Imports & Exports is a core concept in international trade, referring to the cross-border movement of goods and services: Imports are goods and services brought into India, and Exports are those sent out of India. In the Indian context, the regulation of this trade is primarily governed by the Foreign Trade (Development and Regulation) Act, 1992 (FTDR Act).
The FTDR Act, which came into force on June 19, 1992, replaced the restrictive Imports and Exports (Control) Act, 1947. This shift was a direct result of India's 1991 economic reforms, moving the trade regime from a "control-first" approach to a more liberalized framework where trade is generally free unless specifically regulated. The Act's purpose is to facilitate imports and augment exports, providing the legal foundation for the government to develop and regulate foreign trade.
The mechanism is implemented through the Foreign Trade Policy (FTP), which is announced by the Central Government under the authority of the FTDR Act. The Directorate General of Foreign Trade (DGFT), an attached office of the Ministry of Commerce and Industry, is the chief body responsible for formulating and implementing the FTP. A key provision is the mandatory Importer-Exporter Code (IEC) number, issued by the DGFT, which is required for any entity undertaking import or export transactions. The FTDR Act, under Section 3, empowers the Central Government to prohibit, restrict, or allow the free import or export of goods and services. Goods are classified using the Indian Trade Classification (Harmonized System) or ITC-HS codes into Prohibited, Restricted (requiring a license), or Canalized categories.
The framework connects directly to the Customs Act, 1962, which governs the levy of duties like basic customs duty and Integrated Goods and Services Tax (IGST) on imported goods. It also connects to international bodies like the World Trade Organization (WTO), as the DGFT helps exporters navigate WTO agreements and anti-dumping issues.
Recently, the Foreign Trade Policy 2023 was amended on July 13, 2026, by the DGFT through Notification No. 23/2026-27. A new provision, Paragraph 2.20B, was inserted to prohibit the import of goods produced or manufactured, wholly or in part, through the use of forced labour. This amendment also introduced a definition of "forced labour" in Chapter 11 of the FTP, aligning it with the International Labour Organization's Forced Labour Convention, 1930 (No. 29). This change strengthens India's trade policy framework by aligning it with international labour standards, while the core legal foundation of the FTDR Act remains the same.