Role of government in export promotion


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Role of government in export promotion

  1. 1. Role of Government in Export Promotion
  2. 2. Benefits of Export  Foreign market Provides opportunity to achieve economies of scale and growth.  Supply of Commodities.  Export Led Growth to many countries.  Foreign export to earn foreign exchange so as to meet the import of the country.  Compensate the exporters for the high domestic cost of production.
  3. 3.  Provide necessary assistance to the new and infant exporter to develop the export business.  Increase the relative profitability of the export business.
  4. 4. Organizational set up  Ministry of Commerce – Administrative and general division, Finance Division, Economic Division, Trade Policy Division, Foreign Trade.  Autonomous Bodies- Commodity Boards, Export Inspection council, Indian Institute of Foreign trade, Indian Institute of Packaging , Export promotion Councils, Federation of Indian Export
  5. 5.  Autonomous Bodies- Indian Council of Arbitration, Marine Products Export Development Authority, Agriculture and processed food products exports development authority, Indian trade promotion organization.  Advisory Body – Center Advisory Council on Trade.
  6. 6.  Office of Director General of Foreign Trade (DGFT)  Directorate General or Commercial Intelligence and statistics.  Office of Development Commissioner.
  7. 7. Incentives  Duty Exemption / Drawback  Income tax concession  Awards  Other Incentives  Product Assistance Facilities  Market Assistance  Market Development Assistance
  8. 8.  Foreign Exchange  Trade Fairs and Exhibitions  Export Risk Insurance  Finance  Quality Control and Pre shipment Inspection  Institutional assistance  Indian Brand Equity Fund.
  9. 9. Import Facilities for Exporters  Export Promotion Capital Goods  Duty Exemption Scheme  Duty Free License  Duty Entitlement pass book
  10. 10. EPZs, EOUs, TPs, SEZs  Main objective of Export Process Zones – To earn Foreign Exchange To generate employment opportunities To facilitate transfer of technology by foreign investment and other means. To contribute to the overall development of the economy.
  11. 11. SEZ’s  Only Law which will be operated in these zones will be Labour and Banking law.  SEZ’s are different form of EPZ’s.  The first two SEZ’s are set up at Positra in Gujarat and Nangunery in Tamil Nadu.
  12. 12. Export House and Trading House  An Export House is an registered exporter holding a valid Export house certificate issued by the Director General of Foreign trade.  Such houses operate as highly professional and dynamic institutions and act as important instruments of export growth.
  13. 13.  Export House are entitled to special import license as per the criteria laid down related to the export net foreign exchange earnings.  The amount of entitlement is lowest fo export house 6% on FOB basis and 7.5on NFB basis and highest for superstar Trading house 12% and 15 %
  14. 14. Evaluation and Conclusion  Export development is important to the firm and to the economy as a whole Thee government aims at the General Improvement of the export performance of the nation and the economy in general.  The Gov has introduces schemes such as EPZs, EOUs, TPs, SEZs to promote units primarily devoted to exports.