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Implications of Foreign Trade Policy and Facilitation of Foreign Trade
Implications of Foreign Trade Policy and Facilitation of Foreign Trade
Implications of Foreign Trade Policy and Facilitation of Foreign Trade
A Presentation
Imports
(US$ bn.)
GDP
(US$ bn.)
Trade as % of GDP 61.7 57.5 53.7 48.7 46.0 32.8 24.7 22.3
Korea 197.6 175.5 China 438.3 393.6 Mexico 165.4 171.0 Russia 135.9 75.4 South Africa 38.7 35.0 Argentina 29.4 13.1 Brazil 73.1 48.3 India 57.0 74.3 Source: Economist Intelligence Unit
63623 47742
29751
1999-2000
2000-01
2001-02 Years
2002-03
2003-04
37172
1999-2000
2000-01
2001-02
2002-03
All Commodities
Exim Policies Streamlined trade procedures Liberalised import regime Thrust on export orientation
Role of Institutions
Exim India
Institutions
dedicated
for
promoting
Exim Bank
Exim India
Set up
by an September, 1981
act
of
parliament
in
to exporters and importers, and for functioning as the principal financial institution for coordinating the working of institutions engaged in financing export and import of goods and services with a view to promoting the countrys international trade
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Required:
commodities
Exim Bank Study Strategy for Quantum Jump in Exports: Focus on Africa, Latin America and China
India
Share in Indias Exports in 2003-04: Africa (6%); Latin America (1.8%); China (4.7)
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Lines of Credit
Exim India
Overseas Governments Parastatal Organisations/ Govt. Agencies Commercial Banks Regional Financial Institutions Particularly relevant for SMEs Eligible items all items permissible under Exim Policy
Engineering Goods
Consumer Durables Commodities
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AFRICA
ALGERIA PTA BANK covering GHANA BURUNDI KENYA COMOROS MALAWI DJIBOUTI MAURITIUS ERITREA, EGYPT NAMIBIA ETHIOPIA SEYCHELLES KENYA SOUTH AFRICA MALAWI SUDAN MAURITIUS TANZANIA RWANDA TUNISIA SOMALIA UGANDA SUDAN ZAMBIA TANZANIA UGANDA BOAD covering ZAMBIA BENIN ZIMBABWE BURKINA FASO COTE DIVOIRE MALI EADB covering NIGER KENYA SENEGAL TANZANIA TOGO UGANDA
ASIA
EUROPE
BANGLADESH INDONESIA KAZAKHSTAN IRAN , IRAQ BULGARIA SRI LANKA RUSSIA KOREA ROMANIA MALAYSIA HUNGARY THAILAND POLAND VIETNAM PHILIPPINES
Simplifying procedures and bringing down transaction costs Transaction costs are incurred at the pre and postproduction stages, and arise out from several procedural complexities associated with administrative processes, availability of finance and transportation problems. For enhancing the growth of exports it is important to reduce the transaction costs involved. Exim Bank Study on Transaction Costs of Indian Exports
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Textile/Garments Engineering goods Pharmaceuticals Chemicals Computer software Agro-Industries Electronic & Electrical machinery Plastic components Paper Industry Others
23 18 9 7 9 2 3 2 2 7
Simplified and less stringent bureaucratic procedures like single window clearance and business friendly approach Better technology due to higher levels of foreign investment, faster loading/unloading methods Flexible labour laws Cheap availability of power and raw materials,
Duty free entitlement for garments & handicrafts increased from 3% to 5% Will help exporters to move up the value chain However, further incentives required to consolidate Indias position in the postMFA era Handicraft Special Economic Zone to be established Will contribute to strong growth in handicraft exports Will generate employment opportunities
16
Target Plus scheme introduced Will further boost exports from the successful exporters
Vishesh Krishi Upaj Yojana to boost horticulture exports Global trade in horticulture: US$ 79 bn (1999) Indias exports: US$ Rs. 1830 cr (1999-2000) Success of AEZs for horticulture depend on the ability of the states to overcome existing shortcomings in infrastructure, institutional mechanism and policy and programme support to achieve desired export orientation
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Services Export Promotion Council to be set up Served from India scheme: Service providers
Regional cooperation in export finance and export credit guarantees for ESCAP
Advisory services to Industrial Development Corporation of South Africa for international finance products
Mauritius Study on Projecting Mauritius as an Investment Hub for Indian Firms
20
Eastern & Southern African Trade & Development Bank (PTA Bank) African Management Services Company (AMSCO)
Exim sponsors consultants under GoI-AfDB cooperation Agreement
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Advisory Services
Multilateral Agencies Funded Projects Overseas (MFPO)
Information and support services to Indian companies to help improve their prospects for securing business in multilateral agencies funded projects. Dissemination of business opportunities in funded projects Providing detailed information on projects of interest Information on Procurement Guidelines, Policies, Practices of
Exim India
Multilateral Agencies
Assistance for Registration with Multilateral Agencies Advising Indian companies on preparation of Expression of Interest, Capability Profile Bid Intervention
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Term Loans
Project Finance
Equipment Finance
Working Capital
Short Term < 1 year Term Loans for 1-2 years Long Term upto 5 years
Institutional Linkages
Multilateral Agencies
World Bank
Exim India
Asian Development Bank African Development Bank European Bank for Reconstruction & Development Multilateral Investment Guarantee Agency (MIGA) International Finance Corporation (IFC) UNIDO - Industrial Promotion Offices Afrexim Bank Eastern & Southern African Trade & Development Bank (PTA Bank)
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Institutional Linkages
Trade & Investment Promotion Agencies
Board of Investment of Sri Lanka Hatton National Bank, Sri Lanka China National Technical Import & Export Corporation Polish Agency for Foreign Investment (PAIZ). Hungarian Investment and Trade Development Agency UNIDO Industrial Cooperation & Investment Promotion Service, Economic Development Board, Bahrain
Exim India
Poland
Institutional Linkages
Exim India
Institutional Linkages
Trade & Investment Promotion Agencies
Board of Investment of Sri Lanka Hatton National Bank, Sri Lanka China National Technical Import & Export Corporation Polish Agency for Foreign Investment (PAIZ). Hungarian Investment and Trade Development Agency UNIDO Industrial Cooperation & Investment Promotion Service, Economic Development Board, Bahrain
Exim India
Poland
Final Products
Capital Goods
Capital (Overseas Ventures)
Final Observations
Import of second hand capital goods allowed without age restrictions No outdated imported technology should be
Special Focus Initiatives Could be extended to other sectors of high export orientation like chemicals & pharmaceuticals Export orientation of FDI should be increased
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Low share of FDI in major export sectors Sector Transportation industry Computer software industry Share in FDI (%) 7.50 6.46
5.70
1.20 0.20 8.37
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Exim India
THANK YOU
www.eximbankindia.com
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