Chapter 19 discusses India's trade policy and regulation, highlighting the inward-oriented trade strategy adopted since 1951, which has negatively impacted export performance. It outlines the objectives of the Exim policy to promote exports and facilitate economic growth, along with initiatives for agricultural exports and infrastructural development. The chapter also details the regulatory framework established by the Foreign Trade Act of 1992 aimed at enhancing foreign trade in India.

1. Chapter 19
Trade Policy And Regulation Of India
International Marketing
Chapter-19 Trade Policy And
Regulation Of India

2. Objectives
What are trade strategies
What is the trade strategy of India
What are the features of economic policy
liberalization in India
What is Exim policy
What is the outcome of the policies
How to regulate and promote foreign
trade.
What is the role of Foreign Trade Act,
1992 International Marketing
Chapter-19 Trade Policy And
Regulation Of India

3. Trade Strategies
The trade strategy of a nation has
impact not only on the volume and
composition of foreign trade, but also
on the pattern of investment and
direction of development,
entrepreneurial and business behavior,
consumption pattern etc.
There are mainly two trade strategies;
outward oriented and inward oriented.
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Chapter-19 Trade Policy And
Regulation Of India

4. An outward oriented or outward
strategy is one in which trade and
industrial policies do not discriminate
between production for the domestic
market and exports, nor between
purchase of domestic goods and foreign
goods.
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Chapter-19 Trade Policy And
Regulation Of India

5. An inward oriented or inward looking
strategy is characterized by the bias of the
trade and industrial policies in favor of
domestic production and against foreign
trade.
As import substitution is the key element
of the inward oriented strategy, it is often
described as the import substitution
industrialization strategy.
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Chapter-19 Trade Policy And
Regulation Of India

6. Trade Strategy Of India
In the four decades since the
commencement of planned
development in 1951, India followed a
strong inward-oriented policy.
The inward-oriented strategy has had
very adverse effects on India’s export
performance and economic
development.
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Chapter-19 Trade Policy And
Regulation Of India

7. Period Of Export Pessimism
The export pessimism and the resultant
indifference to export development in the
earlier plans resulted in the neglect of
several sectors with tremendous export
potential like textiles, fisheries etc.
Further, even after recognizing the export
potential of many products, the failure of
effectively harness the potential has been
more conspicuous than achievements in
several case. International Marketing
Chapter-19 Trade Policy And
Regulation Of India

8. Era Of Export Promotion And
Import Restriction
The period of about three decades, 1961-
91, extending from the beginning of the
Third Five Year Plan to the eve of the
Eighth Plan is characterized by import
restriction and the adoption of a number
of measures for export promotion.
The early part of this period, particularly,
also witnessed vigorous import
substitution efforts. Marketing
International
Chapter-19 Trade Policy And
Regulation Of India

9. Although there was some liberalization
of the imports since the mid 1980s,
imports were, in general, highly
restricted.
Many of the import liberalization
measures were for export promotion.
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Chapter-19 Trade Policy And
Regulation Of India

10. Economic Policy Liberalization
In India
1. Abridgement of the role of public
sector and expansion of the scope of
private sector.
2. Removal of entry and growth
restrictions
3. Liberalization of foreign investment
4. Import liberalization
5. Reform of trade policy And
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Chapter-19 Trade Policy
Regulation Of India

11. Objectives Of Exim Policy
1. To facilitate sustained growth in
exports to attain a share of at least 1%
of global merchandise trade.
2. To stimulate sustained economic
growth by providing access to essential
raw materials, intermediated,
components, consumables and capital
goods required for augmenting
production and providing services.
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Chapter-19 Trade Policy And
Regulation Of India

12. 3. To enhance the technological strength
and efficiency of Indian agriculture,
industry and services.
4. To provide consumers with good
quality goods and services at
internationally competitive prices while
at the same time creating a level
playing field for the domestic
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producers. Chapter-19 Trade Policy And
Regulation Of India

13. Other Initiative
Agricultural exports
SEZ
Towns of export excellence
Special focus on cottage sector and
handicrafts
Reduction in transaction time, costs
Assistance to states for infrastructural
development for exports
Market access initiative
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Chapter-19 Trade Policy And
Regulation Of India

14. An Evaluation Of The Policies
The liberalization of capital goods imports
will help reduce project and production
cost and may encourage technological
upgradation.
The increasing competition from abroad
as well as from within is provoking many
Indian firms to give an added thrust to
exports. Some companies even view
exports as a counter-competitive strategy.
International Marketing Chapter-19 Trade Policy And Regulation Of India

15. Because of the imports which they can
make with their foreign exchange
earnings several companies pay special
attention to exports.
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Chapter-19 Trade Policy And
Regulation Of India

16. Regulation And Promotion Of
Foreign Trade
The Export-Import policy reflects the
foreign trade policy of India.
The policy is implemented mostly by
means of regulatory framework
provided by the Foreign Trade
Act,1992.
Control of foreign trade in India dates
back to the early years of the Second
World War. Chapter-19 Trade Policy And
International Marketing
Regulation Of India

17. The Foreign Trade (Development
and Regulation) Act, 1992
Objective : the objective of the Act is to
provide for the development and
regulation of foreign trade by
facilitating imports into, and
augmenting exports from India and for
matters connected therewith or
incidental thereto.
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Chapter-19 Trade Policy And
Regulation Of India

18. Summary
Trade strategies affect the pattern of
development, entrepreneurial and business
behavior, consumption pattern etc.
Outward oriented and inward oriented are two
trade strategies. India follows inward oriented
policy.
The important features of Exim Policy are; the
mission, objectives, agricultural export, SEZ,
towns of export excellence, special focus on
cottage sector and handicrafts, reduction in
transaction time, cost, market access initiative
and conclusion International Marketing
Chapter-19 Trade Policy And
Regulation Of India