Foreign Policy

• A country’s relation with other countries of the world is known

as their external relations. The external relation of a country
is based on certain principls and policies. They are collectively
called as foreign policy.
• Thus foreign policy is the totality of actions of a state in
dealing with external environment consisting of national (e.g.
USA, Japan, India), international (e.g. UN, WTO) and regional
(e.g. SAARC, EU) actors.
• In other words foreign policy is the sum total of a country’s
relationship with these actors while pursuing its perceived
goals and objectives. Through the process of foreign policy a
state translates its goals and interests into specific course of
action.
 ACHIEVEMENTS AND FUTURE
TARGETS

Area 2003- 2008- Target

04 09
Global exports $ 63 b $ 168 b $ 200 b

Global 0.83 % 1.45% Double

merchandising
Global services 1.4 % 2.8% Increase
export substantiall
y
Total goods and 0.92 % 1.64 % Increase
services substantiall
THE CURRENT
OBJECTIVES
1)Increase the amount of Exports

2)Revive the sectors

3)Expand the Markets

 SPECIAL FOCUS INITIATIVES:

MARKET DIVERSIFICATION:
• 26 new markets added in this scheme.
• Incentives under FMS raised from 2.5 % to 3 %
TECHNOLOGICAL UPGRADATION :
• EPCG AT zero duty.
• Steps to encourage Project Exports shall be taken.
SUPPORT TO STATUS HOLDERS :
• To incentivise and encourage the status holders, as
well as to encourage Technological upgradation of
export production
 AGRICULTURE
• Vishesh Krishi and gram Udyog Yojana
• Agri Export Zones (AEZ)
• Capital goods exported under EPCG.
• Funds shall be earmarked under ASIDE
• Units in AEZ shall be exempt from bank
guarantee under EPCG
• Import of Inputs such as pesticides
• Towns of export excellence-threshold limit
250 cr.
 OTHER SECTORS
HANDLOOMS :
• Funds given under MAI/MDA scheme for
promoting Export.
• Machinery & equipment exempt from Custom
duty.
• Help exporters to find new markets.
HANDICRAFTS :
• Duty free import tools.
• Fund under MAI/MDA and Machinery exempted
from custom duty.
• All handicraft treated as special focus products
and entitled to higher incentives.
 TRADE BANS
COUNTR ITEM
Y
IRAQ Arms and related material
IRAN Materials, Technology,
Equipment Helping in Their
Nuclear enrichment program
VENEZUEL Rough Diamond
A
KOREA Any materials, Technology,
Equipment Contributing to their
missile program
 INDIA’S FOREIGN TRADE POLICY 2009-
14
• Announcements for MDA & MAI:

• Higher allocation for Market Development Assistance (MDA)

and Market Access
• Initiative (MAI) has been announced.

• Towns of Export Excellence (TEE)

• The following cities have been recognized as towns of
export excellence (TEE)
• Handicrafts : Jaipur, Srinagar and Anantnag
• Leather Products : Kanpur, Dewas and Ambur
• Horticultural Products: Malihabad
 Export & Trading House
Status Export performance
FOB/FOR (Rs. In
crore)

Export House 20
Star Export House 100
Trading House 500
Star Trading House 2500
Premier Trading House 7500
THANKS