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1.

GENERAL INTRODUCTION
2. OBJECTIVES OF THE STUDY
3. INDUSTRY PROFILE
4. COMPANY PROFILE
5. DOCUMENTATION OF IMPORT AND EXPORT OF ROMSONS
6. PRODUCTS AND SERVICES
7. EXPORT POLICY
8. RESEARCH METHODOLOGY
9. DATA ANALYSIS AND INTERPRETATION
10.
SUGGESTION
11.
CONCLUSION
12.
BIBLIOGRAPHY

EXECUTIVE SUMMARY
As part of our curriculum, I did my research project on study offoreign
trade documentation in Romsons. This analysis has given me great
insight to the behavior and attitude of people at work. To understand
their needs & aspirations at work I conducted a survey & analyzed to
have a platform to work on. You will have a view to it in the project.
Never did it occur to me before doing this study.
foreign trade documentation in Romsons Scientific & Surgical Industries
AT AGRA is the topic of my project.
1

I selected Romsons Scientific & Surgical Industries, AGRA as the


organizations under study. Romsons Scientific & Surgical Industries AT
AGRA in terms of profits, assets, & employees. It offers a wide range of
scientific and surgical products corporate & retail customers through
delivery channels & through its specialized subsidiaries.
I am hopeful that anybody, who reads my project, will enjoy it as much
as I enjoyed doing it.

Company Profile
A pioneer and a leader
One of free Indias earliest, most critical revolutions took place in 1952 in the field of
healthcare.
At a time when most patients were vulnerable and many succumbed to infection
caused by re-usable medical devices, Romsons stepped forward with a pioneering
breakthrough the concept of disposable medical and surgical devices.
Today, over half a century later, the culture of disposable medical devices is well
established and Romsons has entrenched itself as the pre-eminent brand in the
business a pioneer and a leader. An INR 1.80 billion, professionally-managed
enterprise. A global player with a presence in 65 countries. A product portfolio thats
2

100 products strong. A retail footprint across geographies with a 810-plus


distributor network in India and abroad. Most significantly, the name Romsons
continues to inspire trust for unsurpassed quality, innovation and safety of its
products.

Romsons Group of Companies

Romsons International, Agra, India

Romsons International (Unit-II), Noida, India

Romsons Scientific & Surgical Industries Pvt. Ltd.

Romsons Juniors India

Romsons Medicons

Raj Vijay Corporation

A product for every need? Well, almost


We have the largest product portfolio in the industry (100 products in over 600
sizes), which caters to almost the entire spectrum of patients need. Designed and
manufactured to deliver maximum performance and safety, Romsons is the last word
in quality. This has earned us the recognition of our peers in the industry. Be it an
award from the Chamber of Commerce in India for outstanding export performance
or the special recognition instituted by MSME, Government of India, our pioneering
work has been universally appreciated.

Winning the trust of the best in the world


What has earned us the loyalty of the most demanding customers in the world?
What gives us the edge to deliver greater value to customers? Firstly, our experience
(over 50 years) in understanding a patients needs and a doctors requirements.
Secondly, our first-hand knowledge of designing and developing products. Thirdly,
the unquestioned integrity of our products. But most importantly, our ability to serve
the emerging needs of our customers with speed and agility.
Little surprise that, Romsons products are being exported to developed and
emerging markets in over 65 countries. We also regularly participate in international
industry trade fairs like Medica (Germany), Hospimedica (Singapore), Arab Health
(UAE), FIME (USA) amongst others.

R&D the driving force


Our mission is to create products that promote healing, well-being and safety of
patients. To realize this objective, we have an active, cutting-edge research and
development programme the driving force behind the ingenuity and reliability of our
products. The quality of our R&D infrastructure is matched by the quality of our
research professionals and in both respects, we are second to none.
Our R&D, marketing and production teams work closely with customers to
continuously improve existing products and research new solutions in light of
changing customer needs and market dynamics. This capability our core
competence has given us a distinct edge and kept us a step ahead of our peers for
over

50

years.

Good Manufacturing Practices (GMP)


Our manufacturing plant conforms to GMP, a WHO proprietary benchmark. The
discipline of this standard is evident in the physical ambience of our plant, the air and
water quality, manufacturing technology, packaging and the sterilization process.

Ambience: Special micro and HEPA filters at all air handling units ensure minimal
contamination in the manufacturing areas. Micro-organism and particle concentration
levels are carefully monitored by the micro-biological labs to keep these levels within
safe limits. Employees undergo periodic medical checkup to maintain high standards
of health and hygiene. All clean rooms are provided with three step change rooms
and air showers at the entrance to ensure a dust-free environment.
Manufacturing plant: We have taken great care to source up-to-the-minute, frontline
technology. The result? We are able to produce moulding and extrusion of
components and tubings with precision and within close tolerance. The superior
assembly and packaging machines ensure repeatability and consistency in product
quality.
Packaging and sterilization: Our products are packed to ensure minimal risk of
contamination or damage during transportation. We use Ethylene Oxide gas to
sterilize the products, as per EN 550/ISO 11135 standards. The entire process is
automated and computerized. Each batch is well documented for the sterilization
cycle and released for dispatch after written approval of a senior Quality Assurance
official.

Towards zero-defect quality


We are a Total Quality corporation, whose overarching goal is to manufacture zerodefect products. Thats why, we have meticulously planned and built a series of
multiple online and manual quality control measures into each stage of raw material
procurement, manufacturing and packing cycle. Our Quality Control standards
conform to ISO 9001:2000, ISO 13485:2003 and the European Medical Device
Directive 93/43/EEC certifications. As a result, we have been authorized to label our
products with the prestigious CE mark a testimony of the world-class quality of our
products.

Empowering people to excel


5

We provide a professional work environment that nurtures the pioneering spirit and
leadership qualities of our employees. Our employees are encouraged to be selfmotivated, think out-of-the-box, value excellence and bond with each other as
committed team players. All across our corporation, our teams function with the
flexibility, speed and decisiveness of people in any global corporation. In the final
analysis, it is our people who have made Romsons what it is today: a pioneer and a
leader.

OFFICE & WORKS:


ROMSONS INTERNATIONAL
62 Industrial Estate
Nunhai, Agra-282006
India
ROMSONS INTERNATIONAL Unit-II
59J(C) Noida Special Economic Zone,
Noida Dadri Road, Phase-II
Noida-201305 (U.P.) India
CORPORATE OFFICE:
4/1 East Patel Nagar
New Delhi-110008
India
Communication
Tel: +91 - 562 2280720, 2280730
Fax: +91 - 562 2280700, 2280600
Email: romsons@romsons.com
Our Mission
To make a mark in our chosen area, by being ever abreast of new
possibilities. To anticipate the needs of our customers and end users and to
translate their requirements into meaningful products. To create, innovate and
6

produce excellence through a philosophy of uncompromising dedication at


every level of function. To nurture a lasting relationship with our distributorsour partners in growth, through empathic understanding and mutual respect.
To leverage our human resources by recognizing and rewarding talent, to
create an ethos of perfectionism.

Winning the trust of the best in world


What has earned us the loyalty of the most demanding customers in the
world? What gives us the edge to deliver greater value to customers? Firstly,
our experience (over 50 years) in understanding a patients needs and a
doctors requirements. Secondly, our first-hand knowledge of designing and
developing products. Thirdly, the unquestioned integrity of our products. But
most importantly, our ability to serve the emerging needs of our customers
with speed and agility. Little surprise that Romsons products are being
exported to developed and emerging markets in over 65 countries.

A product for every need? Well, almost


We have the largest product portfolio in the industry (100 products in over 600
sizes), which caters to almost the entire spectrum of patient need. Designed
and manufactured to deliver maximum performance and safety, Romsons is
the last word in quality. Most significantly, the name Romsons continues to
inspire trust - for unsurpassed quality, innovation & safety of its products.

The objective of the study during this research project was as follows

To study the foreign trade documentation and procedure in the organizations.

To study the organization growth through foreign trade.

To study the Export Market of Romsons, Agra in Different Countries.


To study the Exim Policy Romsons
To study the Export Strategies in Footwear Industry
To study the Foreign Trade Policy
To study the better Growth prospective of the industry through
Export.

The method adopted for carrying out any project is called as Research
methodology. Research methodology used in this project is based on
following factors :
Sources of data Primary (questionnaire) and secondary data
(information regarding both organizations through internet &
booklets).
Data collection method & techniques Questionnaire and
interviews.
Sampling plan

Target population Finance Export Import

Section

Officials of Dawar Footwear, Agra.

Sampling method Random sampling.

Sample size 50

Area of population Dawar Footwear Agra.

10

RESEARCH DESIGN

Research

design

specifies

the

methods

and

procedures

for

conducting a particular study. A Research design is the arrangement of


conditions for collection and analysis of the data in a manner that aims to
combine relevance to the research purpose with economy in procedure.
Research Design is broadly classified into three types as

Exploratory Research Design

Descriptive Research Design

Hypothesis testing Research Design


On the basis of the objective of study, the study which is concerned

with describing the characteristics of a particular individual or of group of


individual under study comes under Descriptive Research design.
Descriptive Research Design:In this research design the objective of study is clearly defined and
has accurate method of measurement with a clear-cut definition of
population that is to be studied.

RESEARCH DESIGN AND METHODOLOGY


Research methodology is a systematic way, which consists of series of
actions or steps necessary to effectively carry out research and the
desired sequencing of these steps. The research is a process of involves a
11

number of interrelated activities, which overlap and do rigidly follow a


particular sequence. It consists of the following steps

Formulating the objective of the study

Designing the methods of data collection

Selecting the sample plan

Collecting the data

Processing and analyzing the data

Reporting the findings

Objective of Study

Research Design

Sample Design

Data Collection

Data Analysis

Foreign Trade: An Analysis


Reporting of Findings

12

Post Liberalization Exim Policy (1991-01)


Indias Export Performance in the post liberalisation
period i.e., 1991-2001 has been much better than the
pre-reform period. From a level of () 1.5% growth rate
during 1991-92 the value of exports in dollar terms
witnessed

growth

rate

of

21%

in

2000-01.

Consequently, Indias share in world exports increased


from 0.41% in 1992-93 to 0.67% in 2000-01. In terms of
openness of Indian economy, that is trade measured as
percentage of value of GDP, the degree of openness, has
almost doubled from a level of 13% in 1990-91 to 22% in
2000-01. The highest export growth rate for the decade
was achieved in 2000-01 at 21%. Such a commendable
performance on the export front could be attributed to
the favourable international economic environment, the
domestic reforms undertaken during the last few years
13

and the responsiveness of the exporters to the market


trends.
A compositional change has been witnessed in the
export basket of India with the opening up of the
economy. During the last 10 years there has been a
significant shift in the composition of the export basket .
The share of manufactured goods in total export of India
has increased from 76% in 1991-92 to 83% in 20002001. Chemicals & related products, Engineering goods,
Electronic goods, Gems & jewellery, Marine products and
Textiles have witnessed steady export growth, barring
some inter year variations, during the period. The growth
rates of Agricultural & allied products and Leather &
manufactures have lagged behind during the last 10
years. The export growth rates of items within the
manufactured goods groups have shown an increasing
14

trend throughout the decade and include items like


Gems & Jewellery, Manufactures of Metals, Drugs,
Pharmaceuticals & Chemicals and Textiles.
Another

important

sector

is

that

of

Petroleum

products export in which the share has risen from a level


of 2.58% to 4.10%. Destination-wise, the share of Indias
exports

to

Asia

&

Oceania

region

has

improved

significantly over the decade from 30% in 1990-91 to


37.48% in 2000-01. Similarly, North Americas share has
increased substantially from 16% to 24.73% and Africas
share has more than doubled from 2.61% to 5.3%.
However, the West European region has slipped from its
top position as Indias main export destination to the
second position with its share falling from 33.64% in
1990-91 to 27.7% in 2000-01.
Another important trading partner of India whose
15

share has fallen substantially is that of East European


region. Indias exports to this region have declined from a
level of 17.87% in 1990-91 to 2.95% at the end of the
decade. In terms of growth performance, high growth
rates have been recorded in the case of Asia & Oceania,
Africa, America and Latin American Countries (LAC). Low
growth rates have been seen in our exports to West
Europe and East Europe.
Country-wise, share of Hong Kong in Indias total
exports has shown an increase from 3.29% to 5.94% in
the decade.The share of Indias exports to China to the
total has also increased from 0.10% to 1.87%. Other
countries to which Indias exports during the last decade
have increased are Bangladesh, Sri Lanka, Indonesia and
Malaysia. The countries that have declined in importance
in this region are Japan, Australia and Singapore. Among
16

countries other than ESCAP region in Asia & Oceania,


the share of Indias exports to UAE has more than
doubled. The substantial fall in the share of Western
Europe can be attributed to decline in the share of
Indias

exports

to

Germany,

U.K.,

Italy,

Belgium,

Switzerland and Finland. The East European story is


largely explained by the fall in the share of Indias
exports to CIS countries.

Review of Past Export Strategies


In the past, the Ministry of Commerce had formulated
several export strategies that identified growth markets
and products. The essential assumption behind such
strategies

is

that

since

resources

are

limited,

concentration on selected products and market segments


would provide better return in terms of incremental
17

export expansion compared to the strategy where the


limited resources are distributed thinly over a large
spectrum of products and markets.
The

Extreme

Focus

Product

Strategy

was

introduced in 1992 with the objective of giving a focussed


attention to products that have high production capacity
in India and potential for

export competitiveness. The

target for the Focus Products was to induce growth of


30% volume/value in the medium term and stabilise
growth in the subsequent period. The success of this
strategy has been mixed.
The 15X15 Matrix Strategy was first launched in the
year 1995. The objective of this strategy was to identify
market diversification and commodity diversification. An
examination of the effectiveness of the strategy shows
that the share of the total top 15 product groups
18

exported to the top 15 market destinations declinesd


from 71% in 1996-97 to 66% in 2000-01 in respect of the
total

export

of

these

15

product

groups

for

all

destinations taken together. There has thus been a


market derivsification for these product groups. The top
three items of Indias exports contained in the Matrix
continue to remain the same during 2000 - 01 i.e. Gems
and Jewellery, RMG Cotton including accessories and
Cotton Yarn, Fabrics and Made Ups. The top three
destinations changed from US, UK and Japan to US,
Hong Kong and UAE.The ranking of other countries has
also changed. These developments need to be factored
into the new strategy.
Focus LAC was another strategy launched in 1997
with the objective of boosting exports of select items like
Textiles including RMG, Engineering goods and Chemical
19

products to Latin American Region. The highest ever


growth rate of exports to this region was achieved in the
year 2000-01 when the value of exports touched an all
time high of US$ 982 million. Although the current
volume of trade between LAC and India is still low, there
is scope for enhancing two-way trade between India and
the LAC region. It is obvious that the overall export
strategy

must

include

regional

focus

wherever

potentialities are identified.


The main lesson that we learn from the export
strategies of the last decade is that the composition,
competitiveness and complexion of world merchandise
trade are changing very fast and a dynamic approach
with a built in institutional mechanism for constant
review is essential for any medium term export strategy
in order to achieve a higher share of global exports on a
20

sustainable basis. The focus of the past strategies was on


the existing export products of India; what is additionally
necessary is to review the import baskets of our current
and potential markets and also to examine our export
competitiveness, both revealed and real based on our
potentialities.
While the overall medium term strategy would have to
be necessarily evolved on the basis of the perspective of a
longer time frame, there would also be need for short
term response to unforeseen situations like the slowdown
in world economy witnessed from the begining of 2001
and aggravated by the September 11, 2001 event.
In the past, the export strategies had basically
concentrated on existing products and existing markets
of Indias export sector. What is additionally necessary,
and what has been addressed in the present strategy
21

document, is identification of export opportunities after


examining

the

import

basket

of

major

importing

economies of the world and identifying potential items of


exports in which India is competitive vis--vis some of
the major exporting countries of these products at
present. The existing products and markets have also
been

analysed.

Focus

markets

have

further

been

identified based on different criteria. Another additionally


in the current document is that some of the key strategic
policy issues that have a bearing on Indias competitive
advantage in opportunity areas have been brought in one
place so that policy measures that are necessary to
enhance

the

competitive

edge

of

our

exporting

community gets appropriate focus. Sector-wise strategies


have also been examined. The strategy document further
fully takes into account the international developments

22

and the complexities arising in the New World Trade


Order under the WTO.

SECTOR-WISE STRATEGIES
For the identified potential sectors, indicative sector-wise
strategies have been given based on
the detailed strategy paper prepared by the Export
Promotion Councils/Commodity Boards and detailed
discussions held with exporters. The main sectors
covered are the following:
Engineering (including instruments and items of repairs),
Textiles,

Gems

Agriculture,

&

and

Jewellery,
Allied

Chemicals

(including

&

Marine

Allied,
and

Plantations), Leather & Footwear items and Other items.


These strategies need to be operationalised by

23

Government for achieving the maximum results.Some of


the major strategies suggested for the different sectors
are as follows:

Engineering/Electronic/Electrical and allied


The strategies for this sector include support for
SMEs to modernise, accreditation of testing laboratories
in India by overseas agencies, R&D, other measures to
effectively counter NTBs in the form of TBT conditions,
furthering joint ventures, brand promotion, support to
industry

to

fight

anti-dumping

cases,

providing

warehousing facilities in overseas markets, exploring


possibilities

of

promoting

exports

of

Indian

made

economy vehicles in developing countries and middle and

24

low income groups in developed countries, promoting


export of automobiles with the help of FDI, MRAs with
respect

to

recognition

of

testing

agencies

and

infrastructural and logistic support for automobiles


exports, a three pronged export marketing strategy for
automobile
Original

component

Equipment

exports

(i)

export

Manufacturers(OEMs)

through
for

their

global sourcing requirements, (ii) export to tier 1


manufacturers as a part of their international supply
chain and (iii) direct export to after-market, focussing on
auto sector in some SEZs and automobile component
centres, setting up construction equipment banks and
adoption of consortium approach by Indian construction
companies to increase project exports, the 3 key mantras
to promote electronics hardware, namely (i) hardwaresoftware combination, (ii) integrating local and export

25

production and (iii) massive investments. We need to


make all out efforts to develop India as an off-shore
production centre for electronic components/equipments
required for MNCs through clusterisation, low-duties,
and combine all this with an appropriate thrust on
service exports.
Textiles sector
The main strategies for this sector include increased
investment in key areas, infrastructure development by
setting

up

Infrastructure

Apparel

Parks

Development

and

Textiles

Schemes,

Centres

restructuring

EPCs, Brand Promotion and market assistance schemes,


restructuring
labour laws and smoothening existing schemes.
Gems & jewellery

26

The main strategies for this sector include forging


strategic alliances with producers of roughs and retailers
of jewellery and efforts to make India a grading/trading
centre for processed diamonds, forward integration into
gem stone jewellery, moving towards exports of jewellery,
etc.
Chemicals and allied sector
The main strategies for this sector include setting up
of Comprehensive Chemicals Estates(CCEs), enhancing
awareness of Indian herbal items, focussing on branded
generic pharmaceutical products out of patent regime,
promoting exports of cement by lowering input costs like
import duties, customs examination charges by railways,
state levies, freight rates by railways etc.
Agriculture & allied sector
The

main

strategies

for

this

sector

include
27

establishing Agri.Export Zones, establishing a supply


chain management and export certification programme
for basmati rice, setting up a nodal SPS point in the
Department

of

Commerce,

innovative

packaging

cold

for

chain

system

floriculture

and

exports,

packhouses/value added centres for mangoes, market


oriented approach for tea and shift in focus from bulk tea
exports to value-added packaged tea exports, focus on
export of value added forms of natural rubber and export
of rubber wood, judicious mix of strategy relating to
export of Arabica coffee vis--vis Robusta depending on
market

preference,

promoting

tobacco

exports

by

production of quality tobacco of FCV and Burley types,


pursuing with USA for higher TRQ (Tariff Rate Quota)
allocations and promoting exports to Japan, China,
Russia,

Tunisia,

Morocco,

etc.

through

bilateral

28

negotiations, construction of drying yards and promoting


exports of value added kernels in consumer packs,
promoting exports of value added and organic spices and
determining minimum residue level for pesticide residues
in the case of spices, promoting use of better handling
techniques on fishing vessels and adoption of food safety
and quality systems in the case of marine exports,
utilisation of under-exploited commercially important
varieties in the case of capture shrimps and logo
schemes for marketing marine products.

29

ANALYSIS OF FOREIGN POLICY 1997-2002


NDA REGIME
Highlights of Exim Policy
The new 5-year Export and Import policy for the period
1997-2002 aims at giving a major thrust to acceleration
of India's exports through restructuring and revamping
of various export promotion schemes and wide ranging
measures for simplification of procedures with a view to
making them more transparent and easy to administer.
Gems & Jewellery Scheme To promote export of gold
jewellery, it is proposed to increase the number of
nominated agencies permitted to stock gold. At present
only HHEC, SBI, MMTC and STC are doing this. This
30

improvement will make available adequate quantity of


gold to exporters on replenishment basis or on outright
purchase.
Moreover, the EOU/EPZ units are being permitted to sell
10% of their output in the DTA against SIL on payment
of duty. Duty Exemption Scheme Significant changes
have been made to reduce the multiplicity of schemes,
improve their attractiveness and to make them simple
and easy to administer. The quantity based advance
license has been continued.
It has restructured various export promotion schemes
and has replaced Value Based Advance License and the
Passbook

Scheme

by

new

scheme

called

Duty

Entitlement Passbook Scheme. Under this scheme, an


exporter, on the basis of notified entitlement rates, will be
granted duty credits which will allow them to import
31

inputs duty free. He can make use of this to import any


free importable item. The credit can be transferred to
another person but the transfer will be valid within the
same port.
Under the Advance Licensing Scheme, the procedure has
been further simplified. The Export Obligation period of
12 months has now been extended to 18 months.
Further extension for 6 months will be granted on
payment of 1% of the value of unfulfilled exports. This
will reduce considerable paper work and harassment to
the exporter.
Software Software units can undertake exports using a
data communication link or in the form of physical
exports through a courier service also. They will be
permitted on-line data communication for DTA sales, use
of the computer system for commercial training and
32

import of goods on loan from clients for a specified


period.
Agro Sector Import of equipment of Rs 5 crores and
above under the Zero Duty EPCG Scheme will be
permitted for this sector.
Double weightage will be given to agro exports in
calculating the eligibility of Export Houses, Trading
Houses, etc. An additional 1% Special Import License on
the total value of exports will be given for export of fruits,
vegetables, floriculture and horticulture products.
EOU/EPZ units will be permitted to sell 50% of their
output in the DTA on payment of duty without insistence
on value addition.
Special Incentives for Export of SSI product/Products
from

North

Eastern

States/New

Markets

An additional Special Import Licence of 1% on total value


33

of exports has been given to EH/TH, etc., where such


exports of products from North Eastern States constitute
10% or more of the total exports made. Double weightage
on such exports has been given for recognition as
EH/TH/STH/SSTH. Additional SIL has also been given
for exploration of new markets. SIL on export of SSI
products has been increased from 1% to 2%.
In case of small scale exporters holding ISO 9000 series
or IS/ISO 9000 series quality certification, the FOB value
of export will now be Rs. 1 crores and above during the
preceding three licensing years instead of the limit of Rs.
5 crore and Rs. 2 crore respectively prescribed for others.
Export /Trading /Star Trading /Super Star Trading
Houses
Earlier eligibility criterion for recognition of Export
House/Trading House/Star Trading House/Super Star
34

Trading House based on the average annual export


performance of the preceding 3 licensing years was Rs 10
crores, 50 crores, 250 crores and 750 crores respectively.
Keeping in mind the export target growth to be reached
by the turn of the century and the fact that such status
holders contribute between 60-70% of the country's total
exports this has now been revised to Rs 20 crores, 100
crores, 500 crores and 1500 crores respectively.
Incentives to improve Quality of Export Products The SIL
entitlement of exporters holding IS/ISO 9000 series has
been increased from 2% of FOB to 5% of FOB.

PERFORMANCE OF EXPORTS AND IMPORTS

35

50000
45000
40000
35000
30000
Exports

25000

Imports

20000
15000
10000
5000
0
1998-99 1999-00 2000-01

2001-02 2002-03

Exports as
percentage
Year of Imports
1998 78.3661753
-99
8
1999 74.1333041
-00

1999 74.1333041
-00

2
36

2000 88.1744557
-01
9
2001 85.2434861
-02
6
2002 85.8452907
-03

During the last decade of reforms, Indias exports have


performed well. Positive policy measures combined with
robust growth of world trade have led to this improved
performance.

Compared

to

pre-liberalization

period,

Indias export to GDP ratio has increased from 5.8% in


1991-92 to 10.1% in 2000-01 and the export growth rate
has increased from -1.5% in 1991-92 to 21% in 2000-01.
The export growth rate, however, has not been steady
during this decade; the rate was high during 1993-94,
1994-95 and 1995-96 at 20%, 18.4% and 20.8%
respectively, but declined sharply in 1996-97 to 5.3%
37

and became negative in 1998-99 on account of South


East Asian crisis and worldwide recession. It again
recovered to 10.8% in 1999-00 and reached the highest
growth for the decade at 21% in 2000-01. However, the
global economic slowdown and the events of September
11 have led to a steep fall in the rate of growth of exports
during 2001-02. Liberalisation & trade reforms have also
led to a compositional change in Indias export basket.
Analysis of our export basket indicates an increase in the
share of manufactured goods along with an overall
widening and diversification of exports.
Indias export performance has been commendable and
exports have risen from USD 18 billion in 1991-92 to a
leval of USD 44.56 billion in 2000-01. The trend starts
from a negative export growth in 1991-92, the year when
liberalisation efforts started in full swing and can be
38

divided into 3 distinct time periods (refer Annexure table


2.1)
In the first five years i.e. 1991-92 to 1995-96, the export
growth rate averaged around 12.28%
with the highest of 20.8% achieved in 1995-96. The good
performance could be attributed to
the

favorable

international

economic

situation

and

domestic reforms. In the next three years, however,


export growth rate sharply declined with growth rate at
5.3% in 1996-97 and becoming negative in 1998-99 on
account of the South East Asian crisis.

39

Romsons Exports as a percentage of World Exports


Export Growth Rate of India and World
Year

Worlds Export
Growth Rate

Indias Export Growth


Rate

1995

19.67

22.41

1996

5.28

8.10

1997

3.55

5.75

1998

(-)1.63

(-)4.48

1999

3.95

8.61

2000

12.4

16.46

Source: WTO International trade statistics 2001

40

Source: Indiastat

PERFORMANCE OF IMPORTS

Source: India stat

41

MAJORT COMMODITIES IN IMPORTS


Percentage share to total imports
1994-95 2000-01
Petroleum crude & products
Pearls precious & semi
Machinery

20.69
5.72

9.69

15.03

8.24

Organic & Inorganic chemicals 7.46

31.53

4.91
42

Electronic Goods

4.29

Gold & Silver

7.06
2.49

8.92

It is seen that during the second half of the 1990s, there


has been a shift in the commodity composition of major
items of imports. The proportion of imports of items that
are related to export production has increased. The rise
in the percentage of imports of Pearls, Precious & semiprecious stones, and Electronic goods to the total imports
are pointers in this case. It is also important to note that
the share of the value of import of Petroleum crude to the
total imports has gone up by nearly 10% mostly on
account of the rise in oil prices.
Structural Changes in Indian Exports
As already noted earlier, there has been a compositional
change in the export basket of India.
The share of manufactured goods in the total exports of
43

India have increased from 75% in


1991-92 to 79% in 2000-01. If we include Petroleum
products being exported from the country, the share of
manufactured goods has risen from a level of 76% in
1991-92 to 83% in 2000-01. On the contrary, the share
of Agricultural and allied products has declined from
18% in 1991-92 to 13% in 2000-01. Similarly, the share
of exports of Ores and Minerals has declined from 5.2%
in 1991-92 to 2.60% in 2000-01. This is an evidence of
Romsons exports moving away from Resource based
products to Technology based products in the postliberalization period.
A study(1) reveals that during 1980-96 the growth of
Indian export earnings turned out to be above the world
average for all the broad categories of ExtendedManufacturing (E-Mfg) exports including double digit
44

growth rates in labour and scale intensive products.


However, Indonesia, Malaysia and Thailand posted much
higher and more stable growth rates than India. A better
export performance than India in technologically more
sophisticated products by South Korea and Taiwan
requires to be underlined. During the period 1980-96,
the highest growth has been achieved in the export of
labour-intensive exports at 12% by India which is higher
than the world export of labour-intensive products at 9%.
As far as changes in the commodity composition of
country specific export basket is concerned, India
improved

the

share

of

Extended-Manufacturing

significantly from 56% (1980-86) to 71% (1987-90) in


total exports but only marginally further to 75% during
1993-96. The first period 1980-1990 was marked by the
rise in the share of scale intensive exports. Share of

45

labour intensive exports remained constant at around


41%.The scale intensive product exports improved their
average share from 26% in 1980-86 to 36% in 1993-96.
On the other hand, the Resource Intensive export items
witnessed a decline in their share to the total exports
from 11% during 1980-86 to about 6% in 1993-96. The
other

early

trade

liberalising

and

rapidly

growing

economies changed their export basket increasingly


towards differentiated and science based products. This
diversification achieved by them helped in reducing their
vulnerability to volatile world trading environment in
resource intensive exports and slower growing world
exports of labour intensive products.
The critical factor in these countries has been not the
state of the international trading environment but the
functioning of the domestic main springs of the growth
46

process such as the incentive structure for innovations,


reliable and cost effective transport and communication
facility and stable macroeconomic management - all this
has been driven by a proactive approach. India had a
headlong start in industrialisation in the 1950s well
ahead of these countries, but the persistently inward
looking character of Indian industrialisation not only
made it internationally non-competitive but led to
wastage of scarce capital and foreign exchange, thereby
slowing down the rate of economic growth. Possibly
realising the limited size of their domestic markets at
lower levels of per capita incomes, these East Asian
countries had switched from import substitution to
export-orientation

fairly

early

in

their

development

process. India was the first in initiating industrialisation


but the last in trade liberalisation.

47

Region and country-wise trends


Analysis of trends in the share of Indias major export
destinations during 1990 shows certain
trends (refer table 2.3 in annexure):Asia and Oceania
region has improved its share

significantly over the

decade from 30% in1990-01 to 37.5% in 2000-01.The


West European region has slipped from its top position
as Indias main export destination to the 2nd position
with its share falling from 33.6% to 25.35% over the
same period. Americas share increased substantially
from 16% to 25% mainly due to increase in share of
North America (USA & Canada) from 15.6% to 22.41%.
Exports to Africa have displayed a 17% growth rate and
share increased from 2.6% to 5.3% over the decade.
Nigeria and South Africa have shown an increase from
0.35% to 0.86% and 0% to 0.7% respectively. However,
48

one of the important trading partners, East European


regions share has fallen substantially from 17.87% in
1992 to just 2.95% in 2000.

Major Export Destinations


Trend
In the West Europe region, Belgium, France, Italy and
Netherlands have more or less maintained

their

respective shares while there is a marginal fall in the


share of Germany and UK.
In the Asia & Oceania region, among the major partners,
Hong Kongs share improved from 3.3% to 6%, while that
of Japan fell to 4.04% from 9.3%. The share of UAE has
49

increased from 2.42% in 1990-91 to 5.8% in 2000-01. In


the American region, USAs share of Indias exports has
increased substantially, from 14.7% in 1990-91 to
20.94% in 2000-01. In the case of South American
countries, Brazils share has increased from 0.08% to
0.5% in 2000-01. CIS a major trading partner of India
having a share of 16% in 1990-91, lost its share
drastically to a mere 2.38% in 2000-01.

EXIM POLICY 2004-2009


UPA REGIME
The policy contains special focus initiatives for
agriculture, handicrafts & handlooms, gems & jewellery,
and leather and footwear sectors. The special attention to
agriculture is particularly noteworthy because export

50

promotion policies so far have focussed mainly on the


manufacturing sector. The agricultural sector had not
received the attention it deserves in a country where the
vast majority of population is engaged in agriculture
related

activities.

India

has

taken

big

strides

in

increasing agricultural productivity and has achieved


food security. A concerted boost is now required to be
given to promotion of agricultural exports, especially high
value commercial items and value added agricultural
products.
The new policy contains a number of initiatives for
achieving a quantum jump in export of agricultural
products. The Vishesh Krishi Upaj Yojana will boost
exports

of

fruits,

vegetables,

flowers,

minor

forest

produce, and other value added products. The special


package for agriculture also includes policy measures
51

like duty free import of capital goods, liberalized import


of seeds, planting materials, etc and liberalized export of
medicinal and herbal products. The focus on agricultural
sector in the new foreign trade policy will, among other
things, enhance employment in some of the poorest
regions

While

of

policies

the

for

promoting

country.

exports

of

above

mentioned agricultural products are a step in the right


direction, I would request the Hon'ble Minister to also
come out with a proactive policy on grain exports. It is an
area with tremendous potential and a long-term policy
would help Indian grain exporters capture larger market
share.

A significant percentage of agricultural production in

52

India

is

damaged

or

lost

due

to

poor

storage,

deterioration during transit, rodent infestation, etc. Many


of India's perishable agro products often run into quality
problems which create buyer resistance in foreign
markets. There is an urgent need to strengthen the
storage

and

transportation

infrastructure

for

such

products. The new policy addresses this issue to a great


extent. There is a scheme to establish Free Trade &
Warehousing Zones to create trade related infrastructure
to facilitate import and export of goods and services.
Foreign Direct Investment would be permitted upto 100
per cent in the development and establishment of the
zones and their infrastructural facilities. The central aim
of this scheme is to make India a global trading hub. The
world class warehousing and other infrastructure will
also meet the special needs of agricultural products.

53

While announcing the new policy, a very important


observation was made that while increase in exports is of
vital importance, we have also to facilitate those imports
which are required to stimulate our economy. This
central thread runs throughout the new policy. In all the
export thrust sectors there is a policy of allowing several
duty free imports for neutralizing the incidence of levies
and duties on inputs used in export products. This will
make export inputs available at international rates and
will enhance the competitiveness of Indian products in
world markets.
There are several other features in the new policy
like setting-up of an exclusive Services Export Promotion
Council and setting-up of Bio Technology Parks which
are path breaking policy initiatives and will have long
54

term impact in strengthening the country's foreign trade.


In conclusion I would like to reiterate the suggestion
towards urgent need for improving our export related
infrastructure like transportation, port facilities etc so
that the concept of total export chain focus mooted by
our dynamic Minister can be implemented speedily.
FOREIGN TRADE POLICY 2004-2009
HIGHLIGHTS
1. Strategy:
(a) It is for the first time that a comprehensive Foreign
Trade Policy is being notified. The Foreign Trade Policy
takes an integrated view of the overall development of
Indias foreign trade.
(b) The objective of the Foreign Trade Policy is two-fold:

55

i.

To

double

Indias

percentage

share

of

global

merchandise trade by 2009; and


ii.

To act as an effective instrument of economic growth


by giving a thrust to employment generation,
especially in semi-urban and rural areas.

(c) The key strategies are:


i.

Unshackling of controls;

ii.

Creating an atmosphere of trust and transparency;


1.

Simplifying

procedures

and

bringing

down

transaction costs;
2.

Adopting the fundamental principle that duties


and levies should not be exported;

3.

Identifying and nurturing different special focus


areas to facilitate development of India as a

56

global hub for manufacturing, trading and


services.
2. Special Focus Initiatives:
(a) Sectors with significant export prospects coupled with
potential for employment generation in semi-urban and
rural areas have been identified as thrust sectors, and
specific sectoral strategies have been prepared.
(b) Further sectoral initiatives in other sectors will be
announced from time to time. For the present, Special
Focus Initiatives have been prepared for Agriculture,
Handicrafts, Handlooms, Gems & Jewellery and Leather
& Footwear sectors.
(c) The threshold limit of designated Towns of Export
Excellence is reduced from Rs.1000 crores to Rs.250
crores in these thrust sectors.

57

3. Package for Agriculture:


The Special Focus Initiative for Agriculture includes:
(a) A new scheme called Vishesh Krishi Upaj Yojana has
been introduced to boost exports of fruits, vegetables,
flowers, minor forest produce and their value added
products.
(b) Duty free import of capital goods under EPCG
scheme.
(c) Capital goods imported under EPCG for agriculture
permitted to be installed anywhere in the Agri Export
Zone.
(d) ASIDE funds to be utilized for development for Agri
Export Zones also.
(e) Import of seeds, bulbs, tubers and planting material
has been liberalized.

58

(f) Export of plant portions, derivatives and extracts has


been liberalized with a view to promote export of
medicinal plants and herbal products.

4. Gems & Jewellery:


(a) Duty free import of consumables for metals other than
gold and platinum allowed up to 2% of FOB value of
exports.
(b) Duty free re-import entitlement for rejected jewellery
allowed up to 2% of FOB value of exports.
(c) Duty free import of commercial samples of jewellery
increased to Rs.1 lakh.
(d) Import of gold of 18 carat and above shall be allowed
under the replenishment scheme.
5. Handlooms & Handicrafts:
59

(a) Duty free import of trimmings and embellishments for


Handlooms & Handicrafts sectors increased to 5% of
FOB value of exports.
(b) Import of trimmings and embellishments and samples
shall be exempt from CVD.
(c) Handicraft Export Promotion Council authorised to
import trimmings, embellishments and samples for small
manufacturers.
(d) A new Handicraft Special Economic Zone shall be
established.
6. Leather & Footwear:
(a)

Duty

free

entitlements

of

import

trimmings,

embellishments and footwear components for leather


industry increased to 3% of FOB value of exports.
(b) Duty free import of specified items for leather sector

60

increased to 5% of FOB value of exports.


(c) Machinery and equipment for Effluent Treatment
Plants for leather industry shall be exempt from Customs
Duty.
7. Export Promotion Schemes:
(a) Target Plus:
A new scheme to accelerate growth of exports called
Target Plus has been introduced.
Exporters who have achieved a quantum growth in
exports would be entitled to duty free credit based on
incremental

exports

substantially

higher

than

the

general actual export target fixed. (Since the target fixed


for 2004-05 is 16%, the lower limit of performance for
qualifying for rewards is pegged at 20% for the current
year).

61

Rewards will be granted based on a tiered approach. For


incremental growth of over 20%, 25% and 100%, the
duty free credits would be 5%, 10% and 15% of FOB
value of incremental exports.

(b) Vishesh Krishi Upaj Yojana:


Another new scheme called Vishesh Krishi Upaj Yojana
(Special

Agricultural

Produce

Scheme)

has

been

introduced to boost exports of fruits, vegetables, flowers,


minor forest produce and their value added products.
Export of these products shall qualify for duty free credit
entitlement equivalent to 5% of FOB value of exports.
The entitlement is freely transferable and can be used for
import of a variety of inputs and goods.
(c) Served from India Scheme:

62

To accelerate growth in export of services so as to create


a powerful and unique Served from India brand
instantly recognized and respected the world over, the
earlier DFEC scheme for services has been revamped and
re-cast into the Served from India scheme.
Individual service providers who earn foreign exchange of
at least Rs.5 lakhs, and other service providers who earn
foreign exchange of at least Rs.10 lakhs will be eligible for
a duty credit entitlement of 10% of total foreign exchange
earned by them.
In the case of stand-alone restaurants, the entitlement
shall be 20%, whereas in the case of hotels, it shall be
5%.
Hotels and Restaurants can use their duty credit
entitlement for import of food items and alcoholic
beverages.
63

(d) EPCG:
(i) Additional flexibility for fulfillment of export obligation
under EPCG scheme in order to reduce difficulties of
exporters of goods and services.
(ii) Technological upgradation under EPCG scheme has
been facilitated and incentivised.
(iii) Transfer of capital goods to group companies and
managed hotels now permitted under EPCG.
(iv) In case of movable capital goods in the service sector,
the requirement of installation certificate from Central
Excise has been done away with.
(v) Export obligation for specified projects shall be
calculated based on concessional duty permitted to
them. This would improve the viability of such projects.
(e) DFRC:

64

Import of fuel under DFRC entitlement shall be allowed


to be transferred to marketing agencies authorized by the
Ministry of Petroleum and Natural Gas.
(f) DEPB:
The DEPB scheme would be continued until replaced by
a new scheme to be drawn up in consultation with
exporters.
8. New Status Holder Categorization:
(a) A new rationalized scheme of categorization of status
holders as Star Export Houses has been introduced as
under:
Category Total performance over three years
One Star Export House 15 crores
Two Star Export House 100 crores
Three Star Export House 500 crores
65

Four Star Export House 1500 crores


Five Star Export House 5000 crores
(b) Star Export Houses shall be eligible for a number of
privileges including fast-track clearance procedures,
exemption from furnishing of Bank Guarantee, eligibility
for consideration under Target Plus Scheme etc.
9. EOUs:
(a) EOUs shall be exempted from Service Tax in
proportion to their exported goods and services.
(b) EOUs shall be permitted to retain 100% of export
earnings in EEFC accounts.
(c) Income Tax benefits on plant and machinery shall be
extended to DTA units which convert to EOUs.
(d) Import of capital goods shall be on self-certification
basis for EOUs.

66

(e) For EOUs engaged in Textile & Garments manufacture


leftover materials and fabrics upto 2% of CIF value or
quantity of import shall be allowed to be disposed of on
payment of duty on transaction value only.
(f) Minimum investment criteria shall not apply to Brass
Hardware and Hand-made Jewellery EOUs (this facility
already exists for Handicrafts, Agriculture, Floriculture,
Aquaculture, Animal Husbandry, IT and Services).
10. Free Trade and Warehousing Zone:
(i)

new

scheme

to

establish

Free

Trade

and

Warehousing Zone has been introduced to create traderelated infrastructure to facilitate the import and export
of goods and services with freedom to carry out trade
transactions in free currency. This is aimed at making
India into a global trading-hub.
(ii) FDI would be permitted up to 100% in the
67

development and establishment of the zones and their


infrastructural facilities.
(iii) Each zone would have minimum outlay of Rs.100
crores and Five Lakh sq. mts. built up area
(iv) Units in the FTWZs would qualify for all other
benefits as applicable for SEZ units.
11. Import of Second Hand Capital Goods:
a.

Import

of

second-hand

capital

goods

shall

be

permitted without any age restrictions.


b. Minimum depreciated value for plant and machinery
to be re-located into India has been reduced from Rs.50
crores to Rs.25 crores.
12. Services Export Promotion Council:
An exclusive Services Export Promotion Council shall be
set up in order to map opportunities for key services in
68

key

markets,

and

develop

strategic

market

access

programmes, including brand building, in co-ordination


with sectoral players and recognized nodal bodies of the
services industry.
Further Analysis
Exports

Textiles

69

The textile has been among the major exports of India


since independence but as we have seen that in the
recent years the percentage share of Textile in the total
export has decreased considerably from 28.30 to 16.60%.
The major reasons which can be attributed to this
downfall is that we have not considerably invested into
this sector where as our competitors have surpassed us
in both labour cost and technology.

70

FLOW CHART FOR EXPORT

71

SUGGESTION
72

New sectoral initiatives for industry were:


o The machinery and equipment industry shall
be exempt from customs duty.
o (c) Enhancing export from the present
Rs.10000 to Rs.20000 crore, and in the
process providing overall additional
employment to about one million people.
Streamlined trade procedures
Liberalised import regime
Thrust on export orientation
o Medium Term Export Strategy, 2002
1% share in global exports by 2007
o Foreign Trade Policy 2004-2009
To double Indias share in global
merchandise trade by 2009
o Legal framework for regulation of
International Trade - provided by Foreign
Trade (Development & Regulation) Act,
1992 .

73

o Objective of the Act : Growth & Regulation of


Foreign Trade - Facilitating Imports &
Exports.
o Previous Act was Import & Export (Control)
Act, 1947 .
o Shift in the focus from Control to
development - due to emphasis on
liberalisation & globalisation process as a
part of Economic Reforms of 1991.
o The new Exim-Policy is essentially a roadmap
for the development of India's foreign trade.
o It contains the basic principles and points the
direction in which we propose to go.
o Unshackling of controls and creating an
atmosphere of trust and transparency to
unleash the innate entrepreneurship of our
businessmen, industrialists and traders.
o Import of capital goods and equipment,
thereby increasing value addition and
productivity.

74

o Activating our Embassies as key players in


our export strategy and linking our
Commercial Wings abroad
o To give a major boost and strategic direction
to the manufacturing sector and exports
o To act as an effective instrument of economic
growth by giving a thrust to employment
generation.
o To double the percentage share of global
merchandise trade within five years
o India to be a major gainer from emerging
global trends
o A policy of partnership
o FTP focuses on an integrated view for the
overall development of countrys foreign
trade.
o Special attention is given to agriculture and
allied sectors
o New schemes were introduced to boost
exports

75

o The policy has further removed quantitative


restrictions from 29 items
o Provides for 100 % FDI to establish free
trade zones and ware housing zones
o The central theme of the new policy is while
increase in exports is quite important at the
same time, to facilitate those imports which
are required to stimulate the economy.
o Duty free import entitlement.

76

CONCLUSION
International trade thrives on credit. Where there
is a little choose from between the quality of
goods from one producer or the other, it is often
the inducement of credit terms offered by a seller
which clinches the contract with the buyer.
It is obvious that the buyer and seller have
conflicting interests in the financial package, but
there must be some compromise before a deal
can be concluded. Banks can provide a solution
acceptable to both parties, by providing credit to
77

either the buyer or the seller. In many countries,


export credit insurance assumes the risk of nonpayment-for a premium-and this can be assigned
to the funding bank. Bank and insurers agree
that the level of credit need not to be linked to
the size of the customers balance sheet and may
be based on their ability to perform the contract
from which the repayment will be made. So
balance sheet weakness may be compensated for
by strong performance capability. The bank could
also

repurchase

an

exporters

receivables,

thereby refinancing any suppliers credit (i.e. the


credit granted by the exporter to the buyer); the
bank thus becomes the lender.

78

EXPORT STRATEGY
An exporter, like any other businessman,
needs money to continue operating m business.
So he wants a speedy payment for his goods. He
also wants protection against any default on the
customer. The customer however, requires credit.
An exporter can maximise his chances of getting
orders by offering the right credit terms.
Export Policy can protect against default, but
the timing of the exporters cash inflows will
depend on the terms of payment or on his access
to export.

79

QUESTIONNAIRE
QUESTIONNAIRE
I am conducting a survey of Import-Export Section at
your organization as part of my project. I will require
your responses on the questions below to compile the
project.
I request you to tick on the responses & write in the
space provided.
NameDesignation80

ExperienceOrganization1. Are Import Export Policies of Government of


India programs are necessary?
(a) Yes

(b) No

2. Have you ever attended any Import Export


Policies of Government of India programs?
(a) Yes

(b) No

Are you satisfied with the training of Import


Export Policies of Government of India

programs &

development program conducted at your organization?


(a) Yes

(b) No

(c)

Cant say

3. Have you attended any training Import Export


Policies of Government of India

programs &

development program? If so please list courses


you have attended in the past 2 yrs.
81

Name

of Course

the
course

provider

How
you

did Did

the If

find course

not,

why?

about the meet your


course

learning
needs

4. In the past few years do you feel you have


attended Import Export Policies of Government
of India programs a sufficient no. to knowhow the
complete knowledge of Impost Export policies of
India and global environment?
(a) Yes

(b) No

5. According to your professional needs, which policy


areas should a training program be focused on?
82

(a)

Import - Export

(b)

Enterprise

(c)

Enlargement

(d)

Research & innovation

(e)

Institutional affairs

(f)

Others

6. How are your training of Import Export Policies


of Government of India

programs & learning

needs generally identified?


(a)

As part of a formal appraisal system

(b)

As part of induction program of new staff

(c)

As the need is perceived by yourself

(d)

As the need is perceived by management.

(e)

As part of an organizational training plan

(f)

Others.

7. How well is your need for ongoing training of


Import Export Policies of Government of India
programs & skill development being met?
83

(a)

Very well

(b)

Adequately

(c)

Less than adequately

8. If you are not satisfied with the training of Import


Export Policies of Government of India programs
& development program currently available to you,
please indicate why not?
(a)

Topics which would help me were not

offered
(b)

Times offered are not convenient

(c)

Too expensive

(d)

Quality of instruction is poor

(e)

Others

Is there anything else you would like to comment


on

in

regards

to

current

learning

&

training

opportunities or suggestions for future areas of training


& development?

84

Thanks
BIBLIOGRAPHY
www.romsons.com
www.sinetinfo.com
News Papers
Business
Export Import Documentation

85

86

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