FOREIGN TRADE POLICY
IEC code (export import code): The Indian government’s foreign trade policy is a comprehensive system of rules and policies designed to facilitate imports, encourage exports, and accelerate the nation’s overall economic growth. India’s foreign trade policy seeks to level the playing field for domestic sectors, encourage trade and investment, and boost India’s exports internationally. The following are a few key aspects of India’s foreign trade policy:
Promotion of Exports: By offering exporters a range of incentives and advantages, India’s foreign trade policy aims to boost exports. It encompasses programs like the Export Promotion Capital Goods (EPCG) plan, the Merchandise Export from India plan (MEIS), and the Service Export from India Scheme (SEIS).
Trade Facilitation: To lower transaction costs and increase efficiency, the strategy seeks to simplify customs clearance and trade procedures. The Electronic Data Interchange (EDI) system was put in place by the government to facilitate the smooth sharing of trade-related data between customs officers and traders.
Special Economic Zones: To increase exports and draw in foreign investment, the strategy promotes the creation of Special Economic Zones (SEZs). Tax holidays, duty-free imports, and expedited processes are just a few advantages that SEZs provide.
Import Promotion: To make it easier to import items needed for industrial production and home consumption, the strategy also prioritizes import promotion. The government has made it easier to import components, raw materials, and capital items.
Commerce with neighbors: Through a number of programs, including the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) and the South Asian Free Trade Area (SAFTA), the policy encourages commerce with neighbors.
Focus on MSMEs: By offering them a number of incentives, such as a 3% interest subvention on pre-shipment and post-shipment loans, the policy seeks to increase the competitiveness of Micro, Small, and Medium-Sized Enterprises (MSMEs).