OBJECTIVES OF EXPORT-IMPORT POLICY : Government control import of non-essential Items through an import policy at the same time. all-out efforts are made to promote exports. Thus, there are two aspects of trade policy; the import policy which is consumed with regulation and management of imports and the export policy which is concerned with exports not only promotion but also regulation. The main objective of the Government policy is to promote exports to the maximum extent. Exports should be promoted in such a manner that the economy of the country is not affected by unregulated exports of items specially needed within the country. Export control is, therefore, exercised in respect of a limited number of items whose supply position demands that their exports should be regulated in the larger interests of the country. In other words the policy aims at:

I) promoting exports and augmenting foreign exchange earnings; and

ii) Regulating exports wherever it is necessary for the purposes of either avoiding completion among the Indian exporters or ensuring domestic availability of essential Items of mass consumption at reasonable prices.

The Government of India announced sweeping changes in the trade policy during the year 1991. As a result, the new Export-Import policy came into force from April 1, 1992. This was an important start towards the economic reforms of India. In order to bring stability and continuity the policy was made for the duration of 5 years. In this policy, import was liberalised and export promotion measures were strengthened. The steps were also taken to boost the domestic industrial production. The major aspects of the export-import policy ( 1992-97) include: introduction of the duty-free Export Promotion Capital Goods (EPCG) scheme, strengthening of the Advance Licensing System, waiving of the condition on export proceeds realisation, rationalisation of schemes related to Export Oriented Units and units in the Export Processing Zones. The thrust area of this policy was to liberalise imports and boost exports.

The need for further liberalisation of imports and promotion of exports was felt and the Government of India announced the new Export-Import Policy (1997-2002). This policy has further simplified the procedures and reduces the interface between exporters and the Director General of Foreign Trade (DGFT) by reducing the number of documents required for export by half. Import has been further liberalised and efforts have been made to promote exports.

The new EXIM Policy 1997-2002 aims at consolidating the gains made so far, restructuring the schemes to achieve further liberalisation and increased transparency in the changed trading environment. It focuses on the strengthening the domestic industrial growth and exports and enabling higher level of employment with due recognition of the key role played by the SSI sector. It recognises the fact that there is no substitute for growth which creates jobs and generates income. Such trade activities also help in stimulating expansion and diversification of production in the country.

The principal objectives of Export Import Policy 1997-2002 are:

i. To accelerate the country's transition to a globally oriented vibrant economy with a view to derive maximum benefits from expanding global marked opportunities.

ii. To enhance the technological strength and efficiency of Indian agriculture, industry and services, thereby moving their competitive strength while generating new employment opportunities

iii. To provide consumers with good quality products at reasonable rates.

The objectives will be achieved through the coordinated efforts of all the departments of the government in general and the Ministry of Commerce and the Directorate General of Foreign Trade and its network of Regional Offices in particular. Further it will be achieved with a shared vision and commitment and in the best spirit of facilitation in the interest of export.