1.

The period 1980-91 (Export promotion-oriented trade policy):

From 1985 onwards the system of formulating long term policies was adopted. Three long
term policies were announced by the government. The increasing deficits in balance of
payments underscored the need for vigourous export promotion polices.

The exim policy of 1980’s was guided by the recommendations of three official
committees-
 the Alexander Committee (1978): Some of the recommendation are:
a. Simplification of the import policy limiting the import items to two broad categories
restricted and banned.
b. Stability in exim policies to help effective planning for export production
c. Expansion of OGL (Open General License) system for import of capital goods for
achieving efficiency, productivity and competitiveness
d. Simplification in documents involved in export-import business operations
 Tandon Committee (1982): This committee was headed by Mr. P.L.Tandon was
appointed early in 1980’s to give recommendations for giving stress on export
promotion and import liberalization an appropriate export strategy. Some of them
are:
a. Revolving fund to provide soft loans to export oriented crops an export target of Rs.
17,968 crore for 1990-91 implying a growth rate of 10 percent annually to achieve 1
percent share in world trade by 1990-91. The share at that time was 0.5 percent.
b. Revolving fund to provide soft loans to export oriented crops
c. Adoption of selectivity approach for export instead of spreading the effort too thinly
d. Special facilities for small manufacturers-exporters covering infrastructure, banking and
shipping services
 the Hussain Committee (1985): This committee was headed by Mr. Abid Hussain.
This was headed by:
a. Rationalization of incentive schemes and simplification in their disbursement procedures
b. Liberal import of technology in most of the sectors of the Indian economy
 c. Exemption of incentives and profits on exports to the extent of 50 percent from income
tax
d. Need for selectivity in export promotion and import substitution

THE POST-REFORMS PERIOD:

The post-reforms period is also known as the era of economic liberalization and sweeping
reforms. It is the period from 1991 onwards. Initially three years long term policies were
announced by the government. Subsequently the period was extended to five years. In the post
reforms period three five-year policies have been announce by the government:

1. Export Import Policy for 1992-1997:

The process of liberalization started in July, 1991 with 1991 with the objective of developing an
environment conductive for generating a fair and free competition among different agents of
production and distribution of goods and services, of finance and trade, both public and private,
domestic and foreign, small and large alike.1 The new trade policy has been designed to reinforce
the changes made in trade policy of 1991. The main feature of this policy are

1
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