This document discusses India's foreign trade policy and the development of its import policy. It notes that foreign trade policy is a set of rules governing international trade, established by the Indian government. The import policy underwent two stages - a pre-reform period with import restrictions and substitution, and a reform period beginning in the 1980s with liberalization. Key aspects of the pre-reform import policy included restrictions on consumer goods, limits on different categories of imports, and a policy of import substitution to achieve self-reliance. The reform period saw two annual import policies and three long-term policies introduced to liberalize imports of capital goods, raw materials, and technology.

2. Introduction to Foreign Trade:
Foreign trade is nothing but trade
between the different countries of
the world.
While trading activity takes place
between various countries the risk
involved will be more.
So, in order to regulate these
trading activity Govt. of India passed
a policy.
It is called as Foreign Trade Policy.

3. Foreign Trade Policy:
 The meaning of FTP can be understood
easily by dividing the terms i.e.,
Foreign Trade
Policy: Set of rules and
procedures.
 So FTP is set of rules and regulations
governing Intl. or foreign trade.

4. Stages of Development of FTP:
The development of ftp in india can be classified
into 2 stages.
 PRE-REFORM PERIOD ( B4 1991)
 REFORM PERIOD ( AFTER 1991)

5. IMPORT POLICY: THE REFORM PERIOD
 It has 3 constituents
1. Import Restrictions.
2. Import Substitution.
3. Import liberalization in 1980’s.
 These was formulated on the basis of:
* limited foreign exchange reserves.
* shortage of essential consumer goods.
* requirements of capital goods.
* massive import.

6. Import Restrictions:
 The history of import restriction begins from the year 1956-57 to
1977-78.
 During 1956 second five year plan was initiated.
 Under this plan importance was given to development of
industries
 The policy of import restrictions was framed on the basis of
requirements for development of country.

7.  For the purpose making this policy effective
imports were classified as
# consumer goods
# intermediate goods
# capital goods
 The limits were fixed on each category as
# High and liberal for import of capital
goods
# Zero, low and rigid for imports of non-
essential consumer goods.

8. Import Substitution:
 The broad objectives of this policy are.
> To save the foreign exchange reserve for import of more
important goods.
> To achieve the self reliance in production of as many
goods as possible.
 Stages of this IS policy
*First Phase
*Second Phase
*Third Phase

9.  Due implication of this policy the country had
following advantages:
Production of goods which were imported
earlier.
Establishment of large number production
industries.

10. Import Liberalization in 1980’s:
o This policy was developed in the year 1977-78.
o Implemented in 1980.
o Under this two annual import polices and three long term import-
export were announced.
Annual polices in 1980-81 and 1984-85
Long term import-export policies in
1985-1988
1988-1990
1990-1992

11. Highlights of Import-Export Policies:
 Policy for Import of Capital Goods.
 Policy for Import of Raw Materials.
 Import policy for Registered Exporters
.
 Policy for Export/Trading Houses.
 Policy for Import of Technology.

13. Prepared & Presented by,
Sajina G Shetty
2nd M.com (132792)
SDMC, Ujire.
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