A Study of Export Promotion Schemes in India
Author : Shweta Jain
Abstract :
Export promotion means all those efforts, functions, activities, rules, and policies of the government and non-government bodies for a boost of country export. It includes measures, functions and activities, like constitutions of enquiry committees, establishment of special organizations, financial grants, organizing exhibitions, constitution of advisory and promotion councils, rebate in taxes, trade agreements, imports substitutions, arrangements of raw materials required for increasing exports, liberal import of machinery and awards for excellence, so many efforts, etc.
India is a developing country and has to face many problems of adverse balance of trade and adverse balance of payment. So it is essential to increase the exports. Export is an engine of growth. All those countries which are interested in self-reliance and rapid economic development should adopt the policy of export promotions. Due to the shortage in the domestic market also demand goods always persists, but export promotion is also required for reducing the trade deficit, repayment of foreign debt, higher employment, industrialisation, import payments, economic development, self-reliance and higher national income of the country.
The efforts made by the government for export promotions may be in many ways, like enquiry committees have time to time suggest measures for export promotions, of which Gorwala Committee, Deesuja Committee, Alexender Penal, Tandon Committee etc. Establishment of special export promotions organizations, which are organisations under the ministry of commerce, establishment of autonomous bodies, institutions for export finance and guarantee and establishment of advisory bodies etc. Export incentives schemes for the promotion of exports. Some of these are Exemption from taxes, Cash compensatory assistance, Import Replacement scheme, Subsidies on domestic raw materials, Export credit and assistance to export promotion council, Export finance, and Interest subsidy paid to banks for export finance and National trophy for exports etc. New export promotion plans are Merchandise exports from India scheme, Rebate of duties & taxes on export products, Service export from India, duty-free Import Authorisation, Duty drawback scheme, NIRVIC scheme and Advance authorization scheme, etc.
The following suggestions that are important to increase exports are: the study of foreign.
markets, cost reduction, quality improvement, attention to publicity and advertisement, expansion of the financial facility, Storage of export commodities shouldbe made, the approach of government should be cooperative and domestic use of export goods should be regulated etc.
Keywords :
Export, advisory bodies, export promotion
