Describe the export promotion measures of the Government of India.
Export help in economic development of a country, by generating valuable foreign exchange, bringing competitiveness in the existing domestic market and technology in the host country. The government took several steps to boost exports by adopting export promotion measures. In fact, exports have become a trust area for government and efforts have been made to create an environment conducive for exports. Some of the measures are as follows:
Creation of production base to ensure output is sufficiently surplus and quality oriented for exporting.
Government has came up with several export promotion schemes like Export Promotion Capital Goods (EPCG) Scheme. The scheme liberalizes imports of capital goods needed for setting-up production bases, which would be used for manufacture of export items with four times CIF
value items over a period of next five years, or six times of CIF value over a period of 8 years, at zero or 10% of duty against obligation.
The Export Processing zones (EPZ) set up by the government provide duty free competitive environment for exports. These units can import are privileged to import all types of goods free from duty.
The government has also encouraged Software Technology Parks (STPs) and Electronic Hardware Technology Parks (EHTP) to promote export of computer hardware and software.
Different types of duty free licenses, like advance license, advance intermediate license and Special Imprest License are also issued by the government in the interest of Indian exporters.
On the basis of minimum average annual export performance, registered exporters are granted special status, which could in form of export houses, star trading houses, trading houses or super star trading houses. The scheme aims to encourage exports by granting recognition of their performance and bring competitiveness amongst the exporters.
The government provides duty drawbacks, income tax exemption and excise duty rebate on exports of certain to encourage exporters to export from the country.
The Ministry of Commerce and Federation of Indian Export Organization (FERO) help exporters in development of overseas markets, by identifying export potential. This includes market research studies, setting up of auction houses, warehouses/showrooms/exhibitions, quality controlling, publicity etc.