Foreign Trade under Foreign Exchange Management Act (FEMA), 1999

The Foreign Exchange Management Act, 1999 (FEMA), is Indian legislation aimed at consolidating and amending laws governing foreign exchange.

 Its goal is to facilitate external trade and payments, and ensure orderly development and stability of the foreign exchange market in India.

It was enacted by Parliament in 1999, replacing the Foreign Exchange Regulation Act (FERA).

It established a modern foreign exchange management system aligned with the evolving standards of the World Trade Organization (WTO). 

Additionally, it laid the groundwork for the implementation of the Prevention of Money Laundering Act, 2002, which became effective in 2005.