India’s foreign trade has been a key driver of the country’s economic growth, and the government has taken several measures to provide institutional support to promote and facilitate foreign trade. Here are some of the institutional support measures taken by the government:
- Directorate General of Foreign Trade (DGFT): The DGFT is the primary agency responsible for implementing the government’s policies and programs related to foreign trade. It is responsible for issuing and administering various licenses, permits, and authorizations required for import and export of goods, and for ensuring compliance with international trade regulations.
- Export Promotion Councils (EPCs): EPCs are industry-specific bodies that promote exports and provide assistance to exporters. There are several EPCs in India, such as the Apparel Export Promotion Council, Engineering Export Promotion Council, and Chemicals and Allied Products Export Promotion Council.
- Special Economic Zones (SEZs): SEZs are designated areas within the country that are treated as foreign territory for the purposes of trade, duties, and taxes. They offer several benefits to exporters, such as exemption from customs duties, income tax, and sales tax, among others.
- Trade Fairs and Exhibitions: The government promotes and supports participation in international trade fairs and exhibitions to showcase Indian products and services to the world. These events provide an opportunity for Indian businesses to network with foreign buyers and explore new markets.
- Export-Import (EXIM) Bank: The EXIM Bank provides financial assistance to Indian exporters and importers in the form of loans, guarantees, and insurance. It also offers advisory services to help Indian businesses enter new markets and explore new opportunities.
- Foreign Trade Policy (FTP): The FTP is a comprehensive policy framework that outlines the government’s strategy for promoting exports and reducing imports. It includes measures such as export incentives, import tariffs, and trade agreements, among others.
These institutional support measures play a crucial role in promoting and facilitating India’s foreign trade, and they help Indian businesses compete effectively in the global marketplace.