Organisational Support in International Business
Foreign trade results in a global division of labour and specialisation. India has a large number of labours. The Indian government implements several incentives and initiatives to assist commercial enterprises in increasing the competitiveness of their exports and imports. The Government of India has established several institutions from time to time to promote the process of foreign trade in our country and to provide infrastructure and marketing support to organisations.
The following are some of the most important institutions :
1) Department of Commerce
The Department of Commerce of the Ministry of Commerce, Government of India is the supreme authority in charge of the country’s external trade and all affairs related to it. Increased commercial links with other countries, state trading, export promotion measures, and the development and regulation of particular export-oriented businesses and commodities are examples of such initiatives. Foreign trade policies are devised by the Department of Commerce. It frames the import and export policy of the country.
2) Export Promotion Councils (EPCs)
Export Promotion Councils are non-profit organisations that are incorporated under the Companies Act or the Societies Registration Act, as the case may be. The primary goal of export promotion councils is to increase and promote the country’s exports of certain items under their jurisdiction. There are now 21 EPCs dealing with various commodities.
3) Commodity Boards
Commodity Boards are boards formed specifically by the Government of India to promote the production and export of traditional commodities. These boards supplement the EPCs. Commodity boards’ functions are similar to those of EPCs. There are now seven commodities boards: the Coffee Board, the Rubber Board, the Tobacco Board, the Spice Board, the Central Silk Board, the Tea Board, and the Coir Board.
4) Export Inspection Council (EIC)
The Government of India established the Export Inspection Council of India under Section 3 of the Export Quality Control and Inspection Act 1963. The council’s goal is to promote sound export trade development through quality control and pre-shipment inspection. The council is the ruling body for quality control and pre-shipment inspection of commodities destined for export. Except for a few exceptions, all goods going for export must be approved by EIC.
5) Indian Trade Promotion Organisation (ITPO)
The Ministry of Commerce established the Indian Trade Promotion Organization on January 1, 1992, under the Companies Act 1956. Its headquarters is in New Delhi. It was constituted by the merger of two erstwhile agencies, the Trade Development Authority and the Trade Fair Authority of India. ITPO is a service organisation that interacts with commerce, industry, and government in a regular and close relationship.
It serves the industry by organising trade fairs and exhibits both within and outside the country. Trade fairs and exhibitions are organised by it on regular basis to promote exports and imports. It helps export firms to participate in international trade fairs and exhibitions, develop new exports, and give assistance and up-to-date commercial business information. It has five regional offices in Mumbai, Bengaluru, Kolkata, Kanpur, and Chennai. It also has four international offices in Germany, Japan, the United Arab Emirates, and the United States of America.
6) Indian Institute of Foreign Trade (IIFT)
The Indian Institute of Foreign Trade was established by the Government of India in 1963 as an autonomous entity registered under the Societies Registration Act with the primary goal of professionalising the country’s foreign trade administration and management. It was recently certified as a Deemed University. It offers training in international trade, conducts research in international business fields, and analyses and disseminates statistics on international trade and investments.
7) Indian Institute of Packaging (IIP)
The Indian Institute of Packaging was established in 1966 as a national institute by the Ministry of Commerce, Government of India and the Indian Packaging Industry, and other interested parties. Its headquarters and primary laboratory are in Mumbai, while three regional laboratories are in Kolkata, Delhi and Chennai. It is a training and research institute for packaging and testing. It offers a good infrastructure to meet the diverse demands of the package manufacturing and package user industries. It meets the packaging requirements of both the local and international markets. It also provides technical consulting, package development testing services, training and educational programmes, promotional award contests, information services, and other related activities.
8) State Trading Organisations
A large number of Indian domestic firms found it extremely difficult to compete in the global market. At the same time, current trade channels were inappropriate for promoting exports and diversifying business with countries other than European countries. Under these circumstances, the State Trading Organisation (STC) was established in May 1956 with the principal aim to promote trade, particularly export trade among the world’s different trading partners. Later, the government established several more organisations, like the Metals and Minerals Trading Corporation (MMTC) and the Handloom and Handicrafts Export Corporation (HHEC).
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