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INTRODUCTION : In a developing country like India, trade policy is one of the many economic instruments which is used to suit the requirements of economic growth. The twin objectives of India's trade policy have been to promote exports and to restrict the level of imports to the level of foreign exchange available to the government. The basic problem of a country like India happens to be non-availability or acute shortage of crucial inputs like industrial raw materials, capital goods and technology. The bottleneck can be removed only by imports. In the short run import can be financed through foreign aid, borrowings, etc., but in the long run, imports must be financed by additional export earnings. The basic objective of the trade policy, therefore, revolves round the instruments and techniques of export promotion and import management. In this unit, you will learn the objectives of export-import policy, the significance of export trade control and the procedure of export licence. Highlights of the EXIM Policy 1997-2002 will also be explained. Further the detail provisions regarding exports and imports will be discussed at length.
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