- 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. A first-time exporter has to be assisted in finding export marketing opportunities and may be supported on matters related to export policy, procedures and documentations.
- An exporters consistently attempt to explore ways to improve their international marketing operations and need to be assisted by way of trade fairs, buyer sellers meet, and market promotion programmes.
- The export promotion programmes initiated by the government are in the form of public policy measures.
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.
The export promotion programmes are basically designed to assist firms in entering international markets and achieving optimum opportunities from their international business activities
- The ECGC Limited (Formerly Export Credit Guarantee Corporation of India Ltd) is a company wholly owned by the Government of India based in Mumbai, Maharashtra. It provides export credit insurance support to Indian exporters and is controlled by the Ministry of Commerce. Government of India had initially set up Export Risks Insurance Corporation (ERIC) in July 1957. It was transformed into Export Credit and Guarantee Corporation Limited (ECGC) in 1964 and to Export Credit Guarantee Corporation of India in 1983.
How does ECGC help exporters?
- 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 debt
- Provides information on credit-worthiness of overseas buyers
Need for export credit insurance
- Payments for exports are open to risks even at the best of times. The risks have assumed large proportions today due to the far-reaching political and economic changes that are sweeping the world. An outbreak of war or civil war may block or delay payment for goods exported. A coup or an insurrection may also bring about the same result. Economic difficulties or balance of payment problems may lead a country to impose restrictions on either import of certain goods or on transfer of payments for goods imported. In addition, the exporters have to face commercial risks of insolvency or protracted the default of buyers. The commercial risks of a foreign buyer going bankrupt or losing his capacity to pay are aggravated due to the political and economic uncertainties. Export credit insurance is designed to protect exporters from the consequences of the payment risks, both political and commercial, and to enable them to expand their overseas business without fear of loss.
EXPORT PROMOTIONAL COUNCIL
- Export promotional Councils (EPC) are authorities which are basically promoting, supporting and assisting firms in entering the International markets and realising their optimum potential from given resources. They also provide guidance and assistance to the exporters.
- In legal terms, export promotional councils are non-profit organisation registered as a company or society. Each Export promotional council is responsible for his particular group of products.
WHAT ROLE DOES EPC PLAYS IN EXPORT IMPORT INDUSTRY
- Promoting Government Schemes: Export Promotional Council (EPC) helps and promotes the exporters by making them aware of the government schemes and other benefits.
- Collect and restoring data: Export Promotional Council (EPC) further promotes and collects the export data to compare the industry growth and solve any hurdle in between.
- Sending trade delegations: To make arrangements for sending trade delegations and study teams to one or more countries for promoting the export of specific products and to circulate the reports of specific products and diversifying to new products.
- Other roles: EPC also plays various roles at the policy level to promote and grow the industry.
WHY EXPORT PROMOTIONAL COUNCILS ARE USEFUL FOR FIRST TIME EXPORTER
- As per the Foreign trade policy of India, any person who either wants to acquire any license to import export restricted or other similar categories of goods or to avail any export related benefit or scheme is liable to register for Registration Cum Membership Certificate (RCMC).
- Export promotional councils provide various benefits to the registered exporters. And hence plays a significant role for any exporter in India.
HOW TO REGISTER WITH EXPORT PROMOTIONAL COUNCILS
- There are currently 26 export councils and nine commodity board of India. All of these export promotional councils promote a specific set of the product. Hence, the exporter should register under the concerned Export Promotional Councils as per their line of products.
INDIAN TRADE PROMOTION FOR ORGANISATION
- ITPO, the premier trade promotion agency of the Ministry of Commerce & Industry, Govt. of India is committed to showcase excellence achieved by the country in diverse fields especially trade and commerce.
- ITPO provides a wide spectrum of services to trade and industry and acts as a catalyst for growth of India’s trade. ITPO approves holding of international trade fairs in India and regulates holding of various expositions in India primarily to avoid any duplication of efforts while ensuring proper timing. It manages India’s world class exhibition complex which is constantly upgraded to keep it in a high standard of readiness. Spread over 123 acres of prime land in the heart of India’s capital, New Delhi, Pragati Maidan offers about 61,290 sq. mtrs. of covered exhibition space in 16 halls, besides 10,000 sq. mtrs. of open display area. The state-of-the-art exhibition halls have enhanced the appeal of Pragati Maidan as the ideal center for an increasing number of fair organisers and business visitors from different parts of the world.
- ITPO has an extensive infrastructure as well as marketing and information facilities that are availed by both exporters and importers. ITPO’s regional offices at Bangalore, Chennai, Kolkata and Mumbai, through their respective profile of activities, ensure a concerted and well coordinated trade promotion drive throughout the country.
The Indian Institute of Foreign Trade (IIFT) is an autonomous public business school established in 1963 by the Government of India (Ministry of Commerce and Industry) to help professionalize the country’s foreign trade management and increase exports by developing human resources; generating, analysing and disseminating data; and conducting research. Its flagship program is the Master of Business Administration in International Business (MBA-IB).
It is the only institute among the top-10 business schools of India that offers International Business program. The institute visualises its future role as: A catalyst for new ideas, concepts and skills for the internationalisation of the Indian economy, the primary provider of training and research-based consultancy in the areas of International Business both for the corporate sector and Government and the student’s community. IIFT started out as a center to provide foreign trade advice to governments and has since played an instrumental role in conducting research in trade policy formation.
Centre for MSME Studies
- The growing importance of Small and Medium Enterprises in the economy as a whole and External Trade in particular has prompted IIFT to establish a separate Centre for MSME studies which can act as a catalyst to the internationalisation of MSME activities. The centre has become operational from May, 2005. The Centre for MSME Studies at IIFT provides continuous support to the MSME sector by carrying out activities which can be broadly classified into conducting Training Programmes, provision of Business Intelligence services through a Databank and acting as a catalyst for Interfacing with other concerned and associated institutions