Export Promotion Measures in India
A number of institutions have been set up by the government of India to promote exports. The export and import functions are looked after by the Ministry of Commerce. The Government formulates the export-import policies and programmes that give direction to the exports.
Exim policies aim at export assistance such as export credit, cash assistance, import replenishment, licensing, free trade zones, development of ports, quality control and pre-shipment inspection, and guidance to Indian entrepreneurs to set up ventures abroad.
1. International Presence
The Director of Exhibitions makes arrangements for participation in international exhibitions, holds Indian exhibitions abroad, runs show rooms in foreign countries and, sets up Trade centres outside India.
2. Export Promotion Council
The Director of Commercial Intelligence is concerned with commercial publicity through various media, monthly publications, directories of foreign importers of Indian products, country-wise.
There are 22 export promotion councils for different products, offering services of export promotion such as price, quality, packing, marketing, transport etc. They conduct market surveys, publish reports on foreign trade, administer various export promotion schemes, develop trade contacts, quality control, joint participation in trade fairs and exhibitions.
3. Setting up of Commodity boards to promote exports
Commodity Boards are set up to help export of the traditional items. There are seven Commodity Boards apart from All India Handloom and Handicraft Board under the Commerce ministry. They advise the government on its policies, signing trade agreements, fixing quota, etc.
4. Trade reps
There are Trade Representatives abroad who conduct market surveys, furnish information on exports-imports, settle trade disputes and pass on information about the rules and regulations for imports.
5. Indian Institute of Foreign Trade
The Indian Institute of Foreign Trade (IIFT) was set up by the Government in co-operation with trade, industry, universities, educational and research institutions. It is an autonomous body, set up to train people in international trade, conduct research, survey and organize training programmes.
To promote, organize and participate in the international trade fairs, Government set up Trade Fair Authority of India in 1977. It sets up showrooms and shops in India and abroad. It assists in development of new items for diversification and expansion of India’s exports. They publish journals namely, Journal of Industry & Trade, Udyog Vyapar Patrika, Indian Export Service Bulletin and Economic and Commercial news.
7. Trade development Authority
In addition to the above, we have Trade Development Authority to collect information, conduct research and render export finance and help in securing and implementing export orders.
8. Financing for export
The Export Credit Guarantee Corporation (ECGC) covers both commercial and political risks on export credit transactions. Its head office is in Mumbai and branches are in Delhi, Calcutta and Chennai. In 1982, the Government set up EXIM Bank with head office in Mumbai, branch offices in other major cities in India and abroad.
EXIM Bank finances exports and imports of machinery, finances joint ventures, provides loan, undertakes merchant banking functions such as underwriting stocks, shares and bonds or debentures, develops and finance export oriented industries, undertakes techno marketing studies and, promotes international trade.
9. Advisory Councils
Some of the State Governments have set up specialized Export Trade Corporations which undertake export promotion. They are established in Andhra Pradesh, Bihar, Karnataka, Uttar Pradesh, Madhya Pradesh, Himachal Pradesh. There are also Advisory Councils like Board of Trade, Export-Import Advisory Council, etc.
10. Technical assistance and Training
The Small Industries Development Organization (SIDO) with 26 small industries service institutions, provide techno-managerial assistance like motivating entrepreneurs to export, provide information on export-import and offer consultancy services with respect to export procedure, documentation and export incentives.
It also provides training programmes to educate entrepreneurs on exports, conduct seminars, meetings, holds discussions with export promotion agencies and publish small industry export bulletin, besides liasing with the export promotion organizations for solving the problem of small scale exporters.
- Export Promotion Measures in India