IV Chapter

8/10/2019 IV Chapter

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INSTITUTIONALINFRASTRUCTUREFOR

EXPORTPROMOTIONININDIA


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Consultative and deliberative body-board of

trade

The board of Trade has been set up to ensure that

the collective advice of the commercial interests is

available to the government of India for framing and

formulating export promotion and import policies

and for successful implementation thereof.


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The board of trade is the highest forum for governmentalindustry interface on trade policy issues. It has as itsmembers presidents of FICCI , Assocham , CII , FASSIand FIEO, in addition to several other leadingindustrialists. It also has representatives from theMinistries of Finance Industry and textiles as also fromthe Prime Ministers office. The chairman of the statebank of India and EXIM Bank and Director generalForeign Trade , are also its members. The board ofTrade is presided over by the commerce Minister.

It deliberates on the policy and major bottle necks facedby trade and industry on foreign trade and makesrecommendations for governments consideration andimplementation.


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The broad terms of reference of Board of Trade are as follows:

To advice the govt. on policy measures for the preparation andimplementation of both short and long-term plans.

To review export performance of various sectors, identifyconstraints, and suggest measures to be taken.

To examine the existing institutional framework for exportsand suggest practical measures for reorganization.

To review the policy instrument, package of incentives, andprocedures for exports, and suggest steps to rationalize andchannelize incentives to areas where they are most needed

To commence studies for promoting trade.

This , the Board of trade ensures a continuous dialogue withtrade and industry in order to advise the government on policymeasures , to review export performance of various sectors ,identify constraints and suggest industry specific measures tooptimize export specific earnings.


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COMMODITY ORGANIZATIONS

In order to focus on the commodity/product specific

exports , there are various commodity organizations

such as export promotion councils , commodity

boards and autonomous. These organizations look

after sector specific exports right from product

development to export marketing.


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EXPORT PROMOTION COUNCILS :

Export promotion councils are non-profitorganizations. They are provided by financialassistance by the central government.

At present there are 21 export promotion councils.Their basic objective is to promote and developexports in the country.

The main role of the EPCs is to project India as a

reliable supplier of high quality goods and servicesin the international market.

Each council is responsible for the promotion of aparticular group of products, projects and services


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COMMODITY BOARDS:

Along with export promotion councils commodity boardshave been established by the government of India formany commodities with high export potential. These

boards are supple-mentary to EPCs and function on thesame lines.

The CBs are for promoting exports of specific commoditiesparticularly the traditional commodities including tea,coffee, etc. The commodity boards look after the exportpromotion of primary and traditional items of exports whilethe EPCs look after the export promotion of non-traditionalitems.

In order to look after the issues related to production,marketing and development of commodities.


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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


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SERVICE INSTITUTIONS

A number of institutions and organizations havebeen established to meet the requirements ofindustry and trade. The fields in which these

institutions are engaged include development ofexport management personnel , a market research, export credit insurance , export publicity ,organization of trade fairs and exhibitions ,collection and dissemination of export related

information , inspections and quality control,development in packaging etc. A brief review of theactivities and functions of some of these institutes isgiven below.


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INDIAN TRADE PROMOTION ORGANISATION (ITPO)

Indian trade promotion organisation was set up by theMinistry of Commerce, Government of India, on 1stJanuary, 1992 with its headquarters at New Delhi afterthe merger of Trade Development Authority (TDA) and

Trade Fair Authority of India (TFAI). It has five regional offices in India at Mumbai,

Bangalore, Kolkata, Kanpur and Chennai and four inGermany, Japan, UAE and USA. As a premier tradepromotion agency of the government of India, the ITPOprovides a broad spectrum of services to trade and

industry so as to catalyse the growth of bilateral trade,particularly Indiasexports and technological upgradation and modernisaiton of different industrysegments.


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FUNCTION OF INDIAN TRADE PROMOTION ORGANISATION

The following are the functions or activities of Indian trade promotionorganisation

(a) Organising Trade Fairs and Exhibitions

ITPO organizes trade fairs and exhibitions in India and abroad and tobook stalls/space for Indian exporters to participate in overseas trade fair

and exhibitions. ITPO acts as a publicity wing of government of India fororganizing trade fair and exhibitions in India and abroad.

(b) Publicity

It gives publicity in connection with the organisation of trade fairs andexhibitions in India, so that foreign parties may visit India to visit in suchtrade fairs and exhibitions.

(c) Collections of Information

ITPO collects information of various trade fairs and exhibitions to beheld abroad. The information is collected in respect of place or venue ofexhibition, date and duration, products to be displayed, booking of spaceformalities, etc.


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(d) Supply of Information

ITPO provides information to Indian parties regardingoverseas trade fairs and exhibitions. Such informationmay be useful to Indian parties or exporters to takeproper decisions in respect of participation in overseas

trade fairs, and exhibitions.(e) Delegations

Inviting trade delegations from abroad and sendingIndian trade delegation abroad. ITPO book orders forIndian goods. In addition, to send Indian tradedelegations abroad for market survey and for signingcontracts for the supply for Indian goods.

(f) Booking of Space in Overseas Trade Fairs

ITPO books necessary space/stalls for Indian exporters.This enables Indian exporters to participate in overseastrade fairs and exhibitions.


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(g) Consultancy Services

It provides consultancy services to Indian exporters

to participate and display their product in trade fairs

and exhibition in India and abroad.

(h) Seminars and Workshops

ITPO organizes seminars/workshops for giving

information/guidance to exporters about fairs and

exhibitions arranged in India and abroad. ITPO has

set up a trade information centre at its headquarters

in New Delhi. It is considered as the best source of

information on import and export trade


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NATIONAL CENTRE FOR TRADE INFORMATION(NCTI)

National centre for trade information (NCTI) is as jointventure of ITPO and national information centre. Itsactivities mainly relate to supply of trade, business andeconomic information NCTI was established inOctober,1994 to provide latest, trade business andeconomic information to help India and foreignenterprises in the promotion of trade from and to India.In this sense, it acts as an export promotion

organisation. The NCTI uses high speed NICNET national information

highway for collection and dissemination of tradeinformation.


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FUNCTIONS OF NCTI

Following are the important functions/activities of NCTI.

To create databases at national and international levels for promotion of exports.

To collect information on various aspects of trade and commerce in differentcountries.

To disseminate information of countries and products to trade and industry.

To establish linkages with trade promotion bodies, regulatory bodies, chambersand associations among others.

To establish linkages with commercial wings of Indian missions abroad and foreignmissions in India.

To publish papers, periodicals and other literature relating to trade and commerce.

To maintain liaison with trade and commercial bodies different countries.

To organize training, seminars and conferences on matters relating to trade and

commerce. To create information base for all types of marketing intelligence on trade aspects.


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EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED(ECGC)

The Corporation was established in 1957 as the Export Risk InsuranceCorporation of India Ltd. Keeping in view the wider role played by theCorporation, the name was changed to Export Credit GuaranteeCorporation of India Ltd. (ECGC).

The ECGC is the premier organization in the country, which offers creditrisk insurance cover to exporters, banks, etc. The primary objective ofthe Corporation is to promote the countrys exports by covering the riskof export on credit. It provides

(a) a range of insurance covers to a Indian exporters against the risk ofnon-realization of export proceeds due to commercial or political causesand

(b) different types of guarantees to banks and other financial institutionsto enable them to extend credit facilities to exporters on liberal basis.Export Credit Guarantee Corporation of India Limited, was established tostrengthen the export promotion drive by covering the risk of exportingon credit.


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Being essentially an export promotion organization,it functions under the administrative control of theMinistry of Commerce & Industry, Department ofCommerce, and Government of India. It is

managed by a Board of Directors comprisingrepresentatives of the Government, Reserve Bankof India, banking, insurance and exportingcommunity.

ECGC is the fifth largest credit insurer of the world

in terms of coverage of national exports. Thepresent paid-up capital of the company is Rs.800crores and authorized capital Rs.1000 crores.


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Functions of Export Credit Guarantee

Corporation of India Limited:

Provides a range of credit risk insurance covers

to exporters against loss in export of goods and

services

Offers guarantees to banks and financial

institutions to enable exporters to obtain better

facilities from them

Provides Overseas Investment Insurance to

Indian companies investing in joint ventures

abroad in the form of equity or loan


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It provides support to exporters in following ways:

Offers insurance protection to exporters againstpayment risks

Provides guidance in export-related activities

Makes available information on differentcountries with its own credit ratings

Makes it easy to obtain export finance frombanks/financial institutions

Assists exporters in recovering bad debts Provides information on credit-worthiness of

overseas buyers


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EXPORT INSPECTION COUNCIL

The Export Inspection Council was set up as a

Statutory Body on 1st January, 1964 under Section

3 of the Export (Quality Control and Inspection) Act,

1963 to ensure sound development of export trade

of India through quality control and inspection and

for matters connected therewith.


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EIC is responsible for the enforcement of quality

control and compulsory pre shipment inspection of

various commodities meant for exports notified

under export (Quality control and inspection) Act,

1963. The Council is an advisory body to theCentral Government, with its office located at New

Delhi and is headed by a Chairman.


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The Council is assisted in its functions by the

Export Inspection Agencies (EIAs), which are field

organizations located at Chennai, Delhi, Kochi,

Kolkata and Mumbai and have state-of-art and

accredited laboratories with the required logisticsupport for quality certification activities. These

Agencies have a network of thirty six sub-offices

and laboratories located at different ports or major

industrial centres to back up the pre-shipmentinspection and certification activities.


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INDIAN INSTITUTE OF PACKAGING (IIP) MUMBAI

MEANING

The Indian Institute of packaging was set up in Mumbaion 14th may, 1966 with an objective to giving guidance

and training to Indian exporters, in regard to packagingtechniques. It was set up by the government of India incollaboration with the industry for removing thedeficiencies in the field of packages. Indian institute ofpacking is a registered body under the SocietiesRegistration Act, and undertakes research activities onraw materials for packaging industry. It keeps India inline with the international developments in packaging. Itis a service organization.


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FUNCTIONS OF IIP

The following are the important functions of Indian institute of packaging.

(a) Training Programme

It is primarily engaged in training programmes relating to packaging industry. Thisinstitute makes the trainees familiar with packaging technology, packagingmaterials, and current trends in packaging in the world markets.

(b) Improvement in Quality of Packaging

IIP makes constant efforts to upgrade and improve the design and quality ofpackaging, so as to promote Indian products abroad. Undertake research on rawmaterial used of the packaging industry and to bring improvement in the quality ofpackaging.

(c) Collection of Information

IIP collects information on latest trends in the packaging in respect of rawmaterials, design etc. To keep abreast of international developments in packagingand to collect information on new trends in packaging .


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(d) Testing Facilities

It also undertakes testing of packaging materials andpackages to ensure export quality.

(e) U N Certification

All dangerous goods packages need a UN certification mark

before they can be dispatched IIP is the only authorized bodyin India to give this certification.

(f) Environmental Cell

The institute has an environment cell, which guides exportersas to what type of material can be used or incorporated in thepackaging of their products so as to reduce environmental

threats. (g) Research and Development

It undertakes research and development programmes forcreating and improving overall infrastructural facilities forachieving packaging improvement so as to prevent lossesduring transportation.


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(h) Develops Packaging Consciousness

Export packaging is vital as it not only protects and

preserves the product, but also promotes the

product in international markets. Therefore, IIP

develop consciousness of the need for good

packaging among Indian exporters.

(i) Publications

It publishes two quarterly magazines, one devoted

to the technological aspect of packaging and the

other to techno-economic aspects of packaging.


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FEDERATION OF INDIAN EXPORT ORGANISATIONS(FIEO)

MEANING

Federation of Indian Export Organizations (FIEO) is an

apex body of various export promotion oragnisations. Itwas set up in October 1965. It represents the Indianentrepreneurs spirit of enterprise in the global market. Ithas kept pace with the countrysevolving economic andtrade policies and has provided the content, directionand thrust to Indiasexpanding international trade. Asthe apex body of all Indian export promotionorganisations, FIEO works as a partner of thegovernment of India to promote Indian exports.


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FUNCTIONS OF FEDERATION OF INDIAN EXPORT ORGANISATION

The following are the important functions of federation of Indian exportorganisation.

(a) International linkage

It has forged strong links with counterpart organizations in severalcountries as well as international agencies to enable direct

communication and interaction between India and world businessmen. Itis registered with UNCTAD as a national non-government organisation,and has direct access to information and data origination form UN bodiesand world agencies like the IMF, ADB, ESCAP, World Bank, FAO, UNIDOand others.

(b) Dissemination of Information

It has bilateral arrangements for exchange of information as well as for

liaisoning with several overseas chambers of commerce and trade andindustry associations.

(c) Liaisoning with Government

It sends representations on policy matters to Central and State(regional) governments. It helps in establishing contacts between thegovernment and commercial bodies both in India and overseas.


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(d) Market Development Assistance (MDA)

The ministry of commerce, government of India, through FIEO, reimburses certainpercentage of the expenditure incurred by the recognized exporters, such as alltypes of export houses, on sales cum study tours, participation in exhibition andfairs abroad, advertisements in foreign media etc.

(e) Market Research and Development Department

The market research and development department offers the following services to

the exporters community i.e.- Arranging meeting with diplomats, incomingdelegations and buying missions, inviting delegations, organizing trade fairs andexhibitions in India as well abroad opening foreign offices and warehouses,organizing seminars for promotion of international trade, opening new FIEO officesabroad.

(f) Publicity Department

The publicity department of FIEO performs the following functions-

Bringing out various special supplements in Indian and overseas dailies in order toproject the selected finished products in India and abroad. Creating and telecastingepisodes in NEPC channel to promote Indiasprominent brands in variouscountries covered by the channel. It has published directory of foreign buyers anddictionary of Indian exporters. It publisher a fortnightly magazine, FIEO NEWS, tocover development in the field of international trade concerning India.


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GENERAL OF COMMERCIAL INTELLIGENCE ANDSTATISTICS (DGCI&S)

The Directorate General of Commercial Intelligence &Statistics (DGCI&S) is the premier organization of Govt.of India for collection, compilation and dissemination of

Indias Trade Statistics and Commercial Information.This Directorate, with its office located at Kolkata, isheaded by the Director General. It is entrusted with thework of collecting, compiling andpublishing/disseminating trade statistics and varioustypes of commercial information required by the policy

makers, researchers, importers, exporters, traders aswell as overseas buyers.

DGCI&S collects the basic data from different customsformations in the form of DTR (Daily Trade Return) andthen processes and compiles it using state-of-the-arttechnology.


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DIRECTORATEGENERALOFSHIPPING

The Directorate General of Shipping, India deals

with implementation of shipping policy and

legislation so as to ensure the safety of life and

ships at sea, prevention of marine pollution,

promotion of maritime education and training in co-ordination with the International Maritime

Organization, regulation of employment and welfare

of seamen, development of coastal shipping,

augmentation of shipping tonnage, examination andcertification of Merchant Navy Officers, Supervision

and Control of the allied offices under its

administrative jurisdiction.

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IV Chapter