In order to assist Indian exporters, Export Promotion Councils (EPCs) were established by the Government of India to increase the overall exports from India by providing them with access to international markets and promoting Indian products through various activities.
Each country has its own export promotion organization. In India, there are about 37 organizations that cater to exporters. By categorizing products, EPCs can offer better assistance to exporters and focus on promoting products more effectively.
The purpose of this blog is to provide exporters with all relevant information on EPCs, such as:
- Why Indian merchandise needs to be promoted,
- EPC roles and functions,
- What they do to help exporters,
- Their registration process, and
- Trends related to these organizations.
Why export promotion?
Internationally, countries have been promoting exports since time immemorial. Export promotion came into the spotlight after the second world war when a structured approach was introduced. For this purpose, the Federation of India Export Organisations (FIEO) was established in 1965.
Export Promotion Councils: Types
Export promotion councils (EPCs) are created in India to cater to the specific needs of different export products. Every product category, i.e. Products such as electronics, apparel, food, etc. Each product category has its own requirements and export-related challenges, so export promotion councils are responsible for assisting exporters to overcome those challenges and increase exports.
An EPC can be viewed as a bridge between the government and exporters, coordinating their efforts with the primary goal of increasing exports. In accordance with the Companies Act/Societies Registration Act, the councils are non-profit organizations. Additionally, some export industries have Commodity Boards and Export Development Authorities.
Parliament passed special acts establishing commodities boards and export development authorities.
All export promotion councils are governed by FIEO. In addition to providing an interface between Indian exporters, the Central Government, State Governments, financial institutions, ports, railways, surface transport, and other interested parties, it also plays a crucial role in facilitating trade. Directly or indirectly, FIEO serves more than 200,000 exporters from all industries.
In this article, these organisations are referred to collectively as EPCs. In addition, all of the above-mentioned organizations fall under the purview of the Ministry of Commerce.
The following is a comprehensive list of EPCs, commodity boards, and export development authorities:
The role of Export Promotion Councils (EPCs)
EPCs serve to showcase India as the preferred destination for high-quality products and services export. Through various methods, the EPCs promote India’s exports to international markets and represent its exporters. Export promotion companies also assist exporters in identifying new markets and expanding their export basket, as well as consolidating exports to current destinations.
Also, they provide insights into the challenges faced by exporters in international markets to the Government in order to formulate effective trade policies.
In the EPCs, decisions are made independently and the bodies are autonomous. However, all laws and bylaws enacted / modified by the Central Government from time to time apply to all EPCs, and they must be followed.
Benefits of EPCs
Ease of access to international markets:
- Since EPCs work to increase buyer-seller interactions, exporters can easily access international markets. Since many small and medium businesses do not have the resources to approach international buyers on their own, this is of particular benefit to them.
- Aid in export incentives: Exporters registered with EPCs benefit from the government’s various export incentive schemes. To qualify for these benefits, exporters must register with EPCs.
- Trade data source: EPCs collect export and import data from all their members, providing valuable information to the government and exporters alike. The data can provide a lot of insight into expanding and diversifying the international market.
- Platform for growth: Export promotion companies organize foreign tours for trade delegations to help exporters reach out to new markets. In such cases, exports and buyer bases can be increased. It not only strengthens the trade relations, but also overall bilateral relations between the countries.