India launched its market oriented economic reforms in 1991.

In India post 1991 economic reforms have been evolutionary and incremental in nature. There have been delays and reverses in some areas due to the interplay of democratic politics, coalition governments and pressure groups with vested interests. The country was under socialist based policies for an entire generation from the 1950s till the 1980s.The economy suffered from extensive regulation, protectionism and public ownership leading to pervasive corruption and slow growth. Elaborate licenses, regulations and the accompanying red tape commonly referred to as license raj were required to set up business in India between 1947 and 1990. Foreign trade of India was typical of a colonial and agricultural economy. Trade relations were confined mainly with Britain and other commonwealth countries. Exports consisted mainly of raw materials and plantation crops while imports consisted of light consumer goods and other manufacturers. Exports remained relatively sluggish owing to lack of exportable surplus, competition in the international market, inflation at home, and increasing protectionist policies of the developed countries. Indias approach to openness has been cautious, contingent on achieving certain preconditions to ensure an orderly process of liberalization and ensuring macroeconomic stability. Brief Review of Indias Trade Policy (Pre-Liberalisation) Indias foreign trade policy during the last five decades may be broadly split into import substitution policy, export drive policy and export acceleration policy. The import substitution was followed in the first two decades. With fears of external dominance, the Indian planners adopted a somewhat introvert external trade strategy which relied on encouraging domestic production for the domestic market with the help of high tariffs and high degree of protection. In 1975-76 import policy was liberalised to make available imported inputs for registered exporters. In mid-1980s the government adopted a three-year import-export policy (1985-88) with the aim to provide easy access to imports, essential for maximizing production and exports. The main policy changes were abolition of automatic licensing, inclusion of 201 items of industrial machinery under capital goods import under OGL, decentralisation of 53 import items and granting facility for import of capital goods against REP license from Rs 1 lakhs to Rs 2 lakhs. The second three-year policy (1988-91) carried forward the process of trade liberalisation to make exports more competitive. The policy was designed to stimulate industrial growth by providing easy access to essential imported capital goods, raw materials and components to industry so as to sustain movements towards modernization, technological upgradation and making Indian industry competitive internationally. In the 1990s many short run adjustments were made in the trade policy in order to overcome the external sector crisis, which hit the country in 1991. Two major measures taken in trade policies were (a) liberalisation of imports entailing successive expansion

in the OGL list and (b) linking expansion in exports to import liberalisation. CCS scheme was suspended; REP license was substituted by EXIM scrips. The rupee was devalued in July 1991 and the country saw transition towards the market-based exchange rate regime. From Independence in 1947 till mid-1990s, India with some exceptions, always faced deficit in its balance of payments i.e. imports always exceeded exports. This was characteristic of a developing country struggling for reconstruction and modernization of its economy. Imports galloped because of increasing requirements of capital goods, defense equipments, petroleum products, and raw materials. India embarked on the path of globalization in the early 1990s with the objective of improving overall productivity, competitiveness and efficiency of the economy in order to attain a higher growth profile. As a result, growth in trade accelerated in the early part of the 1990s. This momentum however could not be sustained in the face of various domestic bottlenecks and exogenous constraints like East Asia crisis and slowdown in the US economy. These external factors along with stagnation in investment rate, sluggish industrial growth and slowdown in manufacturing productivity, predicted Indias trade during the closing years of the 1990s.The destination pattern of Indian exports has remarkably changed in the sense that the importance of developing countries as an export market has increased considerably. Indias experience has seemingly fallen short of expectation. Indias share in global trade did not rise as impressively and the commodity structure of Indias export remained almost unchanged until the mid-1990s. Post Liberalisation Liberalisation refers to a relaxation of previous government restrictions, usually in areas of social or economic policy. India has experienced transformation from the regime of regulated economic development to competitive regime since the liberalisations of 1991. The main thrust of these liberalisations has been on industrial delicensing and openness, that is, import liberalisation and removing barriers to exports for accelerating growth. EXIM POLICY, 1992-97 EXIM Policy, 1992-97 made a conscious effort to dismantle various protectionist and regulatory policies and accelerate India`s transition towards a globally oriented economy. The export-import policy was further liberalized by the government on March 31, 1993. Substantial concessions were announced to boost agricultural exports. EXIM POLICY, 1997-2002 The export and import policy, 1997- 2002 (coinciding with the period of ninth five year plan) sought to consolidate the gains of the previous policy and further carry forward the process of liberalization

The principal objectives of the policy were the following: 1. To accelerate the country`s transition to a globally. 2. To stimulate sustained economic growth by providing access to essential raw materials, intermediates, Components, consumables and capital goods. 3. To enhance the technological strength and efficiency of Indian agriculture, industry and services. 4. To provide consumers with good quality products at reasonable prices.

Salient Features: Following were the salient features of the policy: Exports and imports shall be free, except to the extent they are regulated by the provisions of this policy. The Central Government may in public, interest, regulate the import or exports of goods by means of a negative list of imports or a negative list of exports, as the case may be. The negative list may consist of goods, the import or export of which is prohibited, restricted through licensing.

EXIM POLICY 1999-2000 The new export import policy freed import of 894 items of consumer goods, agricultural products and textile from licensing requirements. In other words a number of Consumer items could now be imported license-free subject only to the payment of import duty. EXIM POLICY 2000-2001 The union commerce and industry minister announced on March 31, 2000 the new export-import policy of the government of India for the year 2000-2001. The export import policy envisaging a 20 percent export growth in dollar terms in 2000-2001, brought about a major rationalisation in export promotion schemes and launched a series of sector specific initiatives. EXIM Policy, 2001-2002 The union commerce and industry minister unveiled on March 31, 2001, the export import policy for the year 2001-2002.

Removal of Quantitative restrictions: The process of removal of import restrictions, which began in 1991, was completed in a phased manner bye the Export-Import Policy 2001-2002 with the removal of restriction on the remaining of 715 items. This was in tune with the commitments made to the WTO. Out of these 715 items 342 were textile products, 147 were agricultural products and 226 were other manufactured products. EXIM Policy, 2002-2007 The EXIM Policy 2002-07 was unveiled on March 31, 2002. The policy entailed several institutional, infrastructural and fiscal measures intended to promote exports which are conductive to the economic development of the country. The following were the salient features of the policy. Special Economic zones (SEZs): Offshore banking units (OBUs) were permitted in SEZs. Units in SEZ were permitted to undertake hedging of commodity price risks, provided such transactions are undertaken by the units on stand-alone basis. Employment Generation: In an effort to generate additional employment, the following announcements were made pertaining to agricultural and small industry sectors. Technology Upgradation: Electronic Hardware Technology Park (EHTP) scheme was modified to enable the sector to face the zero duty regimes under ITA-1 (Information Technology Agreement).Main areas covered are as follows: Net Foreign Exchange as a Percentage of Exports (NFEP) positive in 5 years. No other export obligation for units in EHTP. Supplies of ITA-1 items having zero duty in the domestic market to be eligible for counting of export obligation.

Growth-oriented: The status holders shall be eligible for the following new/special facilities. EXIM Policy, 2003-2004 It had the following provisions:

The policy provided a massive thrust to export of services by introducing duty free export facility for the service sector units having a minimum foreign exchange earning of Rs 10 lakh. Encouragement of corporate sector with proven credential to sponsor Agri-Export Zones for boosting farm exports. EPCG scheme made more flexible and attractive so that even the small scale sector could set up and expand its manufacturing base for exports. Fixing of input-output norms for status holders on priority basis within a period of 60 days Simplification and codification of rules, regulations and procedures application on SEZ and EOU units by putting all these rules and regulations in one place To increase the overall competitiveness of export clusters. Extension of Duty Free Replenishment Certificate (DFRC).

FOREIGN TRADE POLICY, 2004-2009 In radical move the government of India announced on August 31 2004 a new foreign trade policy for the period 2004-09, replacing the hitherto nomenclature of EXIM policy by foreign Trade policy. Objective and Strategy The new FTP takes an integrated view of the overall development of Indias foreign trade and essentially provides a roadmap for the development of this sector. It is built around two major objectives of doubling Indias share of global merchandise trade by 2009 and using trade policy as an effective instrument of economic growth with a thrust on employment generation. Key strategies to achieve these objectives, inter alia, include: unshackling of controls and creating an atmosphere of trust and transparency; incidence of all levies on input used in export products; facilitating development of India as a global hub of manufacturing, trading and services; identifying and nurturing special focus area to generate additional employment opportunities, particularly in semi urban and rural areas; facilitating technological and infrastructural up gradation of the Indian economy, epically and ensuring that domestic sector are not disadvantage in trading agreements upgrading the infrastructural network related to the entire foreign trade chain to international standards revitalizing the board of trade by redefining its role and inducting into it experts on trade policy and activating Indian embassies as key players in export strategies. Key Features Sector Specific initiatives like handloom and handicraft sector Service Tax on exports Status Holders Vishesh Krishi and Gram Udyog Yojana

Focus Market and Product Schemes Promotion of High tech Products Duty Entilement Pass Book Scheme (DEPB) Higher Export Growth through Rationalisation of export promotion Capital Good Scheme (EPCG) 100% EOU and SEZ Units

FOREIGN TRADE POLICY, 2009-2014 Market Diversification: Weaker demand in developed economies, triggered by falling asset prices and increased economic uncertainty has pulled down the growth of Indias exports to developed countries. Technological Upgradation: To usher in the next phase of export growth, India needs to move up in the value chain of export goods. This objective is sought to be achieved by encouraging technological upgradation of our export sector. Support to status holders: The Government recognized Status Holders contribute approx. 60% of Indias goods exports. To incentivize and encourage the status holders, as well as to encourage Technological upgradation of export production. Agriculture and Village Industry: To reduce transaction and handling costs, a single window system to facilitate export of perishable agricultural produce has been introduced. Handlooms: To simplify claims under FPS, requirement of Handloom Mark for availing benefits under FPS has been removed. Gems & Jewellery: To neutralize duty incidence on gold Jewellery exports, it has now been decided to allow Duty Drawback on such exports. Leather and Footwear: Leather sector shall be allowed re-export of unsold imported raw hides and skins and semi-finished leather from public bonded ware houses Marine Sector :Fisheries have been included in the sectors which are exempted from maintenance of average EO under EPCG Scheme, subject to the condition that Fishing Trawlers, boats, ships and other similar items shall not be allowed to be imported under this provision. Electronics and IT Hardware Manufacturing Industries

Green products and technologies: Focus Product Scheme benefit extended for export of green products Incentives for Exports from the North Eastern Region Sports Goods and Toys

Conclusion: The FTP of India is a stepping stone for the development of Indias foreign trade. At present, international business opportunity in India exists in areas like IT,Telecom,R&D,infrastructure,retailing, etc.Sectors like health,education,housing,water resources are untapped and offer huge scope. When these areas get exploited Indian economy will boom and elevate India in the league of super powers.