Import means bringing goods from outside India or goods brought from foreign territory to Indian territory for monetary consideration in foreign currency in order to meet the demands of the people. There can be the import of goods as well as the import of services. The imported goods will be covered under the customs act, and customs duty will be levied on them. In case services are imported, they will be covered under the GST act, and IGST will be levied on them.

In the case of exports of goods, the goods are sold from India to a place outside India. Normally exports of goods are duty-free, but in some cases, it is levied at negligible rates. Moreover, the input tax credit is refundable in the export of goods under the GST tax regime.

The evolution of exports can be traced back to the era of the 18th century when the economies started shifting to liberalisation. The father of Economics, i.e., Adam Smith, wrote in his book “The Wealth of the Nation” in 1776 that he brought international trade into the picture.

Advantages of Import and Export

The balance of payments is established through export and import by regulating the balance between Indian and foreign currencies.

It provides a huge scope of growth for the entrepreneur across the global markets.

The government provides tax benefits through rebates or other promotional schemes from time to time.

It reduces the cost of the product by acquiring raw material or finished goods at a cheaper rate.

Due to liberalisation, the trade barriers have been removed and hence, it is very easy to import and export nowadays.

The investment amount is very less as there is no need to set up business in each and every geographical area.