Essay on Indian Exports

'Export and Prosper' has now become a slogan for the rapid and self-reliant growth. It is export promotion only that holds out the promise in such countries. We in our country, in particular, cannot ignore the launching of export promotion drive, for in the early stages of our planned economic development imparts are inevitable. The solution of making payment of imports lies in mak­ing payments from our own export earnings.

In a developing economy like ours export promotion is a pre­condition for economic development and also for evolving a self-reliant and self-generating economy, Export promotion will be useful in many ways. First of all, it will be useful in removing the unfavorable position of balance of trade. Secondly, it will be helpful in providing markets for certain goods and extending dome­stic markets for certain other goods. Thirdly, export promotion will form the basis for the success of our development projects and economic planning. And lastly, export promotion will render the benefits of large-scale production available to the producers which, in its turn, will reduce the cost of production strengthening further the export promotion base.

With the impressive industrial development since independence India's foreign trade has undergone a complete change and is no longer confined to a few countries trading in few commodities. The number of commodities exported from the country are now more than three thousand as against fifty at the time of independence. Similarly, there has been a great increase in imports on account of the development needs of the country. During recent years there has been a substantial increase in the imports due to rise in the oil prices.

The exports from the country have not only gone up but also witnessed an increasing diversification in recent years. The largest share of India's exports goes to OPEC countries. Next in the rank are the countries of European common Market. The major items of India's exports are jute manufactures, iron ore, raw cotton, cotton manufactures, coffee, spices, leather and leather manufactures, handicrafts, tobacco etc. ,

To impart dynamism to the country's efforts to expand and diversify exports, a series of measures have been put into operation. These measures are listed below :

(1) Production for export has been put outside the licensed capacity fur any industrial undertaking.

(2) Exports are excluded while computing the production of an undertaking for considering the question of its "dominance" under Monopolies & Restrictive Trade Practices Act (MRTP Act),

(3) It has been decided that in allowing automatic expansion to the industrial units including those under MRTP Act, favorable consideration will be given for previous export performance.

(4) With a view to up-dating the technology for export produc­tion, applications for technology imports which involve only a lump-sum payment of royalty are considered more liberally.

(5) A scheme has been initiated to enable 100 per cent export oriented industrial units to be set up anywhere in India. This will encourage the exports of non-traditional manufactured goods.

(6) The government and the Reserve Bank of India have taken measures from time to time to facilitate credit for exporters at reasonable interest. Exporters can obtain both pre-shipment and post-shipment advances from commercial banks at concessional rate of interest.

(7) To help exporters meet the competition in foreign market, a scheme has been put in force under which cash compensatory support is offered on the exports of selected non-traditional indust­rial products with substantial export possibilities.

(8) The government has decided to establish an EXIM Bank to handle the financing of foreign trade.

(9) Transport problems and bottle necks inhibiting exports are being tackled on a priority basis.

The Government of India has established several specialized organizations for the promotion of exports. A brief description of these organizations and their functions are given below :

(1) The Central Advisory Council on Trade advises the government on matters relating to exports and imports policy and programmes.

(2) The Trade Development Authority, New Delhi, has been established to induce and organize entrepreneurs, largely in the medium and small-scale, to develop their individual export capabilities.

(3) The Federation of Indian Export Organizations, New Delhi, coordinates and supplements the export promotional activities of various organizations and institutions.

(4) Export Promotion Councils secure the co-operation of con­sumers, producers and exporters in the country for export promotion.

(5) Commodity Boards and Export Houses, which specialize in export trade.

(6) The Indian Institute of Packaging, Bombay, undertakes research on raw materials for the packaging industry.

(7) The Indian Institute of Foreign Trade, New Delhi, is concerned with developing training programmes, research and market studies.

(8) The Export Inspection Council, Calcutta, adopts measures for the introduction and enforcement of quality control and compul­sory pre-shipment inspection of various exportable commodities.

(9) Export Processing Zone, Bombay, promotes the exports of electronic equipment and components.

(10) The Handicrafts and Handlooms Export Corporation and the Indian Motion Pictures Export Corporation are engaged in promoting exports in their respective fields.

(11) Trade Fair Authority of India is an autonomous organization to give a new orientation to the country's trade promotion through fairs and exhibitions.

The measures taken to boost the country's export have been very useful. However, the export promotion drive has not attained the desired result. The main reasons for this slow progress are: (i) higher cost of production of Indian goods making it difficult to compete in the foreign markets, (ii) tendency of Indian exporters in general, to earn profits by supplying inferior quality products, (iii) heavy custom duties imposed by the government, (iv) increasing availability of substitutes Indian goods, (v) lack of proper publicity, and (vi) lack of prompt and reliable data on several aspects of international trade.

The slow progress of India's export promotion drive should be a matter of serious concern for all those who understand the signi­ficance of export promotion. The international trade has become increasingly complex with more and more developing countries vying with other and with developed countries to wrest as great a share of the world market as possible. There exists a wide scope for the exports of Indian goods. All that we need in our country is the will to capture the foreign markets.