THRIVING TRADE LINK BETWEEN INDIA AND MIDDLE EAST

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Facilitating Foreign Trade: Government Initiatives and Support

The promotion of foreign trade is imperative for fostering global economic collaboration and specialization. Recognizing India's abundant labor resources, the government is committed to encouraging and expanding foreign trade through strategic policies and schemes. Here, we outline the measures undertaken by the government to support and promote foreign trade.

Incentives and Organizational Support:

The government introduces various incentives and plans to enhance the competitiveness of exports.

Establishes institutions providing infrastructural and marketing assistance to businesses engaged in international trade.

Foreign Trade Promotion Measures and Schemes:

Duty Drawback Scheme:

Exports are not subject to excise, levy charges, and customs duties.

Duty drawbacks are granted upon verification of export to the relevant authority.

Export Manufacturing under Bond Scheme:

Companies can produce goods without paying excise duty and other charges by providing a bond.

Exemption from Payment of Sales Taxes:

Goods manufactured solely for export purposes are exempt from sales tax.

Income from export operations is exempt from income tax for 100% export-oriented units and units in Export Processing Zones/special economic zones.

Advance License Scheme:

Allows duty-free supply of local and imported resources for the production of export goods.

Exporters operating irregularly can obtain these licenses against specific export orders.

Export Processing Zones:

Industrial enclaves near seaports or airports, offering a duty-free environment for cost-effective export production.

Measures such as export fund availability and capital goods schemes contribute to foreign trade promotion.

institutional framework for foreign trade facilitation

The Government of India has established several instrumental entities to streamline and enhance the landscape of foreign trade. These pivotal organizations play crucial roles in formulating policies, promoting exports, ensuring quality control, and facilitating international business relations. Here is an overview of key entities:

department of commerce

Under the Ministry of Commerce, it serves as the authoritative body for international trade affairs.

Responsibilities include expanding business relations, state trading, export promotion, and regulation of export-oriented industries.

Export Promotion Councils:

Non-profit institutions registered under applicable laws.

Tasked with promoting and boosting exports of specific products falling within their purview.

Currently, 21 Export Promotion Councils focus on diverse commodities.

Commodity Boards:

Government of India establishments for the development and promotion of traditional merchandise.

Seven boards, including Coffee Board, Rubber Board, and Spice Board, work in conjunction with Export Promotion Councils.

Export Inspection Council:

Established under the Export Quality Control and Inspection Act 1963.

Facilitates sound development of export trade through quality control and pre-shipment inspection.

Indian Trade Promotion Organisation (ITPO):

Formed by merging Trade Development Authority and Trade Fair Authority of India.

Aims to support export organizations in international trade fairs, exhibitions, and promote new items.

Operates domestically and internationally with offices in major cities and overseas.

Indian Institute of Foreign Trade (IIFT):

An autonomous body established in 1963 under the Societies Registration Act.

Focuses on professionalizing the country's foreign trade management through training, research, and information dissemination.

State Trading Organisation (STC):

Established in 1956 to promote primarily export trade.

Aims to assist local firms in competing globally and diversifying trade routes beyond European countries.

State Trading Organisation (STC):

Established in 1956 to promote primarily export trade.

Aims to assist local firms in competing globally and diversifying trade routes beyond European countries.

Indian Institute of Packaging (IIP):

National institute jointly run by the Ministry of Commerce and the Indian Packaging industry.

Located in Mumbai with regional laboratories in Kolkata, Delhi, and Chennai, providing training and research in packaging.

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