export-import policy

1. EXIM Policy
EXIM policy is import export policy that contains
rules and regulations regarding doing imports and
exports.
https://theintactone.com/2019/03/24/tbft-u1-topic-2-determinants-of-indian-foreign-trade-
policy-salient-features-of-exim-policy/

2. EXIM Policy
• India’s largest trade partners are US and Europe
• Middle East turmoil will impact India’s Export
• Target to increase export from $ 21.35 billion to $
900 billion by 2020.
• Trade Deficit of $ 9.7 billion
• Non-oil and Non-gold import decline
https://theintactone.com/2020/01/05/role-of-government-in-regulation-and-development-
of-business/

3. Trade Deficit of $ 9.7 billion (import of $ 31.12
billion – export of $ 21.35 billion)
Current data
Export- USD 27.65 billion as per Feb, 2020
Import - USD 41.1 billion as per Feb, 2020
Trade deficit- USD 13.45 billion

4. EXIM POLICY
• Foreign Trade Policy is a set of guidelines and
instructions established by the DGFT in
matters related to the import and export of
goods in India.
• The Foreign Trade Policy of India is guided by
the Export Import in known as in short EXIM
Policy of the Indian Government and is
regulated by the Foreign Trade Development
and Regulation Act, 1992.

5. EXIM Policy
• Indian EXIM Policy contains various policy
related decisions taken by the government in
the sphere of Foreign Trade, i.e., with respect
to imports and exports from the country and
more especially export promotion measures,
policies and procedures related thereto.

6. • Trade Policy is prepared and announced by
the Central Government (Ministry of
Commerce). India's Export Import Policy also
know as Foreign Trade Policy, in general, aims
at developing export potential, improving
export performance, encouraging foreign
trade and creating favorable balance of
payments position.

7. History of EXIM Policy of India
• In the year 1962, the Government of India
appointed a special EXIM Policy Committee to
review the government previous export
import policies.
• 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.

8. • Initially the EXIM Policy was introduced for the
period of three years with main objective to
boost the export business in India

9. Governing Body of Exim Policy
• The Government of India notifies the EXIM
Policy for a period of five years (1997-2002)
under Section 5 of the Foreign Trade
(Development and Regulation Act), 1992. The
current Export Import Policy covers the
period 2015-2020.
• The Exim Policy is updated every year on the
31st of March and the modifications,
improvements and new schemes became
effective from 1st April of every year.

10. • All types of changes or modifications related
to the EXIM Policy is normally announced by
the Union Minister of Commerce and Industry
who co-ordinates with the Ministry of
Finance, the Directorate General of Foreign
Trade.

11. Objectives Of EXIM Policy
• Government control import of non-essential
items through the EXIM Policy. At the same
time, all-out efforts are made to promote
exports. Thus, there are two aspects of EXIM
Policy
A) the import policy which is concerned with
regulation and management of imports
B)the export policy which is concerned with
exports not only promotion but also
regulation.

12. • To generate new employment.
• Opportunities and encourage the attainment
of internationally accepted standards of
quality.
• To provide quality consumer products at
reasonable prices.

13. • To accelerate the economy from low level of
economic activities to high level of economic
activities by making it a globally oriented
vibrant economy and to derive maximum
benefits from expanding global market
opportunities.

14. • To stimulate sustained economic growth by
providing access to essential raw materials,
intermediates, components,' consumables
and capital goods required for augmenting
production.

15. • To enhance the techno local strength and
efficiency of Indian agriculture, industry and
services, thereby, improving their
competitiveness.

16. EXIM POLICY, 2015-2020
INTRODUCTION
A new policy was announced on 1st april
,2015, nearly a year after Narendra Modi
assumed as the new Government needed
time to recast the policy.
Commerce minister Nirmala Sitharaman
stated that it is in line with initiatives “Make in
India”, “digital India” and “skill India”
announced by the Government earlier.

17. OBJECTIVES EXIM POLICY,2015-
2020
• It aims at making the country a bigger player
in global trade by improving the BE and
simplifying trade transactions.
• It seeks to provide a stable and sustainable
policy environment for foreign trade.
• Diversification of India’s export market.

18. Features
1)Export growth target- it aims at almost
doubling the exports of India i.e. $900 billion
by raising India’s share in world exports from 2
% to 3.5% during this period.

19. 2)Simplification and restructuring of Reward
scheme
• It has restructured existing incentive scheme
and introduced certain new schemes.
• Earlier there were five different schemes for
rewarding Merchandise Export . Now all have
been merged into a single scheme, namely
Merchandise Export from India
Scheme(MEIS).

20. Cont…
• Service Exports from India Scheme(SEIS)
replaced Served from India Scheme(SFIS).
Thus SEIS provides for rewards to all service
providers of notified services, who are
providing services from India.
• Incentives MEIS and SEIS have been extend to
units located in SEZ’s also.

21. 3) New Trade Promotion Agency –Apart from
existing Board of Trade , a council for Trade
Development and Promotion will be set up
comprising representatives from states and
union territories.

22. 4)Status holders
• For a long time , Gov. has been recognizing
large exporters as status holders and special
treatment and privileges given to facilitate
their trade.
• The criteria for export performance for
recognition of status holder have been
changed from Rupees to US dollar earnings.
The new criteria is as under:

23. Status category Export Performance FOB / FOR (as
converted) Value (in USD million) during
current and previous
One Star Export house 3
Two Star Export house 25
Three Star Export house 100
Four Star Export house 500
Five Star Export house 2000

24. 5) Boost to “MAKE IN INDIA”
• Higher level of rewards under MEIS for export
items with high domestic content and value
addition like defence, pharma and
environment- friendly product.
• The GOV. will also focus on branding India’s
products including pharma, engineering,
handlooms and yoga services.

25. 6) New initiatives for EOUs, EHTPs and STPs
EOUs(export oriented unit)
EHTPs(electronic hardware technology park)
STP(software technology park)
• EOUs, EHTPs and STPs are allowed to share
infrastructural facilities among themselves.
• Inter-unit transfer of goods are allowed
among EOUs, EHTPs and STPs.

26. • EOUs are allowed facility to set up warehouses
near the port of export.
• EOUs, EHTPs and STPs are allowed to use duty
free equipments for training purposes of their
employees.

27. EVALUATION
• BJP GOV. took only one year to do required in
previous policy
• It reflects the general trend of past of
rationalizing existing export promotion
schemes .
• Make in India, digital India and skill India are
more or less extension of past policy

28. • Procedural simplification and digitalization
have been carried further forward by the
current policy.
• The replacement of Annual Review by Mid-
term Review may not be appreciated by
everyone.