Foreign trade Policy:The development of foreign trade, foreign trade policy and regulation is a very important determinant of the

business environment. The export import policy can have a significant impact on the competitive environment and the sport sector. REGULATION OF FOREIGHN TRADE:The control of foreign trade in India started somewhere during the Second World War. Import control was introduced in 1940, under the Defense of India Rule. With the primary objective of conserving, the foreign resources or exchange, and restricting the physical import so as to reduce the pressure on limited available shipping space. At the end of the war the Defense of India Rule, lapsed and hence in September 1946, the emergency Provisions Ordnance, 1946 was used, to continue the import trade control. This was replaced by imports and exports (control) Act 1947. This act gave an immense power to the government to control the foreign trade of India. This act was further replaced by foreign trade (development and regulation act) 1992, which is also known as FTDRA. Besides the FTDRA there are some laws, act which control the trade in certain items, like antiquities and art treasures act 1972, Indian coffee act 1942, the tea act 1953 etc. The biggest concern of the government in the past was restriction import, with a view to control the trade deficit, and protection of domestic industries against foreign competition. The foreign trade policy was characterized by the overtone of negativism

FTDRA 1992:1. Introduction 2. Objectives 3. Provisions. a). Export import policy b). Director general of foreign trade c). Importer eexporter code (IEC) number. d). Issue and suspension or cancellation of the licence e). Search inspection, and seizure f). Penalty for contravention

EXPORT PROMOTION:Government of India has been making a number of efforts to develop the export. Export development is important to the firm, and to the economy as a whole. Export usually takes place because of the following reasons :1. When the domestic market is small, foreign markets provide the opportunities to achieve the goals. 2. When the supply of many commodities is more than the domestic demand, 3. Export enables a local industry to mitigate the effect of recession. 4. In the case of countries having the trade surplus, export promotions may be required to maintain its position against the international competition. The principle objectives of export promotions measures in India are:1. Compensate the exporters for the high domestic cost of production, ( this can be done by rebates) 2. Provide the necessary assistance to the new and infant exporters to develop the export business. 3. Increase the relative profitability of the export business, vis--vis domestic business.

ORGANISATIONAL SETUP:Government has set up a number of organizations, to provide the assistance to the exporters. Apart from the organizations, there are other institutes which assist the export sector. These are as follows :1. MINISTRY OF COMMERCE:The ministry of commerce, GOI is the most important organ concerned with the promotion and regulation of the foreign trade. The department of commerce in the ministry of commerce is assigned a very important role in the matters concerned with the foreign trade. Matters related to foreign trade are dealt with 8 divisions in the department of commerce, namely, a) and general division b) administration finance division

c) division d) division e) territorial division f) division g) h) divisions 2. AUTONOMOUS BODIES:a) b) c) d)

economic trade policy foreign trade export products services division industries

export inspection council Indian institute of foreign trade Indian institute of packaging Export promotion council, commodity boards (spices board, tea board, coffee board and authorities like marine products export development authority) e) Federation of Indian export organization f) Indian council or arbitrations g) Indian trade promotion organization 3. PUBLIC SECTOR UNDERTAKINGS 4. ADVISORY 5. ATTACHED AND SUBBORDINATE OFFICES Prashant Joshi