Unit 5 Trade Policy

Prepared by Lakshmi....

* India followed a policy of protectionism
* Subsequently import substitution was
   encouraged
* Later exports were encouraged due to
   trade deficit

>  Export policy

Objectives of FTP(2004-09)

*Doubling India's merchandise share
*Generating employment particularly in
  semi-urban and rural areas

>  The specific initiative stipulated in annual supplement 2005

* Inter state trade council
* Removal of export cess
* EPCG scheme
* Service export
* Agri export
* Gem and jewellery export
* DFRC
* Trade plus scheme
* Bank guarantee
* Trade facilitation

> Import policy

Provisions of import policy

* Actual user condition
* Second hand goods
* Import of goods
* Import on export basis
* Re-import of goods abroad
* Import of machinery and equipment
   used in project abroad
* Sale on high seas
* Import under lease finance
* Export promotion capital goods scheme
* Duty exemption/remission scheme
* DEPB scheme
* Import goods by EOU/EPZ/EHTP/STP
  unit

>  Major features of recent tariff policy

* Tariff rate have been reduced and
   rationalised
* Authority for advance rulings has been
   set up for exice and custom
* Custom tariff reduced from 45% to 40%
* Import duty used in IT sector have been
   reduced and rationalised
* Import duty structure rationalised

>  WTO

Major actions for the fulfilment of  commitments to WTO

1) Quantitative restrictions
2) Trade related intellectual property
     rights
3) Trade related investment measures