EXPORT PROMOTION

FRAMEWORK
 THE CONCEPT OF EXPORT PROMOTION

All national governments have established institutional

set-ups to support export activities.

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.

A non-exporter needs to be motivated by making him or

her aware of the international marketing opportunities.
 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.
The functions of export promotion programmes are:

 To create awareness about exporting as an instrument of

growth and market expansion.
 To reduce and remove barriers of exporting,
 To create promotional incentives.
 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.
 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.
 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:
1. Department of commerce
2. Advisory Bodies
3. Commodity Organizations
4. Service Organizations
5. Government Trading Organizations
6. State Export Promotion Agencies
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.
 Foreign trade territorial division looks after the
development of trade in different countries and regions
of the world.
 The export division looks at the problems connected
with production, generation of surplus, and
development of products for exports under its
jurisdiction.
 The export industries is responsible for the
development and regulation of rubber, tobacco, and
cardamom sectors.
 The export division deals with the problems of export
assistance , such as export credit, export house etc.
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.
 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.
 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.
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.
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
Functions :
 To provide commercially useful information and
assistance.
 To offer professional advice to the members.

 To organize visits to abroad to the members.

 To organize participation in trade fairs, exhibitions.

 To promote interaction between the exporting

community and government.
Commodity boards:
In order to look after the issues related to production,
marketing and development of commodities. The
commodities which follows,
 Tea board
 Coffee board
 Coir board
 Central silk board
 All India handlooms and handicraft board
 Rubber board
 Cardamom board
 Tobacco board
 Spices board
Functions :
 Provide an integrated approach for production
development and marketing of the commodity

 They act as a link between Indian exporters and

importers aboard

 They formulate and implement quality improvement

systems, research and development programmes.

 They act as an interface between the international

agencies such as the ITC, FAO,UNIDO etc.
 They collect information on production, processing
and marketing of the product under its purview and
dissemination.
 They organize export promotion activities such as
participation in international trade fairs, buyer-seller
meeting.
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
 Honey , jaggery and sugar products
 Cashew nuts, groundnuts and papads

 Herbal and medical products

The basic functions of APEDA are as follows:

 It develops database on products, markets, and
services.
 It develops and implements various publicity
exercises.
 It invites official and business delegations from
abroad.
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.
Functions :

 It provides timely and efficient services to overseas

buyers

 It establishes trade links between Indian suppliers and

overseas buyers

 It participates overseas trade fairs and exhibitions

 It arrange products displays for visiting overseas buyers

 SERVICE INSTITUTES
 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.

INDIAN GOVERNMENT’S 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.
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 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.
 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.
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:
1. 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.
 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.
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.
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 b’coz revenue never go to the state coffers.
 State govt. do not distinguish between exporting unit
and domestic unit b’coz 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.