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Chapter 3 Export Promotion International Marketing – Francis Cherunilam


Export Promotion:

Policies adopted taken by Government to promote Export.

Incentive programs designed to attract more firms into exporting by offering help in product and market identification and development, pre-shipment and post-shipment financing, training, payment guaranty schemes, trade fairs, trade visits, foreign representation, etc.


Institutional Arrangements to promote India’s Exports:

An exporter needs guidance and assistance at different stages of his export effort. For this purpose the government of India has set up several institutions whose main functions are to help the industry and trade engaged in exports. (Packaging, market promotion and publicity, quality certification, risk coverage, market intelligence, finance and credit support etc)


Institutional setup:

Institutions engaged in export effort fall in six distinct tiers. At the top is the Department of Commerce in the Ministry of Commerce and Industry. This is the main organization that formulates and guides India’s trade policy.

At the second tier, there are Advisory bodies to ensure that export problems are comprehensively dealt with after mutual discussions between the Government and the Industry.

At the third tier are the Commodity specific organizations, which deal with problems relating to individual commodities and/or groups of commodities.


The fourth tier consists of Service institutions, which facilitates and assist the exporters to expand their operations and reach out more effectively to the world markets.

The fifth tier consists of Government trading organizations specifically set up to handle export/import of specified commodities and to supplement the efforts of the private enterprise in the field of export promotion and import management.

Agencies for export promotion at the State level constitute the sixth tier.


Commodity organizations:

1. The Export Promotion Councils:

At present there are 20 Export Promotion Councils (EPC's) whose basic objective is to promote and develop the exports of the country. Each council is responsible for the promotion of a particular group of products, projects and services.

The present set up of EPCs covers following sectors:

(Engineering, Overseas Construction, Computer Software, Leather, Cashew, Apparel, Cotton Textiles, Wool, Handloom etc)


List of Export Promotion Councils:

- Apparel Export Promotion Council (AEPC), New Delhi- Cashew Export Promotion Council, Kochi- Carpet Export Promotion Council, New Delhi- Electronics & Computer Software Export Promotion Council, New Delhi- Engineering Export Promotion Council, Calcutta- Export Promotion Council for Handicraft, New Delhi

(All the Exporters of products coming under the council are entitled to become members of the council.)(Members of council elect a Working Committee)(All problems & policies relating to export of the products coming under the council are discussed by the Working Committee & actions are taken)


Role of EPC’s

EPCs are non-profit organizations. They are supported by financial assistance from the Central government.

- The main role of the EPCs is to project India's image abroad as a reliable supplier of high quality goods and services.

- In particular, the EPCs encourage and monitor the observance of international standards and specifications by exporters.

- The EPCs also keep themselves abreast of the trends and opportunities in international markets for goods and services and assist their members in taking advantage of such opportunities in order to expand and diversify exports.


- To provide commercially useful information and assistance to their members in developing and increasing their exports

- To offer professional advise to their members in areas such as technology up gradation, quality and design improvement, product development, innovation etc.,

- To organize participation in trade fairs, exhibitions and buyer-seller meets in India and abroad. Aid in export promotional activities. Open foreign offices to help the small exporters.

- To promote interaction between the exporting community and the Government, both at the central and state levels,

- To build a statistical base and provide data on the exports and imports of the country, exports and imports of their members, as well as other relevant international trade data.


2. Commodity Boards:

The Government of India has set up 8 commodity boards the objectives of which are to formulate to increase production & of the respective commodities. - Coffee Board- Tea Board- Spices Board- Rubber Board- Tobacco Board- Marine Products Export Development Authority (MPEDA)- Agricultural & Processed Food Export Development Authority (APEDA)


Technical and Specialized Services Assistance:

- Indian Trade Promotion Organization (ITPO) :- Indian Trade Promotion Organization was set up by the Ministry of Commerce, Government of India, on 1st January 1992 with its headquarters at New Delhi after the merger of Trade Development Authority (TDA) and Trade Fair Authority of India (TFAI). It has five regional offices at Mumbai, Bangalore, Kolkata, Kanpur and Chennai and four in Germany, Japan, UAE and USA. As a premier trade promotion agency of the Government of India, the ITPO provides a road spectrum of services to trade and industry so as to catalyze the growth of bilateral trade, particularly India's exports and technological up gradation and modernization of different industry segments.

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Functions Of Indian Trade Promotion Organization:

- Organizes Trade Fairs and Exhibitions:- Involves the State Governments :It enlists the involvement and support of the State Governments for the promotion of India's foreign trade. - Assists in Technological Up gradation and Product Development :(Transfer of technology, joint ventures, marketing tie-ups and investment promotion) - Helps in establishing Overseas Contacts: buyer-seller meets- To identify and nurture specific export products with long-range growth prospects. - To participate in overseas trade fairs and exhibitions - To conduct in-house and need-based research on trade and export promotion - To organize seminars, conferences and workshops

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- Indian Institute Of Foreign Trade (IIFT):-

It was set up with the prime objective of professionalizing the country's foreign trade management and increase exports by developing human resource, generating, analyzing and disseminating data and conducting research.

Functions Of Indian Institute Of Foreign Trade:

- Training: Its specialization in intentional business and a global outlook makes it unique among management schools in the country. - Collects and Supplies Information:- Organizes Seminars and Workshops: - Trade Delegations: - Publications: (Foreign Trade Review, Technology Exports)- Management Development Programmes:

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- Federation Of Indian Export Organization (FIEO):-

FIEO is an apex body of various export promotion organizations. It was set up in October 1965. As the apex body of all Indian export promotion organizations, FIEO works as a partner of the Government of India to promote Indian Exports.

Functions Of Federation Of Indian Export Organization:

- International Linkage:(Enable direct communications and interaction between India and world businessmen)(Direct access to information and data originating from UN bodies and world agencies like the IMF, Word Bank etc)


- Liaisoning with the Government:(It helps in establishing contacts between the government and commercial bodies both in India and overseas)

- Market Development Assistance:The Ministry of Commerce, Government of India, through FIEO, reimburses certain percentage of the expenditure incurred by the recognized exporters on sales-cum-study tours, participation in exhibitions and fairs abroad, advertisements in foreign media, etc. - Market Research and Development Department:(Arranging Meetings, Organizing trade fairs and exhibitions, seminars for promotion, Opening foreign offices & FIEO Offices Abroad)


- Publicity Department:(Creating and telecasting episodes in NEPC channel to promote India's prominent brands, It has published Directory of Foreign Buyers and Dictionary of Indian Exporters, It publishes a fortnightly magazine, "FIEO News", to cover developments in the field. of international trade concerning India)


- Export Processing Zones (EPZS):

Export Processing Zones (EPZs) are industrial estates, which form enclaves from the Domestic Tariff Areas (DTA) and are usually situated near seaports or airports. They are intended to provide an internationally competitive duty free environment for export production at low cost. This enables the products of EPZs to be competitive, both quality-wise and price-wise, in the International market. There are seven EPZs in India at :(a.) Kandla (Gujarat).(b) Santacruz (Mumbai).(c) Falta (West Bengal).(d) Noida (UP).(e) Cochin (Kerala).(f) Chennai (Tamilnadu).(g) Visakhapatnam (Andhra Pradesh).


Facilities Available To Units In EPZS:

- Each zone provides basic infrastructure such as developed land for construction of factory sheds, standard design factory buildings providing ready-built sheds, roads, power, water supply and drainage.- Customs clearance is arranged within the zones at no extra charge.- Provision has also been made for locating banking, post office facilities and offices of clearing agents in the Service Centre located in each Zone.

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