Export Import Regulation In India: Legislative Evolution And Policy Shift
- IJLLR Journal
- Mar 28, 2025
- 1 min read
Rachana Urs KL, B.B.A.LL.B., LL.M.
ABSTRACT
Imports and exports form the backbone of any thriving economy. While imports bring in goods produced by foreign manufacturers into the country to meet domestic demand, exports allow locally made products to reach international markets. In India, the regulation of these cross-border movements is governed by the Foreign Trade (Development and Regulation) Act, 1992, which replaced the earlier Imports and Exports (Control) Act, 1947. This legislation empowers the government to monitor and manage the flow of goods in and out of the country. Over time, India has moved from a rigid, state-controlled trade system to a more liberalized framework. Yet, regulatory oversight remains crucial, especially when it comes to sensitive or strategically important goods. Under the Indian Trade Classification (Harmonized System)—or ITC-HS—goods are categorized into three groups: Restricted items (require a license), Canalized items (importable only through designated agencies), and Prohibited items (not allowed at all). While most goods can be freely imported, these classifications ensure that trade aligns with national interests. Additionally, imports attract basic customs duty, and depending on the nature of the product, other charges such as anti-dumping duty, safeguard duty, or a social welfare surcharge may apply. This article takes a closer look at how India manages its import-export ecosystem—from tariff barriers and licensing requirements to constitutional powers and statutory exemptions—reflecting the balance between trade liberalization and state control.
Keywords: protectionism, liberalization, Custom Act, Tariff.
