Indian economy and foreign trade are on a growth trajectory. Indian exports have come a long way in value terms from the time of gaining independence in 1947. The total value of India’s merchandise exports increased from US $ 1.3 billion in 1950-51 to US $ 302 billion in 2017-18.
Recent Developments India Opposes EU’s proposed Lowering of Pesticide Limits
U.S. Challenges India’s Export Subsidies at WTO
Indo-China Agreement on Hydrological Information and Rice Exports
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Present Status of India’s Foreign Trade India’s Trade with Neighbours
India-Pakistan and India-Myanmar Trade Cripples
India - Nepal Trade
India – Bangladesh Trade
India–Australia Trade
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India’s trade growth has picked up post-liberalization of 1991. The composition of trade is now dominated by manufactured goods and services. India services exports share in global exports is more than double of that of Indian manufacturing exports. East Asian countries, particularly China have become a major trading block.
Significance of International Trade
Export-Import Policy of India
Now in the era of globalization, no economy in the world can remain cut-off from rest of the world. Export and import play a significant role in the economic development of all the developed and developing economies. With the growth of international organisations like WTO, UNCTAD, ASEAN, etc., world trade is growing at a very fast rate.
Institutions
Directorate General of Foreign Trade (DGFT)
Marine Products Export Development Authority
Export Inspection Council
Foreign Trade Policy (2015-2020)
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Indian Institute of Foreign Trade
Indian Foreign Policy through the Years
In 1950 India‘s share in the total world trade was 1.78% which reduced to 0.6% in 1995. In 1993, India ranked 33rd in top exporting countries and 32nd in top importing countries. Natural resources of the country were not evenly divided amongst public and private sector business enterprises. |
The PC Alexander Committee (1978) was the first committee to review and recommend on import - export policies and procedures. This committee recommended the simplification of the import licensing procedure and provided a framework involving a shift in the emphasis from - control to development. |
In the export import policy of 1978-79, for the first time in India‘s history decentralization of some licensing functions took place and the powers of regional licensing authorities was enhanced. In 1980, Tandon Committee gave recommendations on export strategies. Export oriented units were set up under the EOU scheme introduced in early 1981. |
The Export and Import Bank of India was set up in 1982 to take over the operations of International finance wing of the IDBI. Other major objectives were to provide financial assistance to exporters and importers. |
Trade Policy of 1985-88, based upon the recommendation of Abid Husain committee 1984, envisaged - growth led exports, rather than export led growth. Committee stressed upon the need for harmonizing the foreign trade policies with other domestic policies. This committee recommended foreign trade policies for longer terms. |
In 1985, government developed 3 year Exim Policy. Tax reform committee under Raja J Chelliah suggested minimizing the role of quantitative restrictions and reducing the tariff rates substantially. Export Processing Zones were set up to push up export and the government for the first time introduced the Indian Exim policy on April, 1992. |
Successive governments took various trade reforms, which includes reduction in the peak rate of customs duty; significant reduction in duty rates for critical inputs for IT sector; grant of concessions for building infrastructure of SEZs; facilities and tax benefits to exporters of goods and merchandise; encourage the development of world class infrastructure facilities, etc. |
A number of tax benefits have also been announced for the three integral parts of the ‘Convergence Revolution’ the information technology sector, the telecommunication sector, and the entertainment industry. |
In order to bring stability and continuity, the Export-Import Policy was made for the duration of 5 years. However, the central government reserves the right in public interest to make any amendments to the trade policy in exercise of the powers conferred by the Act. Prior to 2004, the Foreign Trade Policy was called Exim Policy. |
The Foreign Trade Policy, 2015-2020 was finally announced by the Hon‘ble Minister of Commerce and Industry on April 1, 2015. The FTP has been announced in the backdrop of several measures initiated by the government of India such as Make in India, Digital India and Skills India among others. |