The document summarizes India's Foreign Trade Policy for 2009-2014. It outlines the objectives of promoting exports and increasing India's competitiveness globally. It provides details on export status holders and the incentives they receive, such as longer credit periods and exemption from customs clearances. It also highlights sectors that received new support under the policy, including gems and jewelry, leather, tea, and automobiles.

1. FOREIGN TRADE POLICY IN
INDIA 2009-2014

2. GROUP MEMBERS
 2604 ASHWIN
 2609 JOELLA
 2611 RICHARD DALVI
 2615 LIRON
 2620 JOYICE
 2623 DELNA
 2548 TINA

3. INTRODUCTION
The Union Commerce Ministry, Government of India
announces the integrated Foreign Trade Policy 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.

4. FOREIGN TRADE POLICY
 Long term objective of the FTP is to promote exports
and increase India’s competitiveness globally, leading to
employment generation particularly in the labor-intensive
sectors
 Objective common to both the old and new policies is to
double India’s exports within 5 years

5. WHERE DOES INDIA STAND
GLOBALLY?
RANKIN
G
COUNTRY EXPORTS (trillions) DATE OF
INFO
1 CHINA $2,210,000,000,000 2013 est
2 UNITED
STATES
$ 1,575,000,000,000 2013 est
3 GERMANY $ 1,493,000,000,000 2013 est
4 UK $ 813,200,000,000 2013 est
5 JAPAN $ 697,000,000,000 2013 est
6 FRANCE $ 578,600,000,000 2013 est
7 SOUTH
KOREA
$ 557,300,000,000 2013 est
8
NETHERLANDS
$ 551,000,000,000 2013 est
9 RUSSIA $ 515,000,000,000 2013 est
10 ITALY $ 474,000,000,000 2013 est

6. HISTORY
 Earlier this policy known as Export Import (EXIM) Policy.
 Union Commerce Ministry, GOI announces integrated FTP
every five year.
 updated every year on the 31st of March and the
modifications, improvements and new schemes becomes
effective from April month of each year
 Foreign Trade Policy announced on 27th August 2009 for the
period 2009-2014

7. Foreign Trade Policy 2009-14
Short Term Objectives:
 arrest and reverse the declining trend of exports.
 provide support to those sectors which have been hit badly by
recession.
Medium term Policy Objectives :
 achieve an Annual Export growth of 15% by March 2013.
 achieve Annual Export growth of around 25% by 2014.
Long Term Objective :
 doubling India’s share in Global Trade by 2020.

8. FOREIGN TRADE POLICY
2009-14 HIGHLIGHTS

9. ANNOUNCEMENTS FOR
FPS, FMS, MLFPS
 26 New markets added under focus market scheme (FMS)
 Incentives under FMS raised from 2.5% to 3%
 Incentives available under FPS raised from 1.25% to 2%
 MLFPS expanded by inclusion of products like
pharmaceuticals , textile fabrics, rubber products, glass
products, auto components , etc

10. AGRICULTURAL SECTOR
 a single window system to facilitate export of
perishable agricultural produce has been introduced.
GEMS AND JEWELLERY
 planned to establish “Diamond Bourses”
 import of cut & polished diamonds on consignment basis
 of personal carriage upto US $ 5 million value units in
case of participation in overseas exhibition

11. LEATHER SECTOR
 re-port of unsold imported rawhides and skins and semi
finished leather
 Enhancement of FPS rate to 2 %
TEA SECTOR
 DTA (Domestic Tariff Area) sale limit of instant tea by EOU
units increased from 30% to 50%.
 Export of tea has been included under VKGUY Scheme
benefits.

12. AUTOMOBILE SECTOR
 India has become one leading
manufacturers of cars.
 To boost exports of automobile sector ,
FTP has allowed free import of reference
fuels upto a maximum 5kl per annum,
which are not manufactured in India.

13. STATUS HOLDERS
 Large export organisations can become export houses and
trading houses.
ELIGIBILITY
 Merchant and manufacturers exporters.
 Export oriented units.
 Units located in SEZ, agri export zones.
 Units located in electronic hardware technology parks
software tech parks.

14. STATUS CATEGORY
STATUS HOLDER EXPORT PERFORMANCE
(F.O.B. BASIS) ₹ (crores)
1 export house 20 crores
2 star export house 100 crores
3 trading house 500 crores
4 star trading house 2,500 crores
5 premier trading house 7,500 crores

15. 1.INCENTIVE SCRIP FOR IMPORT OF CAPITAL
GOODS:
Status holders of specified sectors shall be eligible for
status holder incentive scrip @ 1% on the FOB. The
specified sectors are:
 Basic chemicals (excluding pharma products)
 Engineering sector (excluding iron & steel)
 Leather sector (excluding finished leather)
 Textiles and jute
 Handicrafts & plastics

16. 2.FOREIGN EXCHANGE RETENTION:
The status holders are allowed to
retain 100% of foreign exchange
earned in exchange earners foreign
currency(EEFC) account.
3.EXEMPTION FROM NEGOTIATION OF
DOCUMENTS THROUGH BANK:
Exemption from compulsory negotiation of documents
through banks. This will enable the status to dispatch the
documents directly to the importers.

17. 4.CUSTOM CLEARANCE ON SELF-DECLARATION:
Customs clearances for imports and exports on self-declaration
basis. This means the customs need not verify
the export and import documents of the status holders.
5.LONGER CREDIT PERIOD :
The status holders can realize foreign exchange proceeds
within a period of 360 days instead of the normal 180 days.

18. 6.EXEMPTION FROM FURNISHING BANK
GUARANTEE:
Exempted from furnishing bank guarantee
for claiming incentives in respect of various
schemes under FTP. i.e the exporters can
get incentives without providing a bank
guarantee.
7.AGRI-INFRASTRUCTURE SCRIP BENEFITS:
Under agri-infrastructure incentive the exporters of
agricultural items can import capital goods without payment of
customs duty, subject to certain conditions.

19. Exports of Principal Commodities

20. India's Exports to Principal Regions

21. References
 http://www.eximkey.com
 http://www.eximinfo.com
 http://www.eximbankindia.in/
 http://dgft.gov.in
 http://finmin.nic.in/