Name: Shubham Bhutada

Roll No: 20MBAIB049

Question and Answers:

Q.1 Discuss the salient features of the current EXIM Policy that encourage/promote
exports in services.
Answer:
Introduction of EXIM Policy:
There are numerous deficiencies in the current EXIM strategy. The strategy gives advantages
to the exporters however there are helpless exchange support, holes in send out framework,
fundamental exchange support, absence of admittance to monetary office and low fare credit
which should be tended to. The strategy does exclude advantages to the areas, for example,
R&D which are extremely fundamental for giving quality labour and products in this new
globalized world. India's exchange strategy neglected to address uncertainty issues, issues, for
example, decrease in worldwide interest because of value issues and production network issues.
The significant expenses of labour and products alongside unreliableness has caused a
significant issue in the EXIM strategy.
Legislature of India has changed the plans for trade arranged units and fare preparing Zones.
Farming, Horticulture, poultry, fisheries and dairies have been remembered for the fare situated
units. Fare preparing zones have been permitted to send out through exchanging and star
exchanging houses and can have hardware on rent. These units have been permitted penny
percent cooperation in unfamiliar values.
Salient Features to EXIM Policy to promote exports:
1. Expansion in number of Export Items:
The Govt. has recognized numerous new items for sends out. They are fish and fish
arrangements, horticultural items and marine items and so forth these items are import-light
and subsequently tension on unfamiliar trade was mitigated.
2. Job of Public Sector Agencies:
Certain fares are constrained by Public area offices like State Trading Corporations (STC),
Mineral and Metal Trading Corporation (MMTC). Presently these are approached to contend
with different exporters. Outsiders have been allowed to set up exchanging houses for send out
purposes.
3. Limitation Free Export Policy:
Limitations on sends out have been decreased to least as per new approach. Fare limitations
have been forced on a couple of touchy products thinking about the home grown interest and
supply factors. Fare obligations are presently not considered as wellspring of income age
however a method for expanding the intensity of home grown exporters in the worldwide
market.
4. Convertibility of Rupee:
To expand sends out, the rupee was made mostly convertible on current record.
5. Devaluation of Rupee:
As a rule, degrading of rupee implies bringing down the worth of rupee as far as unfamiliar
monetary standards. Degrading makes home grown products less expensive in the unfamiliar
market. To cover the equilibrium of instalment trouble. This aided in empowering trades.

Q.2 Discuss the different FTA/PTA agreements signed by India. Add your own analysis/
explanation of the benefits/losses accrued to India from such agreements.
Answer:
Analysis between Free Trade Agreement and Preferential Trade Agreement:
Free trade agreements (FTAs) are arrangements between two or more countries, or between a
country and a trading bloc to abolish or reduce tariffs, quotas, and preferences on goods and
services traded.
FTAs also cover areas such as intellectual property rights (IPRs), investment, and government
procurement and competition policies.
At the regional level, every customs union, trade common market, economic union, and
customs and monetary union negotiate free trade areas.
India looks favourably upon regional trading arrangements (RTAs), such as FTAs, Preferential
Trade Agreements (PTAs), Comprehensive Economic Partnership Agreements (CEPAs), and
Comprehensive Economic Cooperation Agreements (CECAs).
Types of Trade Agreement:
1. Free Trade Agreement:
India has negotiated trade liberalization arrangements with several countries and trade
groupings, including pre-FTA level schemes and alternative trade relaxation programs with
ASEAN, Sri Lanka, and Thailand.
2. Preferential Trade Agreement:
In this type of agreement, two or more partners give preferential right of entry to certain
products. This is done by reducing duties on an agreed number of tariff lines. A PTA is
established through a trade pact, and is a stepping stone towards better economic relations with
the concerned country.
India enjoys PTAs with several countries, including Bangladesh, China, South Korea, and Sri
Lanka.
The key difference between an FTA and a PTA is that in a PTA there is a positive list of
products on which duty is to be reduced; in an FTA, there is a negative list on which duty is
not reduced or eliminated.

Q3) Please conduct a SWOT analysis of India’s foreign trade policy for
Suggesting new opportunities (markets/products/industries) to explore & maximise
strengths (advantage) to gain market share & new markets development.
Addressing lacunae’s in the current policy seeing the emergence new trends &
competitors in trade.
Answer:
Q.3.A)
Answer:
Analysis of India’s foreign trade policy:
SWOT analysis is a useful method of summaries all the information generated during the
export planning. SWOT stands for strengths, weakness, opportunities and threats, which
helps to isolate the strong and weak areas within an export strategy.
1. Strengths:
Business strengths are its resources and capabilities that can be used as a basis for developing
a competitive-advantage. Examples of such strengths include:
 Patents.
 Strong brand names.
 Good reputation among customers.
 Cost advantages from proprietary know-how.
 Exclusive access to high grade natural resources.
 Favourable access to distribution networks.

2. Weaknesses:
The absence of certain strengths may be viewed as a weakness. For example, each of the
following may be considered weaknesses:
 Lack of patent protection.
 A weak brand name.
 Poor reputation among customers.
 High cost structure.
 Lack of access to the best natural resources.
 Lack of access to key distribution channels.
 3. Opportunities:
The external environmental analysis may reveal certain new opportunities for profit and
growth. Some examples of such opportunities include:
 An unfulfilled customer need.
 Arrival of new technologies.
 Loosening of regulations.
 Removal of international trade barriers.

4. Threats:
Changes in the external environmental also may present threats to the firm. Some examples of
such threats include:
 Shifts in consumer tastes away from the firm's products.
 Emergence of substitute products.
 New regulations.
 Increased trade barriers
Successful SWOT Analysis:
 Simple rules for successful SWOT analysis:
Be realistic about the strengths and weaknesses of the organization. Analysis should distinguish
between where the organization is today, and where it could be in the future.

 Be specific:
Always analyse in relation to your competition i.e. better than or worse than your competition.

 Keep your SWOT short and simple:

Q.3.B)
Answer:
Introduction of India foreign trade policy:
The unfamiliar exchange strategy is basically a bunch of rules for the import and fare of
labour and products. These are set up by Directorate General of Foreign Trade (DGFT),
the administering body for the advancement and help of fares and imports under the
Ministry of Commerce and Industry.
The issue might lie in the low punishment forced on organizations that don't meet their
fare commitment. The new FTP ought to either reinforce the current plan or redo it to
advance fares.
Emergence new trends and Drawbacks of Indian Foreign Trade Policy:
The public authority likewise has the obligation disadvantage conspire (DBK) set up to
help exporters. Be that as it may, the way things are, the DBK plot isn't exactly viable, and
we might want to see it upgraded in the new FTP. It offers an obligation downside as a
level of the traded cost - however with a cap. Adequately, this gives an exporter of costly,
great products similar DBK as an exporter of modest merchandise. The new DBK (or its
same) should represent the worth of fares and advance it as needs be.
1. WTO consistent plans: This ought to be at the centre of the FTP. The WTO
attempts to prevent governments from intensely sponsoring exporters to give a
level battleground to all countries. The Indian government is very much aware of
the need to remain inside the WTO standards and has as of now found a way critical
ways to pull out sponsorship drove plans.
Notwithstanding, more should be done at a principal level to advance fares and
guarantee that Indian fares are cutthroat in the worldwide market.

2. Framework improvement: A proficient and broad foundation organization -

3. Tech up degree and up skilling: Like foundation, overhauling the innovation and
abilities of exporters could be a decent choice. This will permit Indian exporters to
be cutthroat on their benefit, instead of depending on government sponsorships and
other monetary sops went against to the WTO.

4. Fare help: MSME exporters structure a huge lump of Indian exporters. They are
frequently unconscious of worldwide laws and prerequisites. The public authority
as of now offers help to these more modest players via courses and studios to keep
them side by side of what's happening. This is something that the new FTP needs
to take ahead. Fares are an imperative piece of the nation's GDP. Unfamiliar
exchange should be given adequate significance and speculation. A few decent
advances have as of now been taken, yet there's far to go. Maybe than take
responsive Band-Aid gauges, the FTP could find proactive ways to guarantee that
fares are maintainable for Indian organizations and in accordance with WTO
standards. The new FTP could be another progression on the way to a dynamic,
send out drove economy.