Govt of India

Ministry of Commerce and Industry

Dept of Commerce
by Anand Sharma (Minister of Commerce and Industry)
Board of Trade : One who formulates policies
Special Focus Initiatives : Certain initiatives taken by govt to boost export by
giving them special focus.
-status holders : status of doing exports; given by judging the export competiti
veness and should atleast contribute 3.5% (the present limit).
-green products : sustainability; recycable; renewable
e.g. jute, cars, biotechnology, paper bags, solar or wind energy
(i) market diversification
-diversifying into newer markets
-US Lehman Brothers crisis
-Latin American Countries (LAC) : Exports from India is huge here. 44 countries.
Brazil (largest manufacturer of Boeing), Mexico (member of NAFTA (North America
Free Trade Agreement) -still prefers wine from India, Columbia (Mahindra and Ma
hindra have , Peru, Chile (signed maximum MoUs with countries in world), Argenti
na (world's largest importer of beef), Eucador, Juatemela, Venezuela (4th larges
t producer of oil in world), Dominican Republic are the ten countries Indian gov
t has identified as important. 60% worth exports happened last year. India's exp
orts to LAC has almost doubled in last 4 years. Arg and Ven are open only for pr
ojects through Chile-they have fight. Brazil and Chile is rated highly by ECGC (
Export Credit Guarantee Corporation-by Indian Govt to protect the exporters from
insurance risks) for payments. Mexi and Bra trust Indian exporters so much that
they can pay high price only if they provide on time. Indians export to Cuba th
ough UN and US don't.
-Oceania : 14 countries spread over region near South-Pacific ocean and consist
of diff island groups.
-CIS: created in December 1991. 12 countries.
-mail about 26 new markets by India
-Market Linked Focus Product Scheme
(ii) Technological Upgradation
-EPCG (Export Promotion of Capital Goods-machinery and heavy equipments are capi
tal goods)
-Export Obligation (EO) : Export Promotion Capital Goods (EPCG) scheme allows im
port of capital goods including spares for pre production, production and post p
roduction at zero duty subject to an export obligation of 6 times of duty saved
on capital goods imported under EPCG scheme.
-Advance Authorisation Scheme: s issued to allow duty free import of inputs, whi
ch are
given in advance.
-Customs will come under Dept of Revenue, Ministry of Finance.
-Focus Product: increase the export potential of the product and govt will give
incentives.
-Market Linked Focus Product Schemes
-Project Exports
(iii) Support to status holders
-duty credit scrip: certi of credit by DGFT (Director General of Foreign Trade)
or respective EPC
-% of the FOB (Free on Board): risk, respon of goods is from exporter when in FO
B.
(iv) Agriculture and Village Industry
-AEZ: Agri Export Zone : more incentives on agri products
-towns of export excellence (TEE) : certain towns from NE, KAshmir and Punjab gi
ven incentives.
(v) Handlooms
(a) vimp for exam and PI
MAI - Market Access Initiative - initiative in accessing new market
MDA - Market Development Assistance - developing market geographically
(vi) Handicrafts
-CVD : Counter-vailing Duty charged by customs dept
(g) because art is getting extinct, it brings more exports, face of India
(vii) Gems & Jewellery
Diamond Bourse (s) : place where you can trade diamonds. BDB (Bharat Diamond Bou
rse) in Mumbai, India