Institutional

Infrastructure
Institutional
Infrastructure to
Promote Indian Export
Promote Indian Export
Business Environment

UNIVERSITY BUSINESS SCHOOL

PANJAB UNIVERSITY, CHANDIGARH

Submitted To:
Submitted By:
Dr. Kulwinder Singh
Seth

Isha

Ramneet
Singh
MBA
Sec B

Contents
EXPORT.............................................................................................................. 1
INSTITUTIONAL INFRASTRUCTURE TO PROMOTE INDIAN EXPORT..........1
TIER 1: MINISTRY OF COMMERCE......................................................................2
TIER 2: CONSULTATIVE AND DELIBERATIVE BODIES:.................................5
TIER 3: COMMODITY ORGANISATIONS...............................................................6
TIER 4: SERVICE INSTITUTIONS........................................................................10
TIER 5: GOVERNMENT TRADING ORGANISATIONS...........................................17
TIER 6: INTER STATE TRADE COUNCIL.............................................................19
CONCLUSION.................................................................................................... 20
REFERENCES.................................................................................................... 22

EXPORT
Export is of paramount importance and at any point of time we have had more than one
scheme to facilitate and encourage exports. As a result, exports have gone up but the pace has
not been satisfactory. Moreover, the critical test of a scheme is whether it has led to genuine
exports or not. This question assumes importance as there are a number of reported cases of
overvaluation of exports and in the name of exports dumping of sub-standard goods abroad,
which are not even cleared at the foreign ports. No doubt this happens because the
unscrupulous exporters are actually targeting the benefits in form of duty free imports and
their chief concern is not exports. The link between such exports and hawala transactions to
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fund illegal activities is also brought out. Thus, whereas there should be all encouragement to
genuine exports steps have to be taken to check misuse of the export promotion schemes.
This assumes great importance when we find that precious customs and central excise
revenue is sacrificed in the name of exports. The link between revenue foregone on account
of export promotion and a low tax to GDP ratio is also evident, though it must be added that
this would be a non-issue so long as genuine exports do take place. However, when exports
do not pick up commensurate with the duty foregone, legitimate questions are rightly asked
as regards the efficacy of the schemes.
In each and every country, an exporter always needs a guidance and assistance at different
stages of his export efforts. Recognizing the need of assuring adequate and effective support
to the export effort of the country, the intensification of institutional infrastructure has been a
continuous process. The process of intensification has included: the creation of new and
specialized agencies in the economy, reorganization of the existing ones and enlarging the
scope of various other organizations.

INSTITUTIONAL INFRASTRUCTURE TO PROMOTE INDIAN

EXPORTS
The institutional framework as it exists today comprises functionally in different sections of
policy formulation, advisory role, and commodity specialization, state trading organizations,
service support institutions, role of the state government and the commercial representation.
The Ministry of Commerce is the apex and the main body vested with the task and work of
formulation, coordination and execution of the national foreign trade policy. Other ministry,
that is the Ministry of Textiles that was also created and established in 1985. The function of
this ministry is to provide an exclusive and undivided consideration and attention to the
export development of important traditional sectors of the economy. Until few years back, the
export activities of the traditional sectors, particularly textiles, handlooms, jute and
handicrafts and sericulture remained within the purview and disposition of the Department of
Textiles as a part of the Ministry of Commerce. Therefore, now we say that the Ministry of
Commerce and Textiles plays a pivotal and important role in the national economy
particularly as an apex body looking after exports in the country.
The Government of India has made an attempt to develop an institutional infrastructure that
would facilitate the promotion of Indian Exports. This infrastructure encompasses and
enclosed six different fields. Or we may say that this infrastructure is a six-tier arrangement
and each tier has certain objectives and goals. These six-tier infrastructures are described
below.
1.
2.
3.
4.
5.
6.

Ministry of Commerce
Consultative and Deliberative Bodies
Commodity Organizations
Service Institutions
Government Participation in Foreign Trade
State Government Agencies

TIER 1: MINISTRY OF COMMERCE:

The Department of Commerce engages in trade negotiations and agreements at multilateral,
regional and bilateral levels. It interacts with international agencies such as the World Trade
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Organization (WTO), the United Nation Conference on Trade & Development (UNCTAD),
the Economic and Social Commission for Asia and Pacific (ESCAP), etc. as well as
individual country or group of countries on a wide range of issues including tariff and nontariff barriers, international commodity agreements, preferential / free trade arrangements,
investment matters, etc.
Functioning under the Department are Commercial Offices attached to Indian Missions
abroad which help in shaping international trade policy. The Ministry of Commerce,
Government of India is the most important organization concerned with the promotion and
regulation of the foreign trade of the country. The Ministry has produce and elaborates the
organizational arrangement to look after the various aspects of trade regulations and
promotions. The Department of Commerce is assigned a very important role in different
matters concerned with the foreign trade of the country, including commercial relations with
other countries promotion and regulation of the foreign trade and state trading etc.
The department of commerce in eight divisions describes matters related to the foreign trade.
These eight divisions are:
(i)

Administrative and General Division:

This division means general, administration and coordination with the divisions.

(ii)

Finance Division:
It means financial coordination and policy formulation for Export Credit of
Guarantee Corporation of India Limited (ECGC) Mumbai, which was formed and
incorporated in the year 1957.

(iii)

Economic Division:
The Economic Advisor heads Economic Division. He is responsible for: Export
Planning, Periodic Appraisal and Review of Policies, Formulation of Export
Strategies, Maintaining the coordination and constant contracts with the other
Divisions which have set up under the Commerce Department to assist the export
drive. This division also monitors and handles the work relating to technical
assistance and management services for export and overseas investment by Indian
entrepreneurs.

(iv)

Trade Policy Division:

The task of trade policy division includes:
To keep abreast of the development in the international organizations like
UNCTAD, WTO or GATT etc. Economic Commission for Europe, Africa,
Latin America, Asia and Far East (ESCSP).
Division is also responsible for India's relations with the European Union,
in which we include European Economic Community (EEC) and European
Free Trade Association (EFTA). Latin American Free Trade Area
(LAFTA), Other Regional Groupings and Commonwealth.
It also looks after the Generalized System of Preference and Non-Tariff
Barriers.
International Trade and Commercial Policy.
International Commodity Agreements.
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(v)

Foreign Trade Territorial Division:

This division is committed and entrusted with the work relating to the
development of trade with different countries and regions of the world. The
division also handle the matters pertaining to
(a) State Trading
(b) Barter Deals
(c) Organizations of Trade Fairs and Exhibitions
(d) Commercial Publicity Abroad.
It also maintains contracts with Indian Trade Missions abroad. It attends to the
connected administrative work as also the protocol functions.

(vi)

Export Product Division:

The export products division pays attention to the problems connected with
production, Generation of surplus and development of markets for the various
products under its jurisdiction. These various products are all agricultural
commodities, marine products, chemicals, plastics, leather products, leathers,
films, steel, sports goods, metals, coal, petroleum products, engineering products,
mica, salt, minerals and ores etc. Although in administrative terms, the
responsibility for these products remains with the ministries concerned. This
Export Product Division keeps itself in close touch with them to ensure that the
production is sufficient to realize the full export potential. The division is also
responsible for the working of export organizations and corporations dealing with
these products.

(vii)

Export Services Division:

The export services division deals with the problems of export assistance. It
including import replenishment, export credit, export houses, licensing marketing
development assistance (any grant etc.), free trade zones, dry ports, transport
bottleneck, quality controls and pre-shipment inspection, guidance to Indian
entrepreneurs, to set up the Joint ventures abroad, capacity creation export
oriented industries, assistance to import capital goods and essential raw materials.

(viii)

Export Industries Division:

The
export
industries
division
is
responsible
for
a) development and regulation of rubber, tobacco and cardamom,
b) Handling export promotion activities relating to the textiles, handlooms,
readymade garments, woolens, silk and cellulosic fibers, handicrafts, jute and jute
products coir and coir products.

ADVISORY AND EXECUTIVE AGENCIES:

There are several advisory and executive agencies functioning under the Ministry of
Commerce and the other Ministries, for helping the exporters. These are mainly attached and
subordinate offices, trade promotion institutions, public sector corporations, commodity
boards or registered societies. A brief description of the functions of some of these
organizations is given below.
(i)

Director General of International Trade (DGIT):

The old name of the Director General of International Trade (DGIT) was Chief
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Controller of Imports and Exports (CCI&E). These are responsible for the
execution of the export and import policies of the government. So. for improving
the functioning of the organization, government of India proposed to change its
name for CCI&E to the DGIT on August 13, 1991. Now the role of DGIT would
be to promote exports and to remove controls. India now needs promoter of
exports and not the controller of exports. Director General of International Trade's
supporting offices are located at important port towns and commercial centers of
the country. These include Agartala, Ahmedabad, Amritsar, Bangalore, Cuttack,
Chandigarh, Chennai, Ernakulam, Guwahati, Hyderabad, Jaipur, Kandla, Kanaur,
Kolkata, Mumbai, New Delhi, Panjim, Patna, Pondicherry, Rajkot, Shillong,
Srinagar and Vishakhapatnam.
The advisory and policymaking organizations have been set up to ensure that the
collective advise of the commercial interest is available to the government of
India. The advices are: for framing and formulating export promotion and import
policies and for successful implementation of these policies.
(ii)

Cabinet Committee on Exports:

The Cabinet Committee under the chairmanship of the Prime Minister expedites
decisions on important policy matters relating to the exports. It means the give
decisions, which are free from any impediments.

(iii)

Board of Trade:
It has been reconstructed or reconstituted on 13th August 1991, by the Union
Commerce Ministry with the minister of commerce as its chairman and the deputy
minister of commerce is the Board's vice chairman. The Board consists of twentyeight members including the representatives from different organizations and
individuals with business standing and expertise in the field of commerce. The
Board has powers to co-opt the additional members. The members of the Board
hold office for two years and the Board ordinarily meets twice a year and advises
the government on the matters relating to export and import policy and
programmes; the operation of export and import controls; organization and
development of commercial services; or organizations and expansion of export
production. The Board of Trade ensures continual dialogue between industry and
trade on the one hand, and the government on the other; The Board advices the
government on policy measures for preparation and implementation of both short
and long term plans for increasing exports in the light of national and international
economic scenario; The Board also review export performance of various sectors,
identifies the irresistible force and constraints and suggest the measures to be
taken by the government and industry and trade consistent with the need to
maximize the export earnings and restrict imports; In addition. Board also
examines the existing institutional framework for export and suggest the practical
measures for the reorganization with a view to ensure coordinated and timely
decision making; The Board reviews the policy instruments, package of incentives
and procedures for exports and suggest steps to rationalize the incentives to areas
where these are most needed.
The Board reviews half yearly performance of the country's economy in its
commercial aspects and consider policies relating to the expansion of exports,
regeneration of imports and the operation of import and export controls. It
provides a forum for discussion of the export policy and the export promotion
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measures taken by the government.

TIER 2: CONSULTATIVE AND DELIBERATIVE BODIES:
The various consultative and deliberative bodies have been set up to ensure that the collective
advice of the commercial interests is available to the government of India for framing and
formulating export promotion and import policies for successful implementation there of.
(i)

Central Advisory Council on Trade:

The council was constituted with effect from February 15, 1978 by merging the
Board of Trade and Import and Export Advisory Council of Trade. It was reestablished effectively on October 1987. The Council consists of forty-one
members including the representatives from different trade organizations, Reserve
Bank of India, Export Credit Guarantee Corporation (ECGC), Federation of
Indian Export Organizations, Members of Parliament (MPs), Editor of the
Economic Times and Financial Express and individuals with business standing
and expertise in the field of Commerce. The Council has powers to co-opt
additional members. The members of the council hold office for the period of two
years. The council is presided over by the Minister of Commerce and he is also
the chairman of the council. In his absence, the Minister of State for Commerce
preside the council.
The Central Advisory Council on Trade is scheduled to be meet once in three
months, though the time frame is not strictly adhered to. Based on the
deliberations of the advisory council and the recommendation arising and
emanating there from, the government effects the necessary reorientation in
policies, programmes, incentives, import export procedures and service support in
respect of the different sectors of export industries and export markets.

(ii)

Zonal Export and Import Advisory Committees:

In order to make a detailed study of the export possibilities of the commodities
exported from different regions and to advice the government on specific
problems of exports from these regions. For this, the regional export promotion
advisory committees have been set up the four such committees. These four zones
are located in different regions. These four regions or zones are Western zone,
(Mumbai), Eastern zone (Kolkata), Northern zone (Kanpur) and Southern zone
(Chennai).
These committees were set up in July 1968 to consider the following points.
Difficulties found in the operation of prevailing import and export policies and
procedures and to suggest the measures for improvement of disbursement of
various other assistances. Difficulties in the matter of shipping, customs clearance,
credit, insurance and export inspection and to suggest measures for improvement
there in. Suggest improvements in the methods of working and public relations of
the Director General of International Trade (DGIT) Organizations and other
government departments, concerned with trade and industry and representatives of
various state governments and customs and Central Excise Department are
included in these committees. The members of the committee have a three-year
term and the committee meets thrice in a year.

(iii)

Central Committee on Export/Empowered Committee of Secretaries on

Exports:
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The cabinet committee on exports and the empowered committee of secretaries on

export, were constituted in June 1986. They continue to provide the form for
dealing with matters pertaining to exports, which call for coordinated
consideration of various proposals in regard to export promotion, export
production and export performance. The empowered committee of secretaries met
twenty-eight times between April 1987 and February 1988, and considered
seventy-three papers brought before it by various departments/ministries. The
decisions taken on these papers helped in taking policy initiatives, clearing
procedural bottlenecks and providing clear-cut policy guidelines for promoting the
exports.
TIER 3: COMMODITY ORGANIZATIONS:
A number of organizations have been set up in the country with the objective of promoting
and strengthening commodity specialization. More important among them are the Export
Promotion Councils and the Commodity Boards. Here we define both one by one.
Export Promotion Councils:
One of the organizational arrangements made for the export promotion is the establishment of
export promotion council (EPCs). The government of India has set up export promotion
councils for the promotion of export of specific commodities or group of products. There are
about twenty export promotion councils in India. These councils are registered under the
Companies Act 1956 as non-profit organization. They are given grants or supported by the
central government under specific heads and senior officials are appointed on the working
committees of these councils to provide guidance and advice.
Membership of these councils is open to exporters on payment of subscription fees; the
members of prescribed system of voting; the chairman and other office bearers are elected by
the working committee elect the working committee of the councils. The main functions of
export promotion council are:
The Export Promotion Council help and assist the exporters in understanding,
interpreting and implementing the export policies and export assistance scheme of the
government.
Helping export promotion activities such as publicity, participation in exhibitions,
trade fairs etc.
Organizing of trade delegations of foreign countries for promotion of export of
specific products or group of products.
Maintaining of effective connection with industry and trade.
Identifying the problems of exporters and representing the same to the government for
finding a solution.
Help the exporters in identifying the export activities.
Collecting data on export growth and helping the government in evolving policies to
sustain and improve exports in the right direction.
Opening of foreign offices to assist the exporters in consolidating the existing export
and diversifying the new products.
Identifying the areas of potential of export growth.
There are nineteen export promotion councils. These nineteen export promotion councils are
given below:
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Chemicals, Pharmaceuticals & Cosmetics Export Promotion Council

Apparel Export Promotion Council.
Cashew Export Promotion Council.
Chemicals and Allied Products Export Promotion Council.
Cotton Textile Export Promotion Council.
Electronics and Computer Software Export Promotion Council.
Gem and Jewellery Export Promotion Council.
Plastics and Linoleum Export Promotion Council.
Engineering Export Promotion Council.
Export Promotion Council for finished leather & leather manufacturers
Shellac Export Promotion Council.
Silk and Rayon Textiles Export Promotion Council.
Sport Goods Export Promotion Council.
Spices Export Promotion Council.
Overseas Construction Export Promotion Council.
Handicrafts Export Promotion Council.
Wool and Woolens Export Promotion Council.
Handloom Export Promotion Council.
Leather Export Promotion Council.

Some of these councils have opened the branches or regional offices in places other than their
headquarters and overseas offices in selected foreign countries. There are so many advantages
for those units, which registered with these Export Promotion Councils. These advantages are
described below.
The Bulletins and Publications issued by the councils contain useful information on
trade condition in different markets.
Exporters may ask for the inclusion in trade delegations and study teams sponsored by
the councils.
Exporters may have their products displayed or advertised in any particular country
under the council's plans for publicity abroad, including participation in exhibitions.
Trade enquiries received by the councils from commercial representatives abroad as
circulated among members much in advance of their publications in the usual course.
In case of survey in a foreign country arising from a dispute, the exporter may ask the
overseas officers or correspondent of the council to witness the survey in order that
his interests may be protected. The exporter may take any difficulty of a general
nature to the council, which will make recommendations to the government for
suggesting measures to remove such type of difficulties.
Commodity Boards:
There are nine statutory boards for the following commodities. These are: silk, power-loom,
coffee, coir, rubber, handicrafts and handlooms, tea, tobacco and spices. Commodity Boards
deals with the entire range of production, development, marketing, problems etc. Some of
these boards have opened their branch offices in foreign countries in order to promote the
compensation of the commodities under their authority. For example, the tea board has set up
various promotional units in foreign countries with a view to organizing generic promotion
programme.

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Marine products Export Promotion Council:

The new name of marine products export promotion council is Marine Products Export
Development Authority (MPEDA). It was started functioning in September 1972. This
Authority serves the seafood industry right from fishing to processing, packaging, storing,
transporting and
marketing to the different markets all over the world. The Authority is entrusted with the task
of ensuring a healthy growth of the industry through sound judgment regulation, conservation
and control. Importers and exporters can obtain any information and control. Importers and
exporters
can obtain any information relating to the markets and products from the marine products
exports development authority. The principal functions of the authority are:
Registration of fishing vessels, processing plants, storage premises and conveyances
relating to the marine products industry and exports with a view to promote a healthy
development.
Development, conservation and management of offshore and deep sea fishing.
Laying down standards and specifications for marine products for purposes of export
and to introduce comprehensive in plant inspection system to maintain a high quality
of the products.
Delivering financial or other assistance and to act as an agency for extension of relief
and subsidy as may be committed and entrusted by the government.
Presenting other types of assistance and service to the industry in relation to market
intelligence, export promotion, trade enquiries and import of certain essential items
required in small quantities for the industry.
Improve the marketing of marine products overseas by providing market intelligence,
market promotion activities, information on the types of products in demand in
different countries, nature of processing for specific types of requirements etc.
Regulation of Export of Marine Products.
Arrange for training in different aspects connected with export with special reference
to fishing, processing and marketing. Such other measures be taken that will be of
importance to the export industry.
Marine Products Export Development Authority's services extended to foreign buyers
range from spotting the right packers and exporters in ensuring that the products are
delivered in the foreign markets on time and in prime conditions.
To ensure better coordination and to offer quick and effective service to the industry,
the Marine Product Export Development Authority (MPEDA) has opened regional
offices in major seafood processing and export centers and a trade promotion office at
New Delhi. Marine product export development authority has also got a foreign office
at Tokyo and the authority also has a plan to setup the similar offices in other major
markets in the different countries.
Agricultural and Processed Food Product Export Development Authority (APEDA):
To increase the export from agricultural sector, the processed food export promotion council
has been upgraded as Agricultural and Processed Food Products Exports Development
Authority. It will coordinate its activities with national bodies like Horticulture Board and
State Government for generating production for exports and with research institute for
development of value added products. The Authority would also under take quality
certification and unify the existing inspection and quality control for products such as meat
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and meat products. The products covered by the agricultural and processed food product
export development authority are:
Fruits, vegetables and their products
Meat and Meat products
Dairy products
Poultry and poultry products
Confectionary, biscuits and bakery products
Cashew nuts, groundnuts, peanuts and walnuts
Guar gum
Honey, jaggery and sugar products
Cocoa and its products and chocolates of all kinds
Cereal products
Alcoholic and non-alcoholic beverages
Pickles, chutneys and papads
Herbal and medicinal plants
Horticulture and floriculture products
Functions of Agricultural and Processed Food Products Export Development Authority are:
The development of industries relating to the above discussed products for export by
way of providing financial assistance or otherwise for undertaking surveys feasibility
studies, participation in the equity capital through joint venture and other relief and
subsidy schemes.
The registration of persons as exporters of the products concerned on payment of such
fees as may be prescribed.
The fixing of standard and specification of products for the purpose of exports.
Carrying out of inspection of meat and meat products in any slaughterhouse,
processing plant, storage premises, conveyances or other places where such products
are kept for the purpose of ensuring the quality of products.
Promotion of export-oriented productions and development of these products.
Improving the packaging standard of these products.
Improving the marketing of these products outside India.
The collection of statistics from the owner of factories or establishment engaged in
the production, packaging, processing, marketing or export of these products or from
such other persons or may be prescribed on any matter relating to these products and
the publication of the statistics so collected or of any portion there-of or extracts
there-from.
Supplementing the commodity organizations there the offices of Textile
Commissioner and Jute Commissioner. The Textile Commissioner is related with the
development and regulation of all textile industries other than jute and coir. It is also
responsible for the development of textile machinery industry. The Jute Commissioner
is concerned with the development of jute industry and jute mill machinery industry.
TIER-4: SERVICE INSTITUTIONS
Ministry of Commerce and Industry, Government of India, with a view to give proper
direction, guidance and encouragement to the Services Sector, has set up an exclusive Export
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Promotion Council for Services in the name of Services Export Promotion Council (SEPC).
SEPC was registered under the Societies Registration Act in November, 2006. DGFT, vide
Gazette Notification dated 5/3/2007, included SEPC in the list of the recognised Export
Promotion Councils.
Service sector is the largest and fastest growing sector in the Indian economy making as high
as 59% contribution in total GDP of India Services export is one of the key thrust areas of the
Government of India. Services exports have recorded about seven fold increases in ten years
from US$ 20.76 billion in 2002-2003 to US$ 142.325 billion in 2011-2012 and US$ 105.84
billion up to December, 2013.
There are at present eleven Export Promotion Councils under the administrative control of
the Department of Commerce and nine export promotion councils related to textile
sector under the administrative control of Ministry of Textiles. These Councils are registered
as non -profit organisations under the Companies Act/Societies Registration Act. The Export
Promotion Councils perform both advisory and executive functions. These Councils are also
the registering authorities under the Export Import Policy; 1997-2002.These Councils have
been assigned the role and functions under the said Policy.
The Committee constituted to look into the aspects of rationalization of election procedure of
the Export Promotion Councils (EPCs) and the criteria to be adopted for their restructuring so
that they retain their relevance to the national export effort in the context of globalisation and
economic liberalization, has made recommendations to streamline and strengthening the
functioning of the EPCs. The Government has since accepted the recommendations of the
Committee and issued Model Bye-Laws and guidelines to all EPCs for adoption.
Types of Service Institutions
1) Indian Institute of Foreign Trade (IIFT)
2) Indian Trade Promotion Organization (ITPO)
3) Indian Institute of Packaging (IIP)
4) Trade Fair Authority of India (TFAI)
5) Federation of Indian Exporters Organization (FIEO)
6) Directorate General of Commercial Intelligence and Statistics (DGCIS)
7) Export Inspection Council (EIC)
8) Indian Council of Arbitration (ICA)
9) Export Credit Guarantee Corporation of India (ECGCI)
10) Export Import Ban of India (EXIM Bank)

1. Indian Institute of Foreign Trade (IIFT)

The Indian Institute of Foreign Trade (IIFT) was set up in 1963 by the Government of
India as an autonomous organisation to help professionalise the country's foreign
trade management and increase exports by developing human resources; generating,
analyzing and disseminating data, and conducting research. The primary provider of
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training and research-based consultancy in the areas of international business, both for
the corporate sector, government and the students community
It is engaged in the following activities:
Training of personnel in modern techniques of international trade;
Conducting Market research in problems of foreign trade;
Organisation of marketing research, area surveys, commodity surveys, market
surveys; and
Dissemination of information arising from its activities relating to research and
market studies.
The IIFT has been accorded the "Deemed To Be University" status by the Ministry of
Human Resource Development and the University Grants Commission (UGC) with
effect from 20th May, 2002

2. Indian Trade Promotion Organization (ITPO)

India Trade Promotion Organisation (ITPO), the premier trade promotion agency of
the Govt. of India for organizing trade fairs, is committed to showcase excellence
achieved by the country in diverse fields especially trade and commerce. ITPO as the
nodal trade promotion agency of the country has had a pioneering role in the national
trade growth dynamics since its inception. Apart from its role in bringing the Indian
businesses, particularly those in the MSMEs sector, closer to global markets, it was
first to popularize trade fairs as a tool of trade promotion within the country. For
nearly three & half decades, it is managing India's world class exhibition complex that
is constantly upgraded to keep it in a high standard of readiness.
The prism analogy of ITPO is appropriate in the context of its seven main activities
that endeavour to carry the economy forward in the singular broadband of global
competitiveness. Likewise, the spectrum metaphor that ITPO's activities have come to
connote is inherent in the merging of all these diverse stands of activity into the
organisational objective of facilitating consistently higher levels of India's external
trade. This assumes significance particularly at this juncture when the country is
aspiring to reach the one percent share of world trade. The seven activities that
constitute the spectrum are well defined and seek to facilitate the progression of the
Indian economy towards the goal of rapid development.
The main activities and services of ITPO are:

Managing the extensive trade fair complex, Pragati Maidan in the heart of Delhi.

Organising various trade fairs and exhibitions at its exhibition complex in Pragati
Maidan and other centres in India.
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Facilitating the use of Pragati Maidan for holding of trade fairs and exhibitions by other
fair organisers both from India and abroad.

Timely and efficient services to overseas buyers.

Establishing durable contacts between Indian suppliers and overseas buyers.

Assisting Indian companies in product development and adaptation to meet buyers'

requirements.

Organising Buyer-Seller Meets and other exclusive India shows with a view to bringing
buyers and sellers together.

Organising India Promotions with Department Stores and Mail Order Houses abroad.

Participating in overseas trade fairs and exhibitions.

10

Arranging product displays for visiting overseas buyers.

11

Organising seminars/conferences/workshops on trade-related subjects.

12

Encouraging small and medium scale units in export promotion efforts.

13

Conducting in-house and need-based research on trade and export promotion.

14

Enlisting the involvement and support of the State Governments in India for promotion
of India's foreign trade.

15

Trade information services through electronic accessibility at Business Information

Centre.
3. Indian Institute of Packaging (IIP)
The Indian Institute of Packaging is an autonomous body set up by the Department of
Commerce, Govt. of India in 1966 in partnership with the leading Indian packaging
and allied industries. The Institute is a Society registered at Mumbai and works under
the administrative control of the Department of Commerce.
The Institute has the objective of promoting exports by helping innovate in design and
development of packaging and also upgrade the packaging standards at the national
level. The Institute endeavours to achieve this by organizing educational courses and
skill development programmes in packaging for the benefit of students and in-service
packaging professionals, testing and certification of packaging, and provision of
consultancy services to industry. The Institute has created research and model
infrastructural facilities at its location for training, design and development in
packaging.
IIP is headed by a Director and has a Governing Board consisting of 21
representatives of various sectors of industry and 14 other members representing
various Ministries and Commodity Boards, nominated by the Govt of India. The
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Chairman, IIP Society is elected by the Governing Body. The Director of the Institute
is the Ex-officio member of the Board.

The main aims or objectives of the Institute are:

To undertake research on raw materials for the packaging industry.
To keep India in step with international development in the field of packaging.
To organise training programmes on packaging technology.
To stimulate consciousness of the need for good packing.
To organise consultancy services for the industry.
To provide testing facilities for quality control in packaging.
To organise seminars, conferences, workshops in respect of new development in the
field.

4. Federation of Indian Exporters Organization (FIEO)

The Federation of Indian Export Organizations (FIEO), nonprofits organizations set
up by the Ministry of Commerce, Govt. of India in 1965 to co-ordinate and focus the
efforts of all organizations in the country engaged in export promotion. The
Federation has evolved into a key player in the promotion of trade, investment and
collaboration. FIEO provides the content, direction and thrust to Indias expanding
international trade. FIEO represents the interest of professional government
recognized exporting firms, consultancy firms, service exporters, banks, export
management training institutes etc. FIEO members representing large, medium &
small scale exporting units contribute more around 70% global exports of our country.
Its membership comprises of exporting firms with strong credentials, called
Government-recognized Export House, Star Export House, Trading House, Star
Trading House and Premier Trading House besides Consultancy firms. FIEO provides
a unique platform to the businessmen dealing in Multi Products. FIEO membership is
offered to exporters dealing in various goods and services and nearly all the products
fall under its gamut. It is the only body authorized in India to register exporters not
covered under any other Export Promotion Council of India. With customer oriented
approach, the confidence and satisfaction of the business community on FIEO has
grown which has reflect in the continuous rise in membership.
FIEO works as a partner of the Government of India in providing inputs on various
trade policy issues and also acts a strong linkage between the Government and the
Industry. It takes up problems /issues of its members, organizes capacity building
courses to provide a conducive domestic atmosphere and to increase their competitive
edge on one hand and organizes international activities to give its members a global
reach.

5. Directorate General of Commercial Intelligence and Statistics (DGCIS)

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The Directorate General of Commercial Intelligence & Statistics (DGCI&S) is the

nodal agency of the Government of India responsible for collection, compilation and
dissemination of Trade Statistics and various types of Commercial Information. Over
the years, DGCI&S has been making utmost effort to release the Trade Data in time
and to create reliable and detailed data-base to facilitate the formulation,
implementation and modification of India's Trade Policy and Planning in the field of
Export Promotion and efficient Import Management. DGCI&S made a significant
progress in releasing the provisional Foreign Trade Data of aggregate Exports and
Imports and also major Commodity/Country and Port wise data. Presently, the Press
Release and Quick Estimates of Principal Commodities for Exports and Imports are
prepared within 25 days from the close of the reference month. These are very useful
for making overall assessment of India's Foreign Trade in advance by the Government
and to study the impact of various trade policies. A Brochure titled as "Foreign Trade
Statistics of India (Principal Commodities & Countries)" containing provisional data
is released thereafter. The detailed statistics at 8-digit level of ITC (HS) are being
published with much reduced time-lag than in the past with the continuous efforts to
make it timelier.
As part of its regular activities, DGCI&S collects, preserves, analyses and
disseminates various types of commercial information required by importers,
exporters, traders as well as overseas buyers. Directory of Indian Exporters published
by DGCI&S is a valuable document for the foreign buyers. The Indian Trade Journal,
a weekly publication brought by DGCI&S, is a repository of material of commercial
interest as well as a major channel for flow of information on tenders at the National
and International level. DGCI&S also helps in the settlement of Commercial Disputes
and maintains a Commercial Library, which serves a vast clientele. The Directorate
brings out a number of other publications mainly on Inland and Coastal Trade
Statistics, Revenue Statistics, Shipping and Air-cargo Statistics etc., which are utilized
by the government departments as well as by the trading communities and
researchers.
6. Export Inspection Council (EIC)
The Export Inspection Council (EIC) was set up by the Government of India under
Section 3 of the Export (Quality Control and Inspection) Act, 1963 (22 of 1963), in
order to ensure sound development of export trade of India through Quality Control
and Inspection and for matters connected thereof.
EIC is an advisory body to the Central Government, which is empowered under the Act
to:
Notify commodities which will be subject to quality control and/ or inspection prior
to export.
Establish standards of quality for such notified commodities, and
Specify the type of quality control and / or inspection to be applied to such
commodities.
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Besides its advisory role, the Export Inspection Council, also exercises technical and
administrative control over the five Export Inspection Agencies (EIAs), one each at
Chennai, Delhi, Kochi, Kolkata and Mumbai established by the Ministry of Commerce,
Government of India, under Section 7 of the Act for the purpose of implementing the
various measures and policies formulated by the Export Inspection Council of India.
Export Inspection Council, either directly or through Export Inspection Agencies, its
field organisation renders services in the areas of:
Certification of quality of export commodities through installation of quality assurance
systems (In-process Quality Control and Self Certification) in the exporting units as
well as consignment wise inspection. Certification of quality of food items for export
through installation of Food safety Management System in the food processing units.
Issue of Certificates of origin to exporters under various preferential tariff schemes for
export products.
7. Indian Council of Arbitration (ICA)
This is a body within the fold of Indian Chamber of Commerce (ICC) dedicated to the
mission of extending institutional service for the Alternative Dispute Resolution
(ADR) of commercial disputes. It administers, oversees and conducts arbitration and
conciliation proceedings according to the institutional rules framed by Indian chamber
of Commerce, as modified from time to time, in tune with the changing legal
framework and needs of the business community.
The Arbitration Rules of Indian Chamber Council of Arbitration (ICCA) is
the backbone of the secretariat acting for institutional arbitration, keeping the
parties informed concerning all the steps taken in the neutral and
independent administering of the cases on a day-to-day basis and providing the
benefits of a quick, efficient and inexpensive mechanism for dispute settlement.
Following ICCs MOU with the Council of State Governments, USA to launch the
implementation of a comprehensive ADR initiative in India, ICCA has planned to
launch a series of ambitious initiatives directed towards improving specific aspects of
arbitral services offered by ICC, and intensifying its involvement in improving
imminent issues in dispute resolution.
ICCA is conducting both national and transnational arbitrations keeping pace with its
reputation as one of the most prominent Institutional ADR service provider in India.
In addition, ICCA also administers the cases referred under the Rules of Arbitration of
the International Chamber of Commerce, Paris and the Indian Council of Arbitration,
New Delhi. It also offers advice on drafting contracts, organizes conferences,
seminars, workshops to educate and prepare arbitrators and to spread awareness by
conducting awareness programmes in alliance with the leading organizations of
prominence.
8. Export Credit Guarantee Corporation of India (ECGCI)

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Export Credit Guarantee Corporation of India Ltd. (ECGC) is a Government of India

Enterprise which provides export credit insurance facilities to exporters and banks in
India. It functions under the administrative control of Ministry of Commerce &
Industry, and is managed by a Board of Directors comprising representatives of the
Government, Reserve Bank of India, banking, and insurance and exporting
community. Over the years, it has evolved various export credit risk insurance
products to suit the requirements of Indian exporters and commercial banks. ECGC is
the seventh largest credit insurer of the world in terms of coverage of national exports.
The present paid up capital of the Company is Rs. 1200 Crores and the authorized
capital is Rs. 5000 Crores.
ECGC is essentially an export promotion organization, seeking to improve the
competitive capacity of Indian exporters by giving them credit insurance covers
comparable to those available to their competitors from most other countries. It keeps
its premium rates at the lowest level possible.
What does ECGC do?
Provides a range of credit risk insurance covers to exporters against loss in export of
goods and services
Offers Export Credit Insurance covers to banks and financial institutions to enable
exporters to obtain better facilities from them
Provides Overseas Investment Insurance to Indian companies investing in joint
ventures abroad in the form of equity or loan

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 it's own credit ratings
Makes it easy to obtain export finance from banks/financial institutions
Assists exporters in recovering bad debts
Provides information on credit-worthiness of overseas buyers.

9. Export Import Bank of India (EXIM Bank)

Export-Import Bank of India is the premier export finance institution in India,
established in 1982 under the Export-Import Bank of India Act 1981. Since its
inception, Exim Bank of India has been both a catalyst and a key player in the
promotion of cross border trade and investment. Commencing operations as a
purveyor of export credit, like other Export Credit Agencies in the world, Exim Bank
of India has, over the period, evolved into an institution that plays a major role in
partnering Indian industries, particularly the Small and Medium Enterprises, in
their globalisation efforts, through a wide range of products and services offered at all
stages of the business cycle, starting from import of technology and export product
development to export production, export marketing, pre-shipment and post-shipment
and overseas investment. Its main objects are:

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1. To ensure and integrated and co-ordinated approach in solving the allied problems
encountered by exporters in India.
2. To pay specific attention to the exports of capital goods;
3. Export projection;
4. To facilitate and encourage joint ventures and export of technical services and
international and merchant banking;
5. To extend buyers credit and lines of credit;
6. To tap domestic and foreign markets for resources for undertaking development and
financial activities in the export sector.
The functions of Exim Bank include:
(a) Planning, promoting and developing exports and imports;
(b) Providing technical, administrative and managerial assistance for promotion,
management and expansion of export sector.
(c) Undertaking market and investment surveys and techno-economic studies related
to development of exports of goods and services.

TIER-5: GOVERNMENT TRADING ORGANIZATIONS

1. Metals and Minerals Trading Corporation of India (MMTC)
MMTC Ltd., Metals and Minerals Trading Corporation of India, is one of the two highest
earners of foreign exchange for India and India's largest public sector trading body. Not only
handling the export of primary products such as coal, iron ore, and manufactured agro and
industrial products, MMTC also imports important commodities such as ferrous and
nonferrous for industry, and agricultural fertilizers. MMTC's diverse trade activities cover
Third Country Trade, Joint Ventures and Link Deals and all modern forms of international
trading. The Company has a vast international trade network, spanning almost in all countries
in Asia, Europe, Africa, Oceania, and America and also includes a wholly owned
international subsidiary in Singapore, MTPL. It is one of the Miniratnas companies.
MMTC is one of the two highest foreign exchange earner for India (after petroleum refining
companies). It is the largest international trading company of India and the first public
sector enterprise to be accorded the status of Five Star Export Houses by Government of
India for long standing contribution to exports
Being the largest player in bullion trade, including retailing, MMTC's share was 146 tonnes
of gold out of the total import of 600 tonnes of the precious metal in 2008-09.
2. State Trading Corporation (STC)
The State Trading Organization (MSE:STO) or STO is a public company with 92.29% of the
shares owned by the Maldivian Government with the rest 7.71% being held by the public
after the IPO a couple of years ago. It is operated directly under the Ministry of Trade and
Industries, and is controlled by a board of directors headed by a Chairman.
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The main functions of the S.T.C. are:

1. To explore new markets for existing as well as new products.
2. To promote exports difficult to sell items and promotion of long-term export operations.
3. To diversify and increase Indias export trade.
4. To undertake exports and imports where bulk handing is advantageous.
5. To undertake import and /or internal distribution of commodities in short supply with a
view to establishing prices and rationalizing distribution.
6. To hold or assist in holding exhibitions in India and elsewhere of the products and articles
in which the company is interested.
The S.T.C. is also acting as an agent of the Government of India is controlling production,
distribution and export and import of a number of commodities such as cement fertilizers etc.
The total turnover of the corporation was Rs. 794 crores in 197475.
As its trading activities have diversified a number of subsidiary corporations, namely
handicraft and handloom Export Corporation of India ltd. Projects and Equipment
Corporation of India Ltd., India Motion Pictures, Export
3. Ministry of Steel
The Ministry of Steel, a branch of Government of India, is the apex body for formulating all
policies regarding steel production, distribution and pricing in India. As of June 2014, the
ministry is headed by a minister of Cabinet rank, Narendra Singh Tomar and is assisted by a
Minister of State, Vishnu Deo Sai
Functions of the Ministry
Coordination of data from various sources for the growth of the Iron and Steel
Industry in India
Formulation of policies in respect of production, pricing, distribution, import and
export of iron & steel and ferro alloys
Planning and development of and assistance to the entire iron and steel industry in the
country
Development of the input industries relating to iron ore, manganese ore, refractories
and others required by the steel industry
TIER-6: INTER STATE TRADE COUNCIL
As the article 263 makes it clear, the Inter-State Council is not a permanent constitutional
body for coordination between the States of the Union. It can be established 'at any time' if it

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appears to the President that the public interests would be served by the establishment of such
a Council.
The provision of article 263 of the Constitution was invoked for the first time on 9 August
1952 when President by a notification established the Central Council of Health under the
Chairmanship of the Union Minister of Health and Family Planning 'to consider and
recommend broad lines of policy in regard to matters concerning health in all aspects'.
By similar notifications the President established the Central Council for Local Government
and Urban Development on 6 September 1954 and four Regional Councils for Sales Tax and
State Excise Duties on 1 February 1968.
However, the National Development Council was set up on 6 August 1952 by an executive
order on the recommendation of the Planning Commission, as the Planning Commission
itself was set up by an executive order of the government. Similarly the National Integration
Council was set up in 1962 without any course to article 263 of the Constitution. The annual
conferences of Chief Ministers, Finance Ministers, Labour Ministers, Food Ministers etc have
been taking place to discuss important issues of coordination between the Centre and the
States. In fact, the issues of inter-State and Centre-State coordination and cooperation were
being discussed in a multitude of meetings on specific themes and sectors in an ad hoc and
fragmented manner.

Duties Of Inter State Council

The Council is a recommendatory body with the following duties: a) Investigating and discussing such subjects, in which some or all of the States or the
Union and one or more of the States have a common interest, as may be brought up
before it;
b) Making recommendations upon any such subject and in particular
recommendations for the better coordination of policy and action with respect to that
subject; and
c) Deliberating upon such other matters of general interest to the States as may be
referred by the Chairman to the Council.
This view was endorsed by the Commission on Centre-State Relations (1988) which
recommended that 'the Council should be charged with duties in broad terms
embracing the entire gamut of clauses (b) and (c) of article 263'.
Government accepted the recommendation of the Sarkaria Commission and notified
the establishment of the Inter-State Council 0n 28 May 1990.
The Council Composition
Prime Minister - Chairman
Chief Ministers of all States - Member

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 Chief Ministers of Union Territories having a Legislative Assembly and

Administrators of UTs not having a Legislative Assembly - Member
Six Ministers of Cabinet rank in the Union Council of Ministers to be nominated by
the Prime Minister Member
Meetings of Interstate Council
The Inter-State Council has met for only ten times. The meetings of the Council are
held in camera and therefore the details of the agenda items and the proceedings of
the meetings cannot be shared in the public domain.
The First Meeting of the Inter-State Council was held on 10.1990. to discuss the
mainly agenda items on report of the Sarkaria Commission on Centre-State Relations.
The Tenth Meeting of the Inter-State Council held on 9.12.2006 discussed the agenda
items on Atrocities on Scheduled Castes and Scheduled Tribes and status of
implementation of the Scheduled Castes/Scheduled Tribes (Prevention of Atrocities)
Act, 1989
In all the meetings recommendations made by Sarkaria Commission on center-state
relations are accepted widely.
Conclusion
According to a research study conducted about 90 percent of international trade is dependent
upon export finance and export insurance. India has witnessed only a slight decline in its
international trade due to the global financial crisis but the world, as a whole, registered a
twenty-five percent decline in trade. The lack of credit despite the availability of high
liquidity and low interest rates is a major reason for the global trade to register a steep decline
in 2009. The economic stimulus provided by many governments is expected to help exporters
worldwide recover fully. For example, the EXIM Bank of the US has promised about $12
billion in credit assistance to exports to emerging markets. The governments of the UK,
Japan, Brazil, China, Russia, and Colombia also have taken similar steps in their respective
jurisdiction.

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References
[1] https://en.wikipedia.org/wiki/India_Trade_Promotion_Organisation
[2] http://interstatecouncil.nic.in/
[3] http://steel.gov.in/
[4] https://en.wikipedia.org/wiki/Minister_of_Steel_(India)
[5] http://www.shareyouressays.com/116479/6-main-functions-of-state-trading-corporationindia
[6] http://mmtclimited.gov.in/
[7] https://en.wikipedia.org/wiki/MMTC_Ltd
[8] http://commerce.nic.in/annual2006-07/html/chapter4.html
[9] http://commerce.gov.in/aboutus/aboutus_right_to_information.asp?id=10
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[10] http://www.ieport.com/epc.htm

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