The document discusses India's export promotion policies and incentives. It outlines the various organizational support provided, infrastructural facilities established, and incentives offered to encourage exports. The key incentives mentioned are the Export Promotion Capital Goods (EPCG) Scheme, duty drawbacks, duty exemptions, and tax incentives. The document also discusses India's Foreign Trade Policies from 2002-2007, 2004-2009, and 2009-2014 and their objectives of promoting exports and doubling India's share of global trade.

1. EXPORT INCENTIVES

3. Export Incentives:
a) EXIM Policy: Crucial for taking decisions and servers
as a framework and basis of promotion and control.
b) Export incentives: Export is a hazardous business and
hence needs incentives to encourage the exporters.
c) Organisational support: organizations like
Commodity Boards. Export Promotion Council, Trade
Development authority, Department of Commercial,
Intelligence and Statistics, Federation of Indian Export
Organizations, Indian Institute of Foreign Trade, Indian
Institute of Packaging, Govt. Trade Representative
Abroad etc
d) Providing Infrastructural Facilities: Free Trade
Zone, Special Economic Zone, Export oriented Units

4. Need for Export Promotion
 Export promotion is necessitated by the following
essential factors of developing International Trade
 ➢Unfavorable BOT and BOP
 ➢Increasing Imports
 ➢Execution of Development schemes (Need Forex)
 ➢Self Sufficient Economy
 ➢Marketing New products
 ➢Changes in Direction of Trade.

5. Negatives Forces
 Higher price level
 Tariffs in foreign markets
 Restricted market
 Lack of market knowledge
 Financial problems
 Tough foreign competition (like Japan, China, Korea)
 Inferior and substandard commodities
 Transport and logistic problems.

6.  a package of promotion measures should be put into
operation such as finance for export, cash
assistance and incentives, transport
facilities, training, export market research,
rationalization of institutional arrangements
technical service, quality control, publicity,
liberalization of export procedures, release
of foreign exchange for specified purposes
etc.

7. EXIM Policy
 EXIM policy is the framework which helps
to control and promote the exports in the
desired directions It is the overall guidance
instrument for navigating Export, Import
trade with expected results.
 However we will get a glimpse of the
developments in EXIM policy in a nut-
shell.

8.  2002 – 2007 – EXIM Policy
 2004 – 2009 – New Foreign Trade Policy
has been issue after change of Govt.
 2009 – 2014 – New EXIM Policy announced
by the Government of India with the main
aim to arrest and reverse declining trend of
exports.

9.  Major decisions were taken after the
economic reforms in 1991- 92 onwards
and an analysis of the above
development will reveal that political
changes influenced the EXIM policies

10. Foreign Trade Policy 2004-2009
 To double our percentage share of global
merchandise trade within the next five
years; and
 To act as an effective instrument of
economic growth by giving a thrust to
employment generation.

11. Strategy
 To unleash the innate entrepreneurship of our
businessmen, industrialists and traders.
 Simplifying procedures and bring down transaction
costs.
 fundamental principle that duties and levies should
not be exported.
 India as a global hub for manufacturing, trading and
services
 Generate additional employment opportunities,
particularly in semi-urban and rural areas, and
developing a series of ‘Initiatives’ for each of these.

12. India’s EXIM Policy 2009-14
 The Union Commerce Ministry, Government of
India announces the integrated Foreign Trade
Policy FTP in every five year. This is also called
EXIM policy. This policy is updated every year
with some modifications and new schemes.
 New schemes come into effect on the first day of
financial year i.e. April 1, every year. The Foreign
trade Policy which was announced on August 28,
2009 is an integrated policy for the period 2009-
14.

13. Objectives of EXIM Policy 2009-14
 To arrest and reverse declining trend of exports is
the main aim of the policy. This aim will be
reviewed after two years.
 2. To Double India’s exports of goods and services
by 2014.
 3. To double India’s share in global merchandise
trade by 2020 as a long term aim of this policy.
India’s share in Global merchandise exports was
1.45% in 2008.

14.  4. Simplification of the application procedure for
availing various benefits
 5. To set in motion the strategies and policy
measures which catalyse the growth of exports
 6. To encourage exports through a “mix of
measures including fiscal incentives, institutional
changes, procedural rationalisation and efforts for
enhance market access across the world and
diversification of export markets.

15.  Targets
 1. Export Target: $ 200 Billion for
2010-11
 2. Export Growth Target: 15 % for next
two year and 25 % thereafter

16. EPCG Scheme
 1. Obligation under EPCG scheme relaxed.
 2. To aid technological up gradation of
export sector, EPCG Scheme at Zero Duty
has been introduced.
 3. Export obligation on import of spares,
moulds etc. under EPCG Scheme has been
reduced by 50%.

17.  Towns of Export Excellence (TEE)
 Handicrafts: Jaipur, Srinagar and Anantnag
 Leather Products: Kanpur,Dewas and Ambur
 Horticultural Products: Malihabad

18.  Announcements for Agro Exports
 Announcements for Leather Exports:
 On the payment of 50 % applicable export duty,
Leather sector shall be allowed re-export of
unsold imported raw hides and skins and semi
finished leather from public bonded ware houses

19. Announcements for Tea Exports
 The existing Minimum value addition under
advance authorization scheme for export of tea is
100 %. It has been reduced from the existing 100%
to 50%.

20. Export Promotion Incentives
 Some important schemes are:
 Export Promotion Capital Goods (EPCG)
 Duty Draw backs
 Duty Exemption
 Tax Incentives

21. Why Export Assistance?
 Cost of product is high because,
 Small level production and hence no economies of
scale,
 Mechanization is low and hence productivity is also
low,
 Less experience in process/technology, and
 Lack of experience in international marketing

22. Schemes
 Export incentive assistance schemes:
 Market Development Assistance (MDA)
 Cash compensatory Scheme (CCS)
 Replenishment Licensing Scheme (RLS) (It may also
be indicated as Rep Scheme)
 100% Export Oriented Units (EOU)
 Infrastructure facilities
 Other Facilities