Non-Tariff Barriers (NTBs):

o Definition: NTBs are trade barriers that restrict imports or exports through
means other than tariffs.
o Types of NTBs:
▪ Licenses: Limit imported goods to specific businesses.
▪ Quotas: Set limits on specific products or services allowed for
importation.
▪ Embargoes: Official bans on trade with specific countries.
o Purpose: Countries use NTBs to further their political and economic goals.
o Impact: NTBs influence the global economy by limiting free market
functions12.

Export Import Bank of India (EXIM Bank):

o Role: EXIM Bank is a government-owned institution that provides financial
products and services for Indian exporters and importers.
o Functions:
▪ Export Credit Insurance: Supports Indian exporters by
providing export credit insurance.
▪ Promoting Foreign Trade: Facilitates international trade
promotion and development projects.
o Ownership: Wholly owned by the Government of India

Export Credit Guarantee Corporation of India Limited

(ECGC):
o Role: ECGC provides export credit insurance support to Indian exporters.
o Ownership: A government-owned enterprise under the Ministry of
Commerce and Industry.
o Functions:
▪ Risk Mitigation: Insures exporters against credit risks.
▪ Promoting Exports: Facilitates export growth and international
business.
o History: Established in 1957 by the Government of India
Promotion of Foreign Trade:
Foreign trade plays a crucial role in economic growth and global integration. Various
measures are taken to promote foreign trade, enhance competitiveness, and
facilitate international business. Here are some key aspects:
1. Incentives and Organizational Support:
o The Indian government initiates different incentives and plans to
support foreign trade.
o Various measures include:
▪ Duty Drawback Scheme: Merchandise intended for export is
exempt from various excise duties and customs charges.
▪ Export Manufacturing under the Bond Scheme: Organizations
can manufacture goods without paying excise duty and other
charges, provided they are producing for export purposes.
▪ Exemption from Payment of Sales Taxes: Goods
manufactured solely for export are not subject to sales tax.
▪ Advance Licence Scheme: Allows duty-free supply of local and
imported resources needed for manufacturing export goods.
▪ Export Processing Zones (EPZs): Industrial areas near seaports
or airports that provide a duty-free environment for export
production.
o The government has also established institutions to provide
infrastructural and marketing support to organizations engaged in
international business.
2. Textile Industry:
o India has a rich history of textile production, dating back to ancient
times.
o Key points about textiles in India:
▪ Silk Weaving: Introduced around 400 AD.
▪ Cotton Spinning: Dates back to 3000 BC.
▪ Archaeological Evidence: Cotton fibers were used as early as
the 7th millennium BC.
▪ Textile Evolution: From ancient times to the present day, textile
production methods have continually evolved.
▪ Material Culture Studies: Textile history is part of material
culture studies, which explore material remains, art
representations, and documents related to textiles.
3. Agricultural Products:
o India is a major exporter of agricultural products. Some key
commodities include:
▪ Rice: India is one of the largest rice exporters globally.
▪ Wheat: Wheat exports contribute significantly to foreign trade.
▪ Spices: India is known for its diverse range of spices.
 ▪ Tea and Coffee: India produces and exports both tea and
coffee.
▪ Pulses and Oilseeds: These are essential agricultural exports.
▪ Fruits and Vegetables: India exports various fruits and
vegetables.
▪ Cotton and Jute: Textile-related crops like cotton and jute are
also significant exports.
4. Challenges and Opportunities:
o Sustainable practices, value addition, and quality improvement are
essential for promoting agricultural exports.
o Leveraging technology and addressing supply chain gaps can enhance
India’s position in the global market.

Remember that promoting foreign trade involves a multifaceted approach, and both
agricultural products and textiles play vital roles in India’s export landscape.