Export-Import (EXIM) Policy

India's Foreign Trade Policy (FTP) — earlier called the Export-Import (EXIM) Policy — is the set of guidelines and instructions framed by the Government of India (Ministry of Commerce and Industry, through the Directorate General of Foreign Trade) to regulate and promote the country's exports and imports. It is generally announced for a multi-year period and reviewed periodically to respond to changing global conditions.

Broad objectives of the policy:

• Boost export competitiveness and diversify India's export basket and markets.
• Simplify procedures and reduce transaction costs and time for exporters and importers (ease of doing business in trade).
• Promote specific priority sectors (electronics, pharmaceuticals, textiles, agro-products) and emerging areas.
• Support Special Economic Zones (SEZs) and Export Oriented Units (EOUs) with fiscal and procedural incentives.
• Encourage employment generation, particularly in labour-intensive export industries.
• Align India's trade regime with its commitments as a member of the WTO.

Typical instruments used:

• Duty exemption/remission schemes — allowing duty-free import of inputs used in export production.
• Export promotion councils for specific industries, assisting exporters with market information and representation.
• Special Economic Zones (SEZs) — designated zones with tax and regulatory concessions to boost export production.
• Import restrictions/tariffs on select items — used selectively, consistent with WTO commitments, to protect domestic industry or manage the trade balance. …