Regulation Of Foreign Trade In India Under The Foreign Trade (Development And Regulation) Act, 1992
- IJLLR Journal
- Aug 15
- 2 min read
Pooja VV, Bharata Mata School of Legal Studies, Choondy, Aluva
ABSTRACT
Foreign trade plays a crucial role in India’s economic development by promoting industrial growth, increasing exports, attracting foreign investment, creating employment opportunities, and strengthening the country’s position in the global market. As international trade has become increasingly complex and rigid, an effective legal framework is essential to regulate the cross–border commercial activities while ensuring that economic growth is balanced with national security, public interest, and international obligations. The Foreign Trade (Development and Regulation) Act, 1992 is the primary and principal legislation that governing India’s foreign trade sector. The act replaced the earlier stricter and complex import- export control system with more transparent, flexible, and policy-oriented framework designed to facilitate the trade while maintaining necessary regulatory oversight. It empowers the central government to implement and to formulate the Foreign Trade Policy and empowers the Director General of Foreign Trade (DGFT) to oversee licensing, ensure and monitoring of compliance, and regulate export and import activities.
This research critically examines the legal and regulatory framework established under the Foreign Trade (Development and Regulation) Act, 1992, with particular emphasis on its objectives, scope, evaluates its role in promoting orderly growth of India’s foreign trade and institutional framework. It discusses the role of the central government and Director General of Foreign Trade (DGFT) in regulating foreign trade. This research also explores the relationship between the Act and other important legislation, including the Customs Act, 1962 the Foreign Exchange Management Act,1999, and India’s commitments under the agreements of World Trade Organization. Further this study discusses the significance of judicial interpretation and implementation of the Act in addressing emerging issues, including digital trade, export promotion, trade facilitation, national security concerns, and sustainable economic development.
This research finds that the Foreign Trade (Development and Regulation) Act, 1992 has played a pivotal role in modernising India’s Foreign Trade administration and creating a predictable legal environment for international commerce. Continuous reforms remain necessary to respond to global trade practices, technological developments, and evolving economic priorities. This research paper concludes the strengthening institutional coordination, improving transparency, simplifying regulatory procedures, encouraging digital governance, and aligning domestic laws with international trade standards will increase the effectiveness of India’s foreign trade regime and allows the country to achieve sustainable economic growth while remaining competitive in the global trading system.
Keywords: Foreign Trade; Foreign Trade (Development and Regulation) Act, 1992; Export and Import Regulation; Director General of Foreign Trade (DGFT); Foreign Trade Policy; Trade Liberalisation; International Trade Law; Trade Regulation in India; Export Promotion; Economic Development.
