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Deemed exports refer to those transactions in which the goods supplied do not leave the country and the payment for such supplies is received either in Indian rupees or in free foreign exchange, as permitted under the applicable provisions of India’s Foreign Trade Policy. Thus, unlike normal physical exports, deemed exports involve the supply of goods within the domestic territory of India, but such supplies are treated as exports for certain policy benefits. The concept is important because it encourages domestic manufacturers and suppliers to participate in projects that have an export-oriented or strategic character and helps reduce the need for imports for major projects. The basic feature of deemed exports is that the goods remain within India. In a normal export transaction, goods cross the customs frontier and are supplied to a buyer located in another country. In a deemed export transaction, the buyer or project may be located in India, but the transaction satisfies specified conditions under the Foreign Trade Policy. Therefore, deemed exports are different from physical exports, although they may receive certain export-related benefits. The classification is based not simply on the nature of the buyer but on the specific categories of transactions notified under the Foreign Trade Policy. Deemed exports have traditionally covered specified supplies ________ ___ _________ ____ _____ ___ __________ _____ ________ _______.
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