF
FOREIGNTRADE
8/17/2015 4
Composition Of Foreign Trade
Composition of foreign trade means major commodity or
sectors in which India is doing export and import. India is a very old
participant in world trade. Its participation have been promoted by the
opening of Suez Canal and speedy development of the ship building
industry supplemented by the spread of industrial revolution in Europe
and fast expansion of Indian railways.
8/17/2015
5
Composition
Export Import
Fuels, capital goods,
chemicals, food grains,
Petroleum products, Capital
goods ,Pearls and precious
gems, Iron and steel
Fertilizers ,edible oil
Manufactured goods
textiles , Gems and
Jewellery, Handicraft,
Light machinery etc.
8/17/2015 6
IMPORTS
 It refers to goods that we buy from other countries.
 At times of independence India was an agrarian economy.
 Partition of our country has brought food shortage because wheat
growing regions vested with Pakistan.
 Hence India need to import in large quantities, food , cotton jute. Etc
 With development of economy over these days, there occurred
changes in composition of imports.The development required setting
up of industries , modernization of agriculture etc.
 Now,Capital goods like machinery, chemicals, fertilizers ,metals
,m
8/1
i
7
n
/20
e
1
r
5
als petroleum products etc. are imported .
7
EXPORTS
 Exports means that we are selling commodities to other countries.
 At the time of independence our exports comprise of agricultural
products like tobacco, spices, raw materials of cotton and jute etc.
 Due to industrialization the proportion of raw materials in our exports
declined.
8/17/2015 8
Composition of Trade
• Source : Economic Survey 2011-12
S. No Commodity Group Year 2010-11 ( in %age)
1 Agriculture and allied products 9.9
2 Ores and minerals ( excluding coal) 4.0
3 Manufactured Goods 68.0
4 Crude and petroleum products( Including coal) 16.8
5 Other and unclassified items 1.2
Total 100.0
Composition of exports
8/17/2015 9
68%
1%
10%
17%
4%
Composition of Exports
Agriculture and allied products
Ores and minerals(excluding
coal)
Manufactured Goods
Crude and petroleum products
(including coal)
8/17/2015 10
Composition of Imports
S.
N
o
Commodity
Group
Year
2010-11
1 Food and allied
products
2.9
2 Fuel 31.3
3 Fertilisers 1.9
4 Paper Board,
manufacture and
newsprint
0.6
5 Capital Goods 13.1
6 Others 47.7
Total 100.0
3%
32%
1%
13%
49%
Composition of Imports
Food and allied
products
Fuel
Fertilisers
Paper Board
Capital Goods
Others
2%
8/17/2015 11
DIRECTION OF INDIA’S FOREIGN
TRADE
 Direction means countries to which India exports its goods and
countries from which it imports.
 Direction of trade also helps to understand the diplomatic
relationship maintained by India with other countries of trade.
 West Europe (28.1 per cent),America (25.4 per cent),Africa (6.3
per cent) and East Europe (3.1 per cent).
8/17/2015 12
 Direction of foreign trade consists of destination of exports
and sources of our imports.
 Prior to our Independence when India was under British rule,
much of our trade was done with Britain. Therefore, UK used
to hold the first position in India’s foreign trade.
 However, after Independence, new trade relationships were
established. Now USA has emerged as the most important
trading partner followed by Germany, Japan and UK. India is
also making efforts to increase the exports to other countries
also the direction of India’s exports and imports.
8/17/2015
13
Group of countries to which India Exports
OECD OPEC
EASTERN
EUROPE
ASEAN
8/17/2015 14
Organization for
Economic Co-
operation &
Development
(OECD).
• USA,
Canada,
European
Union (EU),
Australia
and Japan
Organization of
Petroleum
Exporting
Countries (OPEC)
• Kuwait,
Iran, Iraq,
Saudi
Arabia and
others.
Eastern Europe.
• Romania,
Russia and
others
Developing
Nations
• China,
Hong Kong,
South
Korea,
Singapore
and
Malaysia.
8/17/2015 15
8/17/2015 16
Trade policy refers to thecomplete framework
of laws ,regulations ,international
agreements, and, negotiating stances adopted
by a government to achieve legally binding
market access fordomestic firms.
-Walter Goode
TRADE POLICY
8/17/2015 17
The Government has seta long-termvision of making India
a majorplayer in world trade.
Foreign Trade Policy (FTP) provides the basic policy framework
of translating thisvision intospecific strategies, goalsand target
8/17/2015 18
STRTEGIC OPTIONS FOR 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.
⚫ AProtective 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
8/17/2015
19
 An Inward looking trade policy(import substitution)
stresses the need for a country to evolve its own style of
development and to be the master of its own fate, with
restrictions on the movement of goods, services and people
in and out of the country.An inward looking trade policy
encourages the development of indigenous technologies
appropriate to a country’s resource endowment.
 An Outward looking trade policy (export-led
growth)encourages not only free trade but also the free
movement of capital, workers, enterprises and students, a
welcome to the multinational enterprise, and an open system
of communications.
8/17/2015
20
INDIA’S FOREIGN TRADE POLICY
The foreign Trade of India is guided by the Export-Import (EXIM )
policy of the Government of India and is regulated by the Foreign
Trade (Development and Regulation ) Act,1992.
8/17/2015
The Foreign Trade Policy contains various decisions taken by the
government in the sphere of Foreign Trade, i.e., with respect to
imports and exports from the country and more especially export
promotion measures, policies and procedures related thereto.
It is the set of guidelines and instructions established by DGFT
(Directorate General of Foreign Trade ) in matters related to the import
and export of goods in India.
The present foreign trade policy is for the period of 5 years i.e. from
2015 to 2020.
21
FTP is the new
name for the
earlier EXIM
policy. 31st august 2004
- To double our %
share of global
merchandise trade
within the next 5
years
To act as an effective
instrument of economic
growth by giving a thrust
to employment
generation.
8/17/2015
22
⚫The Union Commerce Ministry, Governmentof India
announces the integrated Foreign Trade Policy FTP in
every fiveyear. This policy is updated every year on
the 31st of March with some modifications and new
schemes. New schemes come into effect on the first
day of financial year i.e. April 1, everyyear.
⚫The Foreign trade Policywhich was announced on
April 1,2015 is an integrated policy for the period 2015-
2020.
8/17/2015 23
Prior to 1985 , the Government of India used to
announce the EXIM policy annually.However,with a
view to have uniformity and stability in EXIM
policy,it was decided to give the policy a validity of
three years and the first three-year EXIM policy was
announced in 1985.
Since 1985, there was a moderate trend towards
trade liberalisation,which finally took shape in 1991.
8/17/2015 24
*DGFT (Directorate General of Foreign Trade) is the
main governing body in matters related to Exim Policy.
*This Policy is prepared and announced by the Central
Government (Ministry of Commerce) which aims at:
developing export potential, improving export
performance, encouraging foreign trade and creating
favorable balance of payments position, in general.
8/17/2015 25
LEGAL FRAMEWORK FOR FOREIGN TRADE OF
INDIA
 Foreign Trade (Development and Regulation) Act, 1992,
 Foreign Trade (Regulation) Rules 1993
 Foreign Trade (Exemption) Order 1993
 Garments Export Entitlement Policy: 2000-2004,
 Export (Quality Control and Inspection) Act, 1963,
 Customs and Central Excise Duties Drawback Rules,
1995,
 Foreign Exchange Management Act, 1999
8/17/2015
26
 Customs and Central Excise Regulations
 Export and Import Policy - now called Foreign Trade Policy
 Handbook of Procedures – Vol. I
 Handbook of Procedures – Vol. II incorporating the Standard
 Input Output Norms (SION)
 ITC (HS) Classification of Import and Export Policy
8/17/2015
27
8/17/2015 29
8/17/2015 30
Objectives of India’s
Foreign Trade Policy 2015-20
• FTP 2015-20 provides a framework for increasing exports of goods
and services as well as generation of employment and increasing
value addition in the country, in line with the ‘Make in India’
programme.
• The Policy aims to enable India to respond to the challenges of the
external environment, keeping in step with a rapidly evolving
international trading architecture and make trade a major
contributor to the country’s economic growth and development.
•To arrest and reverse declining trend of exports is the
main aim of the policy. This aim will be reviewed after two and half
years.
•Simplification of the application procedure for availing various
benefits.
8/17/2015 32
•To set in motion the strategies and policy measures which
catalyze the growth of exports.
•To encourage exports through a mix of measures including
fiscal incentives, institutional changes, procedural
rationalization and efforts for enhance market access across the
world and diversification of export markets.
Increase exports to $900 billion by 2019-20, from $466
billion in 2013-14.
Raise India's share in world exports from 2% to 3.5%.
Merchandise Export from India Scheme (MEIS) and
Service Exports from India Scheme (SEIS) launched.
Served From India Scheme (SFIS) will be replaced with
Service Export from India Scheme (SEIS).
For grant of rewards under MEIS, the countries have
been categorized into 3 Groups, whereas the rates of
rewards under MEIS range from 2 per cent to 5 per cent.
Under SEIS the selected Services would be rewarded at the
rates of 3 per cent and 5 per cent.
8/17/2015 33
Highlights of Foreign Trade policy
2015 - 2020
FTP to be aligned to Make in India, Digital India and Skills
India initiatives.
Duty credit scrips made freely transferable and usable For
payment of custom duty, excise duty and service tax.
Export promotion mission to take on board state Governments
Unlike annual reviews, FTP will be reviewed after two-and-
Half years.
Higher level of support for export of defence, farm Produce
and eco-friendly products.
Nomenclature of Export House, Star Export House, Trading
House, Premier Trading House certificate changed to 1,2,3,4,5
Star Export House. The criteria for export performance for
recognition of status holder have been changed from Rupees to
US dollar earnings.
8/17/2015 34
35
Online procedure to upload digitally signed document by
CharteredAccountant/Company Secretary/CostAccountant to
be developed.
Validity period of SCOMET export authorisation extended
from present 12 months to 24 months.
Chapter-3 incentives extended to units located in SEZs.
Export obligation under EPCG scheme reduced to 75%
to Promote domestic capital goods manufacturing.
E-Commerce exports of handloom products,
books/periodicals, leather footwear, toys and customised
fashion garments through courier or foreign post office would
also be able to get benefit of MEIS (for values up to INR
25,000).
Inter-ministerial consultations to be held online for issue of
various licences.
8/17/2015
36
No need to repeatedly submit physical copies of documents
available on Exporter Importer Profile.
 108 MSME clusters have been identified for focused
interventions to boost exports. Accordingly, ‘Niryat Bandhu
Scheme’has been galvanised and repositioned to achieve the
objectives of ‘Skill India’.
Trade facilitation and enhancing the ease of doing business are
the other major focus areas in this new FTP. One of the major
objective of new FTP is to move towards paperless working in
24x7 environment.
Manufacturers, whoarealso status holders, will now be
able toself-certify their manufactured goods in phases, as
originating from India with a view to qualifying for
preferential treatment undervarious formsof bilateral and
regional trade agreements. This ‘Approved Exporter System’
will help manufacturerexporters considerably in getting fast
8/
a
17/
c
20
c
15
ess to international markets.
8/17/2015 37
Objectives
 To facilitate external trade and payments
 To promote the orderly development and
maintenance of foreign exchange market
8/17/2015
38
Foreign exchange transactions were regulated by
Foreign exchange regulation act (FERA), 1973
Following the liberalization ushered in 1991 some
amendmentswere made to FERA in 1993 therewas
a lot demand to bring certain major changes in
FERA in the light of economicchanges took place
Consequently a new act was formed to replace
FERA, known as Foreign exchange management
act (FEMA), 1999
8/17/2015 39
8/17/2015
Administration of the Act
40
- The rules regulations and norms pertaining to many sections are laid down by
RBI in consultation with central Government.
- The Act requires central Government to appoint,
⚫ Adjudicating Authorities for holding enquires related to the contravention of the
Act
⚫ one or more Special Directors (appeals) to hear appeals against the order of the
Adjudicating authorities
- Central Government shall have to establish
1. An Appellate Tribunal for foreign Exchange to hear appeals against the
order of the Adjudicating Authorities and the Special Directors
2. A Director of Enforcement with a Director and such officers or class of officers
as it thinks fit for taking up for investigation the contravention under this Act
FERA V/s FEMA:-
1. In FEMA only the specified acts related to
foreign exchange are regulated while in FERA
anything and everything that has to do with
foreign exchange was controlled
2. The objective of FEMA is to facilitate trade while
that of FERA is to prevent misuse
3. FEMA is a much smaller enactment only 49
sections against 81 sections of FERA
8/17/2015 41
A thorough understanding of the country’s
trade policy and incentives are crucial for
the development of a successful
international business strategy.
8/17/2015 43
Composition & Direction of Foreign Trade
 Foreign Trade Policy
 India’s Foreign Trade Policy
 Foreign Trade Policy 2015 – 2020
 FERA& FEMA
AT A GLANCE
8/17/2015 45

More Related Content

Similar to foreigntradepolicy 2015-2020.pptx

Import - Export Policy of India (EXIM POLICY)
Import - Export Policy of  India(EXIM POLICY)Import - Export Policy of  India(EXIM POLICY)
Import - Export Policy of India (EXIM POLICY)Sandip Besra
 
Ftp plcontent0910
Ftp plcontent0910Ftp plcontent0910
Ftp plcontent0910TWEETY22
 
Foreign trade policy 27th august 2009 - 31st march 2014
Foreign trade policy   27th august 2009 - 31st march 2014Foreign trade policy   27th august 2009 - 31st march 2014
Foreign trade policy 27th august 2009 - 31st march 2014aniruddhay123
 
exim policy of india
exim policy of indiaexim policy of india
exim policy of indiaDinesh Nikam
 
Session 1 foreign trade policy
Session 1   foreign trade policySession 1   foreign trade policy
Session 1 foreign trade policyPooja Garg
 
International trade policy
International trade policyInternational trade policy
International trade policyNitesh Kejriwal
 
Assignment on foreign trade policy
Assignment on foreign trade policyAssignment on foreign trade policy
Assignment on foreign trade policySonali Kukreja
 
Foreign Trade Policy Of India Since 1980
Foreign Trade Policy Of India Since 1980Foreign Trade Policy Of India Since 1980
Foreign Trade Policy Of India Since 1980Nikhil Soares
 
Exim policy project
Exim policy projectExim policy project
Exim policy projectpurtikaunder
 
Introduction to trade policy and highlights of india trade policy of 2015
Introduction to trade policy and highlights of india trade policy of 2015Introduction to trade policy and highlights of india trade policy of 2015
Introduction to trade policy and highlights of india trade policy of 2015parth79
 
Presentation group g-1[1]
Presentation group g-1[1]Presentation group g-1[1]
Presentation group g-1[1]rajiv dubey
 

Similar to foreigntradepolicy 2015-2020.pptx (20)

Import - Export Policy of India (EXIM POLICY)
Import - Export Policy of  India(EXIM POLICY)Import - Export Policy of  India(EXIM POLICY)
Import - Export Policy of India (EXIM POLICY)
 
Ftp plcontent0910
Ftp plcontent0910Ftp plcontent0910
Ftp plcontent0910
 
Foreign trade policy 27th august 2009 - 31st march 2014
Foreign trade policy   27th august 2009 - 31st march 2014Foreign trade policy   27th august 2009 - 31st march 2014
Foreign trade policy 27th august 2009 - 31st march 2014
 
Exim policy 2009-14
Exim policy 2009-14Exim policy 2009-14
Exim policy 2009-14
 
Exim
EximExim
Exim
 
exim policy of india
exim policy of indiaexim policy of india
exim policy of india
 
Session 1 foreign trade policy
Session 1   foreign trade policySession 1   foreign trade policy
Session 1 foreign trade policy
 
International trade policy
International trade policyInternational trade policy
International trade policy
 
manju
manjumanju
manju
 
export import Policy
export import Policyexport import Policy
export import Policy
 
Presentation1
Presentation1Presentation1
Presentation1
 
Trade Reform
Trade ReformTrade Reform
Trade Reform
 
Export Import policy
Export Import policyExport Import policy
Export Import policy
 
Assignment on foreign trade policy
Assignment on foreign trade policyAssignment on foreign trade policy
Assignment on foreign trade policy
 
Foreign Trade Policy Of India Since 1980
Foreign Trade Policy Of India Since 1980Foreign Trade Policy Of India Since 1980
Foreign Trade Policy Of India Since 1980
 
EXIM Policy.ppt
EXIM Policy.pptEXIM Policy.ppt
EXIM Policy.ppt
 
exim policy.pdf
exim policy.pdfexim policy.pdf
exim policy.pdf
 
Exim policy project
Exim policy projectExim policy project
Exim policy project
 
Introduction to trade policy and highlights of india trade policy of 2015
Introduction to trade policy and highlights of india trade policy of 2015Introduction to trade policy and highlights of india trade policy of 2015
Introduction to trade policy and highlights of india trade policy of 2015
 
Presentation group g-1[1]
Presentation group g-1[1]Presentation group g-1[1]
Presentation group g-1[1]
 

More from RichaGoel44

HOch12_instructor monopolistic competition.ppt
HOch12_instructor monopolistic competition.pptHOch12_instructor monopolistic competition.ppt
HOch12_instructor monopolistic competition.pptRichaGoel44
 
demand& the elasticity and degrees of .PPT
demand& the elasticity  and degrees of .PPTdemand& the elasticity  and degrees of .PPT
demand& the elasticity and degrees of .PPTRichaGoel44
 
govt budget and the economy for sust.ppt
govt budget and the economy for sust.pptgovt budget and the economy for sust.ppt
govt budget and the economy for sust.pptRichaGoel44
 
hubbard01_instructorppt02.ppt comparativ
hubbard01_instructorppt02.ppt comparativhubbard01_instructorppt02.ppt comparativ
hubbard01_instructorppt02.ppt comparativRichaGoel44
 
hubbard01_instructorppt01.ppt eco founda
hubbard01_instructorppt01.ppt eco foundahubbard01_instructorppt01.ppt eco founda
hubbard01_instructorppt01.ppt eco foundaRichaGoel44
 
EXIM procedures & documentation for.pptx
EXIM procedures & documentation for.pptxEXIM procedures & documentation for.pptx
EXIM procedures & documentation for.pptxRichaGoel44
 
Business_Cycles working fiscal measures .ppt
Business_Cycles working fiscal measures .pptBusiness_Cycles working fiscal measures .ppt
Business_Cycles working fiscal measures .pptRichaGoel44
 
1. Concept of Business Env bvhjhkjljj.ppt
1. Concept of Business Env bvhjhkjljj.ppt1. Concept of Business Env bvhjhkjljj.ppt
1. Concept of Business Env bvhjhkjljj.pptRichaGoel44
 
Role of Government in organized society; Changing Perspective- government in ...
Role of Government in organized society; Changing Perspective- government in ...Role of Government in organized society; Changing Perspective- government in ...
Role of Government in organized society; Changing Perspective- government in ...RichaGoel44
 
Musgrave theory of comparaitive advantage in public finance
Musgrave theory of comparaitive advantage in public financeMusgrave theory of comparaitive advantage in public finance
Musgrave theory of comparaitive advantage in public financeRichaGoel44
 
Personal Branding Webinar on women leadership and empowerment and education
Personal Branding Webinar on women leadership and empowerment and educationPersonal Branding Webinar on women leadership and empowerment and education
Personal Branding Webinar on women leadership and empowerment and educationRichaGoel44
 
Bdian session.pptx
Bdian session.pptxBdian session.pptx
Bdian session.pptxRichaGoel44
 
digital markt ppt.pptx
digital markt ppt.pptxdigital markt ppt.pptx
digital markt ppt.pptxRichaGoel44
 
Sale_of_goods_act_913275503 (1).ppt
Sale_of_goods_act_913275503 (1).pptSale_of_goods_act_913275503 (1).ppt
Sale_of_goods_act_913275503 (1).pptRichaGoel44
 
INTERNATIONAL_MONETARY_FUND.pptx
INTERNATIONAL_MONETARY_FUND.pptxINTERNATIONAL_MONETARY_FUND.pptx
INTERNATIONAL_MONETARY_FUND.pptxRichaGoel44
 
Business_Cycles.ppt
Business_Cycles.pptBusiness_Cycles.ppt
Business_Cycles.pptRichaGoel44
 
commercial bank.ppt
commercial bank.pptcommercial bank.ppt
commercial bank.pptRichaGoel44
 
Intro to World War -1(1914-1918).pptx
Intro to World War -1(1914-1918).pptxIntro to World War -1(1914-1918).pptx
Intro to World War -1(1914-1918).pptxRichaGoel44
 

More from RichaGoel44 (20)

HOch12_instructor monopolistic competition.ppt
HOch12_instructor monopolistic competition.pptHOch12_instructor monopolistic competition.ppt
HOch12_instructor monopolistic competition.ppt
 
demand& the elasticity and degrees of .PPT
demand& the elasticity  and degrees of .PPTdemand& the elasticity  and degrees of .PPT
demand& the elasticity and degrees of .PPT
 
govt budget and the economy for sust.ppt
govt budget and the economy for sust.pptgovt budget and the economy for sust.ppt
govt budget and the economy for sust.ppt
 
hubbard01_instructorppt02.ppt comparativ
hubbard01_instructorppt02.ppt comparativhubbard01_instructorppt02.ppt comparativ
hubbard01_instructorppt02.ppt comparativ
 
hubbard01_instructorppt01.ppt eco founda
hubbard01_instructorppt01.ppt eco foundahubbard01_instructorppt01.ppt eco founda
hubbard01_instructorppt01.ppt eco founda
 
EXIM procedures & documentation for.pptx
EXIM procedures & documentation for.pptxEXIM procedures & documentation for.pptx
EXIM procedures & documentation for.pptx
 
Business_Cycles working fiscal measures .ppt
Business_Cycles working fiscal measures .pptBusiness_Cycles working fiscal measures .ppt
Business_Cycles working fiscal measures .ppt
 
1. Concept of Business Env bvhjhkjljj.ppt
1. Concept of Business Env bvhjhkjljj.ppt1. Concept of Business Env bvhjhkjljj.ppt
1. Concept of Business Env bvhjhkjljj.ppt
 
Role of Government in organized society; Changing Perspective- government in ...
Role of Government in organized society; Changing Perspective- government in ...Role of Government in organized society; Changing Perspective- government in ...
Role of Government in organized society; Changing Perspective- government in ...
 
Musgrave theory of comparaitive advantage in public finance
Musgrave theory of comparaitive advantage in public financeMusgrave theory of comparaitive advantage in public finance
Musgrave theory of comparaitive advantage in public finance
 
Personal Branding Webinar on women leadership and empowerment and education
Personal Branding Webinar on women leadership and empowerment and educationPersonal Branding Webinar on women leadership and empowerment and education
Personal Branding Webinar on women leadership and empowerment and education
 
Bdian session.pptx
Bdian session.pptxBdian session.pptx
Bdian session.pptx
 
Lecture01.ppt
Lecture01.pptLecture01.ppt
Lecture01.ppt
 
digital markt ppt.pptx
digital markt ppt.pptxdigital markt ppt.pptx
digital markt ppt.pptx
 
Sale_of_goods_act_913275503 (1).ppt
Sale_of_goods_act_913275503 (1).pptSale_of_goods_act_913275503 (1).ppt
Sale_of_goods_act_913275503 (1).ppt
 
INTERNATIONAL_MONETARY_FUND.pptx
INTERNATIONAL_MONETARY_FUND.pptxINTERNATIONAL_MONETARY_FUND.pptx
INTERNATIONAL_MONETARY_FUND.pptx
 
Business_Cycles.ppt
Business_Cycles.pptBusiness_Cycles.ppt
Business_Cycles.ppt
 
NI.PPT
NI.PPTNI.PPT
NI.PPT
 
commercial bank.ppt
commercial bank.pptcommercial bank.ppt
commercial bank.ppt
 
Intro to World War -1(1914-1918).pptx
Intro to World War -1(1914-1918).pptxIntro to World War -1(1914-1918).pptx
Intro to World War -1(1914-1918).pptx
 

Recently uploaded

What is an ecosystem in crypto .pdf
What  is  an  ecosystem  in  crypto .pdfWhat  is  an  ecosystem  in  crypto .pdf
What is an ecosystem in crypto .pdfKezex (KZX)
 
Population Growth and Economic Development
Population Growth and  Economic DevelopmentPopulation Growth and  Economic Development
Population Growth and Economic Developmentyirgalemleaye
 
is pi Network coin available for sale in 2024
is pi Network coin available for sale in 2024is pi Network coin available for sale in 2024
is pi Network coin available for sale in 2024DOT TECH
 
NO1 Popular Black magic specialist,Expert in Pakistan Amil Baba kala ilam Exp...
NO1 Popular Black magic specialist,Expert in Pakistan Amil Baba kala ilam Exp...NO1 Popular Black magic specialist,Expert in Pakistan Amil Baba kala ilam Exp...
NO1 Popular Black magic specialist,Expert in Pakistan Amil Baba kala ilam Exp...Amil Baba Dawood bangali
 
一比一原版(KPU毕业证书)昆特兰理工大学毕业证成绩单学位证书
一比一原版(KPU毕业证书)昆特兰理工大学毕业证成绩单学位证书一比一原版(KPU毕业证书)昆特兰理工大学毕业证成绩单学位证书
一比一原版(KPU毕业证书)昆特兰理工大学毕业证成绩单学位证书atedyxc
 
how can I sell my pi coins in the United States at the best price
how can I sell my pi coins in the United States at the best pricehow can I sell my pi coins in the United States at the best price
how can I sell my pi coins in the United States at the best priceDOT TECH
 
Consumer rights and its importance and value
Consumer rights and its importance and valueConsumer rights and its importance and value
Consumer rights and its importance and valuehemalella
 
Indirect tax .pptx Supply under GST, Charges of GST
Indirect tax .pptx  Supply under GST, Charges of GSTIndirect tax .pptx  Supply under GST, Charges of GST
Indirect tax .pptx Supply under GST, Charges of GSTmeghnagandhi5574
 
一比一原版(UC Davis毕业证书)加州大学戴维斯分校毕业证成绩单学位证书
一比一原版(UC Davis毕业证书)加州大学戴维斯分校毕业证成绩单学位证书一比一原版(UC Davis毕业证书)加州大学戴维斯分校毕业证成绩单学位证书
一比一原版(UC Davis毕业证书)加州大学戴维斯分校毕业证成绩单学位证书atedyxc
 
一比一原版(UMich毕业证书)密歇根大学安娜堡分校毕业证成绩单学位证书
一比一原版(UMich毕业证书)密歇根大学安娜堡分校毕业证成绩单学位证书一比一原版(UMich毕业证书)密歇根大学安娜堡分校毕业证成绩单学位证书
一比一原版(UMich毕业证书)密歇根大学安娜堡分校毕业证成绩单学位证书atedyxc
 
一比一原版(Concordia毕业证书)康卡迪亚大学毕业证成绩单学位证书
一比一原版(Concordia毕业证书)康卡迪亚大学毕业证成绩单学位证书一比一原版(Concordia毕业证书)康卡迪亚大学毕业证成绩单学位证书
一比一原版(Concordia毕业证书)康卡迪亚大学毕业证成绩单学位证书atedyxc
 
Prezentacja Q1 2024 EN strona www relacji
Prezentacja Q1 2024  EN strona www relacjiPrezentacja Q1 2024  EN strona www relacji
Prezentacja Q1 2024 EN strona www relacjiklaudiafilka
 
一比一原版(UW毕业证书)华盛顿大学毕业证成绩单学位证书
一比一原版(UW毕业证书)华盛顿大学毕业证成绩单学位证书一比一原版(UW毕业证书)华盛顿大学毕业证成绩单学位证书
一比一原版(UW毕业证书)华盛顿大学毕业证成绩单学位证书atedyxc
 
How do I sell my Pi Network currency in 2024?
How do I sell my Pi Network currency in 2024?How do I sell my Pi Network currency in 2024?
How do I sell my Pi Network currency in 2024?DOT TECH
 
New Stratus Corporate Presentation May 2024
New Stratus Corporate Presentation May 2024New Stratus Corporate Presentation May 2024
New Stratus Corporate Presentation May 2024Adnet Communications
 
L1 2024 Prequisite QM persion milad1371.pdf
L1 2024 Prequisite QM persion milad1371.pdfL1 2024 Prequisite QM persion milad1371.pdf
L1 2024 Prequisite QM persion milad1371.pdfmiladsojoudi211
 
一比一原版(BU毕业证书)波士顿大学毕业证成绩单学位证书
一比一原版(BU毕业证书)波士顿大学毕业证成绩单学位证书一比一原版(BU毕业证书)波士顿大学毕业证成绩单学位证书
一比一原版(BU毕业证书)波士顿大学毕业证成绩单学位证书atedyxc
 
Maximize Your Business Potential with Falcon Invoice Discounting
Maximize Your Business Potential with Falcon Invoice DiscountingMaximize Your Business Potential with Falcon Invoice Discounting
Maximize Your Business Potential with Falcon Invoice DiscountingFalcon Invoice Discounting
 
Fintech Belgium General Assembly and Anniversary Event 2024
Fintech Belgium General Assembly and Anniversary Event 2024Fintech Belgium General Assembly and Anniversary Event 2024
Fintech Belgium General Assembly and Anniversary Event 2024FinTech Belgium
 
how do i convert pi coins to usdt easily.
how do i convert pi coins to usdt easily.how do i convert pi coins to usdt easily.
how do i convert pi coins to usdt easily.DOT TECH
 

Recently uploaded (20)

What is an ecosystem in crypto .pdf
What  is  an  ecosystem  in  crypto .pdfWhat  is  an  ecosystem  in  crypto .pdf
What is an ecosystem in crypto .pdf
 
Population Growth and Economic Development
Population Growth and  Economic DevelopmentPopulation Growth and  Economic Development
Population Growth and Economic Development
 
is pi Network coin available for sale in 2024
is pi Network coin available for sale in 2024is pi Network coin available for sale in 2024
is pi Network coin available for sale in 2024
 
NO1 Popular Black magic specialist,Expert in Pakistan Amil Baba kala ilam Exp...
NO1 Popular Black magic specialist,Expert in Pakistan Amil Baba kala ilam Exp...NO1 Popular Black magic specialist,Expert in Pakistan Amil Baba kala ilam Exp...
NO1 Popular Black magic specialist,Expert in Pakistan Amil Baba kala ilam Exp...
 
一比一原版(KPU毕业证书)昆特兰理工大学毕业证成绩单学位证书
一比一原版(KPU毕业证书)昆特兰理工大学毕业证成绩单学位证书一比一原版(KPU毕业证书)昆特兰理工大学毕业证成绩单学位证书
一比一原版(KPU毕业证书)昆特兰理工大学毕业证成绩单学位证书
 
how can I sell my pi coins in the United States at the best price
how can I sell my pi coins in the United States at the best pricehow can I sell my pi coins in the United States at the best price
how can I sell my pi coins in the United States at the best price
 
Consumer rights and its importance and value
Consumer rights and its importance and valueConsumer rights and its importance and value
Consumer rights and its importance and value
 
Indirect tax .pptx Supply under GST, Charges of GST
Indirect tax .pptx  Supply under GST, Charges of GSTIndirect tax .pptx  Supply under GST, Charges of GST
Indirect tax .pptx Supply under GST, Charges of GST
 
一比一原版(UC Davis毕业证书)加州大学戴维斯分校毕业证成绩单学位证书
一比一原版(UC Davis毕业证书)加州大学戴维斯分校毕业证成绩单学位证书一比一原版(UC Davis毕业证书)加州大学戴维斯分校毕业证成绩单学位证书
一比一原版(UC Davis毕业证书)加州大学戴维斯分校毕业证成绩单学位证书
 
一比一原版(UMich毕业证书)密歇根大学安娜堡分校毕业证成绩单学位证书
一比一原版(UMich毕业证书)密歇根大学安娜堡分校毕业证成绩单学位证书一比一原版(UMich毕业证书)密歇根大学安娜堡分校毕业证成绩单学位证书
一比一原版(UMich毕业证书)密歇根大学安娜堡分校毕业证成绩单学位证书
 
一比一原版(Concordia毕业证书)康卡迪亚大学毕业证成绩单学位证书
一比一原版(Concordia毕业证书)康卡迪亚大学毕业证成绩单学位证书一比一原版(Concordia毕业证书)康卡迪亚大学毕业证成绩单学位证书
一比一原版(Concordia毕业证书)康卡迪亚大学毕业证成绩单学位证书
 
Prezentacja Q1 2024 EN strona www relacji
Prezentacja Q1 2024  EN strona www relacjiPrezentacja Q1 2024  EN strona www relacji
Prezentacja Q1 2024 EN strona www relacji
 
一比一原版(UW毕业证书)华盛顿大学毕业证成绩单学位证书
一比一原版(UW毕业证书)华盛顿大学毕业证成绩单学位证书一比一原版(UW毕业证书)华盛顿大学毕业证成绩单学位证书
一比一原版(UW毕业证书)华盛顿大学毕业证成绩单学位证书
 
How do I sell my Pi Network currency in 2024?
How do I sell my Pi Network currency in 2024?How do I sell my Pi Network currency in 2024?
How do I sell my Pi Network currency in 2024?
 
New Stratus Corporate Presentation May 2024
New Stratus Corporate Presentation May 2024New Stratus Corporate Presentation May 2024
New Stratus Corporate Presentation May 2024
 
L1 2024 Prequisite QM persion milad1371.pdf
L1 2024 Prequisite QM persion milad1371.pdfL1 2024 Prequisite QM persion milad1371.pdf
L1 2024 Prequisite QM persion milad1371.pdf
 
一比一原版(BU毕业证书)波士顿大学毕业证成绩单学位证书
一比一原版(BU毕业证书)波士顿大学毕业证成绩单学位证书一比一原版(BU毕业证书)波士顿大学毕业证成绩单学位证书
一比一原版(BU毕业证书)波士顿大学毕业证成绩单学位证书
 
Maximize Your Business Potential with Falcon Invoice Discounting
Maximize Your Business Potential with Falcon Invoice DiscountingMaximize Your Business Potential with Falcon Invoice Discounting
Maximize Your Business Potential with Falcon Invoice Discounting
 
Fintech Belgium General Assembly and Anniversary Event 2024
Fintech Belgium General Assembly and Anniversary Event 2024Fintech Belgium General Assembly and Anniversary Event 2024
Fintech Belgium General Assembly and Anniversary Event 2024
 
how do i convert pi coins to usdt easily.
how do i convert pi coins to usdt easily.how do i convert pi coins to usdt easily.
how do i convert pi coins to usdt easily.
 

foreigntradepolicy 2015-2020.pptx

  • 1. EXIM POLICIES WITH RESPECT TO FOREIGN TRADE POLICY 2015-2020
  • 3. 8/17/2015 3 OVERVIEW Composition & Direction of Foreign Trade  Foreign Trade Policy  India’s Foreign Trade Policy  Foreign Trade Policy 2015 – 2020  FERA& FEMA
  • 5. Composition Of Foreign Trade Composition of foreign trade means major commodity or sectors in which India is doing export and import. India is a very old participant in world trade. Its participation have been promoted by the opening of Suez Canal and speedy development of the ship building industry supplemented by the spread of industrial revolution in Europe and fast expansion of Indian railways. 8/17/2015 5
  • 6. Composition Export Import Fuels, capital goods, chemicals, food grains, Petroleum products, Capital goods ,Pearls and precious gems, Iron and steel Fertilizers ,edible oil Manufactured goods textiles , Gems and Jewellery, Handicraft, Light machinery etc. 8/17/2015 6
  • 7. IMPORTS  It refers to goods that we buy from other countries.  At times of independence India was an agrarian economy.  Partition of our country has brought food shortage because wheat growing regions vested with Pakistan.  Hence India need to import in large quantities, food , cotton jute. Etc  With development of economy over these days, there occurred changes in composition of imports.The development required setting up of industries , modernization of agriculture etc.  Now,Capital goods like machinery, chemicals, fertilizers ,metals ,m 8/1 i 7 n /20 e 1 r 5 als petroleum products etc. are imported . 7
  • 8. EXPORTS  Exports means that we are selling commodities to other countries.  At the time of independence our exports comprise of agricultural products like tobacco, spices, raw materials of cotton and jute etc.  Due to industrialization the proportion of raw materials in our exports declined. 8/17/2015 8
  • 9. Composition of Trade • Source : Economic Survey 2011-12 S. No Commodity Group Year 2010-11 ( in %age) 1 Agriculture and allied products 9.9 2 Ores and minerals ( excluding coal) 4.0 3 Manufactured Goods 68.0 4 Crude and petroleum products( Including coal) 16.8 5 Other and unclassified items 1.2 Total 100.0 Composition of exports 8/17/2015 9
  • 10. 68% 1% 10% 17% 4% Composition of Exports Agriculture and allied products Ores and minerals(excluding coal) Manufactured Goods Crude and petroleum products (including coal) 8/17/2015 10
  • 11. Composition of Imports S. N o Commodity Group Year 2010-11 1 Food and allied products 2.9 2 Fuel 31.3 3 Fertilisers 1.9 4 Paper Board, manufacture and newsprint 0.6 5 Capital Goods 13.1 6 Others 47.7 Total 100.0 3% 32% 1% 13% 49% Composition of Imports Food and allied products Fuel Fertilisers Paper Board Capital Goods Others 2% 8/17/2015 11
  • 12. DIRECTION OF INDIA’S FOREIGN TRADE  Direction means countries to which India exports its goods and countries from which it imports.  Direction of trade also helps to understand the diplomatic relationship maintained by India with other countries of trade.  West Europe (28.1 per cent),America (25.4 per cent),Africa (6.3 per cent) and East Europe (3.1 per cent). 8/17/2015 12
  • 13.  Direction of foreign trade consists of destination of exports and sources of our imports.  Prior to our Independence when India was under British rule, much of our trade was done with Britain. Therefore, UK used to hold the first position in India’s foreign trade.  However, after Independence, new trade relationships were established. Now USA has emerged as the most important trading partner followed by Germany, Japan and UK. India is also making efforts to increase the exports to other countries also the direction of India’s exports and imports. 8/17/2015 13
  • 14. Group of countries to which India Exports OECD OPEC EASTERN EUROPE ASEAN 8/17/2015 14
  • 15. Organization for Economic Co- operation & Development (OECD). • USA, Canada, European Union (EU), Australia and Japan Organization of Petroleum Exporting Countries (OPEC) • Kuwait, Iran, Iraq, Saudi Arabia and others. Eastern Europe. • Romania, Russia and others Developing Nations • China, Hong Kong, South Korea, Singapore and Malaysia. 8/17/2015 15
  • 17. Trade policy refers to thecomplete framework of laws ,regulations ,international agreements, and, negotiating stances adopted by a government to achieve legally binding market access fordomestic firms. -Walter Goode TRADE POLICY 8/17/2015 17
  • 18. The Government has seta long-termvision of making India a majorplayer in world trade. Foreign Trade Policy (FTP) provides the basic policy framework of translating thisvision intospecific strategies, goalsand target 8/17/2015 18
  • 19. STRTEGIC OPTIONS FOR 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. ⚫ AProtective 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 8/17/2015 19
  • 20.  An Inward looking trade policy(import substitution) stresses the need for a country to evolve its own style of development and to be the master of its own fate, with restrictions on the movement of goods, services and people in and out of the country.An inward looking trade policy encourages the development of indigenous technologies appropriate to a country’s resource endowment.  An Outward looking trade policy (export-led growth)encourages not only free trade but also the free movement of capital, workers, enterprises and students, a welcome to the multinational enterprise, and an open system of communications. 8/17/2015 20
  • 21. INDIA’S FOREIGN TRADE POLICY The foreign Trade of India is guided by the Export-Import (EXIM ) policy of the Government of India and is regulated by the Foreign Trade (Development and Regulation ) Act,1992. 8/17/2015 The Foreign Trade Policy contains various decisions taken by the government in the sphere of Foreign Trade, i.e., with respect to imports and exports from the country and more especially export promotion measures, policies and procedures related thereto. It is the set of guidelines and instructions established by DGFT (Directorate General of Foreign Trade ) in matters related to the import and export of goods in India. The present foreign trade policy is for the period of 5 years i.e. from 2015 to 2020. 21
  • 22. FTP is the new name for the earlier EXIM policy. 31st august 2004 - To double our % share of global merchandise trade within the next 5 years To act as an effective instrument of economic growth by giving a thrust to employment generation. 8/17/2015 22
  • 23. ⚫The Union Commerce Ministry, Governmentof India announces the integrated Foreign Trade Policy FTP in every fiveyear. This policy is updated every year on the 31st of March with some modifications and new schemes. New schemes come into effect on the first day of financial year i.e. April 1, everyyear. ⚫The Foreign trade Policywhich was announced on April 1,2015 is an integrated policy for the period 2015- 2020. 8/17/2015 23
  • 24. Prior to 1985 , the Government of India used to announce the EXIM policy annually.However,with a view to have uniformity and stability in EXIM policy,it was decided to give the policy a validity of three years and the first three-year EXIM policy was announced in 1985. Since 1985, there was a moderate trend towards trade liberalisation,which finally took shape in 1991. 8/17/2015 24
  • 25. *DGFT (Directorate General of Foreign Trade) is the main governing body in matters related to Exim Policy. *This Policy is prepared and announced by the Central Government (Ministry of Commerce) which aims at: developing export potential, improving export performance, encouraging foreign trade and creating favorable balance of payments position, in general. 8/17/2015 25
  • 26. LEGAL FRAMEWORK FOR FOREIGN TRADE OF INDIA  Foreign Trade (Development and Regulation) Act, 1992,  Foreign Trade (Regulation) Rules 1993  Foreign Trade (Exemption) Order 1993  Garments Export Entitlement Policy: 2000-2004,  Export (Quality Control and Inspection) Act, 1963,  Customs and Central Excise Duties Drawback Rules, 1995,  Foreign Exchange Management Act, 1999 8/17/2015 26
  • 27.  Customs and Central Excise Regulations  Export and Import Policy - now called Foreign Trade Policy  Handbook of Procedures – Vol. I  Handbook of Procedures – Vol. II incorporating the Standard  Input Output Norms (SION)  ITC (HS) Classification of Import and Export Policy 8/17/2015 27
  • 30. Objectives of India’s Foreign Trade Policy 2015-20 • FTP 2015-20 provides a framework for increasing exports of goods and services as well as generation of employment and increasing value addition in the country, in line with the ‘Make in India’ programme. • The Policy aims to enable India to respond to the challenges of the external environment, keeping in step with a rapidly evolving international trading architecture and make trade a major contributor to the country’s economic growth and development. •To arrest and reverse declining trend of exports is the main aim of the policy. This aim will be reviewed after two and half years. •Simplification of the application procedure for availing various benefits.
  • 31. 8/17/2015 32 •To set in motion the strategies and policy measures which catalyze the growth of exports. •To encourage exports through a mix of measures including fiscal incentives, institutional changes, procedural rationalization and efforts for enhance market access across the world and diversification of export markets.
  • 32. Increase exports to $900 billion by 2019-20, from $466 billion in 2013-14. Raise India's share in world exports from 2% to 3.5%. Merchandise Export from India Scheme (MEIS) and Service Exports from India Scheme (SEIS) launched. Served From India Scheme (SFIS) will be replaced with Service Export from India Scheme (SEIS). For grant of rewards under MEIS, the countries have been categorized into 3 Groups, whereas the rates of rewards under MEIS range from 2 per cent to 5 per cent. Under SEIS the selected Services would be rewarded at the rates of 3 per cent and 5 per cent. 8/17/2015 33 Highlights of Foreign Trade policy 2015 - 2020
  • 33. FTP to be aligned to Make in India, Digital India and Skills India initiatives. Duty credit scrips made freely transferable and usable For payment of custom duty, excise duty and service tax. Export promotion mission to take on board state Governments Unlike annual reviews, FTP will be reviewed after two-and- Half years. Higher level of support for export of defence, farm Produce and eco-friendly products. Nomenclature of Export House, Star Export House, Trading House, Premier Trading House certificate changed to 1,2,3,4,5 Star Export House. The criteria for export performance for recognition of status holder have been changed from Rupees to US dollar earnings. 8/17/2015 34
  • 34. 35 Online procedure to upload digitally signed document by CharteredAccountant/Company Secretary/CostAccountant to be developed. Validity period of SCOMET export authorisation extended from present 12 months to 24 months. Chapter-3 incentives extended to units located in SEZs. Export obligation under EPCG scheme reduced to 75% to Promote domestic capital goods manufacturing. E-Commerce exports of handloom products, books/periodicals, leather footwear, toys and customised fashion garments through courier or foreign post office would also be able to get benefit of MEIS (for values up to INR 25,000). Inter-ministerial consultations to be held online for issue of various licences. 8/17/2015
  • 35. 36 No need to repeatedly submit physical copies of documents available on Exporter Importer Profile.  108 MSME clusters have been identified for focused interventions to boost exports. Accordingly, ‘Niryat Bandhu Scheme’has been galvanised and repositioned to achieve the objectives of ‘Skill India’. Trade facilitation and enhancing the ease of doing business are the other major focus areas in this new FTP. One of the major objective of new FTP is to move towards paperless working in 24x7 environment. Manufacturers, whoarealso status holders, will now be able toself-certify their manufactured goods in phases, as originating from India with a view to qualifying for preferential treatment undervarious formsof bilateral and regional trade agreements. This ‘Approved Exporter System’ will help manufacturerexporters considerably in getting fast 8/ a 17/ c 20 c 15 ess to international markets.
  • 37. Objectives  To facilitate external trade and payments  To promote the orderly development and maintenance of foreign exchange market 8/17/2015 38
  • 38. Foreign exchange transactions were regulated by Foreign exchange regulation act (FERA), 1973 Following the liberalization ushered in 1991 some amendmentswere made to FERA in 1993 therewas a lot demand to bring certain major changes in FERA in the light of economicchanges took place Consequently a new act was formed to replace FERA, known as Foreign exchange management act (FEMA), 1999 8/17/2015 39
  • 39. 8/17/2015 Administration of the Act 40 - The rules regulations and norms pertaining to many sections are laid down by RBI in consultation with central Government. - The Act requires central Government to appoint, ⚫ Adjudicating Authorities for holding enquires related to the contravention of the Act ⚫ one or more Special Directors (appeals) to hear appeals against the order of the Adjudicating authorities - Central Government shall have to establish 1. An Appellate Tribunal for foreign Exchange to hear appeals against the order of the Adjudicating Authorities and the Special Directors 2. A Director of Enforcement with a Director and such officers or class of officers as it thinks fit for taking up for investigation the contravention under this Act
  • 40. FERA V/s FEMA:- 1. In FEMA only the specified acts related to foreign exchange are regulated while in FERA anything and everything that has to do with foreign exchange was controlled 2. The objective of FEMA is to facilitate trade while that of FERA is to prevent misuse 3. FEMA is a much smaller enactment only 49 sections against 81 sections of FERA 8/17/2015 41
  • 41. A thorough understanding of the country’s trade policy and incentives are crucial for the development of a successful international business strategy.
  • 42. 8/17/2015 43 Composition & Direction of Foreign Trade  Foreign Trade Policy  India’s Foreign Trade Policy  Foreign Trade Policy 2015 – 2020  FERA& FEMA AT A GLANCE