Abcd

1. GROUP -5
CONTENTS
•Regulation of foreign trade,
•Foreign Trade development and regulation act,
•Foreign trade policies,
•Export promotion,
•Organizational Setup,
•Production Assistance,
•Marketing assistance,
•EPZ, EOU, SEZ,
•Export Housing
•Trade housing

2. FOREIGN TRADE
 Exchange of goods and
services between the
countries is known as
foreign trade. The
difference is the
producer and
consumers reside in
separate countries.

3. DEVELOPMENT AND REGULATION ACT
OF FOREIGN TRADE POLICY
In 1992, the govt. enacted foreign trade (Development &
Regulation ) Act to facilitate import and enhancing exports
from India.
As per the provisions of the act , the Govt. :-
 may make provisions for facilitating and controlling foreign
trade;
May prohibit ,restrict and regulate exports & imports ,in all or
specified cases as well as subject them to exemptions;
Is authorized to formulate and announce an export & import
policy and also amend the same from time-to-time,by
notification in the Official Gazette.

4. With economic reforms,globalisation of the Indian
economy has been the guiding factor in formulating the
trade policies.
The reform measures introduced in the subsequent
policies have focused on liberalization , openness and
transparency.
They have provided an export friendly environment by
simplifying the procedures for trade facilitation.
Changes that took place :-

5. KEY STRATEGIES FOR ACHIEVING ITS
OBJECTIVES :-
Simplifying procedures and bringing down transaction
costs;
Facilitating development of India as a global hub for
manufacturing , trading and services.
Identifying and nurturing special focus areas to
generate additional employment opportunities ,
particularly in semi-urban and rural areas.
Facilitating technological and infrastructural
upgradation of the Indian economy ,especially through
import of capital goods and equipments.
Activating Indian embassies as key players in the
export strategy.

6. MEANING OF FOREIGN TRADE POLICY
Foreign trade policy is the combination of words
First is foreign trade and
Second is policy
 Foreign trade:It is the exchange of goods and
services between nations. Goods can be defined as
finished products, as intermediate goods used in
producing other goods, or as agricultural products
and foodstuffs.
 Policy: policy is the set of rules and proceedure.

7. OBJECTIVES OF THE FOREIGN TRADE
POLICY OF INDIA
The Foreign Trade Policy of India is
based on two major objectives, they are –
 To double the percentage share of
global merchandise trade within the next
five years.
To act as an effective instrument of
economic growth by giving a thrust to
employment generation

8. STRATEGY OF FOREIGN TRADE POLICY OF
INDIA
 Removing government controls
 Facilitating development of India as a global hub for manufacturing,
trading, and services
 Generating additional employment opportunities
 technological and infrastructural up gradation
 Simplification of commercial and legal procedures and bringing
down transaction costs.
 Simplification of levies and duties on inputs used in export products

9. FEATURES OF FTP(04-09)
 A new scheme called the vishesh krishi upaj yojana
for promoting the exports of fruits, vegetables, flowers
and their value added products has been introduced.
 Funds shall be earmarked for the development of agri
export zones (AEZ).
 Units in AEZ shall be exempt from bank guarantee
under the EPCG scheme.
 Import of capital goods shall be permitted duty free
under the EPCG scheme.
 Import of gold of 18 carat and above shall be allowed
under the replenishment scheme.

10. FEATURES OF FTP(09-2014)
 Duty exemption scheme
 Duty free import authorisation
 Export promotion of capital goods(EPCG)
 Deemed exports
 Star export houses
 Focus market scheme
 Focus product scheme
 Vishesh krishi gram upaj yojna(VKGUY)
 Service export
 100%EOU/SEZ, etc

11. PRODUCT ASSISTANCE/ FACILITIES
Experts depend , inter alia ., on exportable surplus and the
quality and price of the goods. Govt. have therefore , taken a
number of measures to enlarge and strengthen the
production base, to improve the productive efficiency an
quality of products and to make the product more cost
effective.

12. MEANING OF EXPORT PROCESSING ZONES
Export Processing Zones (EPZs) are industrial estates
which form enclaves from the national customs territory of
a country, it can be summarized as a unit bearing clusters
of specially designed zones of aggressive economic
activity for the promotion of export.The main concept of
Export Processing Zones was conceived in the early
1970s to promote the growth of the sickening export
business of India. Further, the meaning of Export
Processing Zones (EPZs) can be broadly defined as an
area enjoying special government of India support with
respect to fiscal incentives, tax rebates and other
exclusive benefits for the growth of export.

13. OBJECTIVES OF SETTING UP OF EPZS
• Encourage and generate the economic development
• Encourage Foreign Direct Investments (FDI)
• To earn foreign exchange
• To generate employment opportunities
• Foster the establishment and development of industrial
enterprises within the said zones
• Encourage and generate wider economic activities by
encouraging foreign investments for the development of
the zones
• Upgrade labor and management skills
• Ensure world class quality of products .

14. WHERE EPZ LOCATED?
• Kandla Free Trade Zone (KAFTZ), Kandla, Gujarat
• Santa Cruz Electronic Export Processing Zone
(SEEPZ), S. Cruz, Maharashtra
• Cochin Export Processing Zone (CEPZ), Cochin,
Kerala
• Falta Export Processing Zone (FEPZ), Falta,West
Bengal
• Madras Export Processing Zone (MEPZ), Madras,
Tamil Nadu
• Noida Export Processing Zone (NEPZ), Noida, Uttar
Pradesh
• Visakhapatnam Export Processing Zone (VEPZ),
Visakhapatnam, Andhra Pradesh

15. SETTING UP 100% EOUS.
 The Government amended in November 1983 a concession
scheme to facilitate the setting up of export-oriented units (EOUs)
in order to enable them to meet requirements of foreign demand
in terms of pricing, quality, precision etc.
 EOU refers to an industrial unit which refers to an industrial
unit which offers for exports its entire production ,excluding
permitted levels of reject.

EOUs can be set up anywhere in the country and may be
engaged in the manufacture and production of software,
floriculture, horticulture, agriculture, aquaculture, animal
husbandry, pisciculture, poultry and sericulture or other similar
activities.

16. SEZ
• Special economic zone is a particular area inside a state which acts as foreign
territory for tariff and trade operations. Govt. provides tax exemption (IT, Excise,
customs, sales etc.), subsidised water and electricity etc.
SEZ can be sector specific or multi product sez. It helps in the development of
infrastructure of the area around the SEZ, provides employment to people, makes
the exports more viable. All this will helps the country's products to become mor
competitive vis-a-vis providing all round development of region.
It should be noted that if 100 acres are alloted for SEZ, then only 30-35% of area is
used for setting up plants , rest of the area is used to provide housing facilities, malls,
multiplexes etc.
Also Tax exemption is for specific period say for 10 yrs or so.
India was one of the first in Asia to recognize the effectiveness of the Export
Processing Zone (EPZ) model in promoting exports, with Asia's first EPZ set up in
Kandla in 1965. With a view to overcome the shortcomings experienced on account
of the multiplicity of controls and clearances; absence of world-class infrastructure,
and an unstable fiscal regime and with a view to attract larger foreign investments in
India, the Special Economic Zones (SEZs) Policy was announced in April 2000.

17. TRADING HOUSES
 Trading Houses (TH) are independent
companies staffed by international trade
experts. They are business intermediaries
between foreign manufacturers and foreign
buyers or consumers of goods and services.
Trading Houses export, import, and engage
in third country trading of goods and services
produced by other companies.

18. TRADING HOUSES OFFER THE FOLLOWING
SERVICES
 Identifying and selecting a market
 Identifying, selecting and evaluating clients
 Defining a product and related packaging requirements
 Marketing and adapting the product
 Negotiating the terms of sales (financing, shipping,
payment terms, insurance)
 Preparing export documents
 Protecting clients from all export-related risks (including
commercial and political factors as well as fluctuations in
transportations and exchange rates)
 Shipping and receiving of goods
 Following up on claims and providing after-sales service
 Providing promotional support abroad

19. TRADING HOUSES ALSO PROVIDES VALUE
ADDED SERVICES LIKE:
 Save time since the Trading House already has
well-established networking overseas
 Save money by spreading costs over several
product lines
 Benefit from the established credibility of the
Trading House on foreign markets
 Benefit from greater efficiency from the Trading
House's experience in specific markets
 Diversify their market and improve their export
strategy

20. CONCLUSION
 After the implementation foreign trade policy
, the import and export among foreign
countries have increased and have become
more secured.
 Setting up of EPZ and SEZ have also
increased foreign investors .
 Trading Housing have given a platform to
both manufacturers and consumers to freely
and easily trade between different countries.