FOREIGN TRADE POLICY IN INDIA 2009- 2014
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The document summarizes India's Foreign Trade Policy for 2009-2014. The key points are: - The policy was announced on August 27, 2009 and aimed to achieve an annual export growth target of 15% by 2013 and 25% by 2014. - Objectives included arresting the declining export trend, supporting sectors hit by recession, and doubling India's share of global trade by 2020. - Various incentives and schemes were announced for sectors like marine, gems and jewelry, agro exports, leather, tea, pharma and handlooms. - Towns of Export Excellence were recognized for handicrafts, leather products and horticultural products. Income tax exemptions were extended for Export Orient
FOREIGN TRADE POLICY IN INDIA 2009- 2014
- 2. FOREIGN TRADE POLICY IN INDIA 2009- 2014
- 3. PRESENTED BY ROHITH M.Com(Pre) Reg.No : 136488140
- 5. INTRODUCTION
- 6. HISTORY Earlier this policy known as Export Import (EXIM) Policy. Union Commerce Ministry, GOI announces integrated FTP every five year. updated every year on the 31st of March and the modifications, improvements and new schemes becomes effective from April month of each year Foreign Trade Policy announced on 27th August 2009 for the period 2009-2014
- 7. INDIA’S FOREIGN TRADE POLICY 2009-2014 • The foreign trade policy which was announced on 28th August 2009 is an integrated policy for 2009- 2014. • This policy is updated every year with some modifications and new schemes. • Foreign Trade Act has replaced the earlier law known as the imports and Exports (Control) Act 1947. • The EX-Union Commerce & Industry Minister Mr.Anand Sharma was announced the new Foreign Trade Policy 2009 - 2014 in New Delhi on 27th August, 2009
- 8. OBJECTIVES Short Term Objectives : • Arrest and reverse the declining trend of exports. • Provide support to those sectors which have been hit badly by recession. Medium term Policy Objectives : • Achieve an Annual Export growth of 15% by March 2013. • Achieve Annual Export growth of around 25% by 2014. Long Term Objective : • Doubling India’s share in Global Trade by 2020.
- 9. BOARD OF TRADE Commerce & Industry Minister will be the Chairman of the Board of Trade (BOT). Government shall also nominate upto 25 persons, of whom at least 10 will be experts in trade policy. In addition, Chairmen of recognized EPCs and President or Secretary- Generals of National Chambers of Commerce will be ex-official members. BOT will meet at least once every quarter.
- 10. AIM IN GENERAL • Developing export potential, improving export performance, boosting foreign trade and earning valuable foreign exchange. • A fall in exports has led to the closure of several small- and medium-scale export- oriented units, resulting in large-scale unemployment.
- 11. TARGETS • Export Target : $ 450 Billion for 2013-14 • Export Growth Target: 25 % every year • Three pillars: i. Improvement in infrastructure related to exports. ii. Reduction in transaction costs. iii. Provision of full refund of all indirect taxes.
- 12. ANNOUNCEMENTS FOR VARIOUSE SECTORS Marine sector Gems and Jewellery Agro exports Leather exports Tea exports Pharma export Handloom exports Going Through Different Heads
- 13. Marine sector • Fisheries exempted from maintenance of average EO under EPCG Scheme. However Fishing Trawlers, boats, ships and other similar items shall not be allowed for this exemption. • Additional flexibility under Target Plus Scheme (TPS) / Duty Free Certificate of Entitlement (DFCE) Scheme for the marine sector.
- 14. Gems and Jewellary • Duty Drawback is allowed on Gold Jewellery exports to neutralize duty incidence. • Plan to establish "Diamond Bourse (s) with an aim to make India and International Trading Hub announced. • Introduction of a new facility to allow import on consignment basis of cut & polished diamonds for the purpose of grading/ certification.
- 15. Agro exports • Introduction of a single window system to facilitate export of perishable agricultural produce with an aim to reduce transaction and handling cost. • This system will involve creation of multi- functional nodal agencies.
- 16. Leather exports • On the payment of 50 % applicable export duty, Leather sector shall be allowed re-export of unsold imported raw hides and skins and semi finished leather from public bonded ware houses.
- 17. Tea exports • The existing Minimum value addition under advance authorization scheme for export of tea is 100 %. It has been reduced from the existing 100% to 50%. • DTA (Domestic Tariff Area) sale limit of instant tea by EOU units increased from 30% to 50%.
- 18. Pharma exports • Export Obligation Period for advance authorizations issued increased from existing 6 months to 36 months. • Pharma sector included under MLFPS for countries in Africa and Latin America & some countries in Oceania and Far East.
- 19. Handloom exports The claims under Focus Product Scheme, the requirement of " Handloom mark" was required earlier. This has been removed.
- 20. ADDITIONAL ANNOUNCEMENTS • FPS (Focus Product Scheme), FMS (Focus Market Scheme), MLFPS (Market Linked Focus Product Scheme) • MDA (Market Development Assess) • MAI (Market Assess Initiatives) • TEE (Towns of Export Excellence) • Income Tax Exemptions Going Through Different Heads
- 21. FPS, FMS, MLFPS • FPS (Focus product scheme): Provides license for export product which have high employment potential in rural & urban areas with a view of infrastructural facility. • FMS (Focus Market Scheme): Offsetting high freight cost & distribution faced in assessing foreign markets • MLFPS (market Linked Focus Product Scheme): Expanding products in identified markets (Cont...)
- 22. (...Cont) Announcements for FPS, FMS, MLFPS • 26 new markets added in this scheme. • Incentives under FMS raised from 2.5 % to 3 % • Incentive available under Focus Product Scheme (FPS) raised from 1.25% to 2%. • products included in the scope of benefits under FPS • Market Linked Focus Product Scheme (MLFPS) expanded by inclusion of products like pharmaceuticals, textile fabrics, rubber products, glass products, auto components, motor cars, bicycle and its parts etc. • Focus Product Scheme benefit extended for export of ‘green products 'and some products from the North East
- 23. MDA (Market Development Assess) Financial Assistance provided for a range of export promotional activities implemented by EPC, & Trade Promotion organization. This is administered by DOC (Dept of Commerce). • Trade faires, & Buyer seller meet abroad & India • Export Promotion Services • Financial Assistance with travel agent is available to export . Travelling area of focus: Latin America, Africa, ASEAN, Austraia & Newzeland.
- 24. MAI (Market Assess Initiatives) Financial Assistance provided by export promotional activities on focus country & focus product basis. Financial Assistance are available for Export Promotion Council (EPC), Industry & trade Associates (ITA), Agencies of state govts, Indian Commercial Mission (ICM) • Market study & survey • Setting up showcases • Participation in trade faires • Displays in international Dept. Stores • Publicity & Campaigns • Brand Promotion
- 25. TEE (Towns of Export Excellence) The following cities have been recognized as towns of export excellence (TEE) • Handicrafts : Jaipur, Srinagar and Anantnag • Leather Products : Kanpur, Dewas and Ambur • Horticultural Products: Malihabad
- 26. Income Tax Exemptions Extension of Income Tax Exemption to EOU (Export oriented unit) and STPI (software Technology park unit) : • Income Tax exemption to 100% EOUs and to STPI units under Section 10B and 10A of Income Tax Act has been provided.
- 27. RESULTS 185.3 251.1 303.7 300.6 329.7 2008-09 2010-11 2011-12 2012-13 2013-14 0 50 100 150 200 250 300 350 INDIA'S EXPORTS (In $ Billion) INDIA'S EXPORTS (In $ Billion) (Cont...)
- 28. (...Cont) 303.7 488.6 184.9 300.6 491.5 190.9 329.7 542.7 213 0 100 200 300 400 500 600 EXPORTS IMPORTS TRADE DEFICIT 2011-12 2012-13 2013-14 IN $ BILLION
- 29. CONCLUSION
- 30. REFERENCES • http://www.eximkey.com • http://www.eximinfo.com • http://www.eximbankindia.in/ • http://dgft.gov.in • http://finmin.nic.in/