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
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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
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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
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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
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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
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Chapter-20 Export Promotion

Important Facilities For

Exporters

Export promotion capital goods

Duty exemption scheme
Duty free license
Duty entitlement pass book

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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