The document outlines key aspects of India's Foreign Trade Policy which is announced every five years by the Ministry of Commerce. The current policy for 2009-2014 aims to double India's exports by 2014 and share in global trade by 2020 in order to arrest the declining export trend and boost foreign exchange earnings. It introduces various incentive schemes focused on sectors like agriculture, textiles, leather and gems to promote exports and employment.

2.  The foreign trade of India is guided by the
Export Import policy of the govt. of india
 Regulated by the foreign trade development and
regulatory Act 1992.
 Exim policy contain various policy decissions
with respect to import and exports from the
country
 Exim policy is prepared and announced by the
central govt.

3.  To establish the framework for globalisation.
 To promote the productivity competitiveness of
Indian industry.
 To encourage the attainment of high &
internationally accepted standards of quality.
 To augment export by facilitating access to raw
materials, intermediate components, consumables
and capital goods from the international market.
 To generate new employment.
 To provide quality consumer products at
reasonable prices.

5. Diversification of Indian exports to other
markets.
 (a) 27 new countries have been included within
the ambit of Focus Market Scheme.
 (b) The incentives provided under Focus
Market Scheme have been increased from
2.5% to 3%.
 (c) There has been a significant increase in the
outlay under ‘Market Linked Focus Product
Scheme’ by inclusion of more markets and
products.

6.  Zero duty has been introduced for certain engineering
products, electronic products, basic chemicals and
pharmaceuticals, apparel and
textile, plastics, handicrafts, chemicals and allied products
and leather and leather products.
 The existing 3% EPCG Scheme has been considerably
simplified.
 A number of products including automobiles and other
engineering products have been included for incentives
under Focus Product, and Market Linked Focus Product
Schemes.
 Steps to encourage Project Exports shall be taken.

7.  The Government recognized ‘Status
Holders’ contribute approx. 60% of India’s
goods exports.
 Additional duty credit scrip can be used for
import of capital goods by these status
holders.
 The status holder incentive scrip scheme is
being expanded to cover more export
product groups.

8.  In the year 1962, the Government of India
appointed a special Exim Policy Committee
 The committee was later on approved by
the Government of India. Mr. V. P.
Singh, the then Commerce Minister and
announced the Exim Policy on the 12th of
April, 1985

9.  Interim New Exim Policy 2009 - 2010
 Exim Policy: 2004- 2009
 Handbook of Procedures Volume I
 Handbook of Procedures Volume II
 ITC(HS) Classification of Export- Import
Items

10. 1. To arrest and reverse declining
trend of exports which will be
reviewed after every two years.
2. To Double India's exports of
goods and services by 2014.
3. To double India's share in global
merchandise trade by 2020 (long
term aim). India's share in Global
merchandise exports was 1.45% in
2008.
Objectives:

11. 4. Simplification of the application procedure for
availing various benefits.
5. To set in motion the strategies and policy
measures which catalyze the growth of exports.
6. 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.

12.  Aims at developing export
potential, improving export
performance, boosting foreign trade and
earning valuable foreign exchange(as
India's exports have been battered by the
global recession).
 A fall in exports has led to the closure of
several small- and medium-scale export-
oriented units, resulting in large-scale
unemployment.

13.  Targets:
 Export Target : $ 200
Billion for 2010-11
 Export Growth Target:
15 % for next two year
and 25 % thereafter.

14. The Union Commerce
Ministry, Government of India announces
the integrated FTP in every five year.
This is also called EXIM policy. This
policy is updated every year with some
modifications and new schemes. New
schemes come into effect on the first day
of financial year i.e. April 1, every year.
The Foreign trade Policy which was
announced on August 28, 2009 is an
integrated policy for the period 2009-14.

15.  Fisheries exempted from
maintenance of average EO
under EPCG Scheme (along
with 7 sectors) however Fishing
Trawlers, boats, ships and
other similar items shall not be
allowed for this exemption.
 Additional flexibility under
Target Plus Scheme (TPS) /
Duty Free Certificate of
Entitlement (DFCE) Scheme
for the marine sector.

16.  Duty Drawback is allowed on Gold
Jewellery.
 Plan to establish "Diamond Bourse
(s) with an aim to make India and
International Trading Hub .
 Introduction of a new facility to
allow import on consignment basis of
cut & polished diamonds for the
purpose of grading/ certification.

17.  Introduction of a single
window system to facilitate
export of perishable
agricultural product with an
aim to reduce transaction and
handling cost.
 This system will involve
creation of multi-functional
nodal agencies. These agencies
will be accredited by APEDA.

18.  On the payment of 50 %
applicable export
duty, Leather sector shall
be allowed re-export of
unsold imported raw hides
and skins and semi finished
leather from public bonded
ware houses.

19.  The existing Minimum value addition
under advance authorization scheme
for export of tea is 100 %. It has been
reduced from the existing 100% to
50%.
 DTA (Domestic Tariff Area) sale limit
of instant tea by EOU(Export
oriented units) increased from 30% to
50%.
 Export of tea has been included under
VKGUY(Vishesh Krishi & Gram
Udyog Yojana)) Scheme benefits.

20.  Export Obligation Period for
advance authorizations increased
from existing 6 months to 36
months.
 Pharma sector included under
MLFPS for countries in Africa
and Latin America & some
countries in Oceania and Far
East.

21.  The claims under Focus
Product Scheme, the
requirement of "
Handloom mark" was
required earlier. This
has been removed.