EXIM Policy during the post-reforms in India

Q. 8 Write short notes on :
(a) Consumer as per Consumer Protection Act
(b) EXIM Policy during the post-reforms in India.

Answer

(a) Consumer as per Consumer Protection Act

Meaning / Definition

According to the Consumer Protection Act, a consumer is a person who:

1. Buys any goods for a price (consideration) paid, promised, partly paid or partly promised, or under any system of deferred payment, or
2. Hires or avails any services for a price (consideration) paid, promised, partly paid or partly promised, or under any system of deferred payment.

Thus, a consumer is the ultimate user of goods or services who pays or agrees to pay for them.

Essential Features of a ‘Consumer’

1. Buys goods or hires services
   The person must buy goods (like a TV, mobile, book) or hire services (like banking, insurance, transport, telecom, medical, education etc.).
2. For consideration (price)
   The purchase or hiring must be for some consideration, i.e. money or money’s worth. Free services are normally not covered.
3. Includes partly paid and deferred payment
   Even if the price is partly paid and partly promised, or is to be paid later in installments, the person will still be treated as a consumer.
4. For personal use, not for resale
   A person who buys goods for resale or for a commercial purpose is not a consumer.
   However, if the goods are bought for self-employment to earn livelihood (e.g. a tailor buying a sewing machine for his own work), he is treated as a consumer. EXIM Policy during the post-reforms in India
5. Includes beneficiary of goods and services
   Any person who uses the goods with the approval of the buyer, or is a beneficiary of the services hired (for example, a family member travelling on a railway ticket bought by another member) is also considered a consumer.

Conclusion

So, under the Consumer Protection Act, a consumer is any person who buys goods or hires services for personal use, for consideration, and not for resale or large-scale commercial purposes, and includes the user/beneficiary of such goods or services. EXIM Policy during the post-reforms in India

(b) EXIM Policy during the Post-Reforms in India

Meaning of EXIM Policy

EXIM Policy (Export-Import Policy) is the government’s policy related to foreign trade, i.e. export and import of goods and services.
It lays down rules, procedures, incentives and restrictions relating to foreign trade, with the aim of promoting exports, regulating imports and integrating the Indian economy with the world.

After the economic reforms of 1991 (liberalisation, privatisation and globalisation), India’s EXIM policy underwent major changes. EXIM Policy during the post-reforms in India

Objectives of Post-Reform EXIM Policy

1. To promote exports and earn foreign exchange.
2. To liberalise imports and make available raw materials, capital goods and technology at competitive prices.
3. To integrate the Indian economy with the global economy and encourage competitiveness.
4. To generate employment and economic growth through expansion of foreign trade. EXIM Policy during the post-reforms in India

Main Features of EXIM Policy in the Post-Reform Period

1. Liberalisation of Imports
   
   • Many items were shifted from “restricted” or “canalised” list to Open General Licence (OGL), allowing easier import.
   • Quantitative restrictions were gradually removed and replaced mainly by tariffs (import duties).
2. Reduction and Rationalisation of Import Duties
   
   • Import duties were reduced in phases to bring them closer to global levels.
   • This helped Indian producers to import better quality raw materials and capital goods at lower cost, improving efficiency.
3. Export Promotion Measures
   
   • Introduction and strengthening of schemes like Export Promotion Capital Goods (EPCG), Export Oriented Units (EOUs), Export Processing Zones (EPZs) and later Special Economic Zones (SEZs).
   • Duty drawback, duty-free import of inputs, export incentives and credit facilities were provided to boost exports.
4. Market-Determined Exchange Rate and Convertibility
   
   • The rupee moved towards a market-determined exchange rate, making exports more competitive.
   • Current account convertibility was introduced, making foreign trade payments easier and more flexible. EXIM Policy during the post-reforms in India
5. Encouragement to Foreign Capital and Technology Imports
   
   • Relaxation of rules for foreign direct investment (FDI) and collaboration.
   • Easier access to foreign technology, machinery and know-how to modernise Indian industry and make it export-oriented.
6. Simplification of Procedures and Documentation
   
   • Efforts were made to simplify export-import procedures, reduce paperwork, introduce electronic filing and make dealings with customs and DGFT easier for traders. EXIM Policy during the post-reforms in India

Conclusion

In the post-reform period, India’s EXIM policy shifted from a protectionist and highly controlled regime to a liberal and export-oriented one.
The emphasis has been on promoting exports, liberalising imports, reducing trade barriers and integrating the Indian economy with the global market, thereby contributing to higher growth and greater competitiveness. EXIM Policy during the post-reforms in India

If you would like to know the Syllabus of Business Environment, You Must visit the official website of Gndu.

Note:- 👉 Important questions of Business Environment

1. Previous Years questions Papers of Business Environment Under Gndu.
2. Significance of business environment
3. Privatisation solution for currently economic Problem
4. Functions of NITI aayog
5. Disinvestment of shares in public sector enterprise