Unit III
Role of government
Monetary and Fiscal Policy
Monetary policy refers to the actions taken by national financial authorities to manage the money supply and achieve sustainable growth. In India, it is issued by RBI to control the creditworthiness of commercial banks. The purpose of monetary policy is-
a) Control inflation.
b) To reduce unemployment.
c) Promote moderate long-term interest rates.
a) Quantitative credit management
The structure of monetary policy is highlighted in figure 1
Figure 1: Monetary policy
1. Bank interest rate: The rate at which a commercial bank discounts and redistributes commercial bills at RBI.
2. Open market operations: In this method, the RBI buys and sells national treasury bills on the money market on behalf of the government in order to control the country's short-term liquidity.
3. Variable reserve requirement ratio: There are two types-
a) Cash reserve ratio: This is the percentage of commercial banks' time and demand liabilities stored in RBI in the form of cash.
b) Legal liquidity ratio: The ratio of commercial banks' time and demand liabilities stored in RBI in non-cash forms such as gold, silver, precious metals and government bonds.
b) Qualitative method
1. Margin requirement: This is the difference between the loan amount and the market rate of the securities offered for the loan.
2. Credit Allocation: In this method, RBI limits credit to commercial banks, depending on the lending area of the commercial bank.
3. Consumer Credit Regulation: In this method, the RBI instructs commercial banks to carefully check the financial background of the borrower before making a loan or prepayment.
4. Moral Appeal: Compliance with RBI rules, regulations, policies and instructions is a requirement of RBI to commercial banks.
Fiscal policy is related to government. The government decides fiscal policy under the government every year. Government revenues and government sources.
1. Government revenue
a) Income Receipt: An income receipt is a receipt that does not lead to a claim to the government. They are divided into tax revenue and non-tax revenue. Tax revenues, which are important components of income, have long been direct tax (individual income tax) and corporate (corporate tax), as well as taxes (obligations imposed on domestically produced goods) and customs duties (domestically produced goods). It has been divided into indirect taxes such as (obligations imposed on). Taxes levied on goods imported into and exported from India) and service taxes 1. Other direct taxes, such as wealth tax, gift tax, and real estate tax (now obsolete), have been called "paper taxes" because they never generated large amounts of income.
b) Capital Receipts: All government receipts that create debt or reduce financial assets are called capital receipts. The government also receives money by mortgage or sale of assets. The loan must be repaid to the borrowing institution. Therefore, they create responsibility. The sale of government assets, such as the sale of shares in the Public Sector Business (PSU), called the withdrawal of investment in PSU, reduces the total amount of government financial assets.
2. Government spending
a) Revenue Expenditures: Revenue Expenditures are expenditures incurred for purposes other than the creation of physical or financial assets by the central government. This is related to costs incurred for the normal functioning of the government sector and various services, interest payments on government-paid debt, and grants given to state governments and other stakeholders (subsidies). Some of the money may be for the purpose of creating assets)). Budget documents classify total spending into planned and unplanned spending. According to this classification, planned revenue expenditures are associated with central support for central plans (five-year plans) and state and union territory plans. Unplanned spending, a more important component of revenue spending, covers a wide range of general, economic and social services of the government. The main items of unplanned spending are interest payments, defense services, subsidies, salaries and pensions.
b) Capital expenditures: There are government expenditures that result in the creation of physical or financial assets or the reduction of financial liabilities. This includes the acquisition of land, buildings, machinery and equipment, investment in stocks, and central government lending and upfront payments to state and coalition regional governments, PSUs and other stakeholders. Fixed investment is also classified into planned and unplanned in the budget. Planned capital expenditures, as well as their income counterparts, relate to central planning and central support for state and Union Territory plans. Unplanned capital investment covers a variety of general, social and economic services provided by the government.
Figure 2: Fiscal Policy
Industrial policy
Industrial policy is a formal declaration by the government, which outlines general policy for industry. There are two main parts to industrial policy. The first part generally deals with the ideology of current political power, while the other part provides a framework for specific rules / principles. The main purpose of industrial policy is to increase industrial production, thereby promoting industrial growth, which leads to economic growth through optimal use of resources. Modernization; Balanced industrial development; Balanced regional development (by providing concessions to the industrial development of underdeveloped regions); Balanced development of basic and consumer industries. Coordinated development of large, small and cottage companies. Determining business areas under the private and public sector. Strengthen the heartfelt relationship between workers and managers and the proper use of domestic / foreign capital. Figure 2 shows fiscal policy-
Importance of industrialization
Some of the industrial policies-
1. Industrialization is the first requirement for the country's rapid economic development.
2. Industrialization not only contributes to the development of industry, but also promotes the social sector of agriculture, trade, transportation, foreign trade, services and economy.
3. It improves employment opportunities, national income, per capita income, and the standard of living of the masses.
4. It is necessary to establish a healthy tradition of industrialization and to guide, regulate and manage it (if necessary).
5. Industrial policy helps the country to prosper in a self-sufficient manner by laying the structure and foundation of industrial development.
Need, purpose and importance of industrial policy
The necessity, purpose and importance of industrial policy can be explained in the following points.
1. Development of natural resources:
Industrial policy helps to fully develop the country's natural resources. This helps you properly identify, collect, and use resources. It promotes an increase in the national income of the country.
2. To increase industrial production:
The main purpose of industrial policy is to increase the country's industrial production. It provides the impetus for the rapid development of the industry and the growth of the industry.
3. Modernization:
Industrial policy encourages modernization to increase the productivity and productivity of industry. It envisions the use of modems and the latest production technology in the industrial sector. Promote maximum production with minimum production cost.
4. Balanced industrial development:
Industrial policy envisions a country's balanced industrial development. It also promotes balanced development in various sectors of the economy.
5. Balanced regional development
Industrial policy helps the country to develop a balanced region. Industrial policy may include provisions regarding the provision of facilities or concessions for the rapid development of an industrially backward region / region of a country.
6. Coordination between basic industry and consumer industry
Balanced development of basic and consumer industries is essential for economic growth. Industrial policy, on the one hand, encourages the development of basic and major industries, and on the other hand, attention is also paid to the development of the consumer industry. Therefore, with balanced and collaborative development of both types of industries, it provides a pace for economic growth.
7. Coordination between small and large industries
Industrial policy plays an important role in the coordinated development of small or domestic and large industries. These industries can help each other through the provisions of industrial policy.
8. Determining the area
Industrial policy determines the areas of business under the public and private sectors. Through national industrial policy, we can set the right direction for the private sector.
9. Heartfelt labour-management relations
Comprehensive industrial policy is needed to establish a heartfelt relationship between workers and managers. Heartfelt labour-management relations are essential for rapid and sustainable industrialization.
10. Appropriate use of foreign aid / investment
Appropriate industrial policy is supposed to attract foreign capital and entrepreneurs. It helps the country's rapid industrialization. If you think carefully about industrial policy, the disadvantages of "foreign aid" will be confirmed. Foreign aid can be used for national interests if the country implements appropriate industrial policies.
Industrial licensing
Industrial policy reforms have eased the requirements for industrial licenses, lifted restrictions on investment and expansion, and provided easy access to foreign technology and foreign direct investment. Under the Industrial (Development and Regulation) Act of 1951, an industrial license is required for:
i. Manufacturing items on the list of compulsory licenses (list includes only 5 industries)
Ii. If the non-SSI unit plans to manufacture items reserved exclusively for the small sector.
In addition, certain industries are reserved exclusively for the public sector (currently nuclear and rail transport fall into this category). Due to the gradual removal of licenses for industries, only five industries are held under the compulsory license under the Industry (D & R) Act of 1951.
(I) Distillation and brewing of alcoholic beverages.
(II) Cigars and tobacco and manufactured tobacco substitutes.
(III) Electronic aerospace and defense equipment: all types.
(IV) Industrial explosives including explosive fuses, safety fuses, explosives, nitrocellulose and matches.
(V) Hazardous chemicals: That is. (A) prussic acid and its derivatives; (b) phosgene and its derivatives; (c) hydrocarbon isocyanates and diisocyanates, not otherwise specified (eg methyl isocyanate).
Currently, there are 20 items reserved exclusively for manufacturing in the Small Sector (SSI). Non-SSI units wishing to manufacture these items require an industrial license issued with an obligation to export 50% of their annual production.
Privatization
Privatization refers to the transfer of ownership, control, and control of a public sector company to the private sector. In India, the concept of privatization was introduced in 1993 under the LPG policy. This will allow private companies to enter the banking sector, insurance sector, production companies, etc., which were not permitted before the introduction of the LPG policy. For example, the privatization of the Bharat Aluminum Company in 2006 and the privatization of Delhi and Mumbai airports in 2006. Its main purpose is to:
a) Increase the influx of FDI into India.
b) To improve the financial strength of the company.
c) Improve the efficiency of PSUs by giving decision autonomy.
d) Promote government dynamism because there is no government interference.
The methods of privatisation of companies are-
Figure 1: Methods of privatisation
1. Transfer of ownership:
This method transfers ownership, control, and control of a public sector company to the private sector.
2. Investment reduction:
When the government withdraws an investment from the PSU and sells it to the public, it is known as an investment withdrawal.
3. Public auction:
Public company stock or long-term assets are sold in this way to raise the maximum amount of government-owned assets.
4. Sale of shares:
This method allows you to sell PSU shares through the stock exchange.
5. Direct negotiation:
In this way, the government deals directly with certain private organizations for PSU private property.
6. Leases right to buy:
This method also envisions private companies owning and using state-owned enterprises, or meetings by specific standards. Private companies can later choose to exercise the option of converting a real estate lease into ownership.
Devaluation
Devaluation is the planned downward revision of the fee of cashes in a single US in comparison to some other foreign money, organization of currencies, or foreign money standards. Countries with constant or semi-constant change charges use this economic coverage tool. This is frequently pressured with depreciation and is the alternative of revaluation, which refers to foreign exchange charge readjustments.
Devaluation happens while the authorities desire to growth its alternate balance (exports minus imports) via way of means of decreasing the relative fee of the foreign money. Government does this via way of means of adjusting constant or semi-constant change charges among its very own foreign money and the currencies of different nations. By making their foreign money cheaper, nations can growth their exports. At the equal time, overseas merchandise can be greater steeply-priced and imports will decrease. In a few cases, a rustic may also take the alternative movement via way of means of growing the fee of the foreign money. It is referred to as reassessment. Devaluation isn't like depreciation and deflation. Depreciation happens while floating change charge foreign money loses its fee withinside the global foreign money market. Deflation happens while the overall rate of home merchandise is going down.
Advantages of devaluation
Devaluation helps bring perfect quality to international market demand and reduce monetary value to some extent of competitiveness. Therefore, it is not easy for Pakistan to sell goods produced by France, Germany, or the Netherlands when the monetary value is high, as both developed and developing countries are mapped to one international market. .. But we are in conflict with developing countries. Therefore, in order to function in the market, it is really necessary to set the monetary value and monetary value of rivals.
Every new product has four phases, the first of which is the implementation phase. The debut phase requires a series of attempts to evolve the product and raise buyer awareness. At this stage, it's important to sell at a price that is below cost. As such, the authorities provide certain liability drawbacks for a specified period of time, until the product becomes self-sufficient.
Each state maintains a history of the entire import / export agenda, along with a balance of payments chart. When imports from exports are added or the balance of payments deteriorates, it is important to increase exports immediately. Declining monetary value is one of the fastest ways to increase exports.
When people tend to buy imported goods and the local industry begins to suffer, they need to reduce spending on foreign purchases and discourage people from going directly to local goods. Devaluation is one of the ways to reduce imports and promote local industry.
The decline in monetary value due to devaluation has long-term implications, which can be seen over the duration of the clip.
All of the above conditions are currently predominant in Pakistan. But the question arises as to why all these conditions have a relatively dramatic impact on our economic system. The answer to this question pertains to our policy on forecasting and receiving income from foreign donors and states. Previously it was used to pull budget spreads apart with the help of AIDS and debt. However, the situation was different for this clip, and it was not possible to start income abroad. The IMF was used to expand financing for last year's development plan. However, during the current 12 months, the IMF has suspended the ESAF-approved $ 300 million trench. The results are fairly clear: devaluation and the impact of new obligations / taxes
Disadvantages of devaluation
The devaluation with all the disadvantages is an irregular policy. This has been evaluated as an extraordinary agreement to reduce demand. Alternatively, incomplete planning is essential for future calculations where the degree of original monetary value is maintained again.
The devaluation involves a high risk of price increases in the state. For example, if exports do not increase as a result of a decline in monetary value, the state will tolerate the losses due to the increased costs of all imports. Losses were incurred due to the decline in monetary value in the international market.
Devaluation automatically increases the value of external debt and accordingly increases the total required for debt repayment
The devaluation of the currency is considered the last step taken after all other financial and monetary measures have failed.
Other factors need to be evaluated before devaluing the currency to raise the economic system through increased exports. For example, a decline in exports can be due to unfortunate product quality, trade barriers, low value products, and inaccessibility to export points.
Continued depreciation of the currency can lead to improper imports of goods within the state. Such improper imports and exports could create an improper "parallel economic system" within the state, which would be completely out of our control.
Devaluation is supported by specific incentive bundles to reduce the points generated internally for export.
Export-Import Policy
India's Exim / Trade Policy for 2009-14 is as follows-
1. Export of goods from India Scheme (MEIS)
a) Five different schemes (Focus Product Scheme, Market Link Focus Product Scheme, Focus Market Scheme, Agri, Infrastructure Incentive Script, VKGUY) for rewarding the export of goods with different kinds of obligation scripts are single schemes. That is, it is from the Incentive of India (MEIS), which is integrated into the export of goods, and there are no conditions associated with the scripts issued under the scheme.
b) Compensation for the export of noticed goods to the noticed market under the "Export of Goods from India Scheme (MEIS)" shall be paid as a percentage of the realized FOB value (in free foreign exchange). Transferable Compensation Tariffs Credit scrip debits to basic tariffs are also allowed to be adjusted as a drawback of tariffs. Currently, only additional customs / excise / service taxes are allowed to be adjusted as CENVAT credits or disadvantages in accordance with the rules of the Revenue Department.
2. Export of services from India Scheme (SEIS)
(A) Services from the Indian Scheme (SFIS) have been replaced by service exports from the Indian Scheme (SEIS). SEIS shall apply to "Service Providers Located in India" and not "Service Providers of India".
(B) The rate of return based on SEIS is based on the net foreign exchange earned. Rewards issued as mandatory credit scripts are no longer in the state of the actual user and are no longer restricted to the use of certain types of goods, but are freely transferable and services related to the procurement of all types of goods and services / goods. Can be used for tax debits. Debits are eligible for CENVAT credits or disadvantages.
3. Incentives available in Chapter 3 SEZ (MEIS and SEIS)
It is currently proposed to extend Chapter 3 Incentives (MEIS and SEIS) to units in the SEZ.
4. Customs Credit Scrip is freely transferable and can be used to pay customs duty, excise tax and service tax.
(A) All scrips issued under MEIS and SEIS, and the goods imported into these scrips, are fully transferable.
(B) Scrips issued under the export scheme from India can be used for the following purposes:
(I) Payment of customs duties on imports of inputs / goods, including capital goods, except for the items listed in Appendix 3A.
(Ii) Payment of excise tax on domestic procurement of inputs or goods, including capital goods, in accordance with the DoR notice.
5. Status holder
(A) Business leaders who excel in international trade and succeed in foreign trade of the country are recognized as status holders and given special treatment and privileges to promote trade transactions in order to reduce transaction costs and time.
(B) The names of the Export House, Star Export House, Trading House, Star Trading House, and Premier Trading House certificates have been changed to 1, 2, 3, 4, and 5 star exporters. ..
6. Boost to "MAKE IN INDIA"
Reduction of export obligations (EO) for domestic procurement under EPCG scheme:
a) Specific export obligations under the EPCG scheme, when capital goods are procured from indigenous manufacturers, currently 90% of normal export obligations (6 times the tariff savings) is 75% to promote the country Reduced capital goods manufacturing industry.
b) Higher levels of compensation under MEIS for export items with high domestic content and high value added.
7. Trade facilitation and business ease
Online filing and paperless trading of documents / applications in a 24/7 environment:
a) DGFT already provides online filing capabilities for various applications over FTP by exporters / importers. However, certain documents, such as certificates issued by Chartered Accountants / Company Secretaries / Cost Accountants, etc., need to be submitted only in physical form. To move further to paperless processing of compensation schemes, it was decided to develop an online procedure for uploading digitally signed documents by certified accountants / company secretaries / cost accountants. The new system will allow uploading online documents such as ANF 3B, ANF 3C, and annexes attached to ANF 3D that are currently signed and physically submitted by these signers.
b) As a measure of business ease, the export consignment landing document as evidence of the notified market can be uploaded digitally in the following ways:
(I) Exporters may upload a scanned copy of the Bill of Entry with a digital signature.
(II) Status holders in the 3-star, 4-star, or 5-star exporter category may upload a copy of the scanned document.
8. Online inter-ministerial consultation:
It has been proposed to behaviour step by step on line inter-ministerial consultations on exports of SCOMET items, constant standards, import approvals and export approvals with the goal of lowering the time to approval. As a result, the exporter does now no longer must publish a tough reproduction of the record for those purposes.
9. Future e-Governance Initiative
(A) DGFT is presently running on the subsequent EDI tasks:
(I) Message change for sending export praise scrips from DGFT to Customs.
(II) Message change for sending an access invoice (import details) from Customs to DGFT.
(III) Online issuance of Export Obligation Exemption Certificate (EODC).
(IV) Exchange messages with the Ministry of Corporate Affairs concerning CIN and DIN.
(V) Message change with CBDT for PAN.
(VI) Ability to pay the software charge the use of a debit / credit score card.
(VII) An open API for filing IEC applications.
(VIII) Mobile software for FTP
10. Other tasks
New tasks for EOU, EHTP, and STP
(A) EOUs, EHTPs and STPs are allowed to proportion infrastructure centers amongst them. This lets in devices to apply their infrastructure centers withinside the satisfactory viable way, averting the attempt and price of making separate infrastructure centers for distinct devices.
(B) Transfer of products and offerings among devices among EOU, EHTP, STP, and BTP is allowed. This makes it simpler to organization devices that centrally procure enter to get a bulk discount. This reduces transport and different logistic charges and continues an powerful deliver chain.
(C) EOU is allowed to installation a warehouse close to the export port. This facilitates lessen lead instances for transport of products and additionally addresses the problem of unpredictability of deliver orders.
(D) STP Units, EHTP Units and Software EOUs permit the power to apply all tax exemption equipment / items for education purposes. This facilitates those devices expand worker skills.
Regulation of Foreign Investment;
There are few restrictions on foreign investment at the international level. Hundreds of bilateral and multilateral treaties seek to regulate their actions, either exclusively or in combination with other issues, usually trade relations. The provisions of these treaties also apply to the treatment of investments by the citizens of one party in the territory of the other party. The regulatory measures for foreign investment in India are as follows:
1. Regulations in the inward economy
The first group's restrictive policy is represented by the entry and establishment of foreign investment, the level of capital that foreign investors are allowed to invest in, and strict controls over a myriad of performance requirements. Under such control, approval of foreign investment is usually subject to various "screening" procedures, licensing requirements, and some approval by the central and local governments of the host country. The procedure is often cumbersome and is based on vaguely developed rules, which allows a great deal of administrative discretion. The transfer of capital and income is subject to general currency control and the employment of foreign workers is severely restricted. Performance requirements typically include minimum local input, export ratio, and / or local employment ratio. The legal approach to attracting foreign investment in a particular sector is based on incentives. This type of decree emphasizes fiscal (tax exemption) or other incentives to attract foreign investment and direct it to specific areas or predefined sectors of the national economy. Such an approach has proven to distort the global flow of foreign investment with little or no benefit to the economic development of the host country.
2. Regulations in the outward economy
The Foreign Investment Laws of this group of countries reflect a market-oriented approach to foreign investment and, in principle, allow foreign investment to be approved, subject to certain exceptions. Some of these decree have broadly constructed exceptions to guarantee the protection of the basic interests of the host country, such as national security, public order and morals, environmental protection and public health. Other legislation puts exceptions on the so-called "negative list" of the field of national economy, where foreign investment is absolutely prohibited or only partially permitted under certain circumstances. Some legislation also provides for one-stop shops where all necessary approvals, including tax exemptions, are obtained through a single agency.
3) Bilateral Investment Treaty
The first modern Bilateral Investment Treaty (BIT) was signed between Germany and Pakistan in 1959. Over the decades that continued, more and more European countries have signed such treaties with developing countries. From the mid to late 1980s, BIT became a widely accepted means of promoting foreign investment and legal protection. BITs are no longer exclusively signed between capital-exporting and capital-importing countries. During development, their numbers began to increase, usually among capital-importing countries (and transition economies). The integration of certain core clauses of BIT refers to what is called the "first generation" of BIT. However, since the late 1980s, significantly expanded treaty practices have improved the drafting of BIT clauses and, in some cases, reformed as a means of investment liberalization policy.
Collaboration in the light of Recent Changes
In the 1991 review of economic policy and reform, the Government of India made four major changes in the public sector. These four changes have changed the role of the public sector in our country forever.
1] Reduction of industry reserved for the public sector
In the first five-year plan, the government reserved 17 industries for the public sector. This meant that only the government could operate in these industries and no private capital was involved. However, by 1991 this number had dropped to eight. And now there are only three, including railroads and nuclear power.
The public sector must contribute to the development of these industries, but now the private sector can move them forward. Today, in these industries, such as mining and air transportation, private and public companies coexist and complement each other.
2] Reduction of investment
Withdrawing from the public sector means selling the shares of a public company to the private sector and the general public. In addition, reduced investment will enable new capital inflows and improved personal efficiency and financial discipline. It also ensures that governments secure additional funding to invest in social programs and objectives such as public health and hygiene.
Investment cuts also transfer commercial and financial risks to the private sector. This puts the company within corporate governance and reduces the amount of public debt. In some cases, such as in the telecommunications industry, withdrawal of investment has intensified competition and has also benefited consumers by lowering prices.
3] Closure of sick unit
After the policy change, all public sector units will be reviewed by the Industrial Finance Reconstruction Commission. This committee reviews the condition of the unit and decides whether the unit can be rehabilitated or shut down permanently. However, this upset the workers and employees of the closed sick unit.
They had to be shut down because the government was unable to maintain such sick units. Workers were provided with a safety net regarding loss of income. A National Renewal Fund was established to fund voluntary separation and retirement programs for such workers. But in the end, they were inadequate measures.
4] Memorandum of Understanding
This was a system to give public sector units the opportunity to revive. Government authorities associated with the unit's manager will sign a memorandum of understanding. It gives you clear criteria for your company to meet. If the goal is achieved, the company will continue. Otherwise, the shutdown or investment will be discontinued.
Key takeaways:
- The ratio of commercial banks' time and demand liabilities stored in RBI in non-cash forms such as gold, silver, precious metals and government bonds.
- Compliance with RBI rules, regulations, policies and instructions is a requirement of RBI to commercial banks.
- All government receipts that create debt or reduce financial assets are called capital receipts.
- Revenue Expenditures are expenditures incurred for purposes other than the creation of physical or financial assets by the central government.
- There are government expenditures that result in the creation of physical or financial assets or the reduction of financial liabilities.
- Industrial policy is a formal declaration by the government, which outlines general policy for industry.
- The main purpose of industrial policy is to increase industrial production, thereby promoting industrial growth, which leads to economic growth through optimal use of resources.
- Industrialization not only contributes to the development of industry, but also promotes the social sector of agriculture, trade, transportation, foreign trade, services and economy.
- Industrial policy helps to fully develop the country's natural resources. This helps you properly identify, collect, and use resources.
- Industrial policy helps the country to develop a balanced region. Industrial policy may include provisions regarding the provision of facilities or concessions for the rapid development of an industrially backward region / region of a country.
- Industrial policy determines the areas of business under the public and private sectors.
- Industrial policy reforms have eased the requirements for industrial licenses, lifted restrictions on investment and expansion, and provided easy access to foreign technology and foreign direct investment.
- Industrial explosives including explosive fuses, safety fuses, explosives, nitrocellulose and matches.
- Privatization refers to the transfer of ownership, control, and control of a public sector company to the private sector.
- When the government withdraws an investment from the PSU and sells it to the public, it is known as an investment withdrawal.
- Devaluation is the planned downward revision of the fee of cashes in a single US in comparison to some other foreign money, organization of currencies, or foreign money standards.
- Devaluation helps bring perfect quality to international market demand and reduce monetary value to some extent of competitiveness.
- When people tend to buy imported goods and the local industry begins to suffer, they need to reduce spending on foreign purchases and discourage people from going directly to local goods.
- The devaluation with all the disadvantages is an irregular policy.
- Devaluation automatically increases the value of external debt and accordingly increases the total required for debt repayment
- Compensation for the export of noticed goods to the noticed market under the "Export of Goods from India Scheme (MEIS)" shall be paid as a percentage of the realized FOB value (in free foreign exchange).
- Customs Credit Scrip is freely transferable and can be used to pay customs duty, excise tax and service tax.
- Business leaders who excel in international trade and succeed in foreign trade of the country are recognized as status holders and given special treatment and privileges to promote trade transactions in order to reduce transaction costs and time.
- It has been proposed to behavior step by step on line inter-ministerial
Consultations on exports of SCOMET items, constant standards, import approvals and export approvals with the goal of lowering the time to approval.
25. There are few restrictions on foreign investment at the international level. Hundreds of bilateral and multilateral treaties seek to regulate their actions, either exclusively or in combination with other issues, usually trade relations.
26. The first group's restrictive policy is represented by the entry and establishment of foreign investment, the level of capital that foreign investors are allowed to invest in, and strict controls over a myriad of performance requirements.
27. The first modern Bilateral Investment Treaty (BIT) was signed between Germany and Pakistan in 1959.
References-
- Misra S.K. And Puri V.K. : Indian Economy; Himalaya Publishing House, New Delhi.
- Sundaram& Black: The International Business Environment; Prentice Hall, New Delhi.
