India is the developing nation and came out an emerging player in the world economy , the trade business has important role in the economic growth of the country so to promote the exports government has set of rules and regulations which has to be followed and implemented by the exporters and importers in India. Foreign trade policy is also known as EXIM policy which is notified by the Government of Five Financial year and handled by the Ministry of Commerce and the Industry. The Amendments needs to be done every year or whenever required in foreign trade policy.
Objectives of foreign trade policy:-
- To develop the export from the country
- Make the improvement in export performance by doing the modifications in existing policies
- Encourage exporters and assist them in the process
- Create balance of foreign exchange
- To double the goods export in the five years
- Generate employment opportunities for the citizens
- Increase the technology capacity for manufacturing and cost effectiveness of the industry
- Provide buyers goods and services having the International standard of quality.
- Help the exporters for finding the new market in global market
- Assist for hassle free transactions for import export
- Establish the good relation between acting as a bridge between the exporters and DGFT (Director General of Foreign trade Policy).
Government launched various export promotion schemes under it’s foreign trade policy to promote the exports of goods and services from the country, the schemes are designed in such a way that it gives incentive on the eligible exports and issue the authorization to save the custom duties on the import.
Incentive Schemes introduced by the Government of India:-
Government launched MEIS scheme under foreign trade policy 2015-20 for the goods exporters and SEIS scheme for the service exporters, both the scheme provide incentive in the form of duty credit scrip which can be used in waiver of basic custom duty or can be sold in open market at the discounted rate.
EPCG Scheme also introduced by the government to issue the License which allow the duty free import of capital goods to obtain the EPCG License with the condition of export obligation which has to be fulfilled by the license holder, application for the issuance of the license can be done on the DGFT site which is the government website deals in foreign trade.
The Objective of MEIS and SEIS Scheme to make Indian goods cost competitive in global market by offsetting infrastructure inefficiency and associated cost involved in the export process and to generate the employment in the country.
There are various other Government authorities which are involved somehow into the export and import from the country –
Export Promotion Councils:-
Export promotion councils or EPCs are the government authority which provide assistance to the exporters to formulate and implement the foreign trade policy. In India there are 19 export promotion council covering all the type of products, It provide the RCMC (Registration Cum Membership Certificate) to its members. The objective of the export promotion council to update and assist the exporters, to assist and help them finding the markets for which it organizes various trade fairs and exhibition for the the exporters. There are various schemes such Advance Authorisation Scheme allows the duty free import of raw materials required to manufacture the export goods, EPC assist exporters for availing the Advance License under the Advance Authorisation scheme.
DGFT (Director General of Foreign trade):-
It is the Government office run by the Ministry of commerce to formulate and implement the Exim policies. It has regional offices in almost all the states which are known as Regional Licensing Authorities. DGFT also act as export facilitation center.
