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Indian Economy Ashwani Panesar, Lovely Professional University

Notes Unit 14: Tertiary Sector in the Indian Economy

CONTENTS
Objectives
Introduction

14.1 EXIM Policy of India: A Brief Perspective of Changes
14.1.1 New Trade Policy (1991)
14.2 Foreign Trade (Development and Regulation) Act

14.2.1 Director General of Foreign Trade
14.2.2 Incentives and Promotions for Export
14.2.3 Foreign Trade Policy 2009-2014
14.3 Summary
14.4 Keywords

14.5 Review Questions
14.6 Further Readings

Objectives

After studying this unit, you will be able to:
Describe EXIM Policy of India

Define New Trade Policy (1991)
Know Foreign Trade (Development and Regulation) Act

Introduction

In this unit, you will study about the EXIM policy of India, the new trade policy (1991) and the
foreign trade (development and regulation) act. Indian foreign trade under colonial rule was
manipulated by the British for their own interests. After independence, the then government
included the Import and Export (Control) Act, 1947 with the goal of regulating imports and
exports. At that time, the Indian economy was influenced by scarcity. To protect the domestic
industry and to limit the export of essential goods, it was essential necessary to regulate
international trade.
The National Planning Commission (NPC) has said, “The objective of the country as a whole
was the attainment, as far as possible, of national sufficiency. International trade was certainly
to be included but we were anxious to avoid being drawn into the whirlpool of economic
imperialism.”
So in next years, import substitution and safeguard of domestic industry became the chief thrust
of the Exim policy for majority of the period during 1950-51 to 1990-91. It was in 1991 that the
Indian Exim policy saw a drastic alteration in the shape of liberalisation.

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