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INTRODUCTION
EXPORT Derived from the conceptual meaning as to ship the goods and services out of the port of a country. Countries all over the world are interdependent, which necessitated foreign trade. IMPORT Derived from the conceptual meaning as to bring in the goods and services into the port of a country. Import of goods normally requires involvement of thecustomsauthorities in both the country of import and the country ofexportand are often subject toimport quotas,tariffsandtrade agreements.
Export Import (Exim) Policy or Foreign Trade Policy (FTP) is a set of guidelines and instructions in matters related to the import and export of goods in India. Established by the Directorate General of Foreign Trade (DGFT) Regulated by The Foreign Trade Development and Regulation Act 1992 Exim policy contains various policy decisions with respect to import and exports of the country. Prepared and announced by the central government. Aim
developing export potential improving export performance encouraging foreign trade creating favorable balance of payment position.
Indian economic policy post independence influenced by Colonial experience Strong emphasis on Import substitution in labour & financial markets Elaborate licenses , regulations & the accompanying red tape Five - Year Plans of India resembled central planning in the Soviet Union . Many industries , were effectively nationalized in the mid - 1950s Low annual growth rate - stagnated around 3 . 5 % from 1950s to1980s Import of Industrial raw material was canalized through various PSUs Between 1985 - 90 huge trade balance compelled Govt . to approach World Bank , IMF for loan Govt . applied brakes on the licensing policy of imports
sharp reductions in the number of goods subject to licensing and other non - tariff barriers reductions in export restrictions , and tariff cuts across all industries higher levels of competition within the Indian economy
11 . Importer Exporter code number 12 . Trading with neighboring countries 13 . Transit facility 14 . Trade with Russia under Debt Repayment Agreement 15 . Actual User condition 16 . Second hand goods 17 . Scrap / Waste in SEZ 18 . Import of samples 19 . Sale on High Seas 20 . Clearance of goods from custom
Policy measures Institutional Set up Import facilitation for Export Production Cash subsidies Fiscal incentives Foreign Exchange facilities Export incentives Duty Exemption Duty Drawback Scheme Duty Free Replenishment Certificate ( DFRC ) Duty Entitlement Pass Book Deemed Exports Export production units
2009 - 14
Target
Export Target : $ 200 Billion for 2010 - 11 Export Growth Target : 15 % for next 2 years and 25 % thereafter
EPCG
Scheme
Obligation under EPCG scheme relaxed . To aid technological up gradation of export sector , EPCG Scheme at Zero Duty has been introduced . Export obligation on import of spares , moulds , etc . under EPCG Scheme has been reduced by 50 %
Re - fixation Obligation
of
Annual
Average
Export
Taking into account the decline in exports , the facility of Re - fixation of Annual Average Export Obligation for a particular financial year in which there is decline in exports from the country , has been extended for the 5 year Policy period 2009 - 14 .
1.27 new markets added 2.Incentives under FMS raised from 2.5 % to 3 % 3.Incentive available under FPS raised from 1.25% to 2% 4.Extra products included in the scope of benefits under FPS 5.MLFPS expanded by inclusion of products like Pharmaceuticals textile fabrics auto components rubber products motor cars glass products of green products and some 6.FPS benefit extended for exportbicycle products from the North East. 7.A common simplified application form has been introduced to apply for the benefits under FPS, FMS, MLFPS and VKGUY.
Higher allocation for Market Development Assistance (MDA) and Market Access Initiative (MAI) has been announced.
The following cities have been recognized as towns of export excellence ( TEE ) Handicrafts : Jaipur, Srinagar and Anantnag Leather Products : Kanpur, Dewas and Ambur Horticultural Products : Malihabad
Extension Exemption
of to
under Section 10B and 10A of Income Tax Act , has been already extended for the financial year 2010 - 11 in the Budget 2009 - 10 .
INITIATIVES
27 new countries have been included in Focus Market Scheme The incentives have increased from 2.5 to 3% EPCG at Zero duty has been introduced and has been simplified Vishesh Krishi and Gram Udyog Yojana (VKGUY) Capital goods imported under EPCG will be permitted to be installed anywhere in AEZ Duty free import of old pieces of hand knotted carpets on consignment basis for re-export after repair is permitted. Import of gold of 18k and above is allowed under replenishment scheme. Duty free import entitlement of commercial samples shall be Rs. 300,000
India exports were worth 29 , 213 Millions USD in June of 2011. Exports amount to 22% of Indias GDP. Gems and jewellery constitute the single largest export item, 16 percent of exports. India is also leading exporter of textile goods, engineering goods, chemicals, leather manufactures and services. Indias main export partners are European Union, United States, United Arab Emirates and China
INDIA S EXPORTS
(January 2009 July 2011)
WORLD MERCHANDIZE
EXPORTS
INDIA S IMPORTS
(January 2009 July 2011)
WORLD MERCHANDIZE
IMPORTS
Balance of trade
Balance of trade = Exports - Imports A positive balance of trade is known as a trade surplus A negative balance of trade is known as a trade deficit or, informally, a trade gap. India reported a trade deficit equivalent to 7659 Millions USD in June of 2011. India is poor in oil resources and is currently heavily dependent on coal and foreign oil imports for its energy needs. Other imported products are: machinery, gems, fertilizers and chemicals.
INDIA S
BOT
In the 1st week of August, 2011 S&P downgraded the long-term sovereign credit rating on the U.S. to 'AA+' from 'AAA' because of its out-of-control spending and poor fiscal and monetary policies. The downgrade deprived U.S. of AAA rating, a coveted status the Country had held for 70 years. This has created a fear to recession. Combined with the slowing down China and the tsunami ravaged Japan, the US turbulence will further worsen the level of global trade activities as well as India's international trade, said Federation of Indian Export Organization (FIEO). Besides IT, some labour-oriented sectors like leather, gems and jewellery would be hit hard.
The weakening of the US dollar resulting from the downgrade would make Indias exports less competitive even while imports to India would become cheaper and put further pressure on domestic manufacturers. Indias exports to the US will also be hit because of US likely to raise taxes for reducing its deficits as part of the recent deal to increase its overall debt ceiling. The higher taxes will in turn further shrink the disposable incomes of American people and reduce their demand. The world largest economy is entering into depression while the Eurozone is in debt crisis. The worst fear is that exports in third and fourth quarter (of this fiscal) will be affected. The Centre should immediately help the exports sector with interest subsidy, reduction in
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PRESENTED BY: PARULJAIN(8154) SAKSHIAGARWAL(8158) PRIYANKAKESERWANI(8160) NAMRATAMENON(8173)