Read time 5 mins #export
Export refers to the selling of goods and services produced in home country to the markets in foreign country.
Impressions of foreign trade can be identified to the 1400 century and from then, there has been a constant growth in the foreign trade industry internationally and similarly in India. However before independence of India export was a matter concerned with the East India Company and the British Government which crippled the trade of independent India due heavy exports of raw material made by the EIC from India to their homeland at the minimum possible cost and import finished goods of the same raw material in Indian markets.
Indian exports did rise after independence, but the trade policies of India were inspired by the structure established by the colonial rule. Moreover, before 1991, India was hard hit by the Sino-Indian war which led to rising inflation in India. The trade policies couldn’t bear the rising inflation because of the devastation faced by Indian domestic producers during colonial rule.
Before 1991 the economy of India closed for the outer world discouraging any foreign trade and declaring the Indian Rupee nonconvertible in terms of foriegn currency to sustain the legacy of the economy and prevent it from defaulting.
1991 LPG reforms made India rearrange and create a robust economic system with a huge public sector and strong domestic market. with this, there was a need to establish several bodies that can take charge for governing various trade factors when it comes to overseas trade from licensing, regulating, enhancing trade policies, growth of trade sector, etc.
Following are the list of local bodies which affect trade in India:
Indian Local Bodies Regulating Trade
Ministry of commerce and industries
The Ministry of Commerce and Industries administrates two departments; The Department of Commerce and The Department for Promotion of Industry & Internal Trade. The Ministry of Commerce and Industries overlook and regulate the working of trade and industries and are responsible for the growth and development of industry and trade within and outside the country.
DGFT Director General of foreign trade
DGFT is the agency of the Ministry of Commerce and Industry of the Government of India, responsible for the execution of Import and Export Policies of India. DGFT is entrusted with the responsibilities of implementing various policies regarding trade, for example, foreign trade policies, and is the licensing authority for exporters, importers, and export & import business.
RBI has an important role to play in regulating & managing the Foreign exchange of the country. The RBI regulates foreign exchange matters as per the Foreign Exchange Management Act, 1999(FEMA). It issues guidelines for the realization of export proceeds by the exporter from time to time through the authorized dealers.
GST & Customs Act
The Export of Goods or Services is considered a zero-rated supply. GST will not be levied on the export of any kind of goods and services. A guidance note relating to the above issue was released by the Indian Government which has helped in clearing doubts regarding the claim of the input tax credit on zero-rated export.
ECGC Export Credit Guarantee Corporation of India
Export Credit Guarantee Corporation of India offers protection against non-payment by an importer. Due to this insurance cover, the financial institutions are better placed for lending and providing larger credit to exporters.
Airports Authority of India
AAI is responsible for certain management and development of Air cargo terminals for processing of International Air cargo (Export & Import and other courier consignments) at international and domestic airports of India.
Directorate General of Shipping, India
The main job of the directorate is to ensure that the Indian ships and shipping companies meet high safety and environmental standards.
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