ANALYSING INDIA’S LABILITY FOR A FRAMEWORK IN TRADE
SUBMITTED TO Mr.Animesh Mr.Animesh Das, Assistant Professor Professor
Damodaram Sanjivayya National a! University
Submitted by Rao Vis!a"a Ro## $umbe%& '()'*+ Semeste%& VI
DE,LARATION I- Rao Vis!a"a e%eby de.#a%e tat te .o$te$ts o/ tis 0%o"e.t tit#ed 1A$a#ysi$2 I$dia’s #iabi#ity /o% a /%ame!o%3 i$ t%ade’ submitted by me to Assista$t 4%o/esso%- M% A$imes Das is a$ o%i2i$a# 0ie.e o/ !o%3 u$de%ta3e$ by me as a stude$t o/ Damoda%am Sa$"i5ayya Natio$a# La! 6$i5e%isty7
Vis!a"a Rao Semeste%VI- '()'*+
A,KNOWLEDGMENT
I !ou#d #i3e to ta$3 my Assista$t 4%o/esso% M%7A$imes Das /o% a## is e#0 a$d 2uida$.e 0%o5ided to me /o% te .om0#etio$ o/ my 0%o"e.t7 A !o%3 o/ tis $atu%e .ou#d $ot a5e bee$ 0ossib#e !itout is e$.ou%a2eme$t a$d su00o%t.
OB8E,TIVE To a$a#yse I$dia’s e9isti$2 #e2is#atio$s a$d ide$ti/y its #iabi#ities a$d su22est a $e! /%ame!o%3 /o% t%ade 0o#i.y i$ I$dia
:6ESTION Wete% I$dia’s E9isti$2 t%ade /%ame !o%3 $eeds to be do$e a!ay !it ;Y4OT;ESIS I$dia’s /%ame!o%3 i$ t%ade as se5e%a# #iabi#ities due to its e9iste$.e a$d st%ate2ies to a.ie5e e9isiti$2 ob"e.ti5es a$d a 0at!ay /o% $e! /%ame!o%3 is %e.omme$ded7 RESEAR,; MET;ODOLOGY I a5e used do.t%i$a# metod o/ %esea%. usi$2 se.o$da%y %esou%.es& boo3s< .ase #a!s7
TABLE OF ,ONTENTS
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Contents INTRODUCTION......................................................................................................6 OBJECTIVES OF INDIAS FOREIGN TRADE POLICY....................................................8 SALIENT FEATURES OF INDIA’S FOREIGN TRADE POLICY.......................................9 Foreign Tr!e "De#e$o%&en' n! Reg($'ion) A*'+,99-.......................................,, FOREIGN EC/ANGE 0ANAGE0ENT ACT+ ,999...................................................,1 CENTRAL ECISE DUTIES DRA2BAC3S RULES+ ,994...........................................,5 INDIA AND C/INA’S TRADE POLICY CO0PARISON................................................,4 CONCLUSION....................................................................................................... ,
INTRODUCTION
T%ade i$5o#5es te t%a$s/e% o/ te o!$e%si0 o/ 2oods o% se%5i.es /%om o$e 0e%so$ o% e$tity to a$ote% i$ e9.a$2e /o% ote% 2oods o% se%5i.es o% /o% mo$ey)7 Fo%ei2$ t%ade is e9.a$2e o/ .a0ita#- 2oods- a$d se%5i.es a.%oss i$te%$atio$a# bo%de%s o% te%%ito%ies'7 I$ most .ou$t%ies- it %e0%ese$ts a si2$i/i.a$t sa%e o/ 2%oss domesti. 0%odu.t >GD4?7 Wi#e i$te%$atio$a# t%ade as bee$ 0%ese$t t%ou2out mu. o/ isto%y- its e.o$omi.- so.ia#- a$d 0o#iti.a# im0o%ta$.e as bee$ o$ te %ise i$ %e.e$t .e$tu%ies7 La!s %e#ati$2 to %e2u#atio$ o/ t%ade a%e te%med as t%ade 0o#i.ies7 Fo%ei2$ t%ade i$ I$dia be2a$ i$ te 0e%iod o/ te #atte% a#/ o/ te )@t .e$tu%y7 Te 0e%iod )@((&)@) sa! de5e#o0me$t i$ I$dias /o%ei2$ t%ade7 Te au2me$t i$ te 0%odu.tio$ o/ .%o0s as oi#seeds- .otto$- "ute a$d tea !as mai$#y due to a t%i5i$2 e90o%t t%ade7 I$ te Fi%st Wo%#d Wa%- I$dias /o%ei2$ t%ade de.e#e%ated7 A/te% 0ost&!a% 0e%iod- I$dias e90o%ts i$.%eased be.ause dema$d /o% %a! mate%ia#s !as i$.%eased i$ a## o5e% !o%#d a$d te%e !e%e e#imi$atio$ o/ !a% time %est%i.tio$s7 Te im0o%ts a#so i$.%eased to satis/y te %est%i.ted dema$d7 Re.o%ds i$di.ated tat I$dias /o%ei2$ t%ade !as %i2o%ous#y a//e.ted by te 2%eat de0%essio$ o/ )@=(s be.ause o/ de.%eme$t i$ .ommodity 0%i.es- de.#i$e i$ .o$sume%s 0u%.asi$2 0o!e% a$d u$/ai% t%ade 0o#i.ies ado0ted by te .o#o$ia# 2o5e%$me$t7 Du%i$2 te Se.o$d Wo%#d Wa%- I$dia a..om0#ised u2e e90o%t su%0#us a$d a..umu#ated substa$tia# amou$t o/ %ea# ba#a$.es7 Te%e !as a u2e 0%essu%e o/ %est%i.ted dema$d i$ I$dia du%i$2 te Se.o$d Wo%#d Wa%7 Te im0o%t %eCui%eme$ts !e%e outsied a$d e90o%t su%0#uses !e%e #esse% at te e$d o/ te !a%7 Be/o%e i$de0e$de$.eI$dias /o%ei2$ t%ade !as asso.iated !it a .o#o$ia# a$d a2%i.u#tu%a# e.o$omy7 E90o%ts .o$sisted 0%ima%i#y o/ %a! mate%ia#s a$d 0#a$tatio$ .%o0s- !i#e im0o%ts .om0osed o/ #i2t .o$sume% me%.a$dise a$d ote% ma$u/a.tu%es7 Te st%u.tu%e o/ I$dias /o%ei2$ t%ade %e/#e.ted te o%2a$ied uti#iatio$ o/ te .ou$t%y by te /o%ei2$ #eade%s7 Te %a! mate%ia#s !e%e e90o%ted /%om I$dia a$d /i$ised 0%odu.ts im0o%ted /%om te 67K7 Te 0%odu.tio$ o/ /i$a# 0%odu.ts !e%e dis.ou%a2ed7 Fo% i$sta$.e- .otto$ te9ti#es- !i. !e%e I$dias e90o%tsa..ou$ted /o% te #a%2est sa%e o/ its im0o%ts du%i$2 te B%itis 0e%iod7 Tis %esu#ted i$ te de.#i$e o/ I$dia$ i$dust%ies7 Si$.e #ast si9 de.ades- I$dias /o%ei2$ t%ade as .a$2ed i$ te%ms o/ .om0ositio$ o/ .ommodities7 Te e90o%ts i$.#uded a%%ay o/ .o$5e$tio$a# a$d $o$& t%aditio$a# 0%odu.ts !i#e im0o%ts most#y .o$sist o/ .a0ita# 2oods- 0et%o#eum 0%odu.ts- %a! mate%ia#s- i$te%mediates a$d .emi.a#s to meet te e5e% i$.%easi$2 i$dust%ia# dema$ds7 Te e90o%t t%ade du%i$2 )@+(&)@( !as $oti.eab#e by t!o mai$ t%e$ds7 Fi%st- amo$2 .ommodities !i. !e%e di%e.t#y based o$ a2%i.u#tu%a# 0%odu.tio$ su. as tea- .otto$ te9ti#es- "ute ma$u/a.tu%es- ides a$d s3i$s- s0i.es a$d toba..o e90o%ts did $ot i$.%ease o$ te !o#e- a$d se.o$d#y- te%e !as a si2$i/i.a$t boost i$ te e90o%ts o/ %a! ma$u/a.tu%es su. as i%o$ o%e7 I$ te 0e%iod o/ )@+( to )@+)- mai$ 0%odu.ts domi$ated te I$dia$ e90o%t se.to%7 Tese i$.#uded .ase! 3e%$e#s- b#a.3 0e00e%- tea- .oa#- mi.a- ma$2a$ese o%e- %a! a$d ta$$ed ides a$d s3i$s- 5e2etab#e oi#s- %a! .otto$- a$d %a! !oo#7 Tese 0%odu.ts .om0%ised o/ = 0e% .e$t o/ te tota# e90o%ts=7 I$ te 0e%iod o/ )@+(s te%e !e%e ba#a$.e o/ 0ayme$ts .%u$.7 Te e90o%t 0%o.eeds !e%e $ot e$ou2 to /u#/i# te eme%2i$2 im0o%t dema$d7 Te tu%$ do!$ i$ a2%i.u#tu%e , O7or! !i*'ionr - :(%r
0%odu.tio$ a$d 2%o!i$2 0a.e o/ de5e#o0me$t a.ti5ity added 0%essu%e7 Te e9te%$a# /a.to%s su. as te .#osu%e o/ Sue ,a$a# .%eated te$sio$ o$ te domesti. /i$a$.ia# system7 Te .%iti.a# 0%ob#em at tat mome$t !as tat o/ /o%ei2$ e9.a$2e s.a%.ity7 Te Se.o$d Fi5e Yea% 4#a$ !it its em0asis o$ te de5e#o0me$t o/ i$dust%y- mi$i$2 a$d t%a$s0o%t ad a #a%2e /o%ei2$ e9.a$2e /a.to%7 Tis te$sio$ o$ te ba#a$.e o/ 0ayme$ts %eCui%ed te sti//e$i$2 o/ im0o%t st%ate2y at a #ate% sta2e7 Fo%ei2$ T%ade is te im0o%ta$t /a.to% i$ e.o$omi. de5e#o0me$t i$ a$y $atio$7 Fo%ei2$ t%ade i$ I$dia .om0%ises o/ a## im0o%ts a$d e90o%ts to a$d /%om I$dia7 Te Mi$ist%y o/ ,omme%.e a$d I$dust%y at te #e5e# o/ ,e$t%a# Go5e%$me$t as %es0o$sibi#ity to ma$a2e su. o0e%atio$s7 Te domesti. 0%odu.tio$ %e5ea#s o$ e90o%ts a$d im0o%ts o/ te .ou$t%y7 Te 0%odu.tio$ .o$se.uti5e#y de0e$ds o$ e$do!me$t o/ /a.to% a5ai#abi#ity7 Tis #eads to %e#ati5e ad5a$ta2e o/ te /i$a$.ia# system7 ,u%%e$t#y- I$te%$atio$a# t%ade is a .%u.ia# 0a%t o/ de5e#o0me$t st%ate2y a$d it .a$ be a$ e//e.ti5e me.a$ism o/ /i$a$.ia# 2%o!t- "ob o00o%tu$ities a$d 0o5e%ty %edu.tio$ i$ a$ e.o$omy7 A..o%di$2 to T%aditio$a# 4atte%$ o/ de5e#o0me$t- %esou%.es a%e t%a$s/e%%ed /o%m te a2%i.u#tu%a# to te ma$u/a.tu%i$2 se.to% a$d te$ i$to se%5i.es7
1 FOREIGN TRADE+ E7%or';I&%or' %o$i* n! 'r!e Agree&en': < Vi<= 0'=(r+ Ne> Cen'(r P(<$i*'ion:+ -?,-. P-16;-1
OBJECTIVES OF INDIAS FOREIGN TRADE POLICY T%ade 0%o0e#s e.o$omi. 2%o!t a$d $atio$a# de5e#o0me$t7 Te 0%ima%y 0u%0ose is $ot te me%e ea%$i$2 o/ FOREIGN E,;ANGE- but te stimu#atio$ o/ 2%eate% e.o$omi. a.ti5ity7 Te /o%ei2$ t%ade 0o#i.y o/ I$dia is based o$ t!o ma"o% ob"e.ti5es- tey a%e as /o##o!s )? To doub#e te 0e%.e$ta2e sa%e o/ 2#oba# me%.a$dise t%ade !iti$ te $e9t /i5e yea%s7 '? To a.t as a$ e//e.ti5e i$st%ume$t o/ e.o$omi. 2%o!t by 2i5i$2 a t%ust to em0#oyme$t 2e$e%atio$7 A2%i.u#tu%e a$d i$dust%y as so!$ %ema%3ab#e %esi#ie$.e a$d dy$amism i$ .o$t%ibuti$2 to a ea#ty 2%o!t i$ e90o%ts7 I$ te #ast /i5e yea%s te e90o%ts !it$essed %obust 2%o!t to %ea. a #e5e# o/ 6SH )* bi##io$ i$ '((*&(@ /%om 6SH = bi##io$ i$ '((=&(7 Ou% sa%e o/ 2#oba# me%.a$dise t%ade !as (7*= i$ '((=J it %ose to )7+ i$ '((* as 0e% WTO estimates7 Ou% sa%e o/ 2#oba# .omme%.ia# se%5i.es e90o%t !as )7 i$ '((= it %ose to '7* i$ '((*7 I$dia’s tota# sa%e i$ 2oods a$d se%5i.es t%ade !as (7@' i$ '((= it i$.%eased to )7 i$ '((*7 O$ te em0#oyme$t /%o$t- studies a5e su22ested tat $ea%#y ) mi##io$ "obs !e%e .%eated di%e.t#y o% i$di%e.t#y as a %esu#t o/ au2me$ted e90o%ts i$ te #ast /i5e yea%s7 Te so%t te%m ob"e.ti5e o/ te 0o#i.y is to a%%est a$d %e5e%se te de.#i$i$2 t%e$d o/ e90o%ts a$d to 0%o5ide additio$a# su00o%t es0e.ia##y to tose se.to%s !i. a5e bee$ it bad#y by %e.essio$ i$ te de5e#o0ed !o%#d7 Te 0o#i.y is em0o!e%ed !it ob"e.ti5e o/ a.ie5i$2 a$ a$$ua# e90o%t 2%o!t o/ )+ !it a$ a$$ua# e90o%t ta%2et o/ 6SH '(( bi##io$ by Ma%. '())7 I$ te %emai$i$2 t%ee yea%s o/ tis Fo%ei2$ T%ade 4o#i.y i7e7 u0to '()- te .ou$t%y sou#d be ab#e to .ome ba.3 o$ te i2 e90o%t 2%o!t 0at o/ a%ou$d '+ 0e% a$$um7 By '()- 0o#i.y e90e.ts to doub#e I$dia’s e90o%ts o/ 2oods a$d se%5i.es7 Te #o$2 te%m ob"e.ti5e o/ 0o#i.y /o% te Go5e%$me$t is to doub#e I$dia’s sa%e i$ 2#oba# t%ade by '('(7 I$ o%de% to meet tese ob"e.ti5es- te Go5e%$me$t !ou#d /o##o! a mi9 o/ 0o#i.y measu%es i$.#udi$2 /is.a# i$.e$ti5es- i$stitutio$a# .a$2es- 0%o.edu%a# %atio$a#iatio$a$d e$a$.ed ma%3et a..ess a.%oss te !o%#d a$d di5e%si/i.atio$ o/ e90o%t ma%3ets7 Im0%o5eme$t i$ i$/%ast%u.tu%e %e#ated to e90o%tsJ b%i$2i$2 do!$ t%a$sa.tio$ .osts- a$d 0%o5idi$2 /u## %e/u$d o/ a## i$di%e.t ta9es a$d #e5ies- !ou#d be te t%ee 0i##a%s- !i. !i## su00o%t us to a.ie5e tis ta%2et7 E$dea5ou% !i## be made to see tat te Goods a$d Se%5i.es Ta9 %ebates a## i$di%e.t ta9es a$d #e5ies o$ e90o%ts7+
5 Foreign Tr!e Po$i* n! Tren!: in In!i < Vi<= 0'=(r+ Ne= P(<$i:=er: n! Di:'ri<('or:+-??9. P,-6;,-8. 4 E7*er%' '@en ro& !g'.go#.in $:' re'rie#e! on --n! &r*= -?,4
SALIENT FEATURES OF INDIA’S FOREIGN TRADE POLICY )? I$.%easi$2 Sa%e o/ G%oss Natio$a# I$.ome I$dia’s /o%ei2$ t%ade 0#ays a$ im0o%ta$t %o#e i$ te G%oss Natio$a# I$.ome7 I$ )@@(&@)- sa%e o/ I$dia’s /o%ei2$ t%ade >im0o%t e90o%t? i$ $et $atio$a# i$.ome !as ) 0e% .e$t !i. i$ '((&( %ose to '+ 0e% .e$t7 I$ '((&( e90o%ts a$d im0o%ts as 0e%.e$ta2e o/ GD4 !e%e )7( 0e% .e$t a$d ') 0e% .e$t %es0e.ti5e#y7 '? Less 4e%.e$ta2e o/ Wo%#d T%ade Sa%e o/ I$dia’s /o%ei2$ t%ade i$ !o%#d t%ade as bee$ de.#i$i$27 I$ )@+(&+)- I$dia’s sa%e i$ tota# im0o%t t%ade o/ te !o%#d !as )7* 0e% .e$t a$d i$ e90o%t t%ade it !as ' 0e% .e$t7 A..o%di$2 to Wo%#d T%ade Statisti.s- I$dia’s sa%e i$ !o%#d t%ade as 2o$e&u0 /%om )7 0e% .e$t i$ '(( to )7+ 0e% .e$t i$ '(( a$d estimated to be ' 0e% .e$t i$ '((@7 =? O.ea$i. T%ade Most o/ I$dia’s t%ade is by sea- I$dia as 5e%y #itt#e t%ade %e#atio$s !it its $ei2i$2 .ou$t%ies #i3e Ne0a#- A/2a$ista$- Mya$ma%- S%i La$3a- et.7 Tus- * 0e% .e$t o/ I$dia’s t%ade is o.ea$i. t%ade Sa%e o/ tese $ei2i$2 .ou$t%ies i$ ou% e90o%t t%ade !as ')7* 0e% .e$t a$d i$ im0o%t t%ade )@7) 0e% .e$t7 ? De0e$de$.e o$ a Fe! 4o%ts Fo% its /o%ei2$ t%ade- I$dia de0e$ds most#y o$ MumbaiKo#3ata- a$d ,e$$ai 0o%ts7 Tese 0o%ts a%e te%e/o%e- o5e%&.%o!ded7 Re.e$t#y- I$dia as de5e#o0ed Ka$d#a- ,o.i$- a$d Visa3a0at$am 0o%ts to #esse$ te bu%de$ o$ /o%me% 0o%ts7 +? I$.%ease i$ Vo#ume a$d Va#ue o/ T%ade Si$.e )@@(&@)- 5o#ume a$d 5a#ue o/ I$dia’s /o%ei2$ t%ade as 2o$e u07 I$dia $o! e90o%ts a$d im0o%ts 2oods !i. a%e se5e%a# times mo%e i$ 5a#ue a$d 5o#ume7 I$ )@@(&@)- tota# 5a#ue o/ I$dia’s /o%ei2$ t%ade !as Rs +-+) a$d i$ '((*&(@- it %ose to Rs ''- )+-)@) .%o%e7 O/ it5a#ue o/ e90o%ts !as Rs *- (-++ .%o%e a$d tat o/ im0o%ts !as Rs )=- -= .%o%e7 ? ,a$2e i$ te ,om0ositio$ o/ E90o%ts Si$.e i$de0e$de$.e- .om0ositio$ o/ e90o%t t%ade o/ I$dia as u$de%2o$e a .a$2e7 4%io% to i$de0e$de$.e- I$dia used to e90o%t a2%i.u#tu%a# 0%odu.ts a$d %a! mate%ia#s- #i3e "ute- .otto$tea- oi# seeds- #eate%- /ood 2%ai$s- .ase! $uts- a$d mi$e%a# 0%odu.ts7 It a#so e90o%ted ma$u/a.tu%ed 2oods7 But $o! i$ its e90o%t 3itty a%e i$.#uded most#y ma$u/a.tu%ed items #i3e-
ma.i$es- %eady&made 2a%me$ts- 2ems a$d "e!e##e%y- tea- "ute ma$u/a.tu%es- ,ase! Ke%$e#s- e#e.t%o$i. 2oods- es0e.ia##y a%d!a%e’s a$d so/t!a%e’s !i. o..u0y 0%ime 0#a.e i$ e90o%ts7
? ,a$2e i$ te ,om0ositio$ o/ Im0o%ts Si$.e I$de0e$de$.e- .om0ositio$ o/ I$dia’s im0o%t t%ade as a#so !it$essed a sea .a$2e7 4%io% to I$de0e$de$.e- I$dia used to im0o%t most#y .o$sum0tio$ 2oods #i3e medi.i$es- .#otmoto% 5ei.#es- e#e.t%i.a# 2oods- i%o$- stee#- et.7 No! it as bee$ im0o%ti$2 most#y 0et%o# a$d 0et%o#eum 0%odu.ts- ma.i$es- .emi.a#s&- /e%ti#ie%s- oi# seeds- %a! mate%ia#s- stee#- edib#e oi#s- et.7 *? Di%e.tio$ o/ Fo%ei2$ T%ade It %e/e%s to te .ou$t%ies !it !om a .ou$t%y t%ades7 Mai$ .a$2es i$ te di%e.tio$ o/ /o%ei2$ t%ade a%e as u$de% I$ te yea% )@@(- i$ e90o%ts te ma9imum sa%e- i7e7- )7@ 0e% .e$t !as tat o/ Easte%$ Eu%o0e- i7e7- Roma$ia- East Ge%ma$y- a$d 67S7S7R7- et.7 I$ im0o%t t%ade- ma9imum sa%e- i7e7)7+ 0e% .e$t !as tat o/ O4E,- i7e7- I%a$- I%aC- Saudi A%abia- Ku!ait- et.7 I$ '((*&(@- te #a%2est sa%e i$ I$dia’s /o%ei2$ t%ade >bot im0o%ts a$d e90o%ts? !as tat o/ Eu%o0ea$ 6$io$ >E6?- i7e7- Ge%ma$y- Be#2ium- F%a$.e- 67K7- et.7- a$d de5e#o0i$2 .ou$t%ies7 No!- 67A7E7,i$a a$d 67S7A7 a5e o..u0ied im0o%ta$t 0#a.e i$ I$dia’s /o%ei2$ t%ade7 Te im0o%ta$.e o/ E$2#a$d- Russia- et.7- as de.#i$ed7 @? Mou$ti$2 De/i.it i$ Ba#a$.e o/ T%ade Si$.e )@+(&+)- I$dia’s ba#a$.e o/ t%ade as bee$ .o$ti$uous#y ad5e%se e9.e0t /o% t!o yea%s5i7- )@'&= a$d )@&- besides it as bee$ mou$ti$2 yea% a/te% yea%7 I$ )@+(&+) ba#a$.e o/ t%ade !as ad5e%se to te tu$e o/ Rs ' .%o%e a$d by )@@(&)@@) it %ose to Rs )-@== .%o%e7 A/te% te 0o#i.y o/ #ibe%a#iatio$- te .ou$t%y as !it$essed a %a0id i$.%ease i$ it7 I$ )@@@& '((( it %ose to Rs -=+@.%o%. a$d i$ '((*&(@ it amou$ted to +- ==-*( .%o%e7 Fast %ise i$ te 5a#ue o/ im0o%ts a$d s#o! %ise i$ te 5a#ue o/ e90o%ts a..ou$ted /o% tis t%eme$dous %ise i$ ba#a$.e o/ t%ade de/i.it7 )(? T%e$d to!a%ds G#oba#iatio$ G#oba#iatio$ a$d di5e%si/i.atio$ ma%3 te #atest t%e$d o/ I$dia’s /o%ei2$ t%ade7 I$dia’s /o%ei2$ t%ade is $o #o$2e% .o$/i$ed o% a /e! 2oods o% a /e! .ou$t%ies7 4%ese$t#y- I$dia e90o%ts -+(( items to about )@( .ou$t%ies a$d i$ its im0o%t& 3itty te%e a%e -((( items /%om )( .ou$t%ies7 It u$5ei#ed te .a$2i$2 0atte%$ o/ I$dia’s /o%ei2$ t%ade7 ))? ,a$2i$2 Ro#e o/ 4ub#i. Se.to%
Si$.e )@@) te %o#e o/ 0ub#i. se.to% i$ I$dia’s /o%ei2$ t%ade as u$de%2o$e a .a$2e7 4%io% to it- State T%adi$2 ,o%0o%atio$ >ST,?- Mi$e%a#s a$d Meta#s T%adi$2 ,o%0o%atio$ >MMT,?;a$di.%a/t a$d ;a$d#oom ,o%0o%atio$- Stee# Auto%ity o/ I$dia Ltd7 >SAIL?- ;i$dusta$ Ma.i$e Too#s >;MT?- Ba%at ;ea5y E#e.t%i.a# Limited >B;EL?- et.7- used to 0#ay si2$i/i.a$t %o#e i$ I$dia’s /o%ei2$ t%ade7 As a %esu#t o/ im0#eme$tatio$ o/ te 0o#i.y o/ #ibe%a#iatio$- te im0o%ta$.e o/ a## tese 0ub#i. se.to% e$te%0%ises as dimi$ised7
INDIA’S FOREIGN TRADE 4OLI,Y
Foreign Trade De!e"o#$ent and Reg%"ation& A't()**+ I$ I$dia- te mai$ #e2is#atio$ .o$.e%$i$2 /o%ei2$ t%ade is te Fo%ei2$ T%ade >De5e#o0me$t a$d Re2u#atio$? A.t- )@@'7 Te A.t 0%o5ides /o% te de5e#o0me$t a$d %e2u#atio$ o/ /o%ei2$ t%ade by /a.i#itati$2 im0o%ts i$to- a$d au2me$ti$2 e90o%ts /%om- I$dia a$d /o% matte%s .o$$e.ted te%e!it o% i$.ide$ta# te%eto7 As 0e% te 0%o5isio$s o/ te A.t- te Go5e%$me$t& >i? may ma3e 0%o5isio$s /o% /a.i#itati$2 a$d .o$t%o##i$2 /o%ei2$ t%adeJ >ii? may 0%oibit%est%i.t a$d %e2u#ate e90o%ts a$d im0o%ts- i$ a## o% s0e.i/ied .ases as !e## as sub"e.t tem to e9em0tio$sJ >iii? is auto%ised to /o%mu#ate a$d a$$ou$.e a$ e90o%t a$d im0o%t 0o#i.y a$d a#so ame$d te same /%om time to time- by $oti/i.atio$ i$ te O//i.ia# GaetteJ >i5? is a#so auto%ised to a00oi$t a Di%e.to% Ge$e%a# o/ Fo%ei2$ T%ade /o% te 0u%0ose o/ te A.ti$.#udi$2 /o%mu#atio$ a$d im0#eme$tatio$ o/ te e90o%t&im0o%t 0o#i.y7 A..o%di$2#y- te Mi$ist%y o/ ,omme%.e a$d I$dust%y as bee$ set u0 as te most im0o%ta$t o%2a$ .o$.e%$ed !it te 0%omotio$ a$d %e2u#atio$ o/ /o%ei2$ t%ade i$ I$dia7 I$ e9e%.ise o/ te 0o!e%s .o$/e%%ed by te A.t- te Mi$ist%y $oti/ies a t%ade 0o#i.y o$ a %e2u#a% basis !it .e%tai$ u$de%#i$ed ob"e.ti5es7 Te ea%#ie% t%ade 0o#i.ies !e%e based o$ te ob"e.ti5es o/ se#/& %e#ia$.e a$d se#/&su//i.ie$.y7 Wi#e- te #ate% 0o#i.ies !e%e d%i5e$ by /a.to%s #i3e e90o%t #ed 2%o!t- im0%o5i$2 e//i.ie$.y a$d .om0etiti5e$ess o/ te I$dia$ i$dust%ies- et.7 Wit e.o$omi. %e/o%ms- 2#oba#isatio$ o/ te I$dia$ e.o$omy as bee$ te 2uidi$2 /a.to% i$ /o%mu#ati$2 te t%ade 0o#i.ies7 Te %e/o%m measu%es i$t%odu.ed i$ te subseCue$t 0o#i.ies a5e /o.used o$ #ibe%a#iatio$- o0e$$ess a$d t%a$s0a%e$.y7 Tey a5e 0%o5ided a$ e90o%t /%ie$d#y e$5i%o$me$t by sim0#i/yi$2 te 0%o.edu%es /o% t%ade /a.i#itatio$7 Te a$$ou$.eme$t o/ a $e! Fo%ei2$ T%ade 4o#i.y /o% a /i5e yea% 0e%iod o/ '((&(@- %e0#a.i$2 te ite%to $ome$.#atu%e o/ EIM 4o#i.y by Fo%ei2$ T%ade 4o#i.y >FT4? is a$ote% ste0 i$ tis di%e.tio$7 It ta3es a$ i$te2%ated 5ie! o/ te o5e%a## de5e#o0me$t o/ I$dia’s /o%ei2$ t%ade a$d 0%o5ides a %oadma0 /o% te de5e#o0me$t o/ tis se.to%7 A 5i2o%ous e90o%t&#ed 2%o!t st%ate2y o/ doub#i$2 I$dia’s sa%e i$ 2#oba# me%.a$dise t%ade >i$ te $e9t /i5e yea%s?- !it a /o.us o$ te se.to%s a5i$2 0%os0e.ts /o% e90o%t e90a$sio$ a$d 0ote$tia# /o% em0#oyme$t 2e$e%atio$.o$stitute te mai$ 0#a$3 o/ te 0o#i.y7 A## su. measu%es a%e e90e.ted to e$a$.e I$dias 6 E7*er%' '@en ro& >>>.!g'.go#.in. re'rie#e! on -- n! &r*= -?,4
i$te%$atio$a# .om0etiti5e$ess a$d aid i$ /u%te% i$.%easi$2 te a..e0tabi#ity o/ I$dia$ e90o%ts7 Te 0o#i.y sets out te .o%e ob"e.ti5es- ide$ti/ies 3ey st%ate2ies- s0e##s out /o.us i$itiati5esout#i$es e90o%t i$.e$ti5es- a$d a#so add%esses issues .o$.e%$i$2 i$stitutio$a# su00o%t i$.#udi$2 sim0#i/i.atio$ o/ 0%o.edu%es %e#ati$2 to e90o%t a.ti5ities7 Te 3ey st%ate2ies /o% a.ie5i$2 its ob"e.ti5es i$.#ude& )7 6$sa.3#i$2 o/ .o$t%o#s a$d .%eati$2 a$ atmos0e%e o/ t%ust a$d t%a$s0a%e$.yJ '7 Sim0#i/yi$2 0%o.edu%es a$d b%i$2i$2 do!$ t%a$sa.tio$ .ostsJ =7 Neut%a#ii$2 i$.ide$.e o/ a## #e5ies o$ i$0uts used i$ e90o%t 0%odu.tsJ
7 Fa.i#itati$2 de5e#o0me$t o/ I$dia as a 2#oba# ub /o% ma$u/a.tu%i$2- t%adi$2 a$d se%5i.es7 +7 Ide$ti/yi$2 a$d $u%tu%i$2 s0e.ia# /o.us a%eas to 2e$e%ate additio$a# em0#oyme$t o00o%tu$ities- 0a%ti.u#a%#y i$ semi&u%ba$ a$d %u%a# a%eas7 7 Fa.i#itati$2 te.$o#o2i.a# a$d i$/%ast%u.tu%a# u02%adatio$ o/ te I$dia$ e.o$omyes0e.ia##y t%ou2 im0o%t o/ .a0ita# 2oods a$d eCui0me$t 7 A5oidi$2 i$5e%ted duty st%u.tu%e a$d e$su%i$2 tat domesti. se.to%s a%e $ot disad5a$ta2ed i$ t%ade a2%eeme$ts7 *7 602%adi$2 te i$/%ast%u.tu%e $et!o%3 %e#ated to te e$ti%e /o%ei2$ t%ade .ai$ to i$te%$atio$a# sta$da%ds7 @7 Re5ita#ii$2 te Boa%d o/ T%ade by %ede/i$i$2 its %o#e a$d i$du.ti$2 i$to it e90e%ts o$ t%ade 0o#i.y7 )(7 A.ti5ati$2 I$dia$ Embassies as 3ey 0#aye%s i$ te e90o%t st%ate2y7
Sa#ie$t /eatu%es I$ I$dia- e90o%ts a$d im0o%ts a%e %e2u#ated by te Fo%ei2$ T%ade >De5e#o0me$t a$d Re2u#atio$? A.t- )@@'- !i. %e0#a.ed te Im0o%ts a$d E90o%ts>,o$t%o#? A.t-)@- a$d 2a5e te Go5e%$me$t o/ I$dia e$o%mous 0o!e%s to .o$t%o# it7 Te sa#ie$t /eatu%es o/ te A.t a%e as /o##o!s& )7 It as em0o!e%ed te ,e$t%a# Go5e%$me$t to ma3e 0%o5isio$s /o% de5e#o0me$t a$d %e2u#atio$ o/ /o%ei2$ t%ade by /a.i#itati$2 im0o%ts i$to- a$d au2me$ti$2 e90o%ts /%om I$dia a$d /o% a## matte%s .o$$e.ted te%e!it o% i$.ide$ta# te%eto7 '7 Te ,e$t%a# Go5e%$me$t .a$ 0%oibit- %est%i.t a$d %e2u#ate e90o%ts a$d im0o%ts- i$ a## o% s0e.i/ied .ases as !e## as sub"e.t tem to e9em0tio$s7 =7 It auto%ies te ,e$t%a# Go5e%$me$t to /o%mu#ate a$d a$$ou$.e a$ E90o%t a$d Im0o%t >EIM? 4o#i.y a$d a#so ame$d te same /%om time to time- by $oti/i.atio$ i$ te O//i.ia# Gaette7
1.Foreign Tr!e Po$i* < R.3.Jin+ Cen'7 P(<$i*'ion:+-?,5. P 99;,,-
7 It 0%o5ides /o% te a00oi$tme$t o/ a Di%e.to% Ge$e%a# o/ Fo%ei2$ T%ade by te ,e$t%a# Go5e%$me$t /o% te 0u%0ose o/ te A.t7 ;e sa## ad5ise ,e$t%a# Go5e%$me$t i$ /o%mu#ati$2 e90o%t a$d im0o%t 0o#i.y a$d im0#eme$ti$2 te 0o#i.y7 +7 6$de% te A.t- e5e%y im0o%te% a$d e90o%te% must obtai$ a Im0o%te% E90o%te% ,ode Numbe% >IE,? /%om Di%e.to% Ge$e%a# o/ Fo%ei2$ T%ade o% /%om te o//i.e% so auto%ised7 7 Te Di%e.to% Ge$e%a# o% a$y ote% o//i.e% so auto%ised .a$ sus0e$d o% .a$.e# a #i.e$.e issued /o% e90o%t o% im0o%t o/ 2oods i$ a..o%da$.e !it te A.t7 But e does it a/te% 2i5i$2 te #i.e$.e o#de% a %easo$ab#e o00o%tu$ity o/ bei$2 ea%d7 7 Besides te Fo%ei2$ T%ade >De5e#o0me$t a$d Re2u#atio$? A.t- te%e a%e some ote% #a!s !i. .o$t%o# te e90o%t a$d im0o%t o/ 2oods7 Tese i$.#ude& a? Tea A.t-)@+= b? ,o//ee A.t- )@' .? Te Rubbe% A.t- )@ d? Te Ma%i$e 4%odu.ts E90o%t De5e#o0me$t Auto%ity A.t- )@' e? Te E$emy 4%o0e%ty A.t- )@* /? Te E90o%t >:ua#ity ,o$t%o# a$d I$s0e.tio$? A.t- )@= 2? Te Toba..o Boa%d A.t- )@+*
FOREIGN E,C-ANGE .ANAGE.ENT ACT( )*** Te FOREIGN E,;ANGE Ma$a2eme$t A.t- )@@@ >FEMA? is a$ A.t o/ te 4a%#iame$t o/ I$dia to .o$so#idate a$d ame$d te #a! %e#ati$2 to /o%ei2$ e9.a$2e !it te ob"e.ti5e o/ /a.i#itati$2 e9te%$a# t%ade a$d 0ayme$ts a$d /o% 0%omoti$2 te o%de%#y de5e#o0me$t a$d mai$te$a$.e o/ /o%ei2$ e9.a$2e ma%3et i$ I$dia7@ Sa#ie$t Featu%es& )7 A.ti5ities su. as 0ayme$ts made to a$y 0e%so$ outside I$dia o% %e.ei0ts /%om tema#o$2 !it te dea#s i$ /o%ei2$ e9.a$2e a$d /o%ei2$ se.u%ity is %est%i.ted7 It is FEMA tat 2i5es te .e$t%a# 2o5e%$me$t te 0o!e% to im0ose te %est%i.tio$s7 '7 Rest%i.tio$s a%e im0osed o$ %eside$ts o/ I$dia !o .a%%y out t%a$sa.tio$s i$ /o%ei2$ e9.a$2e- /o%ei2$ se.u%ity o% !o o!$ o% o#d immo5ab#e 0%o0e%ty ab%oad7 =7 Witout 2e$e%a# o% s0e.i/i. 0e%missio$ o/ te MA %est%i.ts te t%a$sa.tio$s i$5o#5i$2 /o%ei2$ e9.a$2e o% /o%ei2$ se.u%ity a$d 0ayme$ts /%om outside te .ou$t%y to I$dia te t%a$sa.tio$s sou#d be made o$#y t%ou2 a$ auto%ised 0e%so$7 7 Dea#s i$ /o%ei2$ e9.a$2e u$de% te .u%%e$t a..ou$t by a$ auto%ised 0e%so$ .a$ be %est%i.ted by te ,e$t%a# Go5e%$me$t- based o$ 0ub#i. i$te%est 2e$e%a##y7 +7 A#tou2 se##i$2 o% d%a!i$2 o/ /o%ei2$ e9.a$2e is do$e t%ou2 a$ auto%ised 0e%so$- te RBI is em0o!e%ed by tis A.t to sub"e.t te .a0ita# a..ou$t t%a$sa.tio$s to a $umbe% o/ %est%i.tio$s7 8 E7*er%' '@en ro& >>>.!g'.go#.in re'rie#e! on -? '= &r*= -?,4 9 E7*er%' '@en ro& e&.r
7 Reside$ts o/ I$dia !i## be 0e%mitted to .a%%y out t%a$sa.tio$s i$ /o%ei2$ e9.a$2e/o%ei2$ se.u%ity o% to o!$ o% o#d immo5ab#e 0%o0e%ty ab%oad i/ te .u%%e$.y- se.u%ity o% 0%o0e%ty !as o!$ed o% a.Cui%ed !e$ ese !as #i5i$2 outside I$dia- o% !e$ it !as i$e%ited by ime% /%om someo$e #i5i$2 outside I$dia7)( 7 E90o%te%s a%e $eeded to /u%$is tei% e90o%t detai#s to RBI7 To e$su%e tat te t%a$sa.tio$s a%e .a%%ied out 0%o0e%#y- RBI may as3 te e90o%te%s to .om0#y to its $e.essa%y %eCui%eme$ts7
CENTRAL E,CISE DUTIES DRA/BAC0S RULES( )**1 6$de% Duty D%a!ba.3 S.eme %e#ie/ o/ ,ustoms a$d ,e$t%a# E9.ise Duties su//e%ed o$ te i$0uts used i$ te ma$u/a.tu%e o/ e90o%t 0%odu.t is a##o!ed to E90o%te%s7 Te admissib#e duty d%a!ba.3 amou$t is 0aid to e90o%te%s by de0ositi$2 it i$to tei% $omi$ated ba$3 a..ou$t7 Se.tio$ + o/ te ,ustoms A.t- )@' a$d Se.tio$ = o/ te ,e$t%a# E9.ise A.t- )@em0o!e% te ,e$t%a# Go5e%$me$t to 2%a$t su. duty d%a!ba.37 ,ustoms a$d ,e$t%a# E9.ise Duties D%a!ba.3 Ru#es- )@@+ a5e bee$ /%amed out#i$i$2 te 0%o.edu%e to be /o##o!ed /o% te 0u%0ose o/ 2%a$t o/ duty d%a!ba.3 >/o% bot 3i$ds o/ duties su//e%ed? by te ,ustoms Auto%ities 0%o.essi$2 e90o%t do.ume$tatio$7 6$de% Duty D%a!ba.3 S.eme- a$ e90o%te% .a$ o0t /o% eite% A## I$dust%y Rate >AIR? o/ Duty D%a!ba.3 S.eme o% b%a$d %ate o/ Duty D%a!ba.3 S.eme7 Ma"o% 0o%tio$ o/ Duty D%a!ba.3 is 0aid t%ou2 AIR duty Duty D%a!ba.3 S.eme !i. esse$tia##y attem0ts to .om0e$sate e90o%te%s o/ 5a%ious e90o%t .ommodity /o% a5e%a2e i$.ide$.e o/ .ustoms a$d ,e$t%a# E9.ise duties su//e%ed o$ te i$0uts used i$ tei% ma$u/a.tu%e7 B%a$d %ate o/ duty d%a!ba.3 is 2%a$ted i$ te%ms o/ %u#es < o/ ,ustoms a$d ,e$t%a# E9.ise Duties D%a!ba.3 Ru#es- )@@+ i$ .ases !e%e te e90o%t 0%odu.t does $ot a5e a$y AIR o% duty d%a!ba.3 %ateo% !e%e te AIR duty d%a!ba.3 %ate $oti/ied is .o$side%ed by te e90o%te% i$su//i.ie$t to .om0e$sate /o% te ,ustoms,e$t%a# E9.ise duties su//e%ed o$ i$0uts used i$ te ma$u/a.tu%e o/ e90o%t 0%odu.ts7 Fo% 2oods a5i$2 a$ AIR te b%a$d %ate /a.i#ity to 0a%ti.u#a% e90o%te%s is a5ai#ab#e o$#y i/ it is estab#ised tat te .om0e$satio$ by AIR is #ess ta$ *( o/ te a.tua# duties su//e%ed i$ te ma$u/a.tu%e o/ te e90o%t 2oods7 Duty D%a!ba.3 /a.i#ities o$ %e&e90o%t o/ duty 0aid 2oods is a#so a5ai#ab#e i$ te%ms o/ Se.tio$ o/ ,ustoms A.t- )@'7 6$de% tis S.eme 0a%t o/ te .ustoms duty 0aid at te time o/ im0o%t is %emitted o$ %e&e90o%t o/ te 2oods sub"e.t to ide$ti/i.atio$ a$d 0%es.%ibed 0%o.edu%e bei$2 /o##o!ed7 ,,
,? Foreign Tr!e Po$i* In%(';O('%(' Nor&: < R.3.Jin+ Cen'7 %(<$i*'ion:+-?,1. P,46;,4 ,, E7*er%' '@en ro& >>>.*
INDIA AND C-INA’S TRADE POLICY CO.PARISON It may be use/u# to ma3e I$dia’s t%ade 0o#i.y .om0a%iso$ !it ,i$a be.ause bot te .ou$t%ies a%e o/ .om0a%ab#e sies a$d bot a5e a isto%y o/ i$!a%d&#oo3i$2 t%ade 0o#i.ies7 Fu%te%- ,i$a’s se#e.ti5e #ibe%a#iatio$ amou$ted to a %e#ease /%om a .omma$d e.o$omy!i#e I$dia’s %e/o%m o..u%s i$ te .o$te9t o/ a .o$t%o##ed e.o$omy7 Mo%eo5e%- ,i$a’s t%ade is .a%a.te%ied by a i2 /%a.tio$ o/ %e&e90o%ts- i$ 0a%ti.u#a% 5ia ;o$2 Ko$2- so tat t%ade 5o#ume measu%es may $ot .a0tu%e ,i$a’s t%ue #e5e# o/ o0e$$ess7 Des0ite tese d%a!ba.3sI$dia’s t%ade 0o#i.y %e2ime !it ,i$a’s yie#ds use/u# 0o#i.y #esso$s7 Te %edu.tio$ i$ a5e%a2e ta%i//s is a 2e$e%a# 0e$ome$o$ i$ bot I$dia a$d ,i$a7 I$ I$dia- te bi22est %edu.tio$ o..u%%ed i$ te immediate a/te%mat o/ te )@@) BO4 .%ises a$d t%e$d to!a%ds %edu.tio$ i$ a5e%a2e ta%i//s !as %e5e%sed i$ )@@*7 I$dia$ ta%i//s i$.%eased s#i2t#y si$.e te$as te %esu#t o/ .o$5e%sio$ o/ $o$&ta%i// ba%%ie%s to ta%i// ba%%ie%s- i$ #i$e !it te A%ti.#e I o/ GATT7 I$dia’s a5e%a2e ta%i// i$ )@@@- ='7+ 0e% .e$t >a2ai$st ,i$a’s )7= 0e% .e$t i$ '(((? a$d '*7= 0e%.e$t i$ '(( >as a2ai$st ,i$a’s @7* 0e% .e$t i$ '((?- %emai$ed i2e% ta$ ,i$a’s ta%i//7 A sim0#e u$ !ei2ted ta%i//- su22ests tat I$dia is mu. mo%e %est%i.ti5e to t%ade as .om0a%ed to ,i$a7 O/ .ou%se- sim0#e .o$side%atio$ o/ u$ !ei2ted a5e%a2e ta%i//s is $ot e$ou2 to .a%a.te%ie I$dia’s t%ade 0o#i.y7 ta%i// %ates- te%e/o%e- 2oes some !ay to!a%ds %edu.i$2 te 0ea3 %ates o/ e//e.ti5e 0%ote.tio$7 4a%t o/ I$dia’s t%ade #ibe%a#iatio$ as .o$sisted o/ a %edu.tio$ i$ te dis0e%sio$ o/ ta%i// %ates7 A$ote% !ay to assess te ma2$itude o/ ta%i//s!ei2ted by te 5o#ume o/ im0o%ts- is to e9ami$e te %atio o/ im0o%t ta9 %e5e$ue to tota# im0o%ts7 Tis may 0%o5ide a #ess a..u%ate 0i.tu%e o/ te state o/ .u%%e$t 0o#i.y- si$.e te /i2u%es do $ot %e/e% to statuto%y %ates7 But tey may 0%o5ide a$ote% $otio$ o/ te de2%ee o/ o0e$$ess o/ t%ade %e2ime- 0e%a0s .#ose% to te a.tua##y e$/o%.ed a5e%a2e ta%i// %ate7 Fo% bot te .ou$t%ies-te %atio as /a##e$ o5e% time7 I$dia’s im0o%t duties to tota# im0o%ts is mu. 2%eate% ta$ tat o/ ,i$a’s >')7 0e% .e$t /o% I$dia 5e%sus '7 0e% .e$t /o% ,i$a i$ )@@*?7)' Te ta%i// %ates i$ I$dia si$.e )@@@ %e5ea# a te$de$.y /o% a5e%a2e ta%i//s to %ise7 Tis is 0a%ti.u#a%#y 0%o$ou$.ed /o% 0%ima%y 0%odu.ts- but o#ds a#so /o% ma$u/a.tu%ed 0%odu.ts7 Tis is #a%2e#y te %esu#t o/ te .o$5e%sio$ o/ Cua$titati5e %est%i.tio$s to ta%i// ba%%ie%s- %eCui%ed be.ause o/ GATT’s A%ti.#e I7 ;i2e% ta%i//s substituti$2 /o% 0ased&out :R’s !e%e 0ossib#e i$ te .o$te9t o/ i2 $e2otiated ta%i// bou$d %ates u$de% te6%u2uay Rou$d a2%eeme$t7Ma$y t%ade de/e$si5e measu%es !e%e 0ut i$ A..o%di$2 to te WTO’s T%ade 4o#i.y Re5ie! o/ I$dia i$ A0%i# )@@*- u$de% te 6%u2uay Rou$d- I$dia as bou$d 0e%.e$t o/ a## its ta%i// #i$es!e%eas 0%io% to tat o$#y o/ ta%i// #i$es !e%e bou$d7 i$.%ease use o/ te a$ti&dum0i$2 ,- Foreign Tr!e Po$i* In%(';O('%(' Nor&: < R.3.Jin+ Cen'7 %(<$i*'ion:+-?,1 % ,11;,4-
measu%es- as mo5ed i$dia to te most a.ti5e use% o/ a$ti dum0i$2 meaus%es7 I$ .o$t%ast,i$a as i$itiated a /e! a$tidum0i$2 measu%es si$.e )@@+)7 It as o!e5e%- bee$ te ta%2et o/ tese measu%es)7 I$ /a.t- %ou2#y- '( 0e% .e$t o/ I$dia’s a$tidum0i$2 measu%es !e%e di%e.ted to!a%ds ,i$aJ by /a% ,i$a as be.ome I$dia’s mai$ ta%2et7 4e%a0s be.ause o/ te i$.%ease i$ I$dia’s use o/ a$ti&dum0i$2 measu%es- se as e%se#/ be.ome te ta%2et o/ su. measu%es A$tidum0i$2- tus- a00ea%s to be a 0%ime 0o#i.y substitute used by I$dia to Tese measu%es .om0%ise a## Cua$titati5e %est%i.tio$s >0%oibitio$s- Cuotas- $o$automati. #i.e$si$2VERs a$d MFA?- 0%i.e .o$t%o# measu%es >mi$imum- %e/e%e$.e o%basi. im0o%t 0%i.e systems 0%i.e su%5ei##a$.e a$d 5o#u$ta%y e90o%t 0%i.e %est%ai$ts?- additio$a# .ustoms /o%ma#ities a$d ote% e$t%y .o$t%o# measu%es- #o.a# .o$te$t %eCui%eme$ts- but e9.#udes 4a%a&ta%i// measu%esautomati. #i.e$si$2 a$d im0o%t su%5ei##a$.e- ad5a$.e 0ayme$t o/ duties a$d im0o%t de0osits a$d a$ti&dum0i$2 a$d .ou$te%5ai#i$2 a.tio$s7
CONCLUSION
Te ob"e.ti5e o/ te Fo%ei2$ T%ade 4o#i.y is to t!o/o#d I$dia 0e%.e$ta2e sa%e o/ 2#oba# me%.a$dise t%ade a$d to a.t as a$ e//e.tua# i$st%ume$t o/ e.o$omi. 2%o!t by 2i5i$2 a t%ust to em0#oyme$t 2e$e%atio$- es0e.ia##y i$ semi&u%ba$ a$d %u%a# a%eas7 Te 2%o!t 0e%/o%ma$.e o/ e90o%ts as bee$ a %esu#t o/ !at./u# e//o%t o/ te Go5e%$me$t to #esse$ t%a$sa.tio$ .osts a$d assist t%ade7 Te 2uide#i$es o/ te Fo%ei2$ T%ade 4o#i.y >'((&(@? /o% a /i5e yea% 0e%iod .#ea%#y a%ti.u#ate ob"e.ti5es- st%ate2ies a$d 0o#i.y i$itiati5es tat as bee$ i$5o#5ed i$ 0utti$2 e90o%ts o$ a i2e% 2%o!t #i$e7 Te%e a%e $ume%ous .a##e$2es a$d issues i$ /o%ei2$ t%ade7 Tese i$.#ude bu%de$ o/ e90o%t 0%omotio$ s.emes- da$2e% o/ .i%.u#a% t%adi$2- a$d %is3 o/ im0o%ti$2 outdated ma.i$e%y7 Sometimes 0o#i.y /ai#s to ta3e a o#isti. 5ie! o/ t%ade issues7 Ote% issue is %e#ati5e im0o%ta$.e o/ te ome ma%3et- te $atu%e o% te de2%ee o/ State i$te%5e$tio$ a$d %e.essio$a%y .o$ditio$s i$ te 2#oba# ma%3et7 I$dias e90o%ts a5e su//e%ed due to st%u.tu%a# .o$st%ai$ts o0e%ati$2 bot o$ te dema$d a$d su00#y side7 O$ te dema$d side e90o%ts a5e .o$ti$ued to u$de%2o$e te 0%ob#ems o/ ad5e%se !o%#d t%adi$2 e$5i%o$me$t- 0%ote.tio$ist se$time$ts i$ te de5e#o0ed .ou$t%ies i$ te 2uise o/ te.$i.a# sta$da%ds- e$5i%o$me$ta# a$d so.ia# .o$.e%$s a$d ta%i// di//e%e$tia#s i$ im0o%ts by te de5e#o0ed .ou$t%ies7 At te su00#y e$d- te /a.to%s tat a5e .o$st%ai$ed e90o%ts /%om I$dia i$.#ude i$/%ast%u.tu%e .o$st%ai$tsi2 t%a$sa.tio$ .osts- i$/#e9ibi#ities i$ #abou% #a!s- Cua#ity 0%ob#ems- .o$st%ai$ts i$ att%a.ti$2 FDI i$ te e90o%t se.to%-et.7 It is summa%ied tat /o%ei2$ t%ade as si2$i/i.a$t /u$.tio$ i$ te /is.a# de5e#o0me$t o/ a$y $atio$7 I$dia as made st%o$2 /o%ei2$ t%ade 0o#i.ies a$d %e/o%med tese /%om time to time !it te 0%o.ess o/ 2#oba#isatio$ a$d #ibe%a#iatio$7 Si$.e )@@)- I$dias /o%ei2$ t%ade .o$side%ab#y t%a$s/o%med7 I$dias ma"o% e90o%ts i$.#ude ma$u/a.tu%i$2 a$d e$2i$ee%i$2 2oods7 I$dia as 2ood t%adi$2 %e#atio$s !it a## de5e#o0ed .ou$t%ies i$ te !o%#d7 Mo%e ta$ /i/ty 0e%.e$t o/ I$dias tota# e90o%t t%ade is !it Asia a$d ASEAN %e2io$ a$d about si9ty 0e%.e$t o/ I$dias tota# im0o%ts is !it te same .ou$t%ies7 I$dias !ea#t 0%e5ious#y !as a2%i.u#tu%a# e.o$omy7 I$dias ma"o% %eCui%eme$t use to be /ood 2%ai$s a$d ote% 2oods i$ im0o%t !it /ast i$dust%ia#iatio$- te .om0ositio$ o/ I$dias im0o%ts 2oods .a$2ed a$d $eeded .emi.a#s- /e%ti#ie%s a$d ma.i$e%y !i. !e%e %eCui%ed to meet te de5e#o0me$ta# %eCui%eme$ts o/ .ou$t%y7 I$ te .om0ositio$ o/ e90o%tJ .ou$t%y se##s a2%i.u#tu%a# 0%odu.ts su. as tea- s0i.es- a$d ote% %a! mate%ia#s7 ;o!e5e%- !it te i$dust%ia#iatio$ o/ te
/i$a$.ia# system- .om0ositio$s o/ e90o%ts .a$2ed7 ,u%%e$t#y- I$dia e90o%ts 0%odu.ts su. as ma.i$e%y .emi.a#s a$d ma%i$e 0%odu.ts7 Tis may e$a$.e te /is.a# .o$ditio$ o/ I$dia7
BIBLIOGRAP-Y
Te i$/o%matio$ 0%ese$ted i$ tis 0%o"e.t as bee$ .o##e.ted /%om te /o##o!i$2 te9tua# sou%.es& )7 Matu% Viba- FOREIGN TRADE- E90o%t&Im0o%t 0o#i.y a$d t%ade A2%eeme$ts - Ne! ,e$tu%y 4ub#i.atio$s- =RD editio$ -'()' '7 Matu% Viba -Fo%ei2$ T%ade 4o#i.y a$d T%e$ds i$ I$dia - Nea 4ub#ise%s a$d Dist%ibuto%s-'$d Editio$- '((@ =7 8ai$ R7K- Fo%ei2$ T%ade 4o#i.y- ,e$ta9 4ub#i.atio$s- +t Editio$-'() 7 8ai$ R7K- Fo%ei2$ T%ade 4o#i.y I$0ut&Out0ut No%ms- ,e$ta9 0ub#i.atio$s- ' ND editio$- '()= Te i$/o%matio$ 0%ese$ted i$ tis 0%o"e.t as bee$ ta3e$ /%om te /o##o!i$2 !eb sou%.es& )7 '7 =7 7
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