For India to become a major player in world trade, an all encompassing and comprehensive vision is required for the overall development of the country’s foreign trade. Trade is not an end in itself, but a means to economic growth and national development. Coherence and consistency among trade and other economic policies is important for maximizing the contribution of such policies to development. Thus, while incorporating the existing practice of enunciating a stable Five Year Policy, it is necessary to go much beyond and take an integrated approach to the developmental requirements of India’s foreign trade.
India has been exploring both the multilateral and regional trade routes to expanding trade with the external world. Conclusion of the Doha round of multilateral trade negotiations remains elusive in spite of positive and proactive efforts by India, including the convening of a mini-Ministerial meeting in Delhi during 3-4 September, 2009. On the other hand, on the regional trade front important strides have been made during 2010-11, with comprehensive agreements being signed with Japan and Malaysia. Product and market diversification have been the major strategies for expansion of trade in the recent past. The ‘Focus Product’ and ‘Focus Market’ initiatives have been strengthened and reinforced.
India’s exports has not been affected to the same extent as other economies of the world during the phase of global slowdown, yet exports which had suffered a decline since October, 2008 continued of first seven consecutive months in 2009-10 as well.
However, the declining trend became less steep from 2005 onwards and turned the positive phase from the month of November, 2009 reversing the earlier trend.It is in this context and background that the current Foreign Trade Policy (FTP, 2009-14) was announced on 27th August, 2009.
The short term objective of FTP (2009-14) is to arrest and reverse the declining trend of exports and to provide additional support especially to those sectors which have been hit badly by recession in the developed world. The long term policy objective for the Government is to double India’s share in global trade by 2020. In order to meet the objectives stated above, the major thrust areas of strategy spelt out in FTP (2009-14) comprise a mix of policy measures including fiscal incentives, institutional changes, procedural rationalization, enhanced market access across the world and diversification of export markets.
The FTP envisages three basic pillars for supporting India’s exports. These are (i) infrastructure related to exports, (ii) bringing down transaction costs, and (iii) providing full refund of all indirect taxes and levies. The prime importance here is on a stable policy environment conducive to foreign trade by way of continuation of exporter friendly and transparent schemes/ facilities.
In addition, after the operationalisation of the Goods and Services Tax (GST) regime, the Government will make concerted attempts to see that the GST rebates are given on all indirect taxes and levies on exports. A special thrust would be provided to employment intensive sectors which have witnessed job losses in the wake of this recession, especially in the fields of textile, leather, handicrafts, etc.
Given the current economic climate, policy measures initiated in the FTP 2009-14 would basically be in force for a two year period after which mid-course corrections could be undertaken, if required. In the meantime, sectoral reviews to assess the impact of these measures on Indian exports would be carried out and accordingly appropriate initiatives would be taken.
OBJECTIVES OF THE STUDY
- An attempt has been made to understand the Exports and Imports inIndia.
- To understand various dimensions and problems in Exports & Imports Policy and to suggest recommendations.
- To understand the growth trend of Exports & Imports inIndia.
- To understand the various initiatives taken by the government ofIndiafor the development of Exports and Imports
- To give suggestions for the improvement of Exports inIndia