A CRITICAL ANALYSIS OF THE FOREIGN TRADE (DEVELOPMENT AND REGULATION) ACT, 1992

The Foreign Trade (Development and Regulation) Act, 1992 is an important legislation enacted by the Parliament of India to regulate and promote the country’s foreign trade. This Act replaced the Imports and Exports (Control) Act, 1947. The present Act empowers the Central Government to formulate foreign trade policies and regulate imports and exports in the interest of the national economy. It also provides for the appointment of the Director General of Foreign Trade, who plays a crucial role in implementing trade policies and ensuring compliance with the trade law. This research paper critically examines the objectives, provisions, implementation, and effectiveness of the FTDR Act, 1992. It analyses the powers granted to the government, the role of licensing systems, trade restrictions, and enforcement mechanisms. The paper also evaluates the impact of the Act on India’s economic development, export growth, and compliance with international trade obligations under the World Trade Organization. The study adopts a doctrinal and analytical approach based on both primary and secondary sources. The study identifies several strengths of the Act, including trade liberalization, simplification of licensing procedures, and promotion of exports. However, it also highlights weaknesses such as excessive executive discretion, procedural complexities, frequent policy changes, and inadequate support for small exporters. The paper concludes with suggestions for reform to improve the existing legal framework regulating foreign trade.