Export Incentives in India- Impact Assessment

Export Incentives in India- Impact Assessment

Author Name : Dr. Javid Ahamd Bhat

ABSTRACT Export incentives formed an integral part of India’s trade strategy since the beginning of Five-Year Plans. This paper is concerned with the analysis of the rationale of India’s export incentives, both direct as well as indirect, as an instrument of export promotion for economic development of the country in view of persistent deficit in its trade balance resulting form its mounting development expenditure. Apart from examining the impact of export incentives on the overall performance of the export sector of the economy, it also examines the case for an export promotion policy and the controversy between export promotion and import substitution. As regards the analysis of the export incentives and export policy assessment through the data on exports, the study has been divided into three phases. Phase I (Covering the period up to 1985– inward looking strategy), Phase II (Covering the period from 1985 up to 1991– partial reform era) and Phase III (Period after 1991– outward oriented strategy). The basic objective, however, of the policy of three phases appears to have been identical. This being to meet the problem of India’s Balance Of Payments (BOPs) which tended to deteriorate progressively.