India is one of the fastest-growing economies in the world, with a thriving import-export industry. The country’s trade policies have evolved significantly over the years to promote exports and reduce imports. In this blog, we will provide an overview of India’s import-export policy.

Import Policy

The import policy of India is regulated by the Directorate General of Foreign Trade (DGFT), which is a government agency responsible for promoting and regulating India’s foreign trade. The import policy is formulated on an annual basis and is subject to change based on economic conditions and government policies.

The import policy of India is divided into two categories: Open General License (OGL) and Restricted Items. OGL items are those that can be freely imported without any restrictions, while Restricted Items are those that require an import license from the DGFT.

The import policy also includes various measures to control the import of non-essential items and promote domestic production. These measures include import duty, anti-dumping duty, safeguard duty, and countervailing duty.

Export Policy

The export policy of India is also regulated by the DGFT. The objective of India’s export policy is to increase the country’s share in the world trade by promoting exports of goods and services.

The export policy includes various measures to incentivize exports, such as duty drawback, duty-free import of inputs, and export promotion schemes like the Export Promotion Capital Goods (EPCG) scheme, Merchandise Exports from India Scheme (MEIS), and Service Exports from India Scheme (SEIS).

The export policy also includes restrictions on the export of certain items, such as minerals, metals, and agricultural products, to ensure adequate domestic supply and prevent shortages.

Trade Agreements

India has signed several trade agreements with other countries and regions to promote international trade. These agreements include Free Trade Agreements (FTAs), Preferential Trade Agreements (PTAs), and Comprehensive Economic Cooperation Agreements (CECAs).

India has signed FTAs with countries like Japan, South Korea, and ASEAN countries. These agreements aim to reduce trade barriers and promote trade between the signatory countries. Similarly, India has signed PTAs with countries like Chile and MERCOSUR, and CECAs with countries like Singapore and South Korea.

Conclusion

India’s import-export policy is aimed at promoting foreign trade, reducing imports, and increasing exports. The policy is subject to change based on economic conditions and government policies. By understanding India’s import-export policy, businesses can navigate the complex regulatory environment and take advantage of the various incentives and schemes available to them.