The document summarizes India's foreign trade policies from 1947 to the present. It discusses the objectives and key highlights of different phases of foreign trade policy before 1991, which focused on import substitution and export promotion. After 1991, policies liberalized trade and promoted exports. Recent policies aim to increase India's share of global exports to 3.5% by 2019-2020 and double exports of goods and services by 2014 through various incentive schemes like MEIS, SEIS, and EPCG which allows import of capital goods at concessional duty rates with export obligations.

1. presentation by : Nisha Burman
Vikrant kumar
Prince kumar
Amisha Sinha
FOREIGN TRADE POLICY

2. What is foreign trade
• Foreign trade is exchange of capital, goods, and services across international
borders or territories. In most countries, it represents a significant share of gross
domestic product (GDP).

3. What is foreign trade policy
• Foreign trade policies also known as EXIM policies
• It is basically government actions, especially tariffs, import quotas,
and export subsidies, designed to increase net exports by promoting
exports or restricting imports

4. Objectives of foreign trade policy
• 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.
• To stimulate sustained economic growth by providing access to
essential raw materials, intermediates, components, consumables
and capital goods required for augmenting production.

5. Contd…..
• To enhance the techno local strength and efficiency of Indian
agriculture, industry and services, thereby, improving their
competitiveness.
• To generate employment.
• Opportunities and encourage the attainment of internationally
accepted standards of quality.
• To provide quality consumer products at reasonable prices.

6. Foreign trade policy of India is divided into two phases
• Foreign trade policy before 1991
• Foreign trade policy after 1991

7. Phase of Indian foreign trade policy before 1991
• Phase I 1947-48 : 1955-56
• Phase II 1956-57 : 1967-68
• Phase III 1968-69 : 1974-75
• Phase IV 1975-76 : 1989-90

8. Main highlights of phase I
• Liberalization of foreign trade was adopted as the goal of trade policy
• Export control was relaxed
• Export duties were relaxed
• Export quotas were abolished
• Incentive was provided in order to enhance export

9. Main highlight of phases II
• Import substitution strategy was followed to lesson dependence of
foreign countries
• Self sufficient in heavy and capital goods industry
• Very restrictive import policy and vigorous export promotion policy
was adopted
• It provide long lasting solution to balance of payment problem.

10. Highlight of phase III
• Increase allocation of raw material to export oriented industries
• Income tax relief to export earning
• Export promotion through import entitlement
• Removal of disincentives
• Settling up of export promotion advisory council , a ministry of
international trade

11. Main features of foreign trade 1991
• Export promotion and import liberalization by strengthening export
incentive.
• Removing quantitative restriction
• Current account and trade account convertibility has been introduced
• Tariff structure has been rational
• Cash compensatory support system has replaced by a scheme of
value based advance licensing system.

12. Objective of Export Import Policy 1997-2002
• To derive maximum benefit from expanding global opportunity.
• To enhance economic growth by provide raw material, intermediates,
consumable and capital good for production.
• To enhance technological strength and efficiency or Indian
agriculture, industry and service.
• To provide consumers with goods quality product at reasonable
prices.
• To simplify the procedural formalities and follow the expanding freely
importable list

13. Export –Import policy 2002-2007
Objectives
• To facilitate sustained growth in export to attain a share of at least 1
% of global merchandise trade.
• To stimulate economic growth by provide access to essential raw
material, intermediate, and capital goods for production and provide
service.
• To enhance technology strength and efficiency of Indian agriculture,
industry and service.
• To provide consumers with good quality goods and service at
internationality competitive price

14. Highlights of Foreign Trade Policy 2004-2009
• Push to export to garner 1.5% of world share by export $150 billion
worth of merchandise.
• Hundred percent FDI would be permitted for develop infrastructure.
• FDI permitted up to 100 percent to establish and develop free trade
and warehousing zone, each to have a Rs.100 crore outlay.
• Import of seed, bulbs and fibers liberalized.
• New policy exempts all goods and service export form service tax.

15. Foreign Trade Policy 2009-2014
objectives
• The main objective of policy is to achieving an annual export growth
of 15% with an annual export target of us $ 200 billion by march
2011.
• In remaining 3 years of foreign trade policy up to 2014, the country
should be able to come back on the high export growth of around
25%p.a.
• By 2014, the expect to double India’s export of goods and service.
• The long term policy objective for the government is to double India’s
share in global trade in 2020

16. Objective of 2015- 20 FTP
• Increase exports to $900 billion by 2019-20, from $466 billion in
2013-14
• Raise India's share in world exports from 2% to 3.5%.

17. Major changes in 2015 -20 FTP
• Merchandise Export from India Scheme (MEIS) and Service Exports
from India Scheme (SEIS) launched.
• Higher level of rewards under MEIS for export items with High
domestic content and value addition.
• Export obligation under EPCG scheme reduced to 75% to Promote
domestic capital goods manufacturing.
• FTP to be aligned to Make in India, Digital India and Skills India
initiatives.

18. Contd….
• Duty credit scrips made freely transferable and usable for payment of
custom duty, excise duty and service tax.
• Export promotion mission to take on board state Governments
• Unlike annual reviews, FTP will be reviewed after two-and-Half years.
• Higher level of support for export of defence, farm Produce and eco-
friendly products.

19. EPCG in FTP
• EPCG stands for Export promotion capital goods
• This is a scheme provided by govt. of India to importers and exporters to
promote exports.
• This scheme covers manufacturer exporter ,merchant exporter and service
provider.
• Supply of service from India through commercial /physical presence in the
territory of any other country.

20. Benefits and obligations of EPCG
• Allows import of capital goods and spares at concessional rate of
duty @3.09% of custom duty.
• Second hand capital goods without any restriction on age may also
be imported under the EPCG Scheme.