EXIMPolicyand Foreign Tradeof Indiain Post Reform Era Autosaved
EXIMPolicyand Foreign Tradeof Indiain Post Reform Era Autosaved
EXIMPolicyand Foreign Tradeof Indiain Post Reform Era Autosaved
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In pre independence period, India’s foreign trade was confined to exports of foodstuff and raw material to
industrialized products from these countries. During post independence era, in order to accelerate the process of
industrialization developmental Imports were encouraged. For maximum utilization of production capacity created
and available resources, Maintenance Imports are encouraged. Many a times, to check inflation, Anti inflationary
Import are needed. India has been the major exporter of food stuff and raw material. Recently, engineering goods
have become a major component of Indian export.
Globalization has made the national markets more interdependent than earlier. Free flow of resources
including raw material, capital and technology not only facilitated large scale production of goods and services but
also developed a global market. India, having adoundant natural resources, can be a major player in international
market by adopting conducive policy measures for promotion of foreign trade, exploring new markets for her
products and services and creating world class manufacturing and trading centers.
The government had adopted import liberalization policy to check price level and correct the supply of
essential commodities. The export –import policy emphasized on export promotion, technology up-gradation, and
stimulus to the exporters. During 1985-86-1989-90, as a result of liberal policy, exports had increased at an annual
average growth rate of 17%.
A new Export-import policy was announced in 1990. The policy introduced star trading houses for the
explorers having net foreign exchange earning of Rs. 75 crores in the three preceding licensing years. The list of the
items to be imported under open general license, particularly the number of capital goods was increased from 1,261
to 1,343 items. The importers were permitted to get the benefit of automatic licensing i.e. 10% of the value of last
year’s licensed imports could be used.
Under Exim Policy, 2002-07 Indian banks were permitted to set up offshore banking units in SEZs, and
exempted them from CRR and SLR. Another significant aspect of the policy was that if removed all quantitative
restrictions on all agriculture product s, Preference was given to the exports of the products manufactured by small
manufactured by small industrial units. In order to boost the gems and jewellery industry, the government
announced zero custom duty on import of rough gems and jewellery. As a result of conducive environment, the net
exports of gems and jewellery had increased by Rs. 4,312 crore during 2006-07. Considering the huge market
potential, the exim policy focused on the exports to South African countries.
The Exim Policy (2004-09) aimed at achieving the target of 1.5% fhare in world trade, In order to achieve
the targete; the emphasis has been given on creating transparent and trustful environment. The investment limit for
creating infrastructure for facilitating export from the small towns who are exclusively engaged in manufacturing
such products has been reduced to Rs. 250 crore from Rs. 1,000 crore.
Dr. Murlidhar Lokhande is Professor & HOD of Commerce, dr. Babasaheb Ambedkar Marathwada University
Aurangabad-431 203
Conclusion
Globalisation has made the national markets more interdependent than earlier. Free flow of resources including raw
material, capital and technology not only facilitated large scale production f goods and services but also developed a
global market is very comparative having a huge abundant natural resources, can be a major player in international
market by adopting conducive policy measures for promotion of foreign trade, exploring new markets for her
products and services and creating world class manufacturing and trading centers.
References
1. Dhar P.K., Indian Economy, Kalyani Publishers, 2008, New Delhi.
2. Economic Surveys, 2002-03 to 2008-09.
3. Misra S.K., Puri V.K., Indian Economy, 2008, Himalaya Publishing House, New Delhi.
4. Subb Rao P., International Business, 2007, Himalaya Publishing House, New Delhi.
5. Joshi Rakesh Mohan, International Marketing, 2007, Oxford University Press.