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Fema

The document discusses the Foreign Exchange Management Act (FEMA) of 1999: 1. FEMA consolidated and amended laws relating to foreign exchange in India with the objectives of facilitating external trade and payments and promoting an orderly foreign exchange market. 2. It replaced the Foreign Exchange Regulation Act of 1974 and extended to all of India, establishing a new foreign exchange management regime consistent with India's emerging WTO commitments. 3. The act made offenses related to foreign exchange civil offenses rather than criminal.

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52 views12 pages

Fema

The document discusses the Foreign Exchange Management Act (FEMA) of 1999: 1. FEMA consolidated and amended laws relating to foreign exchange in India with the objectives of facilitating external trade and payments and promoting an orderly foreign exchange market. 2. It replaced the Foreign Exchange Regulation Act of 1974 and extended to all of India, establishing a new foreign exchange management regime consistent with India's emerging WTO commitments. 3. The act made offenses related to foreign exchange civil offenses rather than criminal.

Uploaded by

vinay jod
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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FOREIGN EXCHANGE MANAGEMENT ACT

Learning outcome-
Be able to evaluate
FEMA Act
Foreign Exchange Management Act,
1999 (FEMA)
• The Foreign Exchange Management Act,
1999 (FEMA), is an Act of the parliament of
India---
• "to consolidate and amend the law relating to
foreign exchange with the objective of
facilitating external trade and payments and
• for promoting the orderly development and
maintenance of foreign exchange market in
India"
…………
• It was passed in the 29th December 1999 in
parliament, replacing the Foreign Exchange
Regulation Act 1974 (FERA).
• It extends to the whole of India, replacing FERA,
which had become incompatible with the pro-
liberalization policies.
• It enabled a new foreign exchange
 management regime consistent with the
emerging framework of the (WTO)
…………..
• This act makes offences related to foreign
exchange civil offences.
Quiz
• FEMA is referred to as
A. Foreign Exchange Measurement Act
B. Foreign Exchange Management Act
C. Foreign Exchange Management Agreement
D. Funding Exchequer Management Act
Industrial Policy
• Industrial policy is a document that sets the
tone in implementing, promoting the
regulatory roles of the government.
• It was an effort to expand the industrialization
and uplift the economy to its deserved heights.
• It signified the involvement of the Indian
government in the development of the
industrial sector.
Objectives of IP

• To augment the industrial production


• Modernization
• Balanced industrial development
• Balanced regional development
Instruments of Industrial Policy

• Use of tariffs/non-tariff barriers and


Subsidies
– India in past kept custom duties on automobiles as
high as 100-200%.
– for purchases farmers are provided subsidized
fertilizers
• Import Substitution
• Reserved Industries 
Industrial Policy 1948
• The Industrial policy of 1948 was first major
policy of independent India which was
launched to lay the foundation of a mixed
economy in which both private and public
enterprises would march hand in hand to
accelerate the pace of industrial development
Industrial Policy 1956
• Industrial Policy Resolution of 1956 (IPR 1956)
is a resolution adopted by the Indian
parliament in April 1956.
• It was the second comprehensive statement
on industrial development of India after the
Industrial Policy of 1948.
Industrial Policy, 1956
• Schedule A:  17 industries 
– heavy and strategic industries such as defense
equipment; Atomic energy; Iron and Steel; Heavy
castings and forgoing of iron and steel; Air Transport,
Telephone, electricity
• Schedule B: 12 industries 
– Fertilizers
– Road Transport
Reserved Industries
– 1) Atomic Energy 2) Mining of Atomic Minerals 3)
Railway Transport.
Industrial Policy 1991
• On July 24, 1991, Government of India
announced its new industrial policy with an aim
to-- 
• correct the distortion and weakness of the
Industrial Structure of the country that had
developed in 4 decades;
• raise industrial efficiency to the international
level; and
• accelerate industrial growth

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