ARMY INSTITUTE OF MANAGEMENT AND

TECHNOLOGY

MAJOR ASSIGNMENT

INFRASTRUCTURAL SUPPORT FOR INDIAN

FORIEGN TRADE
Submitted to :
by :
Lt. Col. N.R.Vaid

Submitted
________________
MBA-12

 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.

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.

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

Indian governments 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 countrys
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.
2. To process all references of general nature emanating from state
governments and state export corporation.
3. To monitor proposals submitted by the state government to the ministry of
commerce and coordinate with other divisions of the ministry.
4. To act as a bridge between state level corporations and associations.
5. 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 bcoz revenue
never go to the state coffers.

State govt. do not distinguish between exporting unit and domestic unit bcoz
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.