India’s Export-Import

11594 Words Nov 4th, 2011 47 Pages
UNIT 15 INDIA’S EXPORT-IMPORT POLICY
Objectives
This unit helps you to understand: what is trade policy; kinds of trade policy; phases of liberalisation in trade policies in the process of economic development; trends in India’s exim policies; salient features of India’s import regime during 1950-91; characteristics of India’s export promotion policies; and India’s Trade Policy reforms in the 90s.

Structure
15.1 15.2 15.3 15.4 15.5 15.6 15.7 15.8 15.9 15.10 15.11 15.12 15.13 15.14 Introduction India’s Exim Policy : A Backdrop The Foreign Trade Regime : Analytical Phases and Changes Overtime India’s Exim Policy : Phases and Changes India’s Import Regime (1950-89) : Major Features Export Policies and Incentives (1950-89) EXIM Policies in
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This was because it was felt that dependence on other, more powerful countries for imports of essential commodities would lead to political dependence on them as well. This was succinctly brought out by the National Planning Committee (NPC) in 1946 set up by the Indian National Congress, under the Chairmanship of the late Jawaharlal Nehru. “In the context of the modern world, no country can be politically and economically independent, even within the framework of international interdependence, unless it is highly industrialised and has developed its power resources to the utmost. Nor can it achieve or maintain high standards of living and liquidate poverty without the aid of modern technology in almost every sphere of life. An industrially backward country will continually upset the world equilibrium and encourage the aggressive tendencies of more developed countries. Even if it retains its political independence, this will be nominal only and economic control will tend to pass to others.” Earlier the NPC had said that, “The objective of the country as a whole was the attainment, as far as possible, of national self-sufficiency. International trade was certainly not excluded, but we were anxious to avoid being drawn into the whirlpool of economic imperialism.” 40

These laid the broad framework for the formulation of EXIM policy in the subsequent years. On the whole, import substitution and protection to domestic