EXPORT PROMOTION - 1

Sunil Shinde (1804305021)

MBA(ITLM)
International Business
Indian Maritime University, Visakhapatnam
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 Introduction to Export Promotion

 Export promotions includes measures to encourage export production , export promotion

organizations , international marketing assistance and measures to reduce business risks
and increase profitability .
 Export development has an important place in the economic of Govt. of India .
 Export development is important to the firms and to the economy of a country like our
India .
 Govt. steps forward for general improvement of the export performance of the nation for
the general benefits of economy .
 The main benefits of export to the economy are -
1. Economies of scale and growth .
2. Balance of Trade and Payment .
3. Employment .
 So for maintaining position in international competition and the good level of domestic
economic activity a country like ours other developed countries also has to stressed up on
Export Promotions .

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  Objectives of export promotion measures

 Compensate the exporters for the high domestic cost of production .

 Provide necessary assistance to the new and small exporters to develop the export
business .
 Increase the relative profitability of export business as well as domestic business.
 Technical assistance and Training to exporters .
 Setting up of Commodity boards to promote exports of that commodities .

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 Organizational SET-UP

 Ministry of Commerce – The Ministry of Industry and Commerce , Govt. of India , is the
crucial organ concerned with promotion and regulation of the foreign trade of the country .
 The department of Commerce in the Ministry is assigned a very important role in different
matters concerned with foreign trade of country including commercial relations with other
countries , promotion and regulation of foreign trade , state trading .
 The matters related to foreign trade are dealt with by eight divisions in the department of
commerce and they are
1. Administrative and general division .
2. Finance division .
3. Economic division .
4. Trade policy division .
5. Foreign trade territorial division .
6. Exports product division .
7. Services division .
8. Industries division .

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 Autonomous Bodies

1 . Export Inspection Councils .

2 . Indian Institute of Foreign Trade .
3 . Indian Institute of Packing .
4 . Export Promotion Councils .
5 . Federation of Indian Export Organizations .
6 . Indian Council of Arbitration .
7 . India Trade promotion Organization .

Public Sector Undertakings

1 .The State Trading Corpo. Of India and its subsidiaries .

2 . The Minerals and Metals Trading Corpo. Of India and subsidiaries .
3 . The Spices Trading Corporation .
4 . The Export Credit Guarantee Corporation .

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Advisory Body

 Export and Promotion Programme .

 Operation of import and export trade controls .
 Organizations and development of commercial services .
 Export Credit Guarantee Corporation .

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Incentives

 Export incentives are a widely used strategy of export promotion .

 The main purpose is to increase the export business and encourage them .
 The main export incentives in India include rebate of duties , income tax
concession , interest subsidies , duty drawbacks , awards and other incentives .

1 . Duty drawback –
Duty Drawback is the refund, reduction or waiver in whole or in part of customs
duties assessed or collected upon importation of an article or materials which are
subsequently exported .
This is worldwide practice and designed for exporters to get price competitiveness.
There are two types of drawback rates, i.e. Industry rate , Brand rate .

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Awards

 A number of awards have been instituted to encourage exports and to recognize

excellence in exports .
 Awards are given on the basis of certain criteria such as development of market for
products , successful introduction of new products .

Other incentives

 CCS – was cash subsidy designed to compensate exporters for unrebated indirect
taxes and to provide resource for product market development .
 REP – Import Replenishment Licenses .
 IPRS – The International Price Reimbursement Scheme .

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Reference

 INTERNATIONAL BUSINESS – Text and Cases By Francis Cherunilam .

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Thank You

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