State Control Over Import And Export Of Goods: From Regulation To Liberalisation In India
Adv. Aadarsh Premaraj, Bharata Mata School of Legal Studies, Aluva, Ernakulam, Kerala
ABSTRACT
Foreign trade plays a significant role in the economic development of a country by facilitating the movement of goods, services, capital and technology across national borders. In India, the regulation of imports and exports has undergone a substantial transformation from a highly controlled and protectionist regime to a more liberalised and market-oriented framework. In the initial decades after independence, the State exercised extensive control over foreign trade through import licensing, quantitative restrictions, high tariffs and other administrative mechanisms with the objectives of protecting domestic industries, conserving foreign exchange and promoting self-reliance. However, the economic crisis of 1991 marked a decisive shift in India's trade policy towards liberalisation, deregulation and greater integration with the global economy.
This article examines the changing nature of State control over the import and export of goods in India, with particular emphasis on the transition from direct administrative control to a regulatory and facilitative approach. It analyses the legal framework governing foreign trade, including the Foreign Trade (Development and Regulation) Act, 1992, the Customs Act, 1962, the Customs Tariff Act, 1975, the Foreign Exchange Management Act, 1999 and the Foreign Trade Policy. The role of the Directorate General of Foreign Trade and mechanisms such as import-export licensing, restricted and prohibited goods, strategic export controls and trade-remedial measures are also examined. The article further considers India's obligations under the World Trade Organization framework and the continuing need to balance free trade with national security, economic interests, public health and protection of domestic industries. It argues that liberalisation has not eliminated State control but has transformed its character from pervasive direct intervention to targeted regulation, facilitation and strategic oversight.
Keywords: Foreign Trade, Import Regulation, Export Control, Liberalisation, Protectionism, DGFT, Foreign Trade (Development and Regulation) Act, WTO, State Control.
