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INDIAS FOREIGN TRADE POLICY

2009-14

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The Union Commerce Ministry, Government ofIndia announces the integrated Foreign Trade

Policy FTP in every five year

This is also called EXIM policy.

This policy is updated every year with somemodifications and new schemes. New schemescome into effect on the first day of financial yeari.e. April 1, every year.

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EXIM policy contains various policy and

schemes and decisions with respect to import

and exports from the country

FOREIGN TRADE POLICY BECOMES EXIM

POLICY ON 1992 (IT IS REGULATED BYFOREIGN TRADE DEVELOPMENT ACT.1992)

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TO establish the framework for globalization. To promote the productivity competiveness of indian

industry.

To arrest and reverse declining trend of exports is the mainaim of the policy. This aim will be reviewed after two years.

2. To Double India's exports of goods and services by 2014.

3. To double India's share in global merchandise trade by2020 as a long term aim of this policy.

(India's share in Global merchandise exports was 1.45% in 2008.

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To encourage exports through a "mix of

measures including fiscal incentives,

institutional changes, proceduralrationalization and efforts for enhance

market access across the world and

diversification of export markets. To set in motion the strategies and policy

measures which catalyze the growth of

exports

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The policy aims at developing export

potential, improving export performance,

boosting foreign trade and earning valuableforeign exchange.

A fall in exports has led to the closure of

several small- and medium-scale export-oriented units, resulting in large-scaleunemployment.

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Export Target : $ 200Billion for 2010-11

Export Growth Target:15 % for next two yearand 25 % thereafter.

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EPCG SCHEME( EXPORT PROMOTION

CAPITAL GOODS)

Obligation under EPCG scheme relaxed. To aid technological up gradation of export

sector, EPCG Scheme at Zero Duty has beenintroduced.

Export obligation on import of spares,moulds etc. under EPCG Scheme has been

reduced by 50%.

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26 new markets added in this scheme.

Incentives under FMS (FOCUS MARKETSCHEME) raised from 2.5 % to 3 %

Incentive available under Focus Product

Scheme (FPS) raised from 1.25% to 2%.

Extra products included in the scope ofbenefits under FPS

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Market Linked Focus Product Scheme (MLFPS)expanded by inclusion of products like pharmaceuticals,textile fabrics, rubber products, glass products, auto

components, motor cars, bicycle and its parts.etc. 6. Focus Product Scheme benefit extended for export of

green products 'and some products from the NorthEast.

7. A common simplified application form has beenintroduced to apply for the benefits under FPS, FMS,MLFPS.

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The following cities have been recognized as

towns of export excellence (TEE)

Handicrafts : Jaipur, Srinagar and Anantnag

Leather Products : Kanpur,Dewas andAmbur

Horticultural Products: Malihabad

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#Agricultural

# Handicrafts

# Handlooms# Gems and Jewellery

# Leather

# Textile

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Plan to establish "Diamond Bourse (s) with an

aim to make India and International Trading

Hub announced.

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Zero duty EPCG scheme to give a boost to

technological up-gradation.

Additional Towns of Export Excellence (TEEs)announced viz.Barmer (Rajasthan)

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Additional 2% bonus benefits over and above

the existing benefits under Focus Product

Scheme will significantly benefit the Toys andSports Goods Sector.

40. Benefits under Zero duty EPCG schemeswill significantly promote technological up

gradation of Toys and Sports Goods sectors.

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Additional flexibility under Target Plus

Scheme (TPS) / Duty Free Certificate of

Entitlement (DFCE) Scheme for the marinesector.

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Pharma sector included under MLFPS for

countries in Africa and Latin America & some

countries in Oceania and Far East.

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. Duty Credit Scrips Earlier the payment of customs duty for Export

Obligation (EO) shortfall under Advance Authorization ,DFIA or EPCG Authorization was allowed in cash only.Now this payment can be done in the way of debit of DutyCredit scrips.

ImportofRestricted Items Restricted Items can be imported now (as replenishment)

against transferred DFIAs (Duty Free ImportAuthorizations) as the present DFRC (Duty FreeReplenishment Card) scheme.

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Period - $ Growth Rate1999-2000 10.85

2000-2001 21.01

2001-2002 -1.65

2002-2003 20.34

2003-2004 17.26

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IN April-October 2010 EXPORT = 26.8% to

$121.4 billion.

IN april oct. imports 26% to $194.2 billion.BUT

Export Target : $ 200 Billion for 2010-11

and import substitution

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REDUCTION IN DUMPING

(in international trade, the pricing of a

product below its cost of production)EVERY COUNTRY FOLLOW THE PRINCIPLES

OF ANTI DUMPING.

EXPORT MORE AND IMPORT LESS

REDUCTION IN EXPORT PRODUCTS

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THANKS