Synopsis of Exim policy

Introduction

Objectives of Exim policy

 Increase export and import

 Economic growth
 Competitiveness
 Employment generation
 High quality goods and services

Features of Exim policy of 2023

 Process re-engineering and automation

 Towns of export excellence
 Recognition of exporters
 Promoting exports from the districts
 Facilitating e-commerce export

Importance of Exim policy

Benefits of Exim policy

 Promotion of international trade

 Boosts economic growth
 Encourage foreign investment
 Job creation

Impact of Exim policy in India

1. TRADE GROWTH
 Increased exports
 Diversification of exports
2. ECONOMIC DEVELOPMENT
 Boost of GDP
 Employment generation
3. IMPROVED OF BALANCE OF PAYMENTS
 Foreign exchange earnings
 Trade deficit management
4. ENHANCED COMPREHENSIVENESS
 Quality standards
 Cost efficiency

Conclusion
Introduction
Export Import Policy, or Exim Policy, is a collection of guidelines and instructions governing the import
and export of products. Section 5 of the Foreign Trade (Development and Regulation Act) of 1992 gives
the Indian government the authority to announce its Exim Policy for five years. Each year on March 31,
import and export policies in India have amendments, enhancements, and new programs take effect on
April 1. In collaboration with the Directorate General of Foreign Trade, the Ministry of Finance, and its
network of regional offices, the Union Minister of Commerce and Industry announces any changes or
amendments to the Exim Policy.

Objectives of EXIM Policy:

1. Increase Export and Import Growth: To boost the growth of exports and imports, thereby
enhancing India’s trade volume1.

2. Economic Growth: To stimulate long-term economic growth by expanding access to essential

raw materials, intermediates, consumables, and capital goods1.

3. Competitiveness: To improve the competitiveness of Indian agriculture, services, and industries

by encouraging the attainment of internationally accepted quality standards1.

4. Employment Generation: To create new employment opportunities through the expansion of

trade activities1.

5. High-Quality Goods and Services: To supply high-quality goods and services at affordable costs
to consumers1.

6. Technological Advancement: To enhance the technological productivity and efficiency of Indian

sectors, thereby improving their competitive power

Features of Exim policy of 2023

The features of EXIM Policy 2023, effective from 1 April 2023 to 31 March 2028, are as follows:

Process Re-Engineering and Automation

The FTP emphasizes export development and promotion based on technology interface and principles of
collaboration, moving away from an incentive regime to a facilitating regime. The ongoing schemes
like EPCG, Advance Authorisation, etc., under the FTP 2015-20 will be continued considering their
effectiveness along with technology enablement and substantial process re-engineering for facilitating
the exporters.

Towns of Export Excellence

Four new towns, i.e. Mirzapur, Faridabad, Varanasi, and Moradabad, are designated as Towns of Export
Excellence (TEE) along with the existing 39 towns. The TEEs have priority access to export promotion
funds under the MAI (Market Access Initiative) scheme. They can avail of the Common Service Provider
(CSP) benefits under the EPCG scheme for export fulfilment, which boosts the exports of handicrafts,
handlooms, and carpets.

Recognition of Exporters

Exporter firms that are recognized based on export performance can be partners in capacity-building
initiatives on a best-endeavor basis. Two-star and above status holders are encouraged to give trade-
related training to interested individuals based on a model curriculum.

Promoting Export from the Districts

The FTP aims to build partnerships with State Governments and take forward the DEH (Districts as Export
Hubs) initiative for promoting district-level exports and accelerating the development of the grassroots
trade ecosystem.

Streamlining SCOMET Policy

There is a broader outreach and understanding of the SCOMET (Special Chemicals, Organisms, Materials,
Equipment and Technologies) among stakeholders. The FTP is being made more robust to implement
international agreements and treaties entered into by India. A robust export control system would
provide access to dual-use high-end technologies and goods to Indian exporters while facilitating exports
of controlled technologies or items under SCOMET from India.

Facilitating e-Commerce Exports

FTP outlines the roadmap for establishing e-commerce hubs and related matters, such as bookkeeping,
returns policy, payment reconciliation and export entitlements.

Rationalization of the Export Promotion of Capital Goods (EPCG) Scheme

The EPCG scheme, which allows capital goods imports at zero customs duty for export productions, are
being further rationalized. PM MITRA (Prime Minister Mega Integrated Textile Region and Apparel Parks)
scheme is added as an additional scheme to claim benefits under the CSP (Common Service Provider)
scheme of EPCG.

Dairy Sector Exempted From Maintaining Average Export Obligation

Dairy sectors are exempted from maintaining the average export obligation to support them in
upgrading technology. Vertical farming equipment, Battery Electric Vehicles (BEV) of all types, rainwater
harvesting systems and rainwater filters, wastewater treatment and recycling, and green hydrogen are
added to green technology products and are eligible for reduced export obligation requirements under
the EPCG scheme.

Facilitation Under the Advance Authorization Scheme

The advance authorisation scheme provides duty-free raw material imports for manufacturing export
items and is similar to the EOU and SEZ schemes. The FTP contains certain facilitation provisions under
the Advance Authorisation scheme based on interactions with industry and Export Promotion Councils.

Merchanting Trade
Under the FTP, merchanting trade of prohibited and restricted items is possible. Merchanting trade
involves the shipment of goods from a foreign country to another foreign country without touching
Indian ports by involving an Indian intermediary. However, it will be subject to compliance with the RBI
guidelines and will not be applicable for items or goods classified in the SCOMET and CITES list. This will
allow Indian entrepreneurs to convert places like GIFT City into major merchanting hubs, like certain
places in Singapore, Dubai and Hong Kong.

Amnesty Scheme

The government introduced a special one-time Amnesty scheme under the FTP 2023 to address export
obligation defaults. This scheme provides relief to exporters who are not able to meet their obligations
under the EPCG and Advance Authorisation scheme and are burdened by interest costs and high duty
associated with pending cases. The interest payable is capped at 100% of the exempted duties.

Importance of EXIM Policy

 It emphasizes trade facilitation through digitization and technology, promotes e-commerce, and
facilitates exports through various measures and schemes.

 It plays a significant role in accelerating the economic flow of trade activities from a country to
India by making the Indian economy globally oriented.

 It plays a critical role in expanding global market opportunities.

 It helps to increase the gross domestic product of India.

 It facilitates the flow of the economy from a country to India and increases foreign exchange in
India.

 It aids in facilitating liberalization and free trade and improves the overall market for domestic
consumers.

 It plays a role in supplying quality goods at cost-effective prices to domestic consumers and
diversifying the market.

Benefits of EXIM Policy:

1. Promotes International Trade: By reducing trade barriers and providing incentives, the EXIM
Policy encourages the exchange of goods and services across borders1.

2. Boosts Economic Growth: Increased trade activities stimulate economic growth by creating new
business opportunities and expanding markets2.

3. Encourages Foreign Investment: The policy creates a favorable environment for foreign
investors, attracting capital and technology into the country3.

4. Job Creation: Expansion in trade activities leads to the creation of new jobs in various sectors,
including manufacturing, services, and logistics
Impact of Exim policy on India
1. Trade Growth

 Increased Exports: The EXIM Policy has facilitated a substantial increase in India’s exports by
providing various incentives and support measures to exporters1.

 Diversification of Export Markets: It has helped Indian businesses explore and penetrate new
international markets, reducing dependency on a few trading partners2.

2. Economic Development

 Boost to GDP: By promoting exports and imports, the policy has contributed to the overall
growth of the Gross Domestic Product (GDP)1.

 Employment Generation: The expansion of trade activities has created numerous job
opportunities in sectors like manufacturing, services, and logistics

3. Improved Balance of Payments

 Foreign Exchange Earnings: Increased exports have brought in foreign currency, strengthening
India’s balance of payments2.
 Trade Deficit Management: By promoting exports and managing imports, the policy has helped
in reducing the trade deficit3.

4. Enhanced Competitiveness
 Quality Standards: The policy encourages Indian businesses to meet international quality
standards, making their products more competitive globally1.
 Cost Efficiency: Access to cheaper raw materials and intermediate goods through imports has
reduced production costs for Indian manufacturers2

Conclusion
The Foreign Trade Development and Regulation Act, 1992 guides India’s export-import policies. India’s
Foreign Trade Development and Regulation Act regulates and promotes foreign trade. A new Foreign
Trade Act replaced the 1947 Imports and Exports Act, and the DGFT is the main governing body for Exim
Policy.

India’s Export Import Policy, also known as the foreign trade policy, aims to boost export performance,
promote foreign trade, and maintain a favourable balance of payments. Exports and imports from India
and policies and procedures for export promotion are part of the Indian EXIM Policy, a collection of
various government decisions in foreign trade. The central government prepares and announces trade
policy.