Export controls

Indian Economy glossary

Topic: International Trade Policy, WTO and Intellectual Property · NCERT: Beyond NCERT

Meaning

Export controls are government restrictions on exporting sensitive goods and technologies. They are imposed mainly for national security or foreign policy reasons, and they especially cover arms and dual-use goods (items with both civilian and military uses). Countries coordinate them through international groups called export-control regimes. Membership also signals that a country can be trusted to handle sensitive technology.

Example

India joined the MTCR (June 2016), the Wassenaar Arrangement (December 2017) and the Australia Group (January 2018). Its NSG bid remains blocked, mainly by China. Since October 2022, US controls on advanced chips and chip-making tools sold to China are a major example.

Don't confuse with

  • Export duty: a tax on exports, such as India's 40% duty on onions in 2023–24. It makes exports costlier but does not require government permission for each sale.

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