INSTITUTIONAL SETUP FOR EXPORT Yatin Kumar

PROMOTION IN INDIA Sunil Punjnathia

IMPORTANCE OF INSTITUTIONAL
INFRASTRUCTURE
Export is a crucial part of any country. Export marketing effort is of vital importance
for the success of export promotion programme in any country.
For undertaking international marketing operations an exporter needs special
guidance and assistance in critical areas like packaging, market promotion and
publicity, certification, risk coverage etc.
It is only with the support and services offered by specialised institutions exporter is
able to successfully convert his production into sales in the international market.
In a view of widely diversifying nature of the export market throughout the world
Government of India has made several institutions for providing necessary services
and assistance to an exporter.
CONTD.
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.
The export promotion programmes are basically designed to assist firms in entering
international markets and achieving optimum opportunities from their international
business activities.
SIX DIFFERENT TIERS
In order to provide guidance and assistance to an exporter, the Government of India
has setup several institutions.
Department of Commerce
Advisory Bodies
Commodity Specific Organisations
Service Institutions
Government Trading Organisations
Agencies for export promotion at the State level
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.
Functional Divisions of department of commerce are:
 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.
CONTD.
 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.
CONTD.
 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.
COMMODITY ORGANIZATIONS
There are various commodity organizations, such as,
 Export promotion councils
 Commodity boards

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.
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 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.
SERVICE INSTITUTES - IIFT
Provides training for executives and personnel employed in trade and industry,
export houses for developing specializations in procedures of international trade.
Provides consultancy to business firms in matters relating to foreign trade.
Sponsors candidates selected from trade and industry, export houses for higher
training abroad in export management.
INDIA TRADE PROMOTION ORGANISATION(ITPO)
Organising various trade fairs and exhibitions.
Establishing durable contacts between Indian suppliers and overseas buyers.
Assisting Indian companies in product development and adaptation to meet buyers'
requirements.
Organising Buyer-Seller Meets and other exclusive India shows with a view to
bringing buyers and sellers together
Organising seminars/conferences/workshops on trade-related subjects.
Encouraging small and medium scale units in export promotion efforts.
EXIM BANK
The primary objective of the Export-Import Bank of India is to provide financial
assistance to importers and exporters and function as the top financial institution.
Some of the services of the bank include: overseas investment finance, export credit,
finance for export oriented units and agricultural & SME finance.
THE EXPORT INSPECTION COUNCIL (EIC)
Export Inspection Council, either directly or through Export Inspection Agencies,
renders services in the areas of:
 Certification of quality of export commodities through installation of quality assurance systems (In-
process Quality Control and Self Certification) in the exporting units as well as consignment wise
inspection.
 Certification of quality of food items for export through installation of Food safety Management
System in the food processing units.
 Issue of Certificates of origin to exporters under various preferential tariff schemes for export
products.
INDIAN INSTITUTE OF PACKAGING
Govt. of India in collaboration with the industry setup the IIP in 1966. The main aims
of this institute are :
 Undertakes research on raw materials for packaging industry.
 Organize training programs on packaging technology.
 Organize consultancy services for the industry.
EXPORT CREDIT GUARANTEE CORPORATION(ECGC)
Provides a range of credit risk insurance covers to exporters against loss in export of
goods and services.
Makes it easy to obtain export finance from banks/financial institutions.
Provides information on credit-worthiness of overseas buyers.
Provides Overseas Investment Insurance to Indian companies investing in joint ventures
abroad .
GOVERNMENT TRADING ORGANISATIONS
Arrange exports where bulk handling and long term contracts are advantageous.
Facilitate exports of ‘difficult to sell’ items
Organise production to meet export demand.
Undertake imports of such commodities where bulk procurement is advantageous.
AGENCIES FOR EXPORT AT STATE LEVEL
States being the prime centres for export production need to be involved actively in
export promotion. The central and state governments, therefore, have enacted a
number of measures to promote exports;
Inter-State Trade Council:
The Inter-State Trade Council has been set up in order to ensure a continuous
dialogue between the state governments and union territories. It advises the
governments on measures for providing a healthy environment for international trade
with a view to boost India’s exports.
THANK YOU!