EXIM Policy Announcement

EXIM Policy stands for Export-Import Policy, which is a set of guidelines and measures adopted by the government for promoting and regulating the country's foreign trade. The first EXIM Policy was announced in 1985, and since then, it has been revised periodically.

The correct answer to the given question is option 'B,' i.e., 1992. In 1992, the government of India announced the 5th EXIM Policy, which was applicable for the period 1992-97. Let's understand the key features of the 5th EXIM Policy.

Key Features of 5th EXIM Policy

1. Liberalization of Import Regime: The 5th EXIM Policy aimed at liberalizing the import regime by reducing the list of prohibited items and simplifying the procedures for import of capital goods, raw materials, and components.

2. Export Promotion: The policy emphasized the promotion of exports by providing incentives and subsidies to exporters. It introduced the Duty-Free Replenishment Scheme (DFRS), Export Promotion Capital Goods (EPCG) Scheme, and the Export Processing Zones (EPZs) to boost exports.

3. Technology Upgradation: The policy focused on technology upgradation by allowing duty-free import of machinery and equipment for technology upgradation, modernization, and quality improvement.

4. Export-Oriented Units (EOUs): The policy allowed the setting up of EOUs, which are industrial units that produce goods for exports. These units were exempted from paying taxes and duties, and they were allowed to import and export goods freely.

5. Export-Import Procedures: The policy simplified the export-import procedures by introducing the Single Window Clearance System and the Electronic Data Interchange (EDI) System.

6. Special Economic Zones (SEZs): The policy allowed the setting up of SEZs, which are designated areas that provide tax incentives and other benefits to companies for promoting exports and attracting foreign investment.

Conclusion

In conclusion, the 5th EXIM Policy announced in 1992 was a landmark policy that aimed at promoting exports, liberalizing the import regime, and encouraging technology upgradation. The policy introduced several schemes and incentives for exporters and simplified the export-import procedures, which helped in boosting India's foreign trade.

The Government of India for the first time introduced 5 year Export Import Policy (EXIM) on "April 1, 1992" to dismantle various protectionist and regulatory policies and to accelerate India's transition towards a globally oriented economy.