International Marketing Chapter-20 Export Promotion

Export promotion
International Marketing
Chapter-20 Export Promotion
Objectives
 What are the organizational setup which
promotes export.
 What are incentives
 What are production assistance
facilities
 What are marketing assistance
 What are import facilities for exporters

 What
What areareEPZs,export
EOUs, houses
TPs, SEZsand
trading houses
Introduction
 Export development is important to the
firm and to the economy as a whole.
 Government measures aim, normally at
the general improvement of the export
of the nation for the general benefit of
the economy.
 The benefits of exports to the economy
are many.
Principle Objectives Of Export
Promotion Measures In India
1. Compensate the exporters for the high
domestic cost of production.
2. Provide necessary assistance to the
new and infant exporters to develop
the export business.
3. Increase the relative profitability of the
export business vis-e-vis the domestic
business.
Organizational Set Up
 Government has established or
sponsored a number of organizations to
provide different types of assistance to
the exporters.
 Apart from the organizations
established exclusively for export
promotion, there are also a number of
other institutions which assist the
export sector. International Marketing
Ministry Of Commerce
 The ministry of Commerce, Government of
India, is the most important
concerned
organ with the promotion and
of the foreign trade of the
regulation
 country.related to foreign trade are dealt
Matters
with by eight divisions in the Department
of Commerce, namely,
1. Administrative an General Division
2. Finance Division
3. Economic Division
4. Trade Policy Division
5. Foreign Trade Territorial Division
6. Exports Products Division
7. Services Division
8. Industries Division
Autonomous Bodies
1. Commodity boards
2. Export inspection council
3. Indian institute of foreign trade
4. Indian institute of packaging
5. Export promotion councils
6. Federation of Indian export organizations
7. Indian council of arbitration
8. Marine products export
development authority
9. Indian trade promotion organization
Indian Trade Promotion
Organization
 The ITPO was bought into being in 1992 by
merging together the erstwhile Trade Fair
Authority Of India (TFAI) and the erstwhile Trade
Development Authority of India (TDA).
functions of the ITPO are to The
1. Develop and promote exports,
upgradetechnology through fair imports and
abroad in India and
2. Compile and disseminate trade related information
3. Undertake publicity through the print
and electronic media
Attached And Subordinate
Offices
1. Office of the Director General
of Foreign Trade (DGFT)
2. Directorate General or
Intelligence and Statistics
Commercial
3. Offices of Development
Commissioners, FIZ/EPZs
Incentives
 Export are a widely employed
incentivesof export promotion.
strategy
 The main aim of these incentives is to
increase the profitability of export business.
 Important export incentives in India include
rebate of duties, cash compensatory support,
income tax concession, interest subsidies,
freight subsidy etc.
Marketing Assistance
 Market development assistance
 Foreign exchange
 Trade fairs and exhibitions
 Export risk insurance
 Finance
 Quality control and preshipment inspection
 Institutional assistance
 India brand equity fund
Important Facilities For
Exporters
 Export promotion capital goods
 Duty exemption scheme
 Duty free license
 Duty entitlement pass book
Export Processing Zones/EOUs
 EPZs are industrial estates which form
enclaves from the national customs
territory of a country and are usually
situated near seaports or airports.
Main Objectives of an EPZ are
1. To earn foreign exchange
2. To generate employment opportunities
3. To facilitate transfer of technology
by foreign investment and other
means
4. To contribute to the
overall development of the economy.
SEZs
 While announcing the Exim Policy for 2000-
01, the Commerce Minister stated that India
would develop Special Economic Zones to
boost the country’s exports.
 The first to SEZs are to be set up in Positra
in Gujarat.
 The move to develop SEZs was inspired by
the success of the SEZs in China which
contribute about 40 per cent of her exports.
Export Houses And Trading
Houses
 An export house is defined as a registered
exporter holding a valid Export House
Certificate issued by the Director General of
Foreign Trade.
 The objective of the scheme is to recognize
established exporters as Export House,
Trading House, Star Trading House and
Superstar Trading House with a view to build
marketing infrastructure and expertise
required for promotion.
Summary
 The success of export promotion measures
should be judged by the growth of
exports and the dynamism of the export
sector.
 An effective export promotion should
compensate for the disadvantages of the
national exporters and should make the
export business profitable enough to lure
entrepreneurs to this sector and achieve
the ultimate objective of boosting the
exports.

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