Recent EXIM Policy – Export Promotion Measures

India’s Foreign Trade (EXIM) Policy is announced periodically to promote exports and manage imports.

For BCom, you do not need exact year or scheme names beyond textbook; focus on types of measures and overall direction.

1. Objectives of EXIM Policy (Generic, Exam‑Oriented)

1. Promote Exports and Earn Foreign Exchange.
2. Improve Competitiveness of Indian Goods and Services.
3. Integrate Indian Economy with Global Markets.
4. Encourage Employment‑oriented Exports.

2. Main Export Promotion Measures (Illustrative)

1. Export Promotion Capital Goods (EPCG) Scheme

   • Allows import of capital goods at concessional duty, subject to export obligation.

2. Duty Exemption / Remission Schemes

   • E.g., duty drawback, remission of duties and taxes on exported products.
   • Aim to ensure exports are not burdened with domestic taxes.

3. Special Economic Zones (SEZs) and Export Oriented Units (EOUs)

   • Provide infrastructure, tax benefits and simplified procedures in designated zones.

4. Market Access Initiative (MAI) and Marketing Support

   • Assistance for product development, market research, participation in trade fairs.

5. Sector‑Specific Incentives

   • Focus schemes for handicrafts, textiles, leather, IT services, pharma, etc., especially in labour‑intensive sectors.

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3. EXIM Policy and WTO

• Export incentives must be consistent with WTO rules (no prohibited export subsidies for certain income levels).
• India has gradually restructured schemes to comply with WTO while still supporting exporters.

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4. Quick Revision Points

• EXIM policy aims at export promotion, competitiveness, employment and integration with world markets.
• Tools: duty relief, capital goods schemes, SEZs/EOUs, marketing support, sectoral incentives.
• Must remain WTO‑compliant while helping exporters.

5. Quiz Time 🎯

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