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Organizations Involved in Export Promotion

The Government of India aims to make India a major player in world trade by establishing specialized institutions that assist exporters across various sectors. These organizations include the Directorate General of Foreign Trade (DGFT), Indian Institute of Foreign Trade (IIFT), and Reserve Bank of India (RBI), among others. Here is a detailed explanation of the roles and functions of DGFT, IIFT, and RBI in export promotion.

Directorate General of Foreign Trade (DGFT)

The Directorate General of Foreign Trade (DGFT) is the primary body responsible for administering laws related to foreign trade and investment in India. Established in 1991 as part of economic reforms, DGFT shifted from a regulatory body to a facilitator of trade.

Key Roles and Functions

  1. Implementing Foreign Trade Policy: Enforces India’s EXIM (export-import) policy to promote exports.
  2. Database Management: Maintains a comprehensive database of all exporters and importers in India.
  3. Issuance of Exporter Importer Code (EIC): Provides a mandatory ten-digit EIC number to exporters/importers.
  4. Regulation and Licensing: Controls and regulates imports and exports, issuing licenses to businesses.
  5. Duty Exemption Schemes:
  6. Advance Authorisation: Allows duty-free import of inputs for exports.
  7. Duty Free Import Authorisation (DFIA): Enables importers to procure domestic inputs without duties.
  8. Supporting Trade Facilitation: Works with Customs, Central Excise, DRI, and Enforcement Directorate.
  9. International Trade Guidance: Assists exporters with WTO agreements, Rules of Origin, and anti-dumping regulations.
  10. Regional Operations: Headquartered in New Delhi, with 38 regional offices nationwide.

Additional Responsibilities

  • Transit Regulation: Manages transit of goods to neighboring countries per bilateral trade agreements.
  • Export Promotion: Promotes trade with neighboring nations and manages quality complaints from foreign buyers.
  • ITC-HS Code Management: Develops and updates Indian Trade Clarification based on the Harmonized System of Coding for products.
  • DEPB Rates: Controls Duty Entitlement Pass Book (DEPB) rates to incentivize exports.

Indian Institute of Foreign Trade (IIFT)

  • Establishment: Founded on May 2, 1963, as an autonomous body.
  • Role and Function:
  • Research and Training: Primarily focuses on research and training related to foreign trade.
  • Deemed University Status: Awarded the status of 'Deemed to be University' in May 2002 by the University Grants Commission (UGC), recognizing its comprehensive achievements in the field of international business education and research.

Key Areas

  1. Education: Offers programs at undergraduate, postgraduate, and doctoral levels in international business, economics, and trade.
  2. Training: Conducts specialized training for Indian Trade Service officers, Indian Revenue Service, and Indian Foreign Service.
  3. Research: Undertakes studies on both domestic and global trade and economic issues.
  4. Consultancy: Provides research-based consultancy for corporates, government, and students.
  5. Industry Engagement: Maintains strong industry connections, with partnerships and a broad alumni network.
  6. Internationalization: Acts as a hub for new ideas and skill development in global business practices.

Reserve Bank of India (RBI)

  • Role and Function:
  • Monetary Authority: Acts as the central banking institution of India, controlling the monetary policy of the Indian rupee.
  • Regulatory Oversight: Oversees all financial operations related to foreign exchange under the Foreign Exchange Management Act (FEMA), 1999.
  • Support for Exporters: Provides guidelines and facilities for exporters, including facilitating foreign currency loans and ensuring smoother transactions in international trade.
  • Project EPC Coordination: Acts as a coordinating agency for Indian project exporters to secure and execute overseas projects, ensuring compliance with RBI guidelines.

Additional Key Organizations in Export Promotion

  • Export Credit Guarantee Corporation Ltd (ECGC): Provides export credit insurance services to Indian exporters.
  • Export Promotion Councils (EPCs): Numerous councils such as the Engineering Export Promotion Council of India (EEPC), Pharmaceuticals Export Promotion Council of India (PHARMEXCIL), and Gem and Jewellery Export Promotion Council (GJEPC), play pivotal roles in promoting specific sectors of India’s export.
  • Special Economic Zones (SEZs) and 100% Export Oriented Units (EOUs): Facilitated by specific Export Promotion Councils, these zones and units focus on increasing exports by providing beneficial economic conditions for export-oriented activities.
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