Chapter 20

Export promotion

International Marketing Chapter-20 Export Promotion

Objectives

What are the organizational setup which promotes export. What are incentives What are production assistance facilities What are marketing assistance What are import facilities for exporters What are EPZs, EOUs, TPs, SEZs What are export houses and trading International Marketing Chapter-20 Export Promotion houses

Introduction

Export development is important to the firm and to the economy as a whole. Government measures aim, normally at the general improvement of the export of the nation for the general benefit of the economy. The benefits of exports to the economy are many.
International Marketing Chapter-20 Export Promotion

Principle Objectives Of Export Promotion Measures In India

1.

2.

3.

Compensate the exporters for the high domestic cost of production. Provide necessary assistance to the new and infant exporters to develop the export business. Increase the relative profitability of the export business vis-e-vis the domestic business.
International Marketing Chapter-20 Export Promotion

Organizational Set Up

Government has established or sponsored a number of organizations to provide different types of assistance to the exporters. Apart from the organizations established exclusively for export promotion, there are also a number of other institutions which assist the International Marketing export sector. Chapter-20 Export Promotion

Ministry Of Commerce

1.

The ministry of Commerce, Government of India, is the most important organ concerned with the promotion and regulation of the foreign trade of the country. Matters related to foreign trade are dealt with by eight divisions in the Department of Commerce, namely, Administrative an General Division
International Marketing Chapter-20 Export Promotion

2. 3. 4. 5. 6. 7. 8.

Finance Division Economic Division Trade Policy Division Foreign Trade Territorial Division Exports Products Division Services Division Industries Division
International Marketing Chapter-20 Export Promotion

Autonomous Bodies
1. 2. 3. 4. 5. 6. 7. 8. 9.

Commodity boards Export inspection council Indian institute of foreign trade Indian institute of packaging Export promotion councils Federation of Indian export organizations Indian council of arbitration Marine products export development authority Indian trade promotion organization
International Marketing Chapter-20 Export Promotion

Indian Trade Promotion Organization

1.

2. 3.

The ITPO was bought into being in 1992 by merging together the erstwhile Trade Fair Authority Of India (TFAI) and the erstwhile Trade Development Authority of India (TDA). The functions of the ITPO are to Develop and promote exports, imports and upgrade technology through fair in India and abroad Compile and disseminate trade related information Undertake publicity through the print and electronic media
International Marketing Chapter-20 Export Promotion

Attached And Subordinate Offices

1.

2.

3.

Office of the Director General of Foreign Trade (DGFT) Directorate General or Commercial Intelligence and Statistics Offices of Development Commissioners, FIZ/EPZs

International Marketing Chapter-20 Export Promotion

Incentives

Export incentives are a widely employed strategy of export promotion. The main aim of these incentives is to increase the profitability of export business. Important export incentives in India include rebate of duties, cash compensatory support, income tax concession, interest subsidies, freight subsidy etc.
International Marketing Chapter-20 Export Promotion

Marketing Assistance

Market development assistance Foreign exchange Trade fairs and exhibitions Export risk insurance Finance Quality control and preshipment inspection Institutional assistance India brand equity fund
International Marketing Chapter-20 Export Promotion

Important Facilities For Exporters

Export promotion capital goods Duty exemption scheme Duty free license Duty entitlement pass book

International Marketing Chapter-20 Export Promotion

Export Processing Zones/EOUs

EPZs are industrial estates which form enclaves from the national customs territory of a country and are usually situated near seaports or airports.

International Marketing Chapter-20 Export Promotion

Main Objectives of an EPZ are

1. 2. 3.

4.

To earn foreign exchange To generate employment opportunities To facilitate transfer of technology by foreign investment and other means To contribute to the overall development of the economy.
International Marketing Chapter-20 Export Promotion

SEZs

While announcing the Exim Policy for 200001, the Commerce Minister stated that India would develop Special Economic Zones to boost the countrys exports. The first to SEZs are to be set up in Positra in Gujarat. The move to develop SEZs was inspired by the success of the SEZs in China which contribute about 40 per cent of her exports.
International Marketing Chapter-20 Export Promotion

Export Houses And Trading Houses

An export house is defined as a registered exporter holding a valid Export House Certificate issued by the Director General of Foreign Trade. The objective of the scheme is to recognize established exporters as Export House, Trading House, Star Trading House and Superstar Trading House with a view to build marketing infrastructure and expertise required for promotion.
International Marketing Chapter-20 Export Promotion

Summary

The success of export promotion measures should be judged by the growth of exports and the dynamism of the export sector. An effective export promotion should compensate for the disadvantages of the national exporters and should make the export business profitable enough to lure entrepreneurs to this sector and achieve the ultimate objective of boosting the exports.
International Marketing Chapter-20 Export Promotion