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    Foreign Trade Policy, Presentation

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    Gorav Bhalla
    The Indian government announces a new Foreign Trade Policy (FTP) every five years that outlines objectives, schemes and incentives to boost exports and reduce imports. The 2009-14 FTP aimed to double India's exports by 2014 and share of global trade by 2020. It introduced new schemes like EPCG, expanded existing ones like FPS and FMS, added 26 new markets and products. Key sectors targeted were agriculture, handicrafts, gems, leather and textiles. The policy aimed to increase exports through fiscal incentives and market access improvements to arrest declining export trends and trade deficits.

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    Foreign Trade Policy, Presentation

    Uploaded by

    Gorav Bhalla
    47 views22 pages
    The Indian government announces a new Foreign Trade Policy (FTP) every five years that outlines objectives, schemes and incentives to boost exports and reduce imports. The 2009-14 FTP aimed to double India's exports by 2014 and share of global trade by 2020. It introduced new schemes like EPCG, expanded existing ones like FPS and FMS, added 26 new markets and products. Key sectors targeted were agriculture, handicrafts, gems, leather and textiles. The policy aimed to increase exports through fiscal incentives and market access improvements to arrest declining export trends and trade deficits.

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    The Indian government announces a new Foreign Trade Policy (FTP) every five years that outlines objectives, schemes and incentives to boost exports and reduce imports. The 2009-14 FTP aimed to double India's exports by 2014 and share of global trade by 2020. It introduced new schemes like EPCG, expanded existing ones like FPS and FMS, added 26 new markets and products. Key sectors targeted were agriculture, handicrafts, gems, leather and textiles. The policy aimed to increase exports through fiscal incentives and market access improvements to arrest declining export trends and trade deficits.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    47 views22 pages

    Foreign Trade Policy, Presentation

    Uploaded by

    Gorav Bhalla
    The Indian government announces a new Foreign Trade Policy (FTP) every five years that outlines objectives, schemes and incentives to boost exports and reduce imports. The 2009-14 FTP aimed to double India's exports by 2014 and share of global trade by 2020. It introduced new schemes like EPCG, expanded existing ones like FPS and FMS, added 26 new markets and products. Key sectors targeted were agriculture, handicrafts, gems, leather and textiles. The policy aimed to increase exports through fiscal incentives and market access improvements to arrest declining export trends and trade deficits.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 22

    INDIA’S FOREIGN TRADE POLICY

    2009-14

    BY : GORAV BHALLA
    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.
    Foreign Trade Policy

     EXIM policy contains various policy and


    schemes and decisions with respect to import
    and exports from the country

    FOREIGN TRADE POLICY BECOMES EXIM


    POLICY ON 1992 (IT IS REGULATED BY
    FOREIGN TRADE DEVELOPMENT ACT.1992)
    Objectives of Foreign Trade Policy 2009-14

    TO establish the framework for globalization.


    To promote the productivity competiveness of indian industry.

    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.
    HOW FTP WORKS?

     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.
     To set in motion the strategies and policy
    measures which catalyze the growth of
    exports
    Aim in General

     The policy aims at developing export


    potential, improving export performance,
    boosting foreign trade and earning valuable
    foreign exchange.
     A fall in exports has led to the closure of
    several small- and medium-scale export-
    oriented units, resulting in large-scale
    unemployment.
    Targets OF FTP BETWEEN 2009-2014

     Export Target : $ 200


    Billion for 2010-11

     Export Growth Target:


    15 % for next two year
    and 25 % thereafter.
    NEW SCHEMES OF FTP:

    EPCG SCHEME( EXPORT PROMOTION


    CAPITAL GOODS)
     Obligation under EPCG scheme relaxed.
     To aid technological up gradation of export
    sector, EPCG Scheme at Zero Duty has been
    introduced.
     Export obligation on import of spares,
    moulds etc. under EPCG Scheme has been
    reduced by 50%.
    Announcements for FPS, FMS, MLFPS:

     26 new markets added in this scheme.

     Incentives under FMS (FOCUS MARKET


    SCHEME) raised from 2.5 % to 3 %

     Incentive available under Focus Product Scheme


    (FPS) raised from 1.25% to 2%.

     Extra products included in the scope of benefits


    under FPS
    ANNOUNCEMENTS
     Market Linked Focus Product Scheme (MLFPS) expanded
    by inclusion of products like pharmaceuticals, textile
    fabrics, rubber products, glass products, auto
    components, motor cars, bicycle and its parts.etc.

     6. Focus Product Scheme benefit extended for export of


    ‘green products 'and some products from the North East.

     7. A common simplified application form has been


    introduced to apply for the benefits under FPS, FMS,
    MLFPS.
    Towns of Export Excellence (TEE)

     The following cities have been recognized as


    towns of export excellence (TEE)

     Handicrafts : Jaipur, Srinagar and Anantnag


     Leather Products : Kanpur,Dewas and
    Ambur
     Horticultural Products: Malihabad
    Thrust Sectors

    #Agricultural
    # Handicrafts
    # Handlooms
    # Gems and Jewellery
    # Leather
    # Textile
    Announcements for Gems & Jewellery Sector:

     Plan to establish "Diamond Bourse (s) with an


    aim to make India and International Trading
    Hub announced.
    Support for Technological up-
    gradation
     Zero duty EPCG scheme to give a boost to
    technological up-gradation.
     Additional Towns of Export Excellence (TEEs)
    announced viz.Barmer (Rajasthan)
    Toys and Sports goods:
     Additional 2% bonus benefits over and above
    the existing benefits under Focus Product
    Scheme will significantly benefit the Toys and
    Sports Goods Sector.
     40. Benefits under Zero duty EPCG schemes
    will significantly promote technological up
    gradation of Toys and Sports Goods sectors.
    Announcements For Marine sector :

     Additionalflexibility under Target Plus


    Scheme (TPS) / Duty Free Certificate of
    Entitlement (DFCE) Scheme for the marine
    sector.
    Announcements for Pharma Exports :

     Pharma sector included under MLFPS for


    countries in Africa and Latin America & some
    countries in Oceania and Far East.
    INDIA’S FOREIGN TRADE POLICY
    2009-14
     . Duty Credit Scrips 
     Earlier the payment of customs duty for Export Obligation
    (EO) shortfall under Advance Authorization , DFIA or EPCG
    Authorization was allowed in cash only. Now this payment
    can be done in the way of debit of Duty Credit scrips.
     
     Import of Restricted Items 
     Restricted Items can be imported now (as replenishment)
    against transferred DFIAs (Duty Free Import Authorizations)
    as the present DFRC (Duty Free Replenishment Card) scheme.

     
    ANALYTICAL SECTION

    Period - $ Growth Rate


    1999-2000 10.85

    2000-2001 21.01

    2001-2002 -1.65

    2002-2003 20.34

    2003-2004 17.26
    ANALYTICAL SECTION

     IN April-October 2010 EXPORT = 26.8% to


    $121.4 billion.
     IN april –oct. imports 26% to $194.2 billion.
    BUT

     Export Target : $ 200 Billion for 2010-11


    and import substitution
    MY OPINION

     REDUCTION IN DUMPING
    (in international trade, the pricing of a
    product below its cost of production)
    EVERY COUNTRY FOLLOW THE PRINCIPLES
    OF ANTI DUMPING.
     EXPORT MORE AND IMPORT LESS
     REDUCTION IN EXPORT PRODUCTS
    .

    THANKS

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