PRESENTED BY: NIDHIN VELAYUDHAN SANJITH SURENDRAN

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.

Textiles and spices were the first products to be exported by India. The Indian trade scenario evolved gradually after the countrys independence in 1947. From the1950s to the late 1980s, followed socialist policies, resulting in protectionism and heavy regulations on foreign companies conducting trade with India.

Indias fast growing agricultural production and to keep pace with the population growth and growing Industrial infrastructure it felt the need of changing its trade policies. To meet the oil import bill, export is unavoidable.

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 Exim Policy

The FERA (Foreign Exchange Regulation Act) deals with laws which relate to foreign exchange in India. The 1973 law was created during the tenure of Prime Minister Indira Gandhi with the goal of conserving India's foreign exchange resources. The act specified which foreign exchange transactions were permitted, including those between Indian residents and nonresidents. In 1957 the act was made permanent. As the industrialization grew in India, there was an increase in the foreign exchange investments. As a result, there arose a need to protect it. Accordingly, in 1973 the Foreign Exchange Regulation Act was amended. FERA consists of 81 complex sections Under FERA, any offence was a criminal one which included imprisonment as per code of criminal procedure, 1973

 To prevent the outflow of Indian currency To regulate the transaction indirectly affecting foreign exchange To regulate import and export of currency and bullion To regulate employment of foreign nationals To regulate foreign companies To regulate acquisition, holding etc of immovable property in India by non-residents. To regulate dealings in foreign exchange and securities. To regulate the transactions indirectly affecting foreign exchange.

The foreign trade of India is guided by the Export Import policy of the govt.of India Regulated by the foreign trade development and regulatory Act 1992. Exim policy contain various policy decisions with respect to import and exports from the country Exim policy is prepared and announced by the central govt. Exim policy of India aims to developing export potential, improving export performance encouraging foreign trade and creating favorable balance of payment position

To establish the framework for globalization To promote the productivity competitiveness of Indian Industry To Encourage the attainment of high and internationally accepted standards of quality To augment export by facilitating access to raw material, intermediate component, consumables and capital goods from the international market To promote internationally competitive import substitution and self reliance To double percentage of share of global merchandise trade with in the five year . To act as an effective instrument of economic growth by giving at rust to employment generation

 Also known as the foreign-exchange rate , forex rate Or FX rate Regarded as the value of one countrys currency in terms of another currency. Types of Exchange Rate The spot exchange rate refers to the current exchange rate. The forward exchange rate refers to an exchange rate that is quoted and traded today but for delivery and payment on a specific future date.

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