EXPORT PROMOTION BODIES

• Export promotion bodies including all Export Promotion

Councils (EPCs)
• These bodies aims at promoting export of the country.
• These emphasise in particular the initiatives being taken to
intensify market promotion efforts in the key areas and to
achieve diversification of both markets and products in
order to face the challenge of growing competition in the
overseas markets.
 Contd…
Export promotion bodies participate in the following sectors:
1. Engineering Export Promotion Council (EEPC)
2. Chemicals, Pharmaceuticals & Cosmetics(CHEMEXCIL)
3. Gems & Jewellery EPC
4. Agricultural & Processed Food Products Export Development Authority
(APEDA)
5. Marine Products Export Development Authority (MPEDA)
6. Electronics & Computer Software(ESC)
7. Chemicals & Allied Products(CAPEXIL)
8. Council for Leather Exports (CLE)
 Contd…

• To promote the various sectors government has

introduced various export promotion bodies.
• Few that we studied are:

Special Economic Zone (SEZ)

Export Credit Guarantee Corporation(ECGC)

Export Oriented Units (EOU)

 What is ECGC?

• Export Credit Guarantee Corporation of India

Limited.
• Established in the year 1957 by the Government
of India.
• An export promotion organization which functions
under Ministry of Commerce & Industry,
Department of Commerce, Government of India.
 ABOUT ECGC

• Fifth largest credit insurer of the world in terms of

coverage of national exports.
• The present paid-up capital of the company is
Rs.800 crores.
• Authorized capital Rs.1000 crores .
 Functions of ECGC
• Provides a range of credit risk insurance covers to
exporters against loss in export of goods and services.
• Offers guarantees to banks and financial institutions to
enable exporters to obtain better facilities from them.
• Provides Overseas Investment Insurance to Indian
companies investing in joint ventures abroad in the form
of equity or loan.
 ECGC Policies

Special
Schemes
Financial (Transfer Guarantee )
Standard Policy Specific Policy Guarantees to To protect Banks
Banks Issuing L/C,
For short term For exports under Confirming L/C,
shipments Deferred Payments, Insurance Cover,
(180 Days) Project Exports, For
Line of Credit,
Service exports Giving credit
Overseas Investment
to exporters Insurance & Exchange
Fluctuation Risk
Insurance
 What is SEZ ?

 Special Economic Zone (SEZ) is defined as "a specifically

delineated duty free enclave and shall be deemed to be foreign
territory for the purposes of trade operations and duties and
tariffs".
 Trade Operations
 Countries
 Partnership
 Different Zones
 Special Economic Zones (SEZs)
Act 2005
The main objectives of the SEZ Act are:

(a) generation of additional economic activities

(b) promotion of exports of goods and services,

(c) promotion of investment from domestic and foreign sources

(d) creation of employment opportunities,

(e) development of infrastructure facilities;

 Some of the important SEZs in
India
• Karnataka Biotechnology and Information Technology Services - SEZ on
biotechnology sector in Bangalore's Electronics City, over an area of 43 acres
• Shree Renuka Sugars Limited - SEZ on sugarcane processing complex covering 100
hectares, comprising a sugar plant, power station and distillery, at Burlatti in Belgaum
district
• Ittina Properties Private Limited and three other - SEZs in IT sector, covering
electronics, hardware and software sectors in Bangalore, over an area of 15.732
hectares
• Wipro Infotech - SEZ on IT / ITES at Electronics City, Sarajpur Bangalore
• Hewlett Packard India Software Operation Pvt. Ltd. - SEZ on IT
• Food processing and related SEZ services in Hassan, over an area of 157.91
 Incentives/Facilities at SEZ
• Duty free import/domestic procurement of goods for development
• 100% Income Tax exemption on export income for SEZ
• Exemption from Central Sales Tax.
• Exemption from Service Tax.
• Single window clearance for Central and State level approvals.
• Exemption from State sales tax and other levies as extended by the
respective State Governments.  
• Exemption from Central Sales Tax (CST).
• FDI upto 100 % is permitted.
• No foreign ownership restrictions
 Positive Impacts
• To Nation
World class business environment
– Increased FDI

– Higher economic growth

– Infrastructural development

– Export growth

– Employment Opportunities

– Exposure to technology and global markets

 Positive Impacts

• To Business houses
– Hassle free operating environment
– Single window clearance
– Simplified procedure for setting up business, compliance proc with self
certification
– Duty free import
– Tax exemption- VAT, CST, ST, other levies
– External commercial borrowings
– 100% profit reptriation from export earnings
 Positive Impacts

• To People
– Employment opportunities

– Impact on lifestyle and standard of living

– Business infrastructure combined with social facilities

– Better work culture , good education, leadership vision

 New Schemes

• Exports of Flowers (15th Jan 2010)

• Anand Sharma invited Malaysian investments in infrastructure, power and

housing sectors(5th March 2010)
• Opportunities in Mines, agriculture and infrastructure sectors

• Nasscom, the representative body of IT-BPO firms in the country, said it

has recommended that the STPI initiatives are brought at par with special
economic zone (SEZ) schemes to help smaller firms remain competitive.
(17th Feb 2010)

Karnataka SEZs:
• The new policy has revised the service tax structure, withdrawing the
earlier blanket exemption. SEZ units will now have to pay service tax and
claim refunds later
• SEZ units can now re-export items such as pulses, rice

• SEZ developers can supply power without licence from States

• The proposed direct taxes code is implemented, providing clarity over

taxation of these special enclaves.