Competitive Exams

IIT JEE, NEET, ESE, GATE, AE/JE, Olympiad

Only IAS

UPSC, State PSC

School Preparation

Foundation (Class 6-12), Commerce, Arts, CuriousJr (1st - 8th), Science, International Boards

Govt Exam

Judiciary, SSC, Defence, Teaching, JAIIB & CAIIB, BIHAR EXAMS WALLAH, UP Exams, Railway, Nursing Exams, Banking, WB Exams

UG & PG Entrance Exams

MBA, IPMAT, IIT JAM, LAW, CUET UG, UGC NET, GMAT, Design & Architecture, Pharma, CSIR NET, CUET PG, NEET PG

FINANCE

CA, CS, Finance Courses, ACCA

Others

English Wallah, Online Degrees

English Proficiency Test

IELTS, TOEFL

Agriculture

Foreign Trade Promotions: Incentives and Organisational Support

Discover India's foreign trade promotions offer incentives and organisational support to boost export competitiveness and promote global specialisation. Get all the details on foreign trade promotions!

Mridula Sharma20 Aug, 2024

Foreign Trade Promotions: India's foreign trade policies aim to boost export potential through various incentives and organisational support. These efforts help Indian businesses compete globally, leading to a more efficient global division of labour and specialisation. With a vast workforce, India leverages this advantage by implementing policies and schemes to expand foreign trade.

The Indian government helps firms increase the competitiveness of their exports by providing various schemes and incentives. Additionally, the government has established several institutions to provide infrastructural and marketing support to companies engaged in international trade. In this article, we will delve into the specifics of foreign trade promotion incentives and organisational support and explore their benefits to the Indian economy.

Foreign Trade Promotion Measures and Schemes

Foreign Trade Promotions in India comprise a range of policies and initiatives aimed at strengthening the nation's export capacities. These programs offer financial gains and infrastructure support to firms, enabling them to compete on a worldwide scale. Here, we explore some key measures and schemes aimed at foreign trade promotion:

1. Duty Drawback Scheme

Merchandise meant for export is exempt from different excise, levy charges, and customs duties. When exporters prove that their products have been exported, they get refunds on these charges, known as ‘Duty Drawbacks.’ For instance, a textile exporter in Mumbai can receive a refund on the excise duty paid on raw materials used in making garments for export.

2. Export Manufacturing under the Bond Scheme

Companies can manufacture goods without paying excise duty and other charges if they provide a bond (a formal promise) that the goods are for export. For example, a company producing electronics for international markets can avoid paying excise duty by committing to export its products.

3. Exemption from Payment of Sales Taxes

Goods manufactured specifically for export are exempt from sales tax. Additionally, income from export activities has long been exempt from income tax for 100% of Export Oriented Units and units in Export Processing Zones (EPZs) or Special Economic Zones (SEZs). For instance, a small-scale software company in Bengaluru operating in an SEZ doesn’t have to pay sales tax on its exported software products.

4. Advance Licence Scheme

This government policy allows suppliers to procure local and imported materials needed for export production without paying duties. Firms that export occasionally can also obtain these licenses for specific export orders. For example, a jewellery manufacturer can import gold duty-free to create pieces destined for international markets.

5. Export Promotion Capital Goods Scheme (EPCG)

The EPCG scheme aims to facilitate the import of capital goods for export production. Exporting firms can import these goods at minimal or reduced customs duty rates, provided they meet certain export obligations. If a manufacturer of automotive parts in Chennai complies with these conditions, they can import advanced machinery at a concessional duty rate, helping modernize their production line for better export performance. Service providers, such as an IT company needing specialised software systems for developing export-oriented software, can also benefit from this scheme. These Foreign Trade Promotions help Indian businesses become more competitive on the global stage by reducing costs and providing necessary support.

Also Check: Foreign Trade in India During the Colonial Rule

Foreign Trade Promotions Organisational Support

To promote foreign trade, the Indian government has established various institutions to support businesses. Here are the top five organisations involved in Foreign Trade Promotions:

1. Export Promotion Councils (EPCs)

Export Promotion Councils are non-profit organizations registered under the Companies Act or Societies Registration Act. Their primary goal is to promote and increase the nation’s exports of specific products. There are currently 21 EPCs, each focusing on different commodities, like textiles or electronics.

2. Department of Commerce

The Department of Commerce, part of the Ministry of Commerce, is the main authority overseeing India’s international trade. It manages business relations with other countries, state trading, and export promotion. It also formulates policies related to imports and exports to help boost the country’s trade. This department plays a critical role in negotiating trade agreements and ensuring that Indian exporters receive the support they need.

3. Indian Trade Promotion Organisation (ITPO)

The ITPO, created under the Companies Act 1956, helps Indian businesses participate in international trade fairs and exhibitions. It was formed by merging the Trade Development Authority and the Trade Fair Authority of India. With offices in major Indian cities and abroad, ITPO provides support and information to boost exports.

4. Export Inspection Council (EIC)

The Export Inspection Council ensures the quality and standards of goods meant for export. Established under the Export Quality Control and Inspection Act of 1963, the EIC conducts quality control and pre-shipment inspections to ensure products meet international standards. Most exported goods must be approved by the EIC.

5. Indian Institute of Foreign Trade (IIFT)

Founded in 1963, the IIFT is an autonomous body under the government that aims to professionalise foreign trade management. It offers training in international business, conducts research, and provides data on global trade and investment trends. IIFT's programs help business professionals and students understand the complexities of international trade, equipping them with the skills needed to succeed globally.

Benefits of Foreign Trade Promotions

Foreign Trade Promotions Incentives and Organisational Support provide several key benefits to businesses and the economy. Check here some of the top benefits of foreign trade promotions:

Increased Export Competitiveness: Incentives like duty drawbacks and tax exemptions lower export costs, making Indian products more competitive in global markets.
Economic Growth: Boosting exports increases foreign exchange earnings, supporting broader economic development and investment in infrastructure.
Employment Opportunities: Growing businesses due to increased exports create more jobs, improving living standards for many families.
Technological Advancement: Support for importing modern machinery and capital goods helps businesses upgrade, enhancing product quality and manufacturing efficiency.
Diverse Markets: Organisational support helps businesses enter new international markets, reducing dependency on a single market and spreading risk.

Also Read: Home Trade Vs Foreign Trade, Which Is Better?

Moreover, Foreign Trade Promotions through incentives and organisational support are vital for enhancing India’s global trade position. These measures help reduce costs, improve product quality, and open new markets, driving economic growth and creating job opportunities. Therefore, Physics Wallah (PW) is the leading coaching platform for Commerce students, providing expert guidance and top curriculum. Its comprehensive approach ensures students excel in their studies and competitive exams, setting them up for future success. Boost your potential with the PW Commerce Online Course—join now to excel in your studies and secure your future success!

Also Check:
Delegation of Authority	What is Communication?
What is Capitalism?	Meaning and Functions of Environment
Monopolistic Competition	What is Share Market?

Foreign Trade Promotions FAQs

What is foreign trade? Can you provide examples?

Foreign trade is the exchange of goods and services between countries. Examples include exporting consumer goods like clothing, importing machinery, and trading services such as travel and patents.

What do you mean by foreign trade promotion?

Foreign trade promotion involves efforts to increase a country's exports and imports through financial incentives, policy support, and infrastructure improvements to help businesses compete globally.

What are the four pillars of foreign trade policy?

India's Foreign Trade Policy (FTP) 2023 focuses on: (i) incentives for remission, (ii) export promotion through collaboration, (iii) ease of doing business and reducing costs, and (iv) emerging areas like e-commerce.

Which organisation promotes foreign trade?

Organisations like the Department of Commerce, Export Promotion Councils (EPCs), and the Indian Trade Promotion Organisation (ITPO) promote foreign trade in India by providing policy support, quality standards, and market access.

🔥 Trending Blogs

Top Commerce Entrance Exams after 12th

Role of a Chartered Accountant

Class 12 Commerce Sample Paper Strategy

How to Score 90 Plus in CBSE Class 12 Economics?

Commerce Career Options After 12th

Talk to a counsellorHave doubts? Our support team will be happy to assist you!

7019243492

07019243492

Check out these Related Articles

COMMERCE CLASS 12

Government Exams for Commerce Students

Read Full Story

19 Jul 2025, 10:27 am

COMMERCE

Difference Between B.com, BBA, and BMS

Read Full Story

21 Jul 2025, 10:06 am

COMMERCE CLASS 11

Difference Between Accountancy and Economics in Class 11

Read Full Story

18 Jul 2025, 10:14 am

COMMERCE

Money Multiplier Formula

Read Full Story

15 Jul 2025, 12:46 pm

COMMERCE CLASS 12

Top Scoring Chapters in Accountancy Class 12 CBSE

Read Full Story

14 Jul 2025, 04:11 pm

COMMERCE

What are Accounting Concepts and Conventions?

Read Full Story

10 Jul 2025, 06:11 pm

COMMERCE

What Are the Characteristics of Management?

Read Full Story

10 Jul 2025, 05:41 pm

COMMERCE

Parties to a Bill of Exchange: Definition, Roles, and Examples

Read Full Story

8 Jul 2025, 03:59 pm

COMMERCE CLASS 11

Core Concepts of Applied Maths for Class 11 Commerce Students

Read Full Story

3 Jul 2025, 07:32 pm

Join 15 Million students on the app today!

Live & recorded classes available at ease

Dashboard for progress tracking

Millions of practice questions at your fingertips

Free Learning Resources

PW Books

Notes (Class 10-12)

Class 10 Math's Notes

Class 10 Chemistry Notes

Class 10 Physics Notes

lass 10 Biology Notes

Aptitude & Reasoning

Class 10 Geography

Physics Class 11 Notes

Class 11 Chemistry Notes

Maths Notes Class 11

Zoology Class 11

Class 11 Botany Notes

Physics Class 12 notes

Chemistry Class 12

Maths Notes Class 12

Zoology class 12

Class 12th Botany Notes

PW Study Materials

Arjuna JEE Study Material

JEE 5 PYQs

JEE Mind Maps

Yakeen Study Material

NCERT Punch

Arjuna Neet Study Material

NEET PYQs

CBSE Sample Paper

CBSE Question Bank

Udaan For Class 10th Study Material

Notes (Class 6-9)

Class-6 Theory & Notes

Math's Notes for class 7

Science Notes for class 7

Class 8 Math Notes

Class 8 Chemistry Notes

Class 8 Physics Notes

Class 8 Biology Notes

Class 8 SST Notes

Class 9 Math's Notes

Class 9 Physics Notes

Class 9 Chemistry Notes

Class 9 Biology Notes

Ncert Solutions

NCERT Solutions For Class 6

NCERT Solutions For class 7

NCERT Solutions for class 8

NCERT Solutions for class 9

NCERT Solutions for class 10

NCERT Solutions for class 11

NCERT Solutions for Class 12

NCERT Solutions For Class 6

Govt Exams

Entrance Exams

Our Other Websites

Class 6th to 12th Online Courses

Class 12 Online Course

Class 11 Online Course

Class 10 Online Course

Class 9 Online Course

Class 8 Online Course

Govt Job Exams Courses

SSC Online Coaching

Bank Exam Online Coaching

TET Online Coaching

JAIIB & CAIIB Online Coaching

Bihar Exam Online Coaching

UPSC Coaching

UPSC Online Coaching

UPSC Offline & Hybrid Coaching

State PSC Online Coaching

UPPSC Online Coaching

BPSC Online Coaching

Defence Exam Coaching

NDA Online Coaching

CDS Online Coaching

AFCAT Online Coaching

Agniveer Online Coaching

Gate Exam Coaching

Civil Engineering Courses

Mechanical Engineering Courses

Formulas

Other Exams

Company Secretary Exam

Know about Physics Wallah

Physics Wallah is an Indian edtech platform that provides accessible & comprehensive learning experiences to students from Class 6th to postgraduate level. We also provide extensive NCERT solutions, sample paper, NEET, JEE Mains, BITSAT previous year papers & more such resources to students. Physics Wallah also caters to over 3.5 million registered students and over 78 lakh+ Youtube subscribers with 4.8 rating on its app.

We Stand Out because

We provide students with intensive courses with India’s qualified & experienced faculties & mentors. PW strives to make the learning experience comprehensive and accessible for students of all sections of society. We believe in empowering every single student who couldn't dream of a good career in engineering and medical field earlier.

Our Key Focus Areas

Physics Wallah's main focus is to make the learning experience as economical as possible for all students. With our affordable courses like Lakshya, Udaan and Arjuna and many others, we have been able to provide a platform for lakhs of aspirants. From providing Chemistry, Maths, Physics formula to giving e-books of eminent authors like RD Sharma, RS Aggarwal and Lakhmir Singh, PW focuses on every single student's need for preparation.

What Makes Us Different

Physics Wallah strives to develop a comprehensive pedagogical structure for students, where they get a state-of-the-art learning experience with study material and resources. Apart from catering students preparing for JEE Mains and NEET, PW also provides study material for each state board like Uttar Pradesh, Bihar, and others

Foreign Trade Promotion Measures and Schemes

1. Duty Drawback Scheme

2. Export Manufacturing under the Bond Scheme

3. Exemption from Payment of Sales Taxes

4. Advance Licence Scheme

5. Export Promotion Capital Goods Scheme (EPCG)

Also Check: Foreign Trade in India During the Colonial Rule

Foreign Trade Promotions Organisational Support

To promote foreign trade, the Indian government has established various institutions to support businesses. Here are the top five organisations involved in Foreign Trade Promotions:

1. Export Promotion Councils (EPCs)

2. Department of Commerce

3. Indian Trade Promotion Organisation (ITPO)

4. Export Inspection Council (EIC)

5. Indian Institute of Foreign Trade (IIFT)

Benefits of Foreign Trade Promotions

Foreign Trade Promotions Incentives and Organisational Support provide several key benefits to businesses and the economy. Check here some of the top benefits of foreign trade promotions:

Increased Export Competitiveness: Incentives like duty drawbacks and tax exemptions lower export costs, making Indian products more competitive in global markets.
Economic Growth: Boosting exports increases foreign exchange earnings, supporting broader economic development and investment in infrastructure.
Employment Opportunities: Growing businesses due to increased exports create more jobs, improving living standards for many families.
Technological Advancement: Support for importing modern machinery and capital goods helps businesses upgrade, enhancing product quality and manufacturing efficiency.
Diverse Markets: Organisational support helps businesses enter new international markets, reducing dependency on a single market and spreading risk.

Also Read: Home Trade Vs Foreign Trade, Which Is Better?

Also Check:
Delegation of Authority	What is Communication?
What is Capitalism?	Meaning and Functions of Environment
Monopolistic Competition	What is Share Market?