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Unit 14

The document discusses India's institutional infrastructure for export promotion. It describes how the government has established various specialized institutions across six tiers to assist and support exporters. These include departments and ministries that formulate trade policy and monitor exports, councils and boards focused on specific commodities, service institutions that help with packaging, financing, quality certification and more, government trading organizations, and state-level export promotion agencies. The goal is to provide guidance, services and facilitate successful export efforts through this network of institutions.

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0% found this document useful (0 votes)
13 views

Unit 14

The document discusses India's institutional infrastructure for export promotion. It describes how the government has established various specialized institutions across six tiers to assist and support exporters. These include departments and ministries that formulate trade policy and monitor exports, councils and boards focused on specific commodities, service institutions that help with packaging, financing, quality certification and more, government trading organizations, and state-level export promotion agencies. The goal is to provide guidance, services and facilitate successful export efforts through this network of institutions.

Uploaded by

Preet kesharwani
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 10

UNIT 14 INSTITUTIONAL SET-UP FOR

EXPORT PROMOTION IN INDIA


Structure

14.0 Objectives
14.1 Introduction
14.2 Importance of Institutional Infrastructure
14.3 Government Policy Making and Consultations
14.4 Export Promotion Councils and Commodity Boards
14.5 Technical and Specialised Services Assistance
14.5.1 Indian Institute of Packaging
14.5.2 Export Inspection Council and Agencies
14.5.3 Export Credit and Guarantee Corporation
14.5.4 EXIM Bank for Long-term Credit
14.5.5 Indian Council of Arbitration
14.5.6 Federation of Indian Export Organisations(FIE0)
14.5.7 India Trade Rornotion Organisation (ITPO)
14.5.8 Indian Institute of Foreign Trade
14.5.9 National Institute of Fashion Technology (NIFT)
14.6 Commercial Wing of Indian Embassies Abroad
14.7 Government Participation in Foreign Trade
14.8 Organisational Set-up in the States
14.9 Let Us Sum Up
14.10 Key Words
14.11 Answers to Check Your Progress
14.12 Terminal Questions

14.0 OBJECTIVES
After studying this unit, you should be able to :
, explain the importance of the institutional infrastructure for export promotion in W a
L
I describe the role of government policy making and. consultative body in the export
promotion
* explain the functions of export promotion councils and commodity boards
, describe the role of various service institutions engaged in export promotion
L
explain the importance of government trading organisations engaged in the export of
I specified commodities.
I

Export business requires special knowledge and business acumen. Exporters need guidance
and assistance at different stages of the export effort. For this purpose, the Government of
India have set up several institutions whose main functions are to help the exporter in his
work. Ln this unit, you will learn the role of these institutions in export promotion.

14.2 IMPORTANCE OF INSTITUTIONAL


INFRASTRUCTURE
Export marketing effort is of vital importance for the success of export-promotion programme
in any country. For undertaking international marketing operations, an exporter needs special
guidance and assistance in critical areas like packaging, market promotion and publicity,
quality certification, risk coverage, market intelligence, finance and credit support etc. It is
only with the suppbrt and services rendered by specialised institutions , exporter is able to
successfully convert his 'production' into 'sales' in international market. Consequently, any
country, including India, engaged in the task of export promotion, has to establish specialised
Export Incentives ~nstitutlonsfor strengthening export-marketing effort for the country as a whole. This along
and Assistance will have the way for creating an export environment and export-culture, on the foundation of
which tbe export marketing effort at the corporate level can be effectively launched on an
intensive and sustained basis.

With this objct in view, Government of India have established a number of specialised
institutions in the country for providing the necessary services and assistance to individual
corporate unit for a successful export effort. In view of the widely diversifying nature of the
export markets in different parts of the world and an equally diverse and varied nature of
products and services traded in international market, Government of India have established
specialised institutions at production/industry level for assisting exporters from different
sectors.

institutions engaged in export efforts fall in six distinct tiers. At the top is the Department of
Commerce of the Ministry of Commerce. This is the main organisation to formulate and
guide India's trade policy. At the second tier, there are deliberate and consultative
organisations 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 organisations which deal with problems relating to individual commodities andlor
groups of commodities. The fourth tier consists of service institutions which facilitate and
assist the exporters to expand their operations and reach out more effectively to the world
markets. The fifth tier consists of Government trading organisations specifically set up to
handle exportfimport 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. Let us now discuss each of them in
detail.

14.3 GOVERNMENT POLICY MAKING AND


CONSULTATIONS
Appropriate government policies are important for successful export effort. In view of the
increasingly important and critical role of foreign trade in economic development, a separate
Ministry of Commerce has been entrusted with the responsibility of promoting India's interest
in international market. The Department of Commerce, in the Ministry of Commerce has
been made responsible for the external trade of India and all matters connected with the same.
The main functions of the Ministry are the formulation of international commercial policy,
negotiation of trade agreements, formulation of country's export-import policy and their
implementation. It has created a network of commercial sections in Indian embassies and
high commissions in various countries for export-import trade flows. It has set up an
"Exporters Grievances Redressal Cell" to assist exporters in quick redressal of grievances.

Board of Trade : For ensuring a regular consultation, monitoring and review of India's
foreign trade policies and operations, Government of India have set up a Board of Trade with
representatives from Commerce and other important Ministries, Trade and Industry
Associations, and Export Service Organisations. It is an important national platform for a
regular dialogue between the Government and the trade and industry. The deliberations in
the Board of Trade provide guidelines to the Government for appropriate policy measures for
corrective action.

Cabinet Committee on Exports : "With a view to ensure regular and effective monitoring
of India's foreign trade performance and related policies, Cabinet Committee on Export has
also been set up.

Empowered Committee of Secretaries : For speedier and quicker decision-making, an


Empowered Committee of Secretaries has also been established to assist the Cabinet
Committee on Exports.

Grievances Cell : Grievances Cell has been set up to entertain and monitor disposal of
grievances and suggestions received. It is a cell meant for speedy redressal of genuine
grievances. Grievances Committees headed by Director General of Foreign Trade and head
of concerned Regional Licensing Authority have been constituted in the respective licensing
offices. The Committee also include representatives of FIEO, concerned Export Promotion
CounciUCommodity ~ o a r d a n dother departments and organisations. The grievances may be 1nstitutionaI set-up lor
addressed to the Grievance Cell of the concerned Licensing Authority in the prescribed Export promotion In lndir
proforma.

Director General of Foreign Trade (DGFT) : DGFT is an important office of the Ministry
of Commerce, to help the formulation of India's Export-Import Policy and
thereof. It has set up regional offices in almost all States and Union Temtories of India.
These offices are known as Regional Licensing Authorities. There is an Export
Commissioner in the DGFT office who functions as a nodal point for all export promotion
schemes. The Regional Licensing offices also act as Export facilitation centres.

Director General, Commercial Intelligence & Statistics (IJGCI&S) : DGCI&S has been
enbusted with the task of compilation and publication of data on India's Foreign Trade. It
brings out various publications relating to Foreign Trade of India. The major publications are
as under:

1. Monthly Statistics of Foreign Trade of India


2. Monthly Press Notes on Foreign Trade
3. Monthly Brochure of Foreign Trade Statistics of India (Principal Commodities and
Countries)
4. Indian Trade Classification based on Harmonised Commodity Description and Coding
System
5. Indian Trade Journal

Ministry of Textiles : Ministry of Textiles is another Ministry of Government of India which


is responsible for policy formulation, development, regulation and export promotion of textile
sector including sericulture, jute and handicrafts, etc. It has a separate Export Promotion
Division, offices, advisory boards, development corporations, Export Promotion Councils and
Commodity Boards. The advisory boards have been constituted to advise the government in
the formulation of the overall development programmes in the concerned sector. It also
devises strategy for expanding markets in India and abroad. The four advisory boards are as
under :

1. All India Handloom Board


2. All India Handicrafts Board
3. All India Powerloom Board
4. Wool Development Board

There are Development Commissioners, Handicrafts and Handlooms, who advises on matters
relating to the development and exports of these sectors. There are Textile Commissioner and
Jute Commissioner who advises on the matters relating to the growth of exports of these
sectors. Textile Committee has also been set up for ensuring of textile machinery
manGctured indigenously, especially for exports. It also issues certificates of origin and.
'other special certificates.

States Cell : The cell has been created under Ministry of Commerce. Its functions are to act
as a nodal agency for interacting with State Governments or Union Territories on matters
concerning export or import from the States or Union Temtories. It provides guideline to
State level export organisations. It assists them iq the formation of export plans for each
cases.

Development Commissioner, Small Scale Industries Organisation : The Directorate, has


the headquarter in New Delhi and extension centres located in almost all States and Union
Territories. They provide export promotion services almost at the doorsteps of the small scale
industries and cottage units. The important functions are :

i) to help the small scale industries to develop their export capacities


ii) to organise export training programmes
iii) to collect and disseminate information
iv) to help such units in developing their export markets
v) to take up the problems and other issues relate"d to small scale industries
Export Incentives Besides, there are Cirectorates of Industries, National Small Industries Corporation aod State
and Assistance Corporations for the promotion of exports from small scale industries.

14.4 EXPORT PROMOTION COUNCILS AND


COMMODITY BOARDS
Export promotion councils and commodity boards are the key institutions in the institutional
framewcrk established in India for export promotion. These are established for servicing
export-effort for specific products and/or industrial sectors. Accordingly there are 20 Export
Promotion Councils and 7 Commodity Boards. They have been entrusted with the task of
promoting exports of specific products from India. Let us first discuss the functions of the
Export Promotion Councils which are as follows :

1) Marketing Assistance : These promotional institutions are continuously involved in


providing export-marketing intelligence as well as guiding, assisting and advising
individual corporate units in their export-plans and effort market-wise as well as product-
wise. The primary function of the export promotion council/commodity board etc., is
to provide the exporters with market information on a continuous basis. It includes
market opportunities, identifying prospective importer, trade and tariff policies of
importing countries, product-designs and specifications, agents and distribution-channels,
warehousing, publicity and promotion, pricing, packaging, shipping & transportation,
buying practices competition, Government regulations etc. In other words, the help and
assistance provided to individual exporter firnls, encompasses almost all the critical
elements involved in export marketing effort at the corporate-unit level.

2) Continuous Feedback of Market Information : Besides providing marketing service,


these institutions also undertake to provide continuous feedback of market information to
individual export firm in India. The council functions through their in-house bulletins,
circulars and other publications including statistical information and directories of
importers etc.

For collection of such comprehensive market information, Export Promotion Councils1


Commodity Roards/Special Authorities etc., have established overseas offices in all parts
of the world. In addition, they also undertake market-survey& organise specially in India
exhibitions and conferences with prospective importers, sponsor trade delegations etc.

3) Mouthpiece of Industry : Further, they also act as the mouthpiece of the industry,
advising as well as seeking appropriate changes in government policies, influencing
export-effort of their specific areas of interest.

4) Product/Industry Coverage : Complete list of productslindustries currently being


looked aAer by different Export Promotion CouncilslComrnodity BoardsISpecial
Authorities and Industry Associations.

Commodity Boards

Commodity Boards are statutory bodies responsible for the development of cultivation,
increased productivity, processing, research and development and marketing. They also
ensure adequate remuneration to growers by encouraging cooperative ventures, upgradation
of quality and marketing the produce through auctions, etc. There are seven Commodity
Boards. They are tea; coffee. tobacco, rubber, coir, spices and silk board. All the commodity
boards, except central silk board, are the registering authority and issue Registration-cum-
Membership Certificate.
'
Special Authorities for Some Products : There are also special authorities established for
promoting exports of marine products, processed foods, cinematographic films, and khadi
and khadi products: These include ( I ) Marine Products Export Development Authority, (2)
Agricultural and Processed Food Products Export Development Authority, (3) National Film
Development Corporation and (4) Khadi and Village Industries Commission. Similarly, for
extractions of solvents, groundnut, soyabean and cotton-seed the industry-associations
S promoting exports of these products are as under:
1) The Solvent Extractors Association of India Institutional Set-up for
Export Promotion In India
2) The Groundnut Extractors Export Development Association
3) Soyabean Processors Association of India
4) All India Cottonseed Crushers Association

Further; the office of the Jute Commissioner and Jute Manufactures Development Council
look after exports of natural fibre products (other than coir) and Director of Vanaspati looks

14.5 TECHNICAL AND SPECIALISED SERVICES


ASSISTANCE
Export marketing effort at the individual corporate level also needs to be reinforced through a
number of technical and specialised service inputs. These cover important and crucial areas
like packaging, quality control, risk coverage, promotion and finance. Let us now discuss
them in detail.

14.5.1 Indian Institute of Packaging

Packaging plays a crucial role in export marketing. The task has been rendered extremely
complex and challenging because of the conflicting nature of expectations from the foreign
buyers. Invariably, they insist on a very strong and sturdy package on the one hand to ensure
the physical safety of the goods, and also at the same time insist on a package to be extremely
easy to unpack. Good packing reduces the unpacking labour cost as well as saves time.
Hence, Government of India have established the Indian Institute of Packaging, for
rendering assistance, advice and guidance to help Indian exporters to effectively tackle the
challenges on the packaging front.

-The Institute is primarily engaged in organising training programmes on packaging


technology. It has been recognised as an agency for testing and evaluation of packages for
hazardous cargo and authorisation for UN certification for exports. It is engaged in
developing national standards of packaging and eco-friendiy packages. It has been ideiitified
to act as the coordinating agency for introduction of Bar Coding technology in the country
with special emphasis on export of Indian gpods.

14.5.2 Export Inspection Council and Agencies

The export inspection agencies established by the Council, certify the quality and export-
worthy aspect of the manufactured and processed products exported fiom India. In this way,
Government of India, indirectly, assure the foreign buyers, about the quality and export-
worthiness of the products, exported from India. This has been made a statutory requirement.
Regular exporting units are also being declared as export-worthy units, subject to periodical
inspection by the export-inspection agencies. In addition, these agencies also provide
guidance and advice to individual export firms regarding technical standards and
specifications required for servicing export markets world over.

Export Inspection Agencies have also been authorised to issue the GSP certificate of origin
which enables exporters from India to be eligible for preferential duty concessions in the
markets of developed countries from West Europe, North America, Japan, Australia and New
Zealand, etc. The Export Inspection Council has set up a pilot test house at Mumbai for
prompt, efficient, accurate and comprehensive testing of engineering products, particularly
from small scale sector. It also offers technical support facilities to the industry. The EIC has
also set up the Quality Development Centre at Madras for providing training to the inspection
officers. It has also evolved procedures for assessment, evaluation and settlement of
complaints from foreign buyers.

14.5.3 Export Credit and Guarantee Corporation

Government of India have established Export Credit and Guarantee Corporation. The ECGC
insures the risk of non-payment by foreign buyers as well as the political risk of blockage of
Export Incentives transfer of funds. The corporation assists the exporters through special schemes such as
and Assistance packing credit guarantee, post-shipment credit guarantee and export finance guarantee. The
task of an exporter in Ind~ahas therefore been rendered free from such risks.

Moreover, as an additional service, the ECGC also provides guarantees to the commerc~al
banks providing working capital for financing export-business. Consequently, individual
export-firm in India, finds it relatively easy to arrange for necessary financial support from
the banks, for undertaking export-business. As regards the risk of physical damage to the
export-cargo, the General Insurance Corporation of India provides necessary marine
insurance which covers to Indian exporters.

14.5.4 EXIM Bank for Long-term Credit


Project exports, tunlkey jobs and joint ventures including supply of complete plant and
equipment or heavy machinery, have become increasingly important in international business.
Realising the export potential for India in this field, Government of India have established
Export-Import Bank of India for providing the necessary credit-lines for the same. The bank
provides assistance through buyers credit, sellers credit, line of credit or venture capital. It
helps Indian exporters to illcreasingly undertake exports of projects and turnkey jobs or joint
venture in overseas markets. It also helps in promoting exports of technical consultancy as
well as construction services, as these are very much linked with projects and turnkey jobs.

Check Your Progress A

1. List two important functions of Export Promotion C o u n ~11s


........................................................................................ .................... .
...........................

.............................................................................................................................................
............................................................................................................................................
2. State whether the following statements are True or False :
I) Department of Commerce in the Mlnistry of Conunerce is respons~bleonly for
the internal t ~ a d em India.
li) Export inspection agencies certlfy the quality and export-worthy aspect of the
goods exported from India.
ili) ECGC does not ensure the political rlsk of blockage of transfer of funds.
IV) EXIM bank does not provide the assistance m turnkey projects

14.5.5 Indiaii Council of Arbitration

Export business being international m nature, will be ext~emelytlme consuming, uncertain


'
and hazardous if all dlsputes between exporter and importer are to be settled through the usual
legal remedies, Many exporters will shy away from undertaking export-busmess for fear of
this. With a view to ensure speedy and less costly settlement of disputes, Government of
India have establlshed lnd~anCouncil of Arbitration. Consequently exporters in India are
assured of speedy and amicable settlement of disputes (if any) andifbat too, as per the
internationally accepted norms and practices evolved over last sc've~~lyears in various
countries. With the support of Indian Council of Arbitration, exporf6rs from India are
encouraged to ufidertake export-business without any inh~bitionon account of settlement of
disputes (if any).

14.5.6 Federation of Indian Export Organisations (FIEO)

The Federation of lndian Export Organlsatl~ns(F1EO)functions as the coordinating body far


various Export Promotion Counclls and othkr service institutions establlshed by the
Government for trade promotion purposes. The Federation is the primary servicing agency to
provlde integrated assistance to Government recognised export houses. It emphasises on intra
and inter-regional coopelation in trade and economic matters with a view to promoting
harmony and understanding through economic, trade and technical ties. In addition, the
national-level trade and industry associations like Federation of Indran Chambers of
Commerce and Industry (FICCl), Associated Chamber of Commerce (ASSOCHAM) and
Confederation of Engineering Industries (CEI) also play the coordinating role for advocating
the view-point and promoting the interests of the sectors they represent.
Institutional Sct-up for
14.5.7 India Trade Promotion Organisation (ITPO) Export Promotion I n India

India Trade Promotion Organisation has been formed by merging Trade Fair Authority of
India and Trade Development Authority. This is the premier trade promotion agency of the
Government of India with the headquarter in New Delhi. It has also set up offices abroad in
New York, Frankfurt, Tokyo and Dubai, ITPO is a service organisation which maintains
close interaction with the trade, industry and the Government. The organisation servzs the
industry by providing marketing information and support for participation in fairs. It also
helps in developing exports of new items and uses its network of offices in India and abroad
for improved trade-related services. It has set up a Trade Information Centre at New Delhi.
In specific term, the objectives of ITPO are:

i) to organise trade fairs in India and abroad;


ii) to organise trade development and promotion through specialised programmes such as
buyer-seller meets, contact promotion, promotion through departmental stores, exchange
of business delegations, etc.
iii) to assist technically competent units in product development and adaptation;
iv) to encourage and involve medium scale and small-scale industrial units in export
promotion efforts,
v) to conduct in-house and need-based research on trade and export promotion; and
vi) to enlist the involvement and support of the State Governments in the promotion of
India's foreign trade.

14.5.8 Indian Institute of Foreign Trade

As an apex institution at the national level, Indian Institute of Fcreign Trade (IIFT),
established by the Government o r India, functions as the main institution for export marketing
inlelligence. IIFT performs following functions :

1. Store-house of market information : It functions as a store-house of export-marketing


information, product-wise as well as market-wise. It has conducted market surveys in
every part of the world, identifying export opportunities for the entire export sector as a

2. Provides international business management training : In addition, the ILFT has been
the pioneer and premier institution offering international business management education
programme, including basic programmes as well as in service education. Being a
Government institution, it also offers training programmes, for Government of India
service personnel from Indian Foreign Service, Indian Administrative Service, Central
Trade Service, and Indian Economic and Statistical Service.

3. Advises government on trade policies : Ail important function of the Institute has been
to advise Government of India on all aspects of foreign trade policies, strategies and
operations. Being a premier institution, it is frequeiltly approached for necessary advice
and guidance by other export-service organisations including export promotion councils
as well as individual export corporate units.

14.5.9 National Institute of Fashion Technology (NIFT)

National Institute of Fashion Technology, New Delhi has been established for human
resource development fa:. rlie garment industry. It conducts professional programmes in the
disciplines of Apparel IZ::i ..ilafidising and marketing, fashion design and gannent
manufacturing technology. It offers training through workshops and consultancy services. It
has entered into technical agreement with the Fashion Institute of Technology, New York
and the Notingham Polytechnica, UK.
Export Incentives
and Assistance 14.6 COMMERCIAL WING OF INDIAN EMBASSIES
ABROAD
Assistance in export marketing effort is also provided by the commercial wing of Indian
Embassies abroad. Individual export-units as well as export promotion and service
institutions can equally utilise the services of commercial wing of Indian Embassies abroad
for various purposes such as specific market information, importers andlor import-agents'
names and addresses, arranging meetings with prospective importers during the visits of
foreign markets by Indian exporters. Further, specific information about various tenders, as
well as supply of tender documents, and other project information, including market
assessment, marketing practices, technical standards and specifications etc., can also be
attained through this channel. Advise the guldance regarding visits of trade delegations, trade
fairs and exhibitions, development plans, market-studies, etc., is also given by these offices,
on specific requests.

14.7 GOVERNMENT PARTICIPATION IN FOREIGN


TRADE
Though export effort at the corporate level has been primarily in the private sector,
Government Corporations have also been established to supplement the same. Besides
playing a supplementary role in export promotion, the Government Corporations have also
been functioning as major exporters of minerals and other canalised items of exports besides
developing India's exports to Eastern Europe. State Trading Corporation of India as well
as Minerals and Metals Trading Corporation of India have emerged as the largest trading
houses in India's export sector. They have also provided the small and medium
manufacturers, with an effective export outlet. Over the recent past, they have also developed
'counter trading' for augmenting India's exports. Other Government Corporations
functioning in the export sector include the Spices Trading Corporation, Handloom and
Handicrafts Export Corporation (HHEC), Metal Scrap Trading Corporation, Projects and
Equipment Corporation of India Limited, Mica Trading Corporat~onof India Limited, Tea
Trading Corporation of Indla Limited and Cashew Corporat~onof India Llmited.

14.8 ORGANISATIONAL SET-UP IN THE STATES


The State Governments are increasingly participating in export efforts of the country. State
Governments have created independent Department of Commerce. Some Governments have
, also set up Export Promotion Boards and

Export Corporations for stimulating export business. Liaison officers have also been
appointed by the States to develop export trade and maintain links with the Central
Government Departments and organisations. Export Promotion Advisory Committees have
been established by some States under the chairmanship of the Chief Minister or the Industry
Minister.

Check Your Progress B

1. Name two government corporations which are engaged in the export of canalised
. items.
.................................................................................................................................................
......................................................................................................................................
..................................................................................................................................................
2. State whether the following statements are True or False :
i) Indian Council of Arbitration does not consider international accepted norms and
?ractices of disputes settlement.
ii) IIFT functions as the main institution for export marketing intelligence.
iii) State Governments have no! set up Export Promotion Boards.
iv) Commerc~alWlng of Indian Embassies Abroad are only engaged in political
activities.
3. Fill in the blanks : I~~slitutional
Set-up for
i) There are .................. export promotion corlncils and ................. co~nmodityboards in Export Promotion In India

ii) ................and ...................are the largest trading houses in the India's export sector.
iii) MMTC and STC are also engaged in ............... trading for India's export.
iv) .....................is the coordinating body for various Export Promotion Councils and
other service institutioris.

14.9 LET US SUM UP


Any country (including India) engaged in the task of export promotion, has to establish
appropriate institutional infrastructure for strengthening export-marketing effort for the
country as a whole. With this object in view, Government of India have established a number
@fspecialised institutions for providing necessary services and assistance to individual
corporate units from the export sector.

At the top is the Department of Commerce of the Ministry of Commerce which formulate and
guide India's trade policy. Institutions established for strengthening marketing effort include
Export Promotion Councils, Commodity Boards, Special Authorities and Industry
Associations. These are the key institutions servicing export-effort at individual corporate
level, product-wise. The primary function of these institutions is to provide the exporter with
export-marketing guidance and advice. They provide complete informatior: and details
covering almost all the critical elements involved in export marketing effort at the individual
corporate unit-level on a continuous basis.

In addition, separate institutions have also been established for providing technical and
specialised services to the export-sector in India. These institutions provide necessary
guidance, help and assistance to individual corporate units, especially in the field of
packaging, quality-control, risk coverage, long-term credit, trade fairs and exhibitions,
settlement of disputes, package-service, and market-information.

In order to oversee the national effort in export promotion, Government have also established
Indian Institute of Foreign Trade (IIFT) at the apex level. The IIFT, besides providing
export-marketing intelligence at the national level, also provides foreign-trade management
education to business-executives, policy-makers, and service institutions.

For supplementing the export-effort by the private sector, Government of India have also
established a number of Corporations in the Government sector for directly undertaking
export-import activity. Various State Governments have also established Export
Corporations for promoting exports from different states respectively.

14.10 KEY WORDS


Counter Trade : A trade arrangement that contains a requirement to purchase products as a
coildition of sale.

Lines of Credit I A scheme of RBI enables overseas financial institutions, foreign


governments, their agencies to on-lend term loans to finance import of eligible goods from

14.11 ANSWERS TO CHECK YOUR PROGRESS


A 2 i) False ii) True iii) False iv) False
B 2 i) False ii) True iii) False iv) False
3 ij 20,7 ii) MMTC, STC iii) counter iv) FIE0
Export Incentlves
and Assistance 14.12 TERMINAL QUESTIONS
1. Analyse the role and functions of the institutions assisting export-marketing effort at
product/industry level.
2. Discuss the institutions providing technical and specialised services to the export-sector
in India.
3. Describe the institutions set-up for Government policy making and consultation for
export promotion in India.
4. Discuss Government participation in foreign trade and enumerate the Corporations
established for the same.

Note : These questions and exercises will help you to understand the unit better. Try to
write answers for them. But do not send your answers to the University. These are
for your practice only.

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