Introduction

Foreign trade in India is guided by the Foreign Trade Policy (EXIM Policy) and is regulated by the Foreign Trade Development and Regulation Act, 1992.

India major exports

Petroleum products, Mineral fuels including oils, Gems, precious metals, Machinery including computers, Electrical machinery, equipment, chemicals, iron, steel, and Pharmaceuticals products.

India major imports

Crude petroleum, gold, pearls, precious stones, petroleum products, Telecom instruments, electronic components, industrial machinery, Animal/vegetable fats, oils, waxes, Plastics, plastic articles, and medical apparatus

Foreign Trade Policy 2015-2020

Target

Doubling the exports (both Merchandise and Service) to $900 billion by 2019-20
Achieve 3.5% share of world export by 2019-20

Features

Provides a framework for increasing exports of goods and services as well as generation of employment and increasing value addition in the country, in line with the ‘Make in India’ programme<
Fast access to international markets through Approved Exporter System for manufacturing exporters
Provision for Export oriented units, Export hardware technology park and software technology park
Introduces two new schemes

Merchandise Exports from India Scheme (MEIS)

To promote export of notified goods manufactured/ produced in India for specified markets [Now US, Europe, Africa]
Implemented by Ministry of Commerce and Industry
MEIS is consolidation of earlier 5 schemes for rewarding merchandise exports
MEIS incentive rates (scrips that can be transferable and can be used for payment of central duties)
Incentives under MEIS are available to units located in SEZs also

Services Exports from India Scheme (SEIS)

Increasing exports of notified services
Service providers of notified services are incentivized in the form of Duty Credit Scrips at the rate of 3% or 5% on their net foreign exchange earnings (scrips that can be transferable and can be used for payment of central duties)
Implemented by Ministry of Commerce and Industry

Note: Duties payable are not waived. Certain duty credit scrips are provided as incentives based on their foreign exchange earnings

Foreign Trade (Development and Regulation) Act, 1992

Objective

To provide the development and regulation of foreign trade by facilitating imports into, and augmenting exports from India.

Director General of Foreign Trade DGFT

Under Ministry of Commerce and Industry
Promotion and facilitation of exports/imports