Goals and Objectives of Import Policy for a Country
No country is fully self-sufficient today as it cannot produce everything required by it. The purchase of goods and services of a foreign country is called import trade. In a country, import procedures are conducted properly following the import policy. This policy is issued by the government normally for 2 years. The goals and objectives of import policy are given below.
- To improve the industry and economy and to create strong economic infrastructure. Developing countries import certain raw materials, which are scarce, and other capital goods.
- To implement the economic and social commitment of the government. This enables the country to ensure its sovereignty and territorial integrity.
- Imposing necessary restrictions on the importing of unnecessary goods. A country can import food grains and other essential commodities to overcome starvation at the time of famine.
- Trade policy is declared to make the real industrialization of the country. Advanced technology is also imported for rapid industrial development.
- Import policy is declared to stabilize the exchange rate.
- To save the interest of small importers. Imports enable consumers in the home country to enjoy a wide variedly of products of high quality.
- Import policy is essential for creating a new market. Goods in short supply arc also imported to make up the deficiency.
- To enhance employment by involving young people with the activities of import.
- To make the balance of the price of goods and services within the country. Imports enable consumers in the home country to enjoy a wide variety of products of high quality.
- To identify and remove the problems to the procedure of import. During drought, flood, earthquake and other natural calamities country import food grains and other essential commodities to prevent starvation.
- Encouraging established agricultural industry to export agricultural products.
- To increase the production of the industries that are involved in exporting.
- To help the government to implement and to issue a new policy for the trade of the country. The importer must get the receipt of credit from his concerned bank and send it to the foreign supplier.
- By proper import policy, the country can earn more money. It helps in improving the standard of living of masses.
- Import policy identifies the demand for the country and import goods and services to fulfill that demand.
- The goods which are in demand but are not available within the country to meet consumer demand are imported.
Al last it is to be said that, import policy is very much essential for the country. Otherwise unnecessary goods and services will be imported. For this reason, the cost will be increased but the actual demand will not be fulfilled.