STRENGTH AND WEAKNESSES OF EXPORT PROMOTION PROGRAMS OF INDIA AND RECOMMENDATIONS TO TACKLE THE WEAKNESSES
Asian Countries like India has developed an International Schemes in setting up local and worldwide trade and probably one of the most rapidly growing nations in terms of export industry. Because this country has a rich culture and natural resources they cannot help but to trade. They present lucrative products and services as well diverse opportunities and commitment to their international partners.
India has establish at least 80 major offices around the world for promoting their products across the globe and another 100 offices in the United States to provide end to end products and service solutions ready for everyone to meet their market needs.
Government has established International events and trade fairs to promote their products including online promotions and exhibiting advertisements to key cities in U.S. government. Globalization has greatly increases the competition while the government ensures fair practice in other countries. They also provide product matching and counseling during the trade shows and other events.
The strength of export industry in India lies mainly in their products, services and manpower support. Their main products are Indian leather, Agricultural products, Plastics, textile and apparel, Gems and Jewelries as well as cottons, gifts and crafts, machineries and chemicals.
India has attained continues production in agricultural products which is about 27% of their total export industry and the largest employment generator among their people. The growth of their agricultural products has been tremendous after the government have provided the knowledge of using wide spread usage of modern technology such as fertilizers, insecticides, and water irrigation in every farm.
India continues to enjoy high export byproducts in textile apparel. This sector comprises 14% of the total industrial production and is the second largest employment generator in the country.
They also cater to at least 10% of the world requirements in leather industry. Export of leather and leather products during 2004-05 recorded an impressive growth at US,380 million, exceeding the target of US,284 million set by the Commerce Ministry. As of today leather industry if the eight top export earners in the country.
Indian jewelry also sums up to 20% of global consumptions of gold and diamonds providing at least 1.3 million of employment directly and indirectly.
During 1997 an immense potential in plastic industry has motivated the country to learn technical expertise to develop high end products to cater to local and international market. This country now has at least 25,000 companies and about 400,000 employees in this industry alone.
However several problems may still rise up especially in a growing country like India that may serve as their weaknesses.
· For instance the increase of global competition in World Trade Organization (WTO) policies somehow prevented India from exporting their products. Specifically from China, Philippines and other neighboring countries in Asia which has been their major competition in many products
· Intellectual property rights may somehow degraded their products from being exported to other countries because of its competing products that has the same brand or quality.
· The global economic crisis slows down somehow the India’s export industry. Somehow decline in some industries have been affected.
To address the possibilities from these problems certain preventive measure has been generated to make it up, existing policies and programs are implemented to assure that no major breakdown will ever occur. The government agencies of India assist agricultural export promotion through (APEDA) Agricultural and Processed foods Export Development Authority. (MPEDA) Marine Product Exports Development Authority and together they grant exporters a subsidy for continues production of their crops.
The (EPC) Export Promotion Council a non-profit organization supported by Indian Government financing creates a big help in providing promotional activities worldwide this agency provide factual information to increase its members shares in export. They also professional advice and technology upgrades to their members they also provide the links between exporters and participating countries for an easier access.
To further strengthen the bond between specific products for buyer and seller this agencies will help you provide any information for a minimum amount or even free services if you need their assistance you. You may visit their website for a complete list and address: http://www.ieport.com/epc.htm
Currently the government also focuses on developing new market to reach the countries for Soviet Union while expanding exports to other European countries. And finally several private sectors are also encouraged to export their products to meet the demand of the world market.
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