ROLE OF GOVERNMENT /SEMI-GOVERNMENT AGENCIES IN EXPORT PROMOTION:

ROLE OF GOVERNMENT /SEMI-GOVERNMENT AGENCIES IN EXPORT PROMOTION PRANAY GUPTA

MINISTRY OF COMMERCE AND INDUSTRY:
MINISTRY OF COMMERCE AND INDUSTRY The union ministry of commerce and industry is an umbrella
organization for the foreign trade of the entire country The department is functionally organized into the following
eight divisions 1Administration general division 2 Finance division 3 Economic division 4 Trade policy division 5
Foreign trade territorial division 6State trading & infrastructure division 7 Supply division 8 Plantation division

DIRECTOR GENERAL OF FOREIGN TRADE:
DIRECTOR GENERAL OF FOREIGN TRADE DGFT was earlier known as the chief controller of imports and
exports Besides promoting exports it facilitates the removal of control and operates through regional offices
spread all over the country

COMMODITY BOARDS:
COMMODITY BOARDS Commodity boards such as the rubber board and the silk board , are public sector
organizations The tea board, coffee board , tobacco board, spices board, jute mills association are some
examples

EXPORT PROMOTION COUNCILS :
EXPORT PROMOTION COUNCILS They are responsible for building a database on exports and imports of
members and international trade data for members use They keep track of changing trends and opportunities
abroad and educate members on country specific opportunities

EXPORT INSPECTION COUNCIL :
EXPORT INSPECTION COUNCIL EIC , also exercises technical and administrative control over the five export
inspection agencies , one each at Chennai , Delhi , Kochi , Kolkata and Mumbai established by the ministry of
commerce , government of India , under Section 7 of the Act for the purpose of implementing the various
measures and policies formulated by the export inspection council of India

EXPORT CREDIT GUARANTEE CORPORATION:
EXPORT CREDIT GUARANTEE CORPORATION ECGC was established in the year 1957 It is the fifth largest
credit insurer of the world in terms of coverage of national exports

INDIA TRADE PROMOTION ORGANISATION:
INDIA TRADE PROMOTION ORGANISATION ITPO provides a wide spectrum of services to trade and industry
and acts as a catalyst for growth of India's trade It s regional offices at Bangalore , Chennai , Kolkata and
Mumbai

Federation of Indian exporters organization:
Federation of Indian exporters organization The federation of Indian export organisations represents spirit of
enterprise in the global market known popularly as FIEO It is the apex body of various exporters and export
promotion organizations

EXPORT IMPORT BANK:
EXPORT IMPORT BANK EXIM bank is an apex organization that finances, facilitates and promotes exports Its
major function is to arrange loans/ funds for exporters

The state trading corporation of India:
The state trading corporation of India STC is a premier international trading house owned by the government of
India Having been set up in 1956 The corporation has developed vast expertise in handling bulk international
trade

Freight investigation bureau:
Freight investigation bureau This bureau is based at the office of the director general shipping Mumbai and it
looks into the problems related to ocean freights It also gives suggestions and settles disputes related to ocean
freight

Customs and central excise department :
Customs and central excise department It operates through customs houses in Mumbai, Kolkata , New Delhi,
and other industrial areas and export zones The department handles and implements related to drawback
imposition and recovery of customs and central excise


1. INSTITUTIONAL INFRASTRUCTURE FOR EXPORT PROMOTION
BY:- PRASHILA PRADEEPJENIFER . jSHEEBA DAS
2. THE CONCEPT OF EXPORT PROMOTION

1. All national governments have established institutional set-ups to support export activities.
2. The major objective of export promotion programmes is to create awareness about exports and
make the people understand that it is one of the most crucial instruments of growth and market
expansion.
3. A non-exporter needs to be motivated by making him or her aware of the international marketing
opportunities.
3.
1. 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.
2. 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.
3. The export promotion programmes initiated by the government are in the form of public policy
measures.
4. The functions of export promotion programmes are:

1. To create awareness about exporting as an instrument of growth and market expansion.
2. To reduce and remove barriers of exporting,
3. To create promotional incentives.
4. To provide various forms of assistance to potential and actual exporters.
The export promotion programmes are basically designed to assist firms in entering international
markets and achieving optimum opportunities from their international business activities.
5. ROLE OF EXPORT PROMOTION INSTITUTIONS IN IM
The export promotion organizations(EPOs) are meant to assist an international marketing
manager to identify overseas market opportunities, product and packaging requirements, the
pricing patterns, identifying IM channels, and marketing opportunities.
Statutory requirements, such as registration-cum-membership certificates(RCMCs), quota
administration , and disbursement of incentives through promotion organizations, make it
necessary for the marketers to approach these organizations.
6. 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
7. 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:

1. The economic division is engaged in export planning, formulating export strategies and periodic
appraisal, and review of policies.
2. The trade policy division is responsible for maintaining Indias compatibility with regional trading
agreements such as EU, NAFTA, SAFTA, Commonwealth, etc.
8.
1. Foreign trade territorial division looks after the development of trade in different countries and
regions of the world.
2. The export division looks at the problems connected with production, generation of surplus, and
development of products for exports under its jurisdiction.
3. The export industries is responsible for the development and regulation of rubber, tobacco, and
cardamom sectors.
4. The export division deals with the problems of export assistance , such as export credit, export
house etc.
9. 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:

1. To advice the govt. on policy measures for the preparation and implementation of both short and
long-term plans.
10.
1. To review export performance of various sectors, identify constraints, and suggest measures to
be taken.
2. To examine the existing institutional framework for exports and suggest practical measures for
reorganization.
3. To review the policy instrument, package of incentives, and procedures for exports, and suggest
steps to rationalize and channelize incentives to areas where they are most needed
Export Promotion Board:
In order to effect greater co-ordination among ministers involved in exports, Export Promotion
Board was setup. It works under the chairmanship of the Cabinet Secretary and provides policy
and infrastructural support to the exporters.
11. Commodity Organizations
There are various commodity organizations, such as,

1. Export promotion councils
2. Commodity boards
3. Autonomous bodies
These organizations look at sector-specific exports.
12. 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.
The main role of the EPCs is to project India as a reliable supplier of high quality goods and
services in the international market.
Each council is responsible for the promotion of a particular group of products, projects and
services.
13. The present set-up of EPCs covers the following sectors:
Engineering
Project
Electronics and computer software
Plastics and linoleums
Chemical and allied projects
Gems and jewellery
Leather
Indian milk
Carpet
Cotton textiles
Handicraft
14. Functions :

1. To provide commercially useful information and assistance.
2. To offer professional advice to the members.
3. To organize visits to abroad to the members.
4. To organize participation in trade fairs, exhibitions.
5. To promote interaction between the exporting community and government.
15. Commodity boards:
In order to look after the issues related to production, marketing and development of
commodities. The commodities which follows,

1. Tea board
2. Coffee board
3. Coir board
4. Central silk board
5. All India handlooms and handicraft board
6. Rubber board
7. Cardamom board
8. Tobacco board
9. Spices board
16. Functions :

1. Provide an integrated approach for production development and marketing of the commodity
2. They act as a link between Indian exporters and importers aboard
3. They formulate and implement quality improvement systems, research and development
programmes.
4. They act as an interface between the international agencies such as the ITC, FAO,UNIDO etc.
17.
1. They collect information on production, processing and marketing of the product under its
purview and dissemination.
2. They organize export promotion activities such as participation in international trade fairs, buyer-
seller meeting.
18. Autonomous bodies:
APEDA agriculture and Processed Food Products Export Development Authority.
APEDA looks after the promotion of exports of agriculture and processed food products.
It works as a link between the Indian exporters and the global markets
The products are,
Fruits , vegetables, and their products
Meat and meat products
Poultry and poultry products
Dairy products
Biscuits , and bakery products
19. Honey , jaggery and sugar products
Cashew nuts, groundnuts and papads
Herbal and medical products
The basic functions of APEDA are as follows:

1. It develops database on products, markets, and services.
2. It develops and implements various publicity exercises.
3. It invites official and business delegations from abroad.
20. MDEDA- Marine Export Development Authority
MDEPA is an autonomous body under the ministry of commerce. It covers all kinds of marine
products.
The prime objective are to increase export-oriented production, specify standards for processing
and export marketing.
21. Functions :

1. It provides timely and efficient services to overseas buyers
2. It establishes trade links between Indian suppliers and overseas buyers
3. It participates overseas trade fairs and exhibitions
4. It arrange products displays for visiting overseas buyers
22. SERVICE INSTITUTES

1. Indian institute of foreign trade
2. Indian council of arbitration
3. India trade promotion organization
4. National centre for trade information
5. Export-credit guarantee corporation
6. Export import bank of India
7. Indian institute of packing
8. Federation of Indian export org.
23. Indian governments trade representatives abroad
The institutional set-ups developed and strengthened within the country are supplemented by the
Indian trade representatives abroad. The trade representations in the embassies and consultants
are continually being strengthened to enable them to effectively support the effort, which is being
made within the country.
24. Government participation in Foreign Trade
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 countrys
foreign trade.They perform following activities:-
To arrange for exports where bulk handling and long term contracts are beneficial.
25. To organize production to meet export demand and to help production units overcome difficulties
in raw material procurement.
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.
26. States involvement in promoting export
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:
States cell in the ministry of commerce:
To act as a nodal agency for interacting with state government on matters related to export and
import from the state and for handling references received from them.
27. 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.
To provide guidance to state level export organizations.
28. 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.
29. Impediments in export promotion
State govt. are reluctant to promote export activities due to the following reasons:-
Export never become number one priority of state agenda bcoz revenue never go to the state
coffers.
State govt. do not distinguish between exporting unit and domestic unit bcoz of same reason.
The govt, generally lack the required expertise for export promotion.
Additional facilities for export-oriented development mean more cost for the state governments.
Information about international markets, export policy etc.. Is lacking among state administration.