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EXIM Policy.ppt
- 1. EXIM Policy EXIM policyis 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’slargest 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 • ForeignTrade 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 • IndianEXIM 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 Policyis 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 EXIMPolicy 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 theEXIM Policy was introduced for the period of three years with main objective to boost the export business in India
- 9. Governing Body ofExim 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 typesof 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 EXIMPolicy • 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 generatenew employment. • Opportunities and encourage the attainment of internationally accepted standards of quality. • To provide quality consumer products at reasonable prices.
- 13. • To acceleratethe 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 stimulatesustained economic growth by providing access to essential raw materials, intermediates, components,' consumables and capital goods required for augmenting production.
- 15. • To enhancethe techno local strength and efficiency of Indian agriculture, industry and services, thereby, improving their competitiveness.
- 16. EXIM POLICY, 2015-2020 INTRODUCTION Anew 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 restructuringof 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 Exportsfrom 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 TradePromotion 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 • Fora 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 ExportPerformance 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 initiativesfor 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 areallowed 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 simplificationand 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.