2. The main objective of export promotion
in India are
To compensate the exporters for the high domestic cost
of production.
To provide necessary assistance to the new exporters to
develop the exporters business.
To increase the relative profitability of export business
against the domestic business.
3. The various export promotion measures can be
classified into the following broad categories:
I. Organizational setup
II. Incentives
III. Production assistance
IV. Marketing assistance
4. I. Organizational setup
1) Ministry of commerce
2) Autonomous bodies
A. EXPORT INSPECTIONAL COUNCIL
B. INDIAN INSTITUTE OF FOREIGN TRADE
C. INDIAN INSTITUTE OF PACKAGING
D. EXPORT PROMOTION COUNCILS, COMMODITY BOARD AND AUTHORITIES.
E. FEDERATION OF INDIAN EXPORT ORGANIZATION
F. INDIAN COUNCIL OF ARBITRATION
G. INDIAN TRADE PROMOTION ORGANIZATION ( ITPO)
The main function of ITPO are:
To promote exports , imports and upgrade technology through fairs in India and abroad.
To compile & disseminate trade related information.
To undertake publicity through print & electronic media.
To organize export development programmes, buyer-seller meets , trade delegation to
industry.
5. II. INCENTIVES
1) DUTY EXEMPTION AND DUTY DRAWBACK
2) AWARDS
3) THE CASH COMPENSATORY SUPPORT.
7. IV. MARKETING ASSISTANCE
1. MARKET DEVELOPMENT ASSISTANCE (MDA)
2. MARKET ACCESS INNITIATIVE SCHEME ( MAIS )
3. TRADE FAIRS AND EXHIBITIONS
4. ECGC has policies covering different political and
commercial risk
5. EXIM BANK , commercial bank and other financial
institution provide suppliers credit , line of credit and
other facilities to promote Indian export.
6. EPZ’s , EOU’s,TP’s & SEZ’s are schemes to promote
units primarily devoted to exports
7. State trading co-operation.
8. Objectives of state trading operation
Identification exports
Expansion of existing markets.
Development of new market for traditional and non –
traditional product.
Undertaking price support operation to protect the interest
of the producers.
Buffer stocking to ease the problem of shortage of essential
items.
Managing various of items of exports and imports
channelized through government.
9. Export processing zones ( EPZ’s )
Industrial estates
Situated
Entire production
Provided
Industrial plots or
shades
Units
Import
10. Objectives of EPZ’s
1. To earn foreign exchange
2. To generate employment opportunities
3. To facilitate transfer of technology for foreign
investment and other means
4. To contribute to the overall development of
economy.
11. FREE TRADE ZONE ( FTZ)
A free trade zone is different from an EPZ’s ,
goods imported to a free trade zone may be
exported without any processing i.e., in the same
form but goods exported by units in an EPZ’s
have expected to have undergone some value
addition by manufacturing or processing.
12. 100% EXPORT ORIENTED UNITS (
EOU’s)
Measures
Permitted 25%
Tax holiday
Job work –DTA
Exempted
13. TECHNOLOGY PARK ( TP’s )
Different categories of technology forms have formed in India .
Schemes for
ELECTRONIC HARDWARE TECHNOLOGY PARK ( EHTP ) &
SOFTWARE TECHNOLOGY PARK ( STP )units
Have been introduced .
Facilities in EHTP
1. NET FOREIGN EXCHANGE EARNINGS as a percentage of exports as to be
positive in 5 years instead of every year.
2. No other export obligation for EHTP’s.
14. SPECIAL ECONOMIC ZONE ( SEZ’s )
EXIM policy :2000 & 2001
Areas
Laws
Units
Entire production
No inspector large
Domestic sales
15. The first SEZ was set up in POSTIRA in Gujarat,
2003-04
RS.10000 CR
THE SECOND SEZ IS
LOCATED : NANGUNARY IN TAMIL NAIDU
16. EXPORT PROMOTION COUNCIL ( EPC’S)
NGO
Registered: companies act
Financed by : central govt
Executive perform : advisory & executive commercial services
Functions
1. Information & assistance
2. Professional advice
3. Organize visits
4. Organize participation
5. Promote interaction
6. Build statistical