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The Indian economy spread its wings after introducing the LPG model in 1991. Liberalisation, Privatisation, and Globalisation have impacted the exports and imports in India well. With the advent of a new economic model, the various policies regarding exports and imports in India, too, have been revised. The current policies of exports and imports in India give autonomy to both the private and the public sectors. These policies have left some important impacts on the per capita income of the country.
The exports have opened a whole new opportunity for India. It has taken it to a prominent level globally. It has also brought in various merchandise to India and given rise to so many domestically as well. The impact of these export and import policies on the Indian economy can be understood in detail. However, it is also important to know these exports and imports in India and the policies related to them.
What is import and export in the Indian context
Importation or import refers to the products or services that are brought into India. These products or services are exclusive to other nations brought into India. For instance, the importation of weapons from Russia to India is an example of imports. If a country exceeds the importation level, it leads to a trade deficit. Trade deficit refers to more importation that terms the country’s international trade as negative.
Exportation or export refers to the domestic products or services in India that are sent to other countries. These products or services are curated domestically; however, they are sold to other countries. For instance, Indian spices are exported to countries like the USA, Germany, etc. If a country exceeds the exportation, it leads to a trade surplus. Trade surplus increases the economic growth of a country; hence, international trade becomes positive.
Both exports and imports are the two main components of international trade. Import acknowledges the participation of foreign countries. In contrast, exportation takes the country from a domestic level to global recognition.
India has framed several export and import policies to facilitate the Indian economy. All these policies can be understood in detail in the next part.
What are the import and export policies of India?
The export and import policies of India have been considered by the government every five years since its framing. These policies are popularly known as the EXIM or the Export-Import Policy of India.
The import policies of India are as mentioned below:
Importers in India are expected to register themselves with the DGFT or the Directorate General of Foreign Trade.
The importers can import only the licensed items approved by the DGFT for India.
Canalised items, such as petroleum, diesel, etc., can only be imported through specialised transportation mediums or methods.
Certain goods such as wild animals goods, animal rennet, and unprocessed ivory are totally banned from being imported into India.
All the matters regarding imports are to be concerned by the DGFT as it is the sole body for handling imports in India.
These are the import policies in India. Nullifying any of these criteria or policies restricts the importers automatically from importing to India.
Similar to the import policies, India also has certain export policies that it abides by. Below are the export policies of India.
Export in India has been classified into three categories. These are free, prohibited, and restricted.
India has signed the FTA or the Free Trade Agreement. According to this, India accepts exports from the other member countries at minimised trade barriers.
It is mandatory for the exporting party in India to back themselves with a good insurance policy. The government of India has encouraged the signing of the Export Credit Guarantee Corporation.
All kinds of export documentation, such as Airway receipts and railway receipts, are mandatory to be withheld by the exporting parties in India.
The current export policy for the FY 2021-2026 will focus on the MSMEs. It looks forward to generating an economy through exporting organic and domestically rooted startups in India.
These are the export policies of India. The per capita income and the economy of India have been impacted by these policies. It can be understood with the right figures and data in the next part.
The impact of export-import policies on the Indian economy
The current export and import policies of India have influenced the Indian economy optimistically. These can be understood more with the below-mentioned pointers.
India extended its relationship with the United States. In 2021, both countries unveiled the Climate Action and Finance Mobilisation Dialogue. Through this, the two nations have been working to increase climate saving initiatives and grow the economy too.
In January 2022, India and the United Kingdom had their first round of discussion for the FTA. Both the countries were optimistic about liberalising trade restrictions.
India is estimated to achieve the exportation of US $400 billion as it has signed export projects with the UAE, Canada, and the EU.
India is already on the path of boosting e-commerce. It is seeing a rapid increase in income through e-commerce, domestically and globally.
In 2021, the merchandise exportation had increased to US$ 34.06 billion. This marks an increment of 23.69% in merchandise exportation.
The Indian economy is also consistently monitoring its importation. This is done to secure the domestic manufacturers in India and keep up the organic nature of the Indian economy.
India has also signed the three-year treaty with Israel, wherein the focus will be on agricultural trade and strengthening bilateral relations as well.
India has additionally signed a treaty with Bhutan to acquire and develop environment-friendly growth of the economy.
The public company, Alankit Imagination Ltd., has signed an agreement with Digital Swiss Gold. According to this, the trading of gold between India and Switzerland can take place digitally.
These are some of the impacts of the export and import policies on the Indian economy. The modifications of these policies are made in lieu of stemming India’s economy as one of the largest amongst developing countries.
Conclusion
The above information includes a discussion on the export and import policies of India. It elaborates on what the policies of export and import are for India. Further, there is also a discussion about the impact of these policies on the Indian economy and its advancement.
