Explain briefly the constraints hampering export promotion efforts of India. How have various agencies responded to tackle these issues
Answers
The constraints hampering export promotion efforts of India
1. Technological Gap - Due to lack of technological advancement business companies are not able to acquire markets in foreign countries.
2. Financial hurdles - Many small business owners lack financial support for marketing.
3. Transportation problems - Business face difficulties in cargo transportation due to the poor road, rail, and water transport.
4. High import tariff - The higher import rates of raw materials affects the production of materials and burdens the export systems.
Ways by which various agencies have responded to tackle these issues
1. Business organizations develop their technology by collaborating with foreign companies.
2. Agencies try to derive their raw materials from locally available sources or locally available alternative raw materials.
3. Business agencies choose the railway for freight transport as it the cheap and quick method of transport for goods.
Hope this helps.
India's Export Growth constraints-
1- Adoption of import substation rather than export promotion strategy.
2- Economic policies were aimed more at encouraging domestic production.
3- High import barriers
4- High import tarrif
5- Inadequate infrastructure
6- Complexities of trade procedure
Export Promotion Schemes-
Foreign Trade Policy 2015- 20 and other schemes provide promotional measures to boost India's exports.
A- Export from India scheme
B- Export Houses, trading houses and star trading houses.
C- Duty Exemption & Remission Schemes
D- Export promotion Capital Goods (EPCG) Scheme
E- EOU/ STP & BTP Schemes
F- Other Schemes.