Friday, May 29, 2015

EXIM Policy and its Objectives

EXIM Policy

Indian EXIM Policy contains various policy related decisions taken by the government in the sphere of Foreign
Trade, i.e., with respect to imports and exports from the country and more especially export promotion measures , policies and procedures related
thereto. Trade Policy is prepared and announced by the Central Government (Ministry of Commerce). India's Export
Import Policy also know as Foreign Trade Policy, in general, aims at developing export potential, improving export
performance, encouraging foreign trade and creating favorable balance of payments position. History of Exim Policy of India In the year 1962, the Government of India appointed a special Exim Policy Committee to review the government previous export import policies. The committee was later on approved by the Government of India. Mr. V. P. Singh, the
then Commerce Minister and announced the Exim Policy on the 12th of April, 1985. Initially the EXIM Policy was introduced for the period of three years with main objective to boost the export business in India.

Objectives Of The Exim Policy : -
Government control import of non-essential items through the
EXIM Policy . At the same time, all-out efforts are made to promote exports. Thus, there are two aspects of Exim
Policy; the import policy which is concerned with regulation and management of imports and the export policy which is concerned with exports not only promotion but also regulation. The main objective of the Government's EXIM Policy is to promote exports to the maximum extent. Exports should be promoted in such a manner that the
economy of the country is not affected by unregulated exportable items specially needed within the country. Export control is, therefore, exercised in respect of a limited number of items whose supply position demands that their exports should be regulated in the larger interests of the country. In other words, the main objective of the Exim Policy is:
To accelerate the economy from low level of economic activities to high level of economic activities by making it a
globally oriented vibrant economy and to derive maximum benefits from expanding global market opportunities. To stimulate sustained economic growth by providing
access to essential raw materials, intermediates, components,' consumables and capital goods required for augmenting production.
To enhance the techno local strength and efficiency of Indian agriculture, industry and services, thereby, improving
their competitiveness. To generate new employment. Opportunities and encourage the attainment of
internationally accepted standards of quality. To provide quality consumer products at reasonable prices.