INTRODUCTION

Trade is not an end in itself, but a means to economic growth and national development. India is one of the most fast growing economy country in the world. There are several factors which are taken into consideration for this. One of the most important factors is the foreign trade. The foreign trade actually deals with the exports and the imports essential goods and commodities. A country emphasizes more on export rather than imports of goods and commodities. As per as the export India is 22nd in ranking in highest exports in volume of the world. While increase in exports is of vital importance, we have also to facilitate those imports which are required to stimulate our economy. India has a vast direction and quantum of foreign trade. Different countries from different parts of the world are keeping an eye on the Indian market. So for the better image creation in the international market the Government is switching on to different steps and policies. Here is a brief presentation on the recent Indian Foreign Trade Policies which is also known as Exim policy of India. It includes the major exports and imports of Indian Foreign Trade and quantum.

INDIAS FOREIGN TRADE POLICY 2009-14

What is Foreign Trade Policy? The Union Commerce Ministry, Government of India announces the integrated Foreign Trade Policy FTP in every five year. This is also called EXIM policy. This policy is updated every year with some modifications

and new schemes. New schemes come into effect on the first day of financial year i.e. April 1, every year. The Foreign trade Policy which was announced on August 28, 2009 is an integrated policy for the period 2009-14.

Objective of Indian Foreign Trade Policy 2009-2014: 1. To arrest and reverse declining trend of exports is the main aim of the policy. This aim will be reviewed after two years. 2. To Double India's exports of goods and services by 2014. 3. To double India's share in global merchandise trade by 2020 as a long term aim of this policy. India's share in Global merchandise exports was 1.45% in 2008. 4. Simplification of the application procedure for availing various benefits 5. To set in motion the strategies and policy measures which catalyses the growth of export. 6. To encourage exports through a "mix of measures including fiscal incentives, institutional changes, procedural rationalization and efforts for enhance market access across the world and diversification of export markets.

STRATEGY For achieving these objectives, the following strategies need to be adopted:

Unshackling of controls and creating an atmosphere of trust and transparency to unleash the innate entrepreneurship of our businessmen, industrialists and traders. Simplifying procedures and bringing down transaction costs. Neutralizing incidence of all levies and duties on inputs used in export products, based on the fundamental principle that duties and levies should not be exported. Facilitating development of India as a global hub for manufacturing, trading and services. Identifying and nurturing special focus areas which would generate additional employment opportunities, particularly in semi-urban and rural areas, and developing a series of 'Initiatives' for each of these. Facilitating technological and infrastructure up gradation of all the sectors of the Indian economy, especially through import of capital goods and equipment, thereby increasing value addition and productivity, while attaining internationally accepted standards of quality. Activating our Embassies as key players in our export strategy and linking our Commercial Wings abroad through an electronic platform for real time trade intelligence and enquiry dissemination.

Aims in General 1. The policy aims at developing export potential, improving export performance, boosting foreign trade and earning valuable foreign change. FTP assumes great significance this year as India's exports have been battered by the global recession. 2. A fall in exports has led to the closure of several small-and mediumscale export-oriented units, resulting in large-scale unemployment.

Target 1. Export Target : $ 200 Billion for 2010-11

2. Export Growth Target: 15 % for next two year and 25 % thereafter. 3. Re-fixation of Annual Average Export Obligation: 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. Support for Green products and products from North East extended.

Direction of India's Trade, Exports and Imports

Having been an agro-based economy, Indian trade has always been devoid of manufactured or industrial goods. Post liberalization, imports dominated the Indian trade scene in the form of heavy machinery and information technology products and, thus, created an imbalance of trade. India Trade: Exports Indian trade was impacted by the global recession of 2007-2009. Indian exports fell from $200.9 billion in 2008 to $165 billion in 2009. India ranked 22nd in the world in terms of export volume. Being a country with a huge workforce, India has seen its trade being boosted by the production of precious stones and metals. The various other export commodities that India exports are:

Petroleum products Machinery Iron and steel Chemicals Vehicles Apparel Tea Rice Handicrafts Medicines etc. Indias main export partners are:

UAE US China Singapore

The following graph shows how the above countries have contributed to the total volume:

India Trade: Imports The Indian economy is headed towards becoming a developed economy and all its sectors are in need of machinery and energy. Therefore, Indian imports are dominated by crude oil and machines. Other imported commodities are:

Precious stones Fertilizer Iron and steel Gold & Silver Electronic Goods Machinery other than Electrical Organic & Inorganic Chemicals Metalliferous Ores & Products

Coal Transport Equipment

In 2009, total imports amounted to $253.9 billion, down from the 2008 figure of $322.3 billion. India ranked fifteenth in the world in terms of import volume.

Indias import partners are:

China 10.8% Saudi Arabia 6.9% US 6.7%U AE 6.7% Iran 4.2%

The graph below shows how the above countries have contributed to total import volume:

Indian trade has undergone massive restructuring following the 1991 liberalization policies. Ever since, Indias exports have experienced a growth rate of 18.11%. The big surprise has been the import sector that has experienced a growth rate of 34.30%.

Promotional Measures

The State Governments shall be encouraged to participate in promoting exports from their respective States. For this purpose, Department of Commerce has formulated a scheme called ASIDE. The Market Access Initiative (MAI) scheme is intended to provide financial assistance for medium term export promotion efforts with a sharp focus on a country and product. The Marketing Development Assistance (MDA) Scheme is intended to provide financial assistance for a range of export promotion activities implemented by export promotion councils, industry and trade associations on a regular basis every year. Financial assistance would be provided to deserving exporters on the recommendation of Export Promotion Councils for meeting the cost of legal expenses relating to trade related matters. A number of towns in specific geographical locations have emerged as dynamic industrial clusters contributing handsomely to Indias exports. It is necessary to grant recognition to these industrial clusters with a view to maximizing their potential and enabling them to move higher in the value chain and tap new markets. The Central Government aims to encourage manufacturers and exporters to attain internationally accepted standards of quality for their products. The Central Government will extend support and assistance to Trade and Industry to launch a nationwide programmed on quality awareness and to promote the concept of total quality management.

CONCLUSION

FROM THE PRESENTATION, WE CAN HAVE A FAIR IDEA ON INDIAN FOREIGN TRADE POLICY. During different phrases of time, we can see various types of changes in direction, trends of Indian foreign trade policy..but still, we can safely conclude that after month of globalization, and privatization India still going strong on making a consolidated and competitive foreign trade policy.

CONTENT INTRODUCTION WHAT IS FOREIGN TRADE POLICY (EXIM POLICY) OBJECTIVE OF INDIAN FOREIGN TRADE POLICY STRATEGY DIRECTION OF INDIAS TRADE EXPORT AND IMPORT

CONCLUSION