Foreign Trade Law

1. Bhargav Dangar
Roll No. 21
Foreign Trade Law

2.  The industrial policy was announced on July 24, 1991 by the
government, headed by Prime Minister P.V. Narasimha Rao.
 India has gradually opened up it’s markets through economic
reforms & reduced government controls on foreign trade &
investment.
 India’s foreign trade has undergone a complete change in terms of
composition & direction.
Introduction

3.  Development of the Economy
 Imports for better living standard
 Improving quality of production
 Growth of the Economy – Production, Employment, Expansion,
Demand of other goods, utilization of resources
 Source of Foreign Exchange

4. Liberalization Privatization Globalization

5.  Liberalization refers to relaxation of previous government
restrictions usually in in areas of social & economic policies.
 When Government liberalizes trade it means it has removed the
tariff, subsidies & other restrictions on the flow of goods &
services between countries.
Liberalization

6.  Privatization means permitting the private sector to set up industries
which were previously reserved for the public sector.
 The main reason for privatization was in currency of PSU’s are running
in losses due to political interference. The managers cannot work
independently.
Examples:
 Vides Sanchar Nigam Limited
 Hindustan Zinc Limited

7.  Globalization means to make Global or worldwide, otherwise taking
into consideration the whole world.
 Globalization means the interaction of the domestic economy with
the rest of the world with regard to foreign investment, trade,
production and financial matters.