This document provides an overview of India's foreign trade policies and export promotion measures from 2000-2010. It summarizes key statistics on India's exports, imports and trade balance over this period. It also outlines the objectives of India's Foreign Trade Policy 2009-2014, which aims to double exports and India's share of global trade. The document details various export promotion schemes covering sectors like agriculture, handicrafts, gems and jewelry, and special economic zones. It provides an introduction to deemed exports and export trading houses.
6. India's Exports, Imports, and Balance of Trade from 2000-2010
Source:http://www.dgciskol.nic.in/annualreport/book_3e.pdf
7. Exim Policy and Its Objectives
•It contains policies in the sphere of Foreign trade.
Objectives
•Globalization
•Sustained economic growth
•Improving Technology
•International Standards
•Quality Products
8. General provisions regarding export import
• Exports and Imports free unless regulated
• Compliance with Laws
• Interpretation of Policy
• Procedure:
• Exemption from Policy/ Procedure
• Principles of Restriction
• Restricted Goods
• Terms and Conditions of a License
• Importer-Exporter Code Number
• Exemption from Bank Guarantee
• Clearance of Goods from Customs
9. INDIA’S FOREIGN TRADE POLICY 2009-14
What is Foreign Trade
Policy? 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. The
Foreign trade
Policy which was announced on
August 28, 2009 is an integrated
policy for the period 2009-14.
10. INDIA’S FOREIGN TRADE POLICY 2009-14
Objectives of Foreign Trade Policy
2009-14 1. To arrest and reverse declining trend
of exports is the main aim 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 by 2020 as a long term
aim of this policy. India's share in Global
merchandise exports was 1.45% in 2008.
11. INDIA’S FOREIGN TRADE POLICY 2009-14
Objectives of Foreign Trade Policy
2009-14 4. Simplification of the application
procedure for availing various benefits
5. To set in motion the strategies and
policy measures which catalyze the
growth of exports
To encourage exports through a "mix of
measures including fiscal incentives,
institutional changes, procedural
rationalization and efforts for enhance
market access across the world and
diversification of export markets.
Source : Website: http://dgft.gov.in
12. Export Promotion Measures
• Assistance to States for Infrastructure Development
of Exports (ASIDE)
• Market Access Initiative (MAI)
• Marketing Development Assistance (MDA)
• Meeting Legal expenses for Trade related matters
• Towns of Export Excellence
• Brand Promotion and Quality
• Test Houses
• Quality Complaints/ Disputes
• Trade disputes affecting trade relations
13. REWARD / INCENTIVE SCHEMES IN DGFT
•SERVED FROM INDIA SCHEME (SFIS)
•VISHESH KRISHI AND GRAM UDYOG YOJANA
(VKGUY)
•FOCUS MARKET SCHEME (FMS)
1. Market Linked Focus Products Scrip (MLFPS)
2. Status Holders Incentive Scrip (SHIS)
•FOCUS PRODUCT SCHEME (FPS)
15. EXPORT PROMOTION CAPITAL GOODS (EPCG) SCHEME
• Zero duty EPCG Scheme
• Concessional 3% Duty EPCG Scheme
• EPCG for Projects
• EPCG for Retail Sector
• EPCG for agro units
16. Special Focus Initiatives
SECTORS INITIATIVES
MARKET DIVERSIFICATION •27 New Countries have been included in Focus
Market Scheme.
•The incentives increased from 2.5 to 3%.
TECHNOLOGICAL UPGRADATION •EPCG scheme at zero duty have been introduced and
has been simplified.
AGRICULTURE AND VILLAGE
INDUSTRY
•Vishesh Krishi and Gram Udyog Yojana.
•Capital goods imported under EPCG will be
permitted to be installed anywhere in AEZ.
•Import of inputs such as pesticides are permitted.
17. Special Focus Initiatives
SECTORS INITIATIVES
HANDLOOMS AND HANDICRAFTS •Duty free import of old pieces of hand knotted
carpets on consignment basis for re-export after
repair is permitted.
GEMS & JEWELLERY •Import of Gold of 8k and above is allowed
under replenishment scheme.
• Duty free re-import entitlement for rejected
jewellery shall be 2% of FOB value of exports.
•Duty free import entitlement of commercial
samples shall be Rs. 300,000.
LEATHER AND FOOTWEAR •Finished Leather exports to be incentivized.
18. SECTORS INITIATIVES
MARINE SECTOR •Duty free import of specified specialized inputs
and chemicals is allowed to the extent of 1% of
FOB value of preceding financial year’s export.
• Marine sector included for benefits under zero
duty EPCG scheme.
ELECTRONICS AND IT
HARDWARE
MANUFACTURING
INDUSTRIES
•Export of electronic goods to be incentivized
under Focus Product Scheme.
•Electronics Sector included for benefits under
SHIS schemes.
GREEN PRODUCTS AND
TECHNOLOGIES
•Focus would be on items relating to
transportation, solar and wind power generation
and other products as may be notified, which will
be incentivized under Reward Schemes.
INCENTIVES FOR EXPORTS
FROM THE NORTH EASTERN
REGION.
•Notified products of this region
would be incentivized under Reward Schemes.
Special Focus Initiatives
19. Export and Trading Houses
Merchant as well as Manufacturer Exporters, ServiceProviders, Export Oriented Units
(EOUs) and Units located in Special Economic Zones (SEZs), Agri Export Zones
(AEZs), Electronic Hardware Technology Parks (EHTPs), Software Technology Parks
(STPs) and Bio-Technology Parks (BTPs) shall be eligible for status and avail various
privileges.
SPECIAL ECONOMIC ZONES
•Developed to enhance foreign investments and promote exports from the
country.
•Geographic regions where economic laws related to export and import are
more liberal as compared to rest parts of the country.
•No license required for import made in SEZ units.
•Exemption from central sales tax on the sale or purchase of goods and
exemption from payment of service tax.
• Kandla, Gujarat Multi product Mumbai, Maharashtra Electronics and
Gems and Jewellery, Noida ,Cochin Special Economic Zone Cochin, Falta
Special Economic Zone ,Visakhapatnam SEZ.
•There are 114 SEZs in India.
•Growth of 121.4% is achieved in 2009-10
20. Deemed Exports
• What are Deemed Exports?
• Categories of Supply
• Benefits for Deemed Exports
• Benefits to the Supplier
• Eligibility for refund of terminal excise duty /
drawback
• Supplies to be made by the main / subcontractor