EXPORT PROMOTION MEASURES & REGULATORY MECHANISM
Master of Commerce – M.Com First Year Solved Assignments for July 2019 and January 2020 Admission Cycles
M.COM First Year Tutor Marked Solved Assignment
Course Code: IBO – 03
Course Title: India's Foreign Trade
Assignment Code: IBO-03/TMA/2019-20
Coverage: All Blocks
Course Title: India's Foreign Trade
Assignment Code: IBO-03/TMA/2019-20
Coverage: All Blocks
IBO – 03 India's Foreign Trade Solved Assignment for 2019-20
Q2.) Describe various export promotion measures adopted in India. Explain the regulatory mechanism in export promotion.
Ans: What is Export?
A function of international trade whereby goods produced in one country is shipped to another country for future sale or trade.
The major objective of export promotion programs is to create awareness about export and make people understand that it is one of the most crucial instruments of growth and market expansion.
Export promotion measures are public policy measures taken by the government of a country to potentially enhance the exporting activities and employment of that country. In India, a number of export promotion schemes have been in existence for some time which promotes the industries that have the potential for developing and competing with foreign industries. In fact, exports have become a trusted area for government and efforts have been made to create an environment conducive for exports. Some of the measures are as follows:
Special Economic Zones (SEZs): A scheme for setting up special economic zones (SEZs) in the country to promote exports was announced by the government in the Export and Import Policy of 2000. The SEZs are to provide an internationally competitive and hassle-free environment for exports and are expected to give a further boost to the country's exports. Goods going into the SEZ area shall be treated as deemed exports. Goods coming from the SEZ area into DTA shall be treated as imported goods.
Export Processing Zone (EPZ): This was set up by the government of India with the aim to initiate infrastructural development and tax holidays in various industrial sectors in the country. The export processing zones in India came into existence soon after the political independence, where India proclaimed the first Industrial Policy Revolution in the year 1948. The main reason behind setting up the EPZ in India have been listed:
Under the STP scheme, a software development unit can be set up for the purpose of software development, data entry and conversion, data processing, data analysis, and control data management. The major STPs set up at Pune, Bangalore, Bhubaneswar, Hyderabad, Gandhinagar, Thiruvananthapuram and Noida.
Under the EHTP scheme, a unit can be set up for the purpose of manufacture and development of electronic hardware and/ or software in an integrated manner. For exports, the policy provisions for STP/EHTP are substantially the same as applicable to units under the EOU scheme.
Regulatory Mechanisms in Export Promotion :
Export Inspection Council which has been involved in inculcating quality consciousness and self-discipline among the exporting community is an important parameter of the export promotion effort. Towards this objective, the GOI has established the "Export Inspection Council" under section 3 of the Export (quality control and inspection) Act, 1963 to provide for the sound development of export trade in the country. The primary function of the Export Inspection Council as outlined is to control the activities relating to quality control and pre-shipment inspection of the commodities meant for exports.
Ans: What is Export?
A function of international trade whereby goods produced in one country is shipped to another country for future sale or trade.
The major objective of export promotion programs is to create awareness about export and make people understand that it is one of the most crucial instruments of growth and market expansion.
Export promotion measures are public policy measures taken by the government of a country to potentially enhance the exporting activities and employment of that country. In India, a number of export promotion schemes have been in existence for some time which promotes the industries that have the potential for developing and competing with foreign industries. In fact, exports have become a trusted area for government and efforts have been made to create an environment conducive for exports. Some of the measures are as follows:
Special Economic Zones (SEZs): A scheme for setting up special economic zones (SEZs) in the country to promote exports was announced by the government in the Export and Import Policy of 2000. The SEZs are to provide an internationally competitive and hassle-free environment for exports and are expected to give a further boost to the country's exports. Goods going into the SEZ area shall be treated as deemed exports. Goods coming from the SEZ area into DTA shall be treated as imported goods.
Export Processing Zone (EPZ): This was set up by the government of India with the aim to initiate infrastructural development and tax holidays in various industrial sectors in the country. The export processing zones in India came into existence soon after the political independence, where India proclaimed the first Industrial Policy Revolution in the year 1948. The main reason behind setting up the EPZ in India have been listed:
- Ensuring better infrastructural facilities in the industrial units that were set up in the export processing zones in India.
- Introducing the privilege of tax holidays.
- Establishing a 100 percent export-oriented system in the EPZ in India.
- The units in export processing zones follow the automatic routes set by the government of India which offers 100 percent FDI in export processing zones in India.
Under the STP scheme, a software development unit can be set up for the purpose of software development, data entry and conversion, data processing, data analysis, and control data management. The major STPs set up at Pune, Bangalore, Bhubaneswar, Hyderabad, Gandhinagar, Thiruvananthapuram and Noida.
Under the EHTP scheme, a unit can be set up for the purpose of manufacture and development of electronic hardware and/ or software in an integrated manner. For exports, the policy provisions for STP/EHTP are substantially the same as applicable to units under the EOU scheme.
Regulatory Mechanisms in Export Promotion :
Export Inspection Council which has been involved in inculcating quality consciousness and self-discipline among the exporting community is an important parameter of the export promotion effort. Towards this objective, the GOI has established the "Export Inspection Council" under section 3 of the Export (quality control and inspection) Act, 1963 to provide for the sound development of export trade in the country. The primary function of the Export Inspection Council as outlined is to control the activities relating to quality control and pre-shipment inspection of the commodities meant for exports.
EXPORT PROMOTION MEASURES & REGULATORY MECHANISM
Reviewed by Simran
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April 13, 2020
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Reviewed by Simran
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April 13, 2020
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