Foreign Trade Promotion

Support Organizations• Promote Foreign trade– Trade fairs– Education and research– Arbitration– Inspection

• Financing and Guarantee– EXIM Bank– ECGC

ITPO• India Trade Promotion Organization

– Ministry of Commerce agency– Holds international trade fair in India– Auto Expo, bi-annual event held in Delhi– Trade centers existing

• Pragati Maidan, New Delhi• EPIP Whitefield, Bangalore• Chennai Trade Center• Proposed center in Guwahati for NE

India– Buyer-seller meets, conferences, seminars– Trade fairs abroad

IIFT• Indian Institute of Foreign Trade

– Set up in 1963 by the Government of India– Located in Delhi and Kolkata– An autonomous organisation to help

professionalize the country's foreign trade management

– Increase exports by developing human resources; generating, analysing and disseminating data; and conducting research.

– Today it is one of India's most prestigious business schools

– Offers MBA programs, PhD, PG diplomas and international exchange programs

ICA• Indian Council of Arbitration– Set up as a registered society– Promotes settlement of disputes for

traders– Guarantee institution of the department

of commerce– Eligible for MDA scheme– Located in Delhi

FIEO• Federation of Indian

Export Organizations– Represents Indian

entrepreneurs– Set up in 1965 by public-

private partnership– Export awareness

workshops– Pre-policy meetings– Open house discussions

EIC• Export Inspection Council of

India– Set up under Section 3 of the Export

(Quality Control and Inspection) Act, 1963

– Advisory body to GoI• Notify commodities which will be subject to

quality control / inspection prior to export• Establish standards of quality for such

notified commodities• Specify the type of quality

control/inspection to be applied to such commodities

EIC roles• Consignment-wise inspection• IPQC systems• Self certification• Food Safety management• Pre-shipment certification• Recognized internationally as the

official export certification body of India

ECGC• Export Credit and Guarantee Corporation

– Established in 1957– Under administrative control of Commerce Ministry– 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

ECGC • Offers insurance protection to exporters

against payment risks• Provides guidance in export-related activities• Makes available information on different

countries with its own credit ratings• Makes it easy to obtain export finance from

banks/financial institutions• Assists exporters in recovering bad debts• Provides information on credit-worthiness of

overseas buyers

SMERA-SME rating Agency Of INDIA limited

• SMERA is the country's first Rating agency that focuses primarily on the Indian Micro, Small and Medium Enterprise (MSME) segment.

• SMERA's primary objective is to provide Ratings that are comprehensive, transparent and reliable. This would facilitate greater and easier flow of credit from the banking sector to MSMEs.

CgtmseCredit guarantee fund trust for micro and small enterprises

• The main objective is that the lender should give importance to project viability and secure the credit facility purely on the primary security of the assets financed.  The other objective is that the lender availing guarantee facility should endeavor to give composite credit to the borrowers so that the borrowers obtain both term loan and working capital facilities from a single agency.  The Credit Guarantee scheme (CGS) seeks to reassure the lender that, in the event of a MSE unit, which availed collateral free credit facilities, fails to discharge its liabilities to the lender, the Guarantee Trust would make good the loss incurred by the lender up to 75 / 80/ 85 per cent of the credit facility.

DGFTDirectorate general of foreign trade