Export promotion refers to the policies, measures, and strategies adopted by governments to promote the exports of goods and services from their country. The primary objective of export promotion is to increase the foreign exchange earnings of the country, create employment opportunities, and promote economic growth.
Export promotion is essential for the economic development of a country. By promoting exports, governments can increase foreign exchange earnings, create employment opportunities, and promote economic growth. Through a range of policies and measures, governments can create a conducive environment for businesses to operate and encourage them to increase their exports.
Export promotion can take various forms, including:
- Trade agreements: Governments can negotiate trade agreements with other countries to promote exports. These agreements typically involve reducing or eliminating tariffs, simplifying customs procedures, and promoting mutual investments.
- Export incentives: Governments can provide various incentives to exporters, such as tax exemptions, subsidies, and credit facilities, to encourage them to increase their exports.
- Export financing: Governments can provide financial assistance to exporters in the form of export credit, insurance, and guarantees to reduce the risks associated with international trade.
- Market development: Governments can support market development activities such as trade fairs, trade missions, and marketing campaigns to promote exports and raise awareness about their country’s products and services.
- Infrastructure development: Governments can invest in infrastructure development such as roads, ports, and airports, to facilitate the movement of goods and services and reduce transaction costs for exporters.
- Export-oriented industrialization: Governments can promote the development of export-oriented industries, which are focused on producing goods and services for export markets.
Export Promotions Council
Export Promotion Councils (EPCs) are organizations established by the Government of India to promote the exports of various products and services from India. The primary objective of EPCs is to enhance the competitiveness of Indian exporters and increase their exports to global markets.
There are several Export Promotion Councils in India, each focused on promoting the exports of a specific product or service. For example, the Engineering Export Promotion Council (EEPC) promotes the exports of engineering goods, the Gem and Jewellery Export Promotion Council (GJEPC) promotes the exports of gem and jewellery products, and the Apparel Export Promotion Council (AEPC) promotes the exports of readymade garments.
The functions of Export Promotion Councils include:
- Export promotion: EPCs promote the exports of their respective products or services by organizing trade fairs, exhibitions, and buyer-seller meets. They also conduct market research to identify potential export markets and promote Indian products and services in those markets.
- Policy advocacy: EPCs advocate for policies and measures that will promote the exports of their respective products or services. They provide inputs to the government on trade-related issues, participate in policy discussions, and represent the interests of their members.
- Capacity building: EPCs provide training and capacity-building programs to their members to enhance their competitiveness in global markets. They also provide information on trade regulations, tariffs, and non-tariff barriers in different countries.
- Market intelligence: EPCs gather and disseminate information on global market trends, buyer preferences, and product specifications to their members. This helps Indian exporters to understand the demand for their products in different markets and develop products that meet international standards.