Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
PGDM 2012-14
Term:
Course Name:
Sujoy Chakrboarty
Topic/ Title :
Original
Group Number:
Name
Arnab Ganguly
Satya Prakash
Vaisakh Krishnan
Shyam Suresh
Prashant Trivedi
Asim Anand
Utsav Chatterjee
Rohit Jain
Mohit Kaushal
Contents
1. Introduction ........................................................................................................................................ 4
2. Legal Framework of Indian Exports and Imports ................................................................................ 5
3. Objectives of Indian EXIM Policy......................................................................................................... 5
4. EXIM policies & Scheme for Promotion of Exports ............................................................................. 6
4.1 Board Of Trade .............................................................................................................................. 6
4.2 Special Focus Initiatives ................................................................................................................ 6
4.3 Export Promotion of Capital Goods .............................................................................................. 7
4.4 FPS (Focus Product Scheme) ......................................................................................................... 7
4.5 FMS (Focus Market Scheme): ....................................................................................................... 7
MLFPS (Market Linked Focused Product Scheme): ........................................................................ 7
Market Linked Focus Product Scheme (MLFPS).............................................................................. 8
MDA (Market Development Assess): .............................................................................................. 8
Market assess initiative (MAI):........................................................................................................ 8
4.6 Value Added Manufacturing (VAM).............................................................................................. 9
Project Export Announcement............................................................................................................ 9
4.7 Reduction of transaction cost ....................................................................................................... 9
4.8 Disposal of manufacturing waste.................................................................................................. 9
4.9 Announcements ............................................................................................................................ 9
4.9.1 Announcement related to sports weapon ............................................................................. 9
4.9.2 Announcement for medical devices ...................................................................................... 9
4.9.3 Announcement for automobile sector ................................................................................ 10
4.10 Announcement for Electronic Data Interchange (EDI) ............................................................. 10
4.11 Marine ....................................................................................................................................... 10
4.12 Star Export Houses/ Status Holders .......................................................................................... 10
4.13 Gems & Jewellery...................................................................................................................... 11
4.14 Agro Products............................................................................................................................ 11
4.14 Leather Products ....................................................................................................................... 12
4.15 Tea............................................................................................................................................. 12
4.16 Pharmaceuticals Industry.......................................................................................................... 12
4.17 Handloom Industry ................................................................................................................... 12
4.18 Scheme for Export Oriented Units: ........................................................................................... 13
5. Quantitative Target of EXIM Policy 2009-14 ..................................................................................... 13
1. Introduction
India has long history of Foreign trade earlier it use to have trade surplus with entire world
and there were no restrictions on export and import but in pre-independence era British
government discouraged Indian exports and encouraged British imports to India .After
Independence Indian government put controls on both exports and imports but in 1991
significant changes were made to boost Indias trade and majority od trade barriers were
removed. After 1991 due significant increase in demand for Indias exports in services sector
Indian government has adopted the policy of liberalization and globalization for attainment
of economic growth.
EXIM policy of any country governs its exports and imports its one of the most important
policy measure for government to achieve economic development according to the current
priorities of country.
In India Ministry of commerce decides EXIM Policy also known as foreign trade policy. EXIM
policy in India is decided for every 5 years. Recently foreign trade policy was announced for
2009-14 period on August 28 2009. Previously in policy announced in 2004 has two main
objective first was to double share of global merchandise trade and to use trade as an active
tool for economic growth and employment generation.
The policy (2009-14) was very crucial because it was announced at the time when the entire
world is suffering from one of most severe recession in the entire history of modern trade.
According to the forecast done by World Bank over all international trade was projected to
decline by 9% by volume. It was a difficult task for policy makers to increase the volume of
exports when demand was on a sharp decline in developed countries.
Though condition in India was slightly better than other exporting countries after 4 quarters
of recession Indian Economy was showing signs of recovery to pre recessionary levels.
Foreign Trade
Rules 1993
Hand book
Of
Procedures
Vol 2 (SION)
Foreign Trade
Order 1993
Foreign Trade
act 1992
ITC
Classification
of EXIM
Policy
EXIM Policy
Hand book
Of
Procedures
Vol 1
To advise govern in execution and formulation of short term and long term
strategies according to domestic and global economic scenario.
To analyse the performance of different industrial sectors and make
recommendations to improve their incomes through export.
To propose practical procedures for rationalisation of current institutional
framework of EXIM to attain required objective
To analyse the central issues of foreign trade promotion and increase competitive
advantage of Indian Goods and services.
If duty payment is already done using Vishesh Krishi & Gram Udyog Yojna, FPS and FMS
incentives wont be available.
Over All changes
In total 26 new markets have been added to the above scheme to make them have
wider reach.
The incentives available under FMS have been raised to a level of 3% from previous
level of 3%
The incentives available under FPS have been raised to a level of 1.25% from
previous level of 2%
New products have been added in the scope of having benefit under FPS
Market Linked Focus Product Scheme (MLFPS): This scheme is expanded by including new
product like textile fabrics, glass product, motor cars, auto component .But the benefits of these
program can be availed only if exports are done to 13 identified markets (like Algeria, Egypt, Nigeria,
Tanzania, Mexico, Ukraine, Cambodia and New Zealand).
FPS have more benefits for exporters of agricultural products mainly Green products and
products which are mainly produced in north eastern countries.
In order to have ease in adoption of all these scheme like FPS, FMS, VKGUY and MLFPS.
MDA (Market Development Assess): This mainly focused on providing financial support to
all the activities being actively done by Trade promotion organization and EPC
This was actively administered by the department of commerce (DOC)
Buyer seller meet to be arranged in India and abroad and Trade fair to be organized
in similar lines
Other services to be started to promoted export
Backing of travel agencies to the active exporters. The main travel destination to be
focused on includes Africa, Australia, ASEAN, Latin America and Newzeland.
Market assess initiative (MAI): On the basis of country and product in focus financial
assistance is to be provided to all the activities promoting exports. The agencies to have the
benefit of this scheme are: Agencies of state governments, Industry & trade Associates
(ITA), Indian Commercial Mission (ICM) and Export Promotion Council (EPC).
Promoting the Brand
Campaigns to gain publicity
Organization and participation in trade fair
Showcase event to be organized
Market study and research for potential markets
Trade fair participation
Setting up public display in International dept. stores
The manufacturing waste disposal will be allowed only after payment of excise duty
and before the exporting of manufacture or transformed final product. This all
changes will be governed under EPCG scheme and Advanced authorization.
4.9 Announcements
4.9.1 Announcement related to sports weapon
Regional authorities will be responsible for providing licensing of sports weapon. This
all licenses will be valid only when prior NOC has been provided by Ministry of sports
and youth affairs.
4.9.2 Announcement for medical devices
The free sales certificate issuance procedure have been simplified and for making it
easier for medical sector imports. The validity period for the certificate has been
extended to 2 years from 1 year. These certificate certify that the good being
imported are freely sold in the markets of the exporting countries.
The automobile companies which have their R&D department established in the
country will be allowed to import 5kl of reference fuel per year.
This announcement was a part of simplification of EPCG for automobile sector.
4.11 Marine
As the marine sector promised growth in terms of exports the government laid special focus
on this sector to increase Indias share in the global trade. Some of the major
announcements made for the marine sector were
The fisheries sector was exempted from maintaining the mandatory export
obligation of imports required for technological resources under the Export
Promotion Capital Goods scheme. However the same was not applicable to
Trawlers, Fishing ships, boats and other comparable products.
In addition to this the sector was given higher flexibility under the Target Plus
Scheme which enabled accelerated growth of exports by patronizing Star
Export Houses which achieved a high amount of growth of exports. Also Duty
Free Certificate of Entitlement (DFCE) Scheme was initiated for the marine
sector.
4.15 Tea
The existing export duty for Tea was 100% which was hindering the global aspirations for
the Tea industry. The Minimum value addition under Advance Authorization Scheme i.e.
duty free on imports of inputs was reduced from 100% to 50%, thus enabling the Indian
companies to compete effectively in the global tea industry.
The sale limit of instant tea by EOU units was increased by 20% to 50% in Domestic Tariff
Areas. DTA is an area in India that is not in the boundary of a Special Economic Zone and
Export Oriented Units/Electronic Hardware Technology Park.
Additionally Tea exports have been included in the VISHESH KRISHI GRAM UDYOG YOJANA
Scheme, thus passing on the benefits of this scheme to the Tea industry.
longer required to follow these claims under the Focus Product Scheme requiring them to
display the Handloom Mark.
Exports (f.o.b.)
Jul-13
Apr-13
Jan-13
Oct-12
Jul-12
Apr-12
Jan-12
Oct-11
Jul-11
Apr-11
Jan-11
Oct-10
Jul-10
Apr-10
Jan-10
Oct-09
Jul-09
Apr-09
Jan-09
50,000
45,000
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
-
Imports (c.i.f)
Non bulk imports which consist of capital goods and gold is growing at fastest rate due to
concessions provide by government on import duty of capital goods EPCG schemes and also
due traditional high demand of gold in India.
In the year 2008-09 payment received from export of services was sufficient to provide
support to imports of gold and services but in year 2011-12 there is wide negative gap
between payment received from services and payment made for crude and gold. This has
led to upsurge in current account deficit of our country
2008-09
2009-10
2010-11
2011-12
2012-13
Indian export majority of its products to Asia. Europe and United States also plays significant
role as Indias exporting partner. Export portfolio across various region is not much changed
from 2009 to 2013 except the percentage share of European region in Indias export has
23% to 19% because of slow down in European economy due to Eurozone crisis.
50.00
40.00
30.00
20.00
10.00
(10.00)
2009-10
2010-11
2011-12
2012-13
1) Europe
(4.84)
24.59
21.79
10.09
2) Africa
(5.49)
46.63
34.27
32.83
3) America
(2.73)
32.27
43.82
20.21
4.27
30.37
27.35
13.45
Total
0.57
35.17
28.26
11.44
Year
Net exports of commodities have increased by 64% but net growth in payments due
to invisibles has been only 30% due to competition faced by other developing
services based exporting economies like Vietnam and Philippines
Net imports of commodities have also increased by 64% but due to decline of growth
in payments received due to services has increased Indias current account deficit US
$ 28 billion to US $ 90 billion.
Major upsurge in overall-import is due to increase in demand of crude oil so
government of India should promote green technologies and Non-Conventional
sources of energy to curtail demand of crude
India should also focus on technological advancement of its manufacturing industries
so that more capital items could be developed in-house and burden on trade deficit
could be reduced
Export portfolio of India should be more diversified so that its exports are not
affected due to economic slowdown in particular region of world.
Focussed efforts should be made to make services sector of Indian economy
attractive and competent enough to face tough challenges posed by other emerging
economies around the world
8. References