India secured the rank of the 18th largest exporter in the world in 2019, but contributed only 1.72% of total exports in the global market. Therefore, the Export Promotion Council was established to increase the export rate of the country, as the goods and services provided by the country are always in demand. In addition, it makes sense to promote exports for the following reasons:
- Earn foreign exchange:
Freedom from trade barriers, increased import bills and increased international competition Every country has its recognition in the world market. For this status, many developed countries rely on financial support from the International Monetary Fund (IMF) and the World Bank. To repay loans and import bills, they must be paid in foreign currency. This is made possible by higher exports.
- Encourage organizations to export:
The government offers incentives to encourage exports. This also helps reduce the tax burden on exporters and achieve competitive pricing of their products. However, we need to ensure that these incentives are in line with WTO standards. For example, the tax exemption scheme allows exporters to import duty-free inputs required for the manufacture of export products.
- Import of Capital Goods:
The Export Promotion Capital Goods Regulation also permits the import of capital goods at reduced rates and corresponding export obligations.
4. Foreign loan repayments:
India has foreign debt of US$570 billion as of late March 2021.  In order to repay the debt, export promotion measures must be taken without fail. This leads to higher FX and supports loan repayment.
One of the nation’s most important goals is independence. This can be achieved through an increase in exports, which encourages a higher foreign exchange rate.
What is an important promotion council?
Federation of Indian Export Organizations is the governing body of all Export Promotion Councils (EPCs). The EPC for each export of goods and services is as follows:
Agro-Processed Food Export Promotion Agency:
- Apparel Export Promotion Council
- Basic Chemicals, Pharmaceuticals and Cosmetics Export Promotion Council
- Export Carpet Promotion Council
- India Cashew Export Promotion Board
- Export Promotion Board for Chemicals and Related Products
- Coffee Board
- Coir Board
- Coconut Development Board
- Cotton Textile Export Promotion Council
- Leather Export Promotion Council
- Mechanical Engineering Export Promotion Council
- EOUS and SEZ Export Promotion Council
- Electronics and Computer Software Export Promotion Council
- Handicrafts Export Promotion Council
- Gems & Jewelery Export Promotion Council
- Handicraft Export Promotion Council
- Indian Silk Export Promotion Council
- Indian Oilseeds & Agricultural Products Exporters Association EPC (IOPEA)
- Jute Products Development and Export Promotion Council (JPDEPC)
- Marine Products Export Development Authority
- Project Exports Promotion Council of India
- The Plastics Promotion Council
- Powerloom Dev. Pharmaceutical Export Promotion Council
- Rubber Board
- Services Export Promotion Council
- Shellac Export Promotion Council
- Spices Committee
- Sporting Goods Export Promotion Council
- Synthetic and Rayon Textile Export Promotion Council
- Tea Industry Commission
- Telecommunications Equipment and Services Export Promotion Council (TEPC)
- Tobacco Committee
- Wool and Wool Export Promotion Council
- Wool Industry Export Promotion Council
What are the council’s responsibilities? The most important duties of the Export Promotion Committee are:
- Export Promotion:
Promotional activities such as organizing international trade fairs, buyers and sellers meetings, and helping advertise new exporters.
- Incentive scheme support:
The Council assists exporters in taking advantage of the incentive schemes announced in the Foreign Trade Policy. Additionally, they issue a Registration and Membership Certificate (RCMC) certificate for exporters.
- Market Expansion:
Assists exporters in consolidating their products and expanding their markets through EPC’s branches and offices established abroad.
- Strengthen ties:
Send delegations to key countries to strengthenties and expand export business.
- Timely Information:
Inform exporters regularly about the latest developments and export opportunities in international markets.
Liaison with the Council and the trading community, identifying their problems and needs and working together to voice their causes to the Government.
- Policy Support:
The Council also collects data through surveys on exports related to specific product categories and makes the data available to governments to improve trade policy frameworks.
- Assisting Exporters:
The Council supports and assists exporters in upgrading technology, improving product/service quality, improving designs and innovating. Benefits Achieved by
Market through the interaction of buyers and sellers. The biggest beneficiaries are small businesses that don’t have the resources to target international buyers.
EPC members take advantage of various incentive schemes offered by the government.
The Council also collects import and export data from members and establishes a repository of information for inspection by governments and exporters. Provides insight into the international market base.
The Council organizes overseas trips for exporters to interact with buyers and expand their business.
- Selection of Export Promotion Council:
Exporters are required to select the relevant Council from the above rates based on the goods and services to be exported.
- Submission of Documents:
Certain documents for export and import in India must be submitted, some of which are:
- i) Digital Signature Certificate
- ii) Copy of Importer Exporter Code (IEC)
- iii) Auditor Certificate of Proof of Issuer Export Sales.
- iv) List of directors/partners of the export business with proof of residency
- v) Canceled checks
- vi) MSME certificate (if available).
- Submission of Application:
A application for registration must be submitted to each export promotion agency. If you have multiple products that affect different councils, you will need to create different applications.
- Fee payment:
Fee payment varies by local authority. Usually they charge a small fee according to the turnover of exports in each fiscal year.
- RCMC Collection:
Upon enrollment, members receive a Registration and Membership Certificate (RCMC). This allows all members to enjoy the incentives.
India has a huge population with a wide variety of domestic products, but the domestic market is small compared to other parts of the world. Foreign markets demand more from domestic goods than domestic demand. Export promotion helps certain countries increase their export quotas and stimulate their economies. Moreover, export markets could help mitigate the impact of domestic recessions. is required