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EXIM Policy or Export Import Policy is considered a set of instructions and guidelines connected to the export and import of goods. Under Section 5, the Govt. of India informs the EXIM Policy that involves 5 years, from the year 1997-2002. The present policy does cover the period between 2002 and 2007. However, every year on 31st March, this policy is updated and its improvements, new schemes, and modifications become effective right from 1st April. 

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Getting Familiar to EXIM Policy

EXIM Policy is recognized as the import export policy that the govt. announces every 5 years. This is also recognized as the Foreign Trade Policy. EXIM Policy comprises common provisions related to imports and exports, duty exemption schemes, promotional measures, specific economic zone programs, export promotion schemes, and various details for various sectors. The government does announce a supplement to EXIM Policy every year.

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Commonly, the Union Minister of Commerce besides the Industry that organizes with the Directorate Gen. of Foreign Trade and the Ministry of Finance announces all the kinds of modifications and changes related to this policy.

The EXIM policy of the year 2002-2007 laid stressed on the significance of agricultural exports besides announcing measures, such as setting up of an Agri-export zone, removing procedural restrictions as well as endorsing cost assistance. And Agri-Export Zones are viewed as the most vital formation of this policy.

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Aims of the EXIM Policy

The aims of EXIM Policy are:

  • The facilitation of sustained development in import in India and exports from India.
  • Stimulating sustained economic development by proposing access to the important raw materials, components, intermediates, capital goods scheme, and consumables needed to augment production as well as proposing services.
  • Enhancing technological strength and competence of the Agriculture industry thereby augmenting their competitive power. It also generates various novice employment opportunities and encourages the accomplishment of internationally accepted high standards of quality.
  • Providing clients with superior quality goods as well as services at a globally competitive rate. Canalization happens to be a vital feature of this policy under which some goods can be imported by designated agencies only. For instance, State Bank of India and some designated agencies or foreign banks can import items like gold in bulk.

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The Need for Import

The entire world is rushing towards integration and globalization and so, India too joined this face. Earlier, India was not too keen on joining the race and so, the economic scenario got worsened. During that time, the only option left to India was to augment its exports for tiding over the huge imports. Post this, India intended to gain a huge proportion of its international business besides making its position apparent on the international field. The Govt. did announce different export endorsement measures as well as incentives. The Government of India also framed many laws for streamlining the method of import and export. According to these laws, the commitment to expand India’s trade continued to remain firm. Government facilitation and laws weren’t connected to import and export of items and services only as they expanded to the gradation of technology too.

The EXIM Policy of the year 1992-1997 happened to be a remarkable landmark in the economic history of India as for the very first time; many conscious efforts were made for dismantling different regulatory policies and accelerating the transition of India towards a globally-oriented economy.

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