The document discusses export promotion in India. It outlines the benefits of exports, procedures for exporting, and policies and schemes implemented by the Indian government to promote exports. It then describes the various institutions that comprise India's export promotion system, including the Department of Commerce, advisory bodies, commodity organizations, service organizations, government trading organizations, and state export promotion agencies. The goal of India's institutional framework is to support and assist exporters at all levels of experience.

2. INTRODUSTION OF EXPORT
 Exports are one of the oldest forms of economic
transfer and occur on a large scale between nations
that have fewer restrictions on trade, such as tariffs or
subsidies.
 Most of the largest companies operating in advanced
economies derive a substantial portion of their
annual revenues from exports to other countries.
 The ability to export goods helps an economy to grow.
One of the core functions of diplomacy and foreign
policy within governments is to foster economic trade
for the benefit of all trading parties.

3. BENEFITS OF EXPORT
INCREASING SALE.
INCREASING PROFIT.
REDUCING RISK AND BALANACING GROWTH.
LOWER UNIT COST.
ECONOMIES OF SCALE.
SMALL OR SATURATED DOMESTIC MARKET.
EXTENDING THE PRODUCT LIFE-CYCLE.
OVERCOMEING LOW GROWTH IN THE HOME
MARKET.

4. PROCEDURES OF EXPORT
 OFFER AND RECEIPT OF CONFIRM ORDER
 PRODUCTING THE GOODS
 SHIPMENT
 BANKING PROCEDURE
 NEGOTIATION
 EXPORT INCENTIVES

5. EXPORT PROMOTION POLICES IN
INDIA
 Exports from India Scheme
(i) Merchandise Exports from India Scheme
(ii) Service Exports from India Scheme (SEIS)
 Export Houses, trading houses and star trading houses
 Duty Exemption & Remission Schemes
 Export promotion Capital Goods (EPCG) Scheme
 EOU/EHTP/STP & BTP Schemes

6.  Other Schemes
(i) Towns of Export Excellence (TEE)
(ii) Rebate of duty on “export goods” and “material
(iii) Export of goods under Bond i.e. without payment of
excise duty
(iv) Market Access Initiative (MAI) Scheme
(v) Marketing Development Assistance (MDA) Scheme

7. THE CONCEPT OF EXPORT
PROMOTION
 All national government have established institutional set-up to
support export activities.
 The major objective of export promotion programes is to create
awarness about export’s and make the pepole understand that it
is one of the most crucial instrument’s of growth and market
expansion.
 A non-exporter needs to be motivated by making him or her
aware of the international marketing opportunities.

8.  A first-time exporter has to be assisted in finding export
marketing opportunities and may be supported on matters
related to export policy, procedures and documentations.
 An exporters consistently attempt to explore ways to improve
their international marketing operations and need to be assisted
by way of trade fairs, buyer sellers meet, and market promotion
programmes.
 The export promotion programmes initiated by the government
are in the form of public policy measures.

9. Institutional set up for export
promotion in india
In order to provide guidance and assistance to an exporter, the
Government of India has setup several institutions. The
institutional set-up for export promotion in India can be divided
into six different tires:
 Department of commerce
 Advisory Bodies
 Commodity Organizations
 Service Organizations
 Government Trading Organizations
 State Export Promotion Agencies

10. DEPARTMENT OF COMMERCE
It is the primary government agency responsible for evolving
and directing foreign trade policy and programmes ,
maintaining commercial relations with other countries,
supervising state trading, initiating various trade promotion
measures, and developing and regulating export-oriented
industries.
Following are the divisions of the Department of
Commerce:
 The economic division is engaged in export planning,
formulating export strategies and periodic appraisal, and
review of policies.
 The trade policy division is responsible for maintaining
India’s compatibility with regional trading agreements such
as EU, NAFTA, SAFTA, Commonwealth, etc.

11. Advisory Bodies
 The advisory bodies provide an effective mechanism to maintain
continuous dialogue with trade and industry and increased
coordination among various departments and ministries concerned
with export promotion. Bodies for promoting international trade.
 Board of Trade The Board of Trade was setup under the
chairmanship of Union Minister of Commerce and Industry in May
1989.The broad terms of reference of Board of Trade are as follows:
 To advice the govt. on policy measures for the preparation and
implementation of both short and long term plans.
 To review export performance of various sectors, identify
constraints, and suggest measures to be taken.
 To examine the existing institutional framework for exports and
suggest practical measures for reorganization.

12. Commodity Organizations
 There are various commodity organizations, such as,
 Export promotion councils
 Commodity boards
 Autonomous bodies
 These organizations look at sector-specific exports.
Export promotion councils :
Export promotion councils are non-profit organizations. They
are provided by financial assistance by the central government.
At present there are 20 export promotion councils. Their basic
objective is to promote and develop exports in the country.

13. Service Organizations
 Indian institute of foreign trade
 Indian council of arbitration
 India trade promotion organization
 National centre for trade information
 Export-credit guarantee corporation
 Export import bank of India
 Indian institute of packing
 Federation of Indian export org.

14. Government Trading
Participating
For supplementing the efforts of the private sector in the field of
foreign trade, the govt. of India has set up a no. of corporations,
namely STC, MMTC, spices trading corporation ltd., MSTC.
These corporations results at diversifying the country’s foreign
trade. They perform following activities.
 To arrange for exports where bulk handling and long term contracts
are beneficial.
 To organize production to meet export demand and to help
production units overcome difficulties in raw material procurement

15.  To undertake import of commodities where bulk purchase is
advantageous.
 To facilitate exports of ‘difficult to sell’ items through various
devices such as linking essential imports with additional exports
under barter, link and parallel deals

16. State Export Promotion
Involvement
States being the prime centers for export production need to be
involved actively in export promotion. The central and state
government has taken a number of measures to promote export,
which have been discussed as follows:
 To process all references of general nature emanating from
state governments and state export corporation.
 To monitor proposals submitted by the state government to the
ministry of commerce and coordinate with other divisions of
the ministry.
 To act as a bridge between state level corporations and
associations.

17. EXPORT PROMOTION INITIATIVES
BY STATE GOVT
 Provide information on export opportunities.
 Allot land for starting export oriented unit.
 Plan for the development of export promotion industrial parks.
 They exempt entry tax on supplies to EPZ units.

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