The need of an export import policy (EXIM) to grow and diversify India's trade has
been recognized since the country's independence in 1947. The Foreign Trade (Development
and Regulation) Act of 1992 governs India's Imports and exports. The government
official responsible for the EXIM policy is the Director General of Foreign Trade.
The policy's goal is to facilitate rather than hinder importing into and exporting
out of India.
Photo Credits: Contract - Daniel Jaeger Vendruscolo
A developing country such as India needs to import technology and capital goods.
To offset these imports, the government of India provides export promotion schemes.
The Indian government also uses import quotas, import licensing and import duties
to help balance the import-export trade in India.
The EXIM Policy of India has been updated several times in recent years. The most
recent version covers the period from 2009 to 2014. The short term objective for
this revision to the EXIM policy is to halt and reverse the declines in India trade
within a volatile world market. Tactics used to achieve this objective include:
increase market access, diversify the export markets, provide fiscal incentives,
reduce procedures, and change to institutions.
EXIM Policy 2009 to 2014 Highlights
Some key highlights of thie EXM policy 2009 to 2014 revision are:
Market Access and Export Market Diversification Incentive schemes have been expand
to cover new markets and new product categories. New markets, sixteen from Latin
America and ten from Asia-Oceania have been added as part of the Focus Market Scheme.
The incentives available have increased from 2.5% to 3% for these new markets.
New Product Incentive Scheme This covers a wide variety of products ranging from engineering,
plastics, textiles, Green technology, Jute & Siscal, technical textiles, project
goods, vegetable textiles and some electronics. The incentives increased from 1.25%
Technology Upgrades For companies in certain sectors such as engineering and electronic
products who want to upgrade their technology, zero duty will be assessed.
Gems & Jewelry Sector Gold Jewelry exports will be permitted to receive Duty Drawbacks.
This is where the duty collected on the export will refunded.
Value added Manufacturing To increase Value added Manufacturing exports, a 15% minimum
value addition on imported inputs has now been prescribed.
Procedure Simplification Increase from 15 to 50, the number of sample pieces allowed
to be imported by exporters at duty free rates.
Given the recent downward turn in the global economy, India's exports have also been
shrinking. It is hope that some of the latest EXIM policy promotion schemes will
help to accelerated India's import-export industry again.
Mahesh G., Import from China to India
“Thanks for all the great ideas on importing goods from China that are not available