Read about the ways, problems and policies about export promotion below.
Ways to increase export promotion
- Liberalised trade
- Liberalized capital flows
- Floating exchange rate
- Investment in provision of infrastructure to enable trade to take place
- Deregulation and minimum government interaction
- Focus on comparative advantage
- Product strategy
- Market strategy
- Improved technology
- Building brand image
- Sector specific targets
Problems in export promotion
- Increase in protectionism in developing nation
- Increased arrival of multinational corporations
- May increase inequality
- Certain assumptions were made about necessary condition for manufacturing led export growth
- Foreign competition
- High prices
- Availability of substitutes
- Low quality goods
- Tariff policies
- Limited market
- Lack of publicity
- Malpractices
Export promotion measures in India (under EXIM policy 1992-97)
- Import facilities for exporters– export promotion capital goods scheme, advance authorisation scheme, duty free import authorisation
- Duty remission scheme– duty entitlement passbook DEPB scheme, duty drawback scheme, excise duty refund, Central sales tax, exemption from service tax
- Fiscal incentives– exemption from income tax
Refer Economics Important Topics for more other such topics