India's Export-Import (EXIM) Policy (2001-02)

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Though India's Export-Import Policy covers the period 1997-2002, it is customary for the government to make amendments to it every year. Each year's amendment marks a further step in the liberalisation process.

 

Highlights of the EXIM Policy (2001-02) Chronology of India's removal of QuantitativeRestrictions

Highlights of India's EXIM Policy (2001-02)

  • Quantitative Restrictions removed
  • 300 sensitive items kept under ‘war room’ watch
  • Important agro and petro products to be import through state agencies.
  • Major focus on agro exports
  • FDI permitted in Special Economic Zone
  • Globalization finally sweeps through Indian market. India has lifted quantitative restrictions from 715 items with effect from April 1, 2001. The new export-import policy (FY 2001-02) however, is not without any checks and balances.

  • To ensure that domestic industries are not deluged by the import flood , the Indian Federal government has created a "war room" group which would closely monitor import trends for 300 sensitive items , analyse the impact of imports flow on the domestic market and take appropriate measures to enlarge or reduce the list further. Indian Commerce minister in his speech asserts that the Federal government is well equipped to handle any fallout of the removal of quantitative restrictions.

  • Along with the removal of QRs , Indian has at the same time brought certain important agricultural and petroleum items under the state trading fold. Various state trading agencies are designated as canalising agencies for those identified items including wheat, rice, maize, urea, petroleum, diesel and aviation turbine fuel.

  • The watch list of 300 items include cars and multi-utility vehicles, second hand vehicles, poultry and meat products, dairy products, fruits and coffee, tea, spices, edible oils, alcoholic beverages and rubber products

  • India targets to attain at least 1 percent of the expected global exports of US$ 7.5 trillion by 2004 or US$ 75 billion from the expected current level of US$ 43 billion ( 2001). This works out to average 18 percent annual growth in India’s exports from the next three years to 2004.

  • The Exim policy of 2001-02 gives major thrust on promotion of agricultural exports from India which is the third largest global producer of food, gives primacy to promotion of agricultural exports. The A new agricultural exports policy is on the cards .

  • To fuel agricultural exports, the Exim policy schemes like Duty Exemption Scheme and Export Promotion Council Goods Scheme will be applicable to the agro sector.

  • Regional Rural Motors zones are created based on the convergence of specific products and specific geographical areas.

  • First such zone is created for apples from Himachal Pradesh and Jammu and Kashmir and alphonso mangoes from Konkan areas of Maharashtra.

  • In the Special Economic Zone Foreign Direct Investment is permitted under automatic route for all manufacturing sectors except a small negative list.

FY : India’s Financial Year is April to March next year.

CHRONOLOGY OF INDIA’S REMOVAL OF QUANTITATIVE RESTRICTIONS

Total number of tariff lines as on April1, 1996

10202

Tariff lines free as on April 1, 1996

6161

Tariff lines freed for import during 1996-97

488

1997-98

391

Tariff lines freed preferentially for imports from SAARC countries with effect from August 1, 1998

1429

1998-99

894

1999-2000

714

2000-01

715

Source: India’s Federal Commerce minister’s Exim Policy ( 2001-02) speech delivered on March 31, 2000.

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