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Indian Trade Policy – The Game Plan! 🇮🇳

What is a Trade Policy? It is the government's "Rule Book" for international trade. It decides:

  • What can be imported?
  • What can be exported?
  • How much tax (Duty) to charge?

Also known as: EXIM Policy (Export-Import Policy).

Evolution of India's Policy 📜

Pre-1991 (Protectionism)"Closed Economy. High Tariffs. 'Self Reliance'."
↓
1991 Reforms (LPG)"Liberalization. Open Doors. Lower Tariffs."
↓
Post-2000 (Globalization)"SEZs. Free Trade Agreements. 'Make in India'."

1. Pre-1991: The Era of Restrictions 🔒

  • Goal: Protect Indian industries from foreign competition.
  • Method: High taxes (up to 300%!), Quotas, Licenses.
  • Result: Indian goods were poor quality, but local companies survived.

2. Post-1991: The Era of Freedom 🔓

  • Goal: Integrate with the world economy.
  • Method: Removed licenses, reduced taxes.
  • Result: Samsung, Apple, Toyota came to India. Indian exports boomed.

Objectives of Current Policy 🎯

  1. Accelerate Growth: Increase India's share in global trade.
  2. Employment: Exports create jobs (e.g., Textile industry).
  3. Technology: Import high-tech machines to modernize India.
  4. Ease of Doing Business: Paperless trade, online approvals.
FTP 2023

The latest policy is the Foreign Trade Policy (FTP) 2023. Goal: To reach $2 Trillion exports by 2030!

Quiz Time! 🎯

Test Your Knowledge

Question 1 of 5

1. Trade Policy is also known as:

Fiscal Policy
Monetary Policy
EXIM Policy
Education Policy

💡 Final Wisdom: "A good trade policy is like a good diet. It lets in the healthy stuff (Technology, Capital) and keeps out the junk (Waste, Dumping)." 🥗

Next up: Implementation Mechanisms - Who runs the show? (DGFT & Customs) 👮‍♂️

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