Exim Policy or Foreign Trade Policy is a set of guidelines and instructions established by the DGFT in matters related to the export import of goods in India. The Ministry of Commerce and Industry, Government of India, pronounces the Indian Foreign Trade Policy or Export-Import of India. This is an attempt towards the support of foreign trade and creation of approving Balance of Payments.
Indian Exim Policy contains various policy related decisions taken by the government in the sphere of Foreign Trade, i.e., with respect to imports and exports from the country and more especially export promotion measures policies and procedures related thereto. Exim Policy is prepared and announced by the Central Government (Ministry of Commerce). India’s Export Import Policy also know as Foreign Trade Policy, in general, aims at developing export potential, improving export performance, encouraging foreign trade and creating favorable balance of payments position.
The Government of India, Ministry of Commerce and Industry announces Export Import Policy after every five years. Exim policy, in general, aims at developing export potential, improving export performance, encouraging foreign trade and creating favorable balance of payments position. The Export Import Policy (EXIM Policy) is updated every year on the 31st of March and the modifications, improvements and new schemes become effective from 1st April of every year.
There are two aspects of Exim Policy; the import policy which is concerned with regulation and management of imports and the export policy which is concerned with exports not only promotion but also regulation. The main objective of this policy is to promote exports to the maximum extent. Exports should be promoted in such a manner that the economy of the country is not affected by unregulated exportable items specially needed within the country. Export control is, therefore, exercised in respect of a limited number of items whose supply position demands that their exports should be regulated in the larger interests of the country.
Some of the focus proposals of this policy are to have a larger share in the global trade and produce more employment prospects, a number of focus initiatives that have been identified for diverse sectors are: agriculture, handloom, handicraft, gems and jewellery, etc. The central government reserves the right to alter any of the sections of this new export-import policy of India in public interest.