policies in the sphere of Foreign trade i.e. with respect to import & export from the country and more especially export promotion measures, policies and procedure related there to.

1. IMPORT - EXPORT POLICY OF
INDIA
(EXIM POLICY)
BY – SANDIP
BESRA

2. WHY DO WE NEED
IMPORT/EXPORT
Import/Export means trade across the political boundaries of
different nation. No Nation is self sufficient and had all the goods
that it needs. This happens because of climatic variation & unequal
distribution of natural resources. In India, Govt. has come out from
time to time with various policies on foreign trade to promote export
thereby increasing the “Foreign Exchange Reserve”.
These policies are termed as “EximPolicy”

3. .Import export act was introduced by Gov. during second world war
and it lasted for around 45 yrs. and in June 1992 this act was
superseded by the Foreign Trade (Development & Regulation Act),
1992. . The basic objective of this new act was to give effect to the
new liberalized export and import policy of the Govt.
Till 1985 annual policies were made but from 1985-92, three yrs.
policy was made and then,
5 yrs. policy was made coinciding with 5 yrs. plans 1992-97, 1997-
02, 2002-07.
Brief History

4. WHAT IS EXIM POLICY?
It contains policies in the sphere of Foreign trade i.e. with
respect to import & export from the country and more
especially export promotion measures, policies and procedure
related there to.
Export means selling abroad and import as bringing into India,
any goods and services

5. OBJECTIVE OF EXIM POLICY
 Accelerating the country’s transition to a globally oriented vibrant
economy with a view to derive maximum benefits from expanding global
market opportunities;
 Stimulating sustained economic growth
 Enhancing the technological strength and efficiency
 To generate employment.
 Opportunities and encourage the attainment of internationally accepted
standards of quality.
 Providing consumers with good quality products and services at
reasonable prices.

6. TRADE POLICY EVOLUTION
Phase I – Import Restriction and Import Substitution (From 143
1950’s to 1970s),
Phase II – Export Promotion & Import Liberalisation (From
1970s to 1990s), and
Phase III – Outward Orientation – (From 1990 onwards).

7. THE FOREIGN TRADE POLICY
2015-2020
On 1st April 2015, the new Foreign Trade Policy (FTP) for the
period 2015-20 was announced which replaces the 2009-14
FTP which expired on 31st March 2014.
India's Foreign Trade Policy also known as Export Import
Policy (EXIM) in general, aims at developing export potential,
improving export performance, encouraging foreign trade and
creating favorable balance of payments position. Foreign
Trade Policy is prepared and announced by the Central
Government (Ministry of Commerce). Foreign Trade Policy or
EXIM Policy is a set of guidelines and instructions established
by the DGFT (Directorate General of Foreign Trade) in matters
related to the import and export of goods in India.

8. HIGHLIGHTS OF THE PRESENT
FOREIGN TRADE POLICY 2015-
2020
 India to be made a significant participant in world trade by 2020
 Commerce Minister announced two new schemes in Foreign Trade
Policy 2015-2020 MEIS & SEIS. namely "Merchandise Exports from
India Scheme (MEIS)" and "Services Exports from India Scheme
(SEIS)". These schemes (MEIS and SEIS) replace multiple schemes
earlier in place.
 Merchandize exports from India (MEIS) to promote specific services
for specific Markets Foreign Trade Policy
 For services, all schemes have been replaced by a 'Services Export
from India Scheme'(SEIS), which will benefit all services exporters in
India.
 FTP would reduce export obligations by 25% and give boost to
domestic manufacturing
 Incentives (MEIS & SEIS) to be available for SEZs also. FTP
benefits from both MEIS & SEIS will be extended to units located in

9.  e-Commerce of handicrafts, handlooms, books etc., eligible for
benefits of MEIS. e-Commerce exports up to Rs.25000 per
consignment will get SFIS benefits.
 e-Commerce Exports Eligible For Services Exports From India
Scheme. – As part of Digital India vision, mobile apps would be
created to ease filing of taxes and stamp duty, automatic money
transfer using Internet Banking have been proposed.
 Agricultural and village industry products to be supported across the
globe at rates of 3% and 5% under MEIS. Higher level of support to
be provided to processed and packaged agricultural and food items
under MEIS.
 Industrial products to be supported in major markets at rates ranging
from 2% to 3%.
 Branding campaigns planned to promote exports in sectors where
India has traditional Strength.
Business services, hotel and restaurants to get rewards scrip under
SEIS at 3% and other specified services at 5%.

10.  Duty credit scrips to be freely transferable and usable for payment of
customs duty, excise duty and service tax.
 Debits against scrips would be eligible for CENVAT credit or
drawback also.
 Manufacturers who are also status holders will be enabled to self-
certify their manufactured goods as originating from India. – Tax and
duty on Indian manufacturers have been reduced, to boost Make in
India vision
 Reduced Export Obligation (EO) (75%) for domestic procurement
under EPCG scheme.
 Inter-ministerial consultations to be held online for issue of various
licences.
 No need to repeatedly submit physical copies of documents available
on Exporter Importer Profile

11. BALANCE OF TRADE OF INDIA
Year Exports Imports Trade Balance
(Billion Rupee)
2013-14 19050.11 27154.34 -8104.23
2012-13 16343.19 26691.62 -10348.43
2011-12 14659.59 23454.63 -8795.04
2010-11 11429.22 16834.67 -5405.45
2009-10 8455.34 13637.36 -5182.02
2008-09 8407.55 13744.36 -5336.8
2007-08 6558.64 10123.12 -3564.48
2006-07 5717.79 8405.06 -2687.27
2005-06 4564.18 6604.09 -2039.91
2004-05 3753.4 5010.65 -1257.25
2003-04 2933.67 3591.08 -657.41
2002-03 2551.37 2972.06 -420.69
2001-02 2090.18 2452 -361.82

13. FOREIGN TRADE AS AN ENGINE
OF GROWTH
1. SME SECTOR
 India has nearly three million SMEs, which account for almost
50 percent of industrial output and 42 percent of India’s total
exports. However, as a result of globalization and
liberalization, coupled with WTO regime, SMEs have been
passing through a transitional period.
 Foreign trade will help the SME sector greatly. Because of
Foreign trade they can find new customers around the world.
Through foreign trade the sector will be more exposed to new
technologies and innovations which can be implemented here.
Foreign trade also increases competition. With rise in
competition the companies will innovate more to remain
competitive thus forms superior products and services.

14. 2. GDP GROWTH
Merchandise trade as a share of GDP is the sum of
merchandise exports and imports divided by the value of GDP,
all in current U.S. dollars. The below given is in percentages.
From 1995 to 2014 the percentage contribution is showing an
increasing trend. Close to half of the GDP is contributed by
foreign trade, if we consider the time period of 2010 – 2014.
This shows the importance of foreign trade for our country.
1995-1999 2000-2004 2005-2009 2010-2014
INDIA 33.7 40.8 42.3 41.5

15. 3. EMPLOYMENT
As foreign trade increases the number of jobs also increases
automatically. Foreign trade influences employment directly as
well as indirectly. When exports increases the production also
increases. As production increases more people are employed to
do the work. But import adversely affects the employment within
the country. Because as more and more goods are imported the
production within the country decreases. So the number of
employment also decreases.

16. THANK YOU!