Seal of Good Local Governance (SGLG) 2024Final.pptx
export garments
1. 1.1 INTRODUCTION
International business involves commercial activities that cross national frontiers. It
concerns the international movement of goods, capital, services, technology, etc.,
importing and exporting, cross border transactions
in intellectual property ( patents ,
trade mark , copy right etc ., ) via licensing and franchising ; investment in fiscal and
financial assets in foreign countries.
Industrial infrastructure and financial position are weaker in some countries, making
the firm within uncompetitive in international trade. Therefore the government gives
extensive assistance for exporters. In most of the countries majority of assistance are
directed towards specific industry sectors.
In order to boost exports, the government besides giving certain facilities and
assistance has made an attempt to develop the institutional infrastructure this would be
helpful in promoting the exports through its expert guidance and assistance. For this
purpose the government has set up several institutions whose main function is to help an
exporter in his work. It would be advisable for an exporter to acquaint him self with
the working of these institutions and the nature of help (assistance) they can render to
the exporter so that the exporter can contact them for the right help and guidance at the
right time.
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2. The quota system, whose ending was devised nearly a decade ago by the
World Trade Organization's predecessor, has protected the textile and garment industry in
the United States and Europe by limiting imports from low-cost manufacturing countries
like India.
The Indian government had long been a stumbling block to the expansion
of India's textile and garment industry. Until four years ago, it provided incentives like
tax exemptions and special interest rates to small apparel units, thus discouraging
investment in large machinery and the creation of more capacity.
Export incentives are widely employed strategy of export promotion. The
main aim of these incentives is to increase the profitability of export business. Public
subsidies, tax rebates, and other kinds of financial and no financial measures designed to
promote a greater level of economic activity in export industries.
In this study the researcher has made an attempt to study the various institution
assistance provider to exporter of garment industry in coimbatore district.
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3. 1.2 STATEMENT OF PROBLEMS
Exporter are aware of the various assistance and are successful in getting the
assistance from various institution, it takes aback to notice that few exporters are not
aware of any of the assistance provided by many institution. Upgrade education and
training institutions, Enhanced managerial skills are urgently needed in all sectors of
the industry to meet customers' quality and delivery conditions as well as to boost
productivity. Moreover, the development of the domestic market requires effective
marketing skills. Educational institutions must provide basic training in these skill
areas.
In training and educational institutions are promoting curriculum expansion, their
financial resources is severely limited. Moreover, budget allocation must allow
development and upgrading of courses production management, product development
and marketing. The establishment and operation of new training institutes must be
pursured according to needs and potentiality Training programs and seminars have
their limits because the problems each firm faces are diverse and concrete. In order to
address these problems, individual consultations as well as technical support in the
testing and analyses of input materials and machineries will prove effective.
In this regards the garment industry facing many problems, which may be solved
by education institutions. So the present study concentrated for answer the following
questions.
What are the assistance provided by the education institutions?
How the exporter exporter of garments utilizes such assistance?
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4. 1.3 OBJECTIVES OF THE STUDY
The objectives of the study are as follows:
To study the importance of institutional assistance to the exporter of garment
industry
To study the exporters perception on the institutional assistance provided to
them.
To suggest measure the exporters availing the assistance for
problems in export
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solving their
5. 1.4
SCOPE OF THE STUDY
The study helps to know the institutions which provide educational
assistance to the garment industries. It helps to the objectives, mission, vision, facilities
and other services provided by institutions to the garment industries. This is also helpful
for the industries to know about various organizations which assist them. It also acts as
guide for leading their business
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6. 1.5
METHODOLOGY OF STUDY
Research methodology is a way to systematically solve the research problem.
It may be understood as a science of studying how research is done scientifically.
Researcher not only needs to know how to develop certain indices or tests, but they also
need to know which of the methods or techniques, are relevant and which are not suit to
research.
1.5.1 GEOGRAPHICAL AREA OF RESEARCH
The research study was conducted in Coimbatore district.
1.5.2 RESEARCH DESIGN
This research is descriptive in nature. The researcher here made an
attempt to describe the role of educational institutional assistance provided to
exporter and its impact of Export performance.
1.5.3 NATURE AND SOURCE OF DATA
The nature of data collected for this study was mainly primary data.
Primary data were collected from the respondents through a structured
questionnaires scheduled form. The respondents were personally interviewed and
through mail by the researcher.
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7. 1.5.4
STATISTICAL TOOLS
Percentage analysis and Chi –Square are the statistical tools applied to
analyze the data.
1.5.5
PERIOD OF STUDY
The period of study is for 6 month.
1.5.6
SAMPLING DESIGN
The sampling design adopted in the project was random sampling. This
method was convenient and suitable for the study. A sample of 100 organizations
were taken into account for finding the education institution assistance provided to
exporters in the garment industry
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8. 1.6
LIMITATION OF STUDY
Following are the some of the limitations which main constraints, while
conducting the study.
The study is restricted to Coimbatore district.
Due to lack of time the sample size was restricted to 100 respondents.
The study covered few industries exporting the garments.
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9. 1.7 CHAPTER SCHEME
The present study consists of four chapters they are as follows
First chapter deals with the institutions design and execution of the study.
Second chapter handles with retrospective of the various institutions which are assisting
exporters in India.
Third chapter handles with the data analysis and interpretations
Last chapter consists of summary of findings, suggestions and conclusion.
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10. 2.1 INTRODUCTION
Institutions are structures and mechanisms of social order and cooperation governing the
behavior of a set of individuals. Institutions are identified with a social purpose and
permanence, transcending individual human lives and intentions, and with the making
and enforcing of rules governing cooperative human behavior. The term, institution, is
commonly applied to customs and behavior patterns important to a society, as well as to
particular formal organizations of government and public service. As structures and
mechanisms of social order among humans, institutions are one of the principal objects of
study in the social sciences, including sociology, political science and economics.
Institutions are a central concern for law, the formal regime for political rule-making and
enforcement. The creation and evolution of institutions is a primary topic for history
Although unindividual, formal organizations, commonly identified as "institutions," may
be deliberately and intentionally created by people, the development and functioning of
institutions in society in general may be regarded as an instance of emergence; that is,
institutions arise, develop and function in a pattern of social self-organization, which goes
beyond the conscious intentions of the individual humans involved.
The relationship of institutions to human nature is a foundational question for the social
sciences. Institutions can be seen as "naturally" arising from, and conforming to, human
nature -- a fundamentally conservative view -- or institutions can be seen as artificial,
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11. almost accidental, and in need of architectural redesign, informed by expert social
analysis, to better serve human needs -- a fundamentally progressive view. Adam Smith
anchored his economics in the supposed human "propensity to truck, barter and
exchange". Modern feminists have criticized traditional marriage and other institutions as
elements of an oppressive and obsolete patriarchy
Function of institution
Institution is giving training and research for the exporters.
Processing and Analysis of data
Collecting data for the foreign countries to help the exporters.
Functioning as information system for the state level agencies
Checking, verification and coding of data
LIST OF INSTITUTIONS
Institutions availing in India are:
♦ Chamber of Commerce
♦ The Indian Institute of Foreign Trade
♦ Indian Trade Promotion Organization
♦ Export Credit Guarantee Corporation of India
♦ Indian Institute of Export Management
♦ Federation of Indian Export Organizations
♦ Commercial Banks
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13. 2.2 INSTITUTIONS
Following are the different institutions support the exporters.
2.2.1 CHAMBER OF COMMERCE
Chamber of Commerce is a local association of business people
organized to promote the welfare of their community, especially its commercial interest.
Each Chamber of Commerce usually has an elected Board of Directors and its work is
done
through community. Among these activities frequently carried on by these
communizes are industrial surveys and efforts to attract new industries to the city, the
provision of information and advice to government on topics ranging from lab our
disputes to taxes, and the promotion of tourism in cities.
The Chamber of Commerce of Marseilles (1599) was the first organization to
use the name; the idea spread through France in the 17 th century .the first to be formed in
great Britain was on the island of Jersey (1768). In America the first was the Chamber of
Commerce of the state of network , organized in 1768 .By 1870 there was 40
throughout the United States.
The local chamber are federated in the United States Chamber of Commerce
(founded 1912), which maintains at its Washington, D.C, headquarters a technical
staff and lobbies in the interests of its member organizations. Its membership includes
3 million companies, and 3000 state and local chapters, and 830 foreign countries,
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14. and
those
of other countries have offices in the United States. The International
Chamber of Commerce (founded 1920) promotes open international Trade and
investment. Its headquarters in Paris.
Chamber of Commerce is business advocacy groups which are usually not
associated with government. They are separate from Better Business Bureau insofar as
there is no national organization that binds them under a formal operations doctrine .
Chamber of Commerce can also include economic development groups, as well as
tourism and visitors bureaus.
There are basically two models world wide, ‘compulsory ‘or ‘Continental’,
those which companies of a certain area are obliged to belong to. Under the compulsory
or public law companies in certain area obliged to become members of the chamber.this
model is common in most countries of EU (France, Germany, Italy, and Spain). Their
main tasks are Foreign Trade Promotion, Training and General Services to companies,
they also have a conclusive function. In continental model, this means that
Administration must consult chambers whenever a new law related industry or commerce
is proposed Non-compulsory models exist in Anglo-Saxon countries like USA, Canada or
the UK.
Chambers of commerce serve the following purposes:
♦ Promotion of trade in their own towns or cities.
♦ Obtaining and supporting municipal regulations in interest of business their regions.
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15. ♦ Settlement of disputes between members by means of arbitration .
♦ Collection of information and statistics which may be of use to their members.
♦ Recording of a blacklist for members' reference
♦ Prevention of unnecessary competition by establishing uniform hours, wages and
prices.
♦ Advocating for business friendly policies at the state, local, federal, and international
levels
The Chamber of Commerce established to fulfill the followings:
♦ Participate in the promotion of the activities of International
Chamber of
Commerce.
♦ Facilitate commercial interaction among member countries.
♦ Evolve business view on all international matters relating to finance, industry,
commerce and environment, among others.
♦ Encourage progress, promote peace and cordial relations among countries and their
citizens by the cooperation of businessmen and organizations,
♦ Nominate members on the bodies of ICC to represent Indian Business interests.
♦ Do all such things as may be incidental or conducive to the proper representation of
the commercial, industrial, financial, shipping and trading interests of India in the
organization and work at the international Chamber.
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16. 2.2.2 THE INDIAN INSTITUTION OF FOREGIN TRADE
It was set up in 1963 by the government of India as an autonomous
organization to help professionalized the country’s foreign trade management and
increase exports by developing human resources: generating ,analyzing and
disseminating data: and conducting research. The Institute visualizes its future
role as:
A catalyst for new ideas, concepts and skills for the internationalization of
the Indian economy
The primary provider of training and research based consultancy in the
area of international business, both for the corporate sector, government and the
student’s community. An institution with proven capability to continuously
upgrade its knowledge base with a view to servicing the requirement of the
government, trade and industry through both sponsored and non-sponsored
research and consultancy assignments.
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17. MISSION:
To globally strengthen, sustain and professionalize business knowledge through
creative research and teaching and learning and by integrating with organization,
institution and universities both with in and beyond national boundary.
VISION:
An internationally acknowledged and networked institution in delivering globally
competitive business education and research for individuals, corporate, government and
society.
The Indian institute of foreign trade, registered under the societies registration act,
is engaged in the following activities:
Training of personnel in modern techniques of international trade; Organization of
research in problems of foreign trade;
Organization of marketing research, area surveys, commodity surveys market
surveys and Dissemination of information arising from its activities relating to research
and market studies.
During the last two decades, the world has witnessed dramatic changes in the
business environment. Emerging from a historically economic role, the business
organization has evolved in response to the social and political mandates of national
public policy, explosive technology growth, and continuing innovations in global
communication.
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18. The complexities of today’s fast-changing world and the unpredictability of
consumer demands have significantly increased the risk associated with business
decision, especially in the international area. These changes have created new knowledge
needs for the manager to consider when evaluating any decision.
IIFT has been a pacesetter in addressing the needs of business executives by
continuously aligning the focus of its Management Development Programmers with the
Changing realities…
The training programmers of the Institute are continuously improved through a
system of regular feedback from the participants. The constant dialogue with eminent
academicians, leading management experts and senior representatives of Government and
industry has enabled the Institute to keep the academic contents of its Programmers
relevant with the changing market dynamics.
The Institute's National and International Linkages:
The Institute is a member of:
•
International Association of Trade Training Organizations (IATIO), UK
•
Academy of International Business (AIB), USA
•
Association of Training Institutions for Foreign Trade in Asia and the Pacific
(ATIFTAP), Manila, Philippines.
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19. The Institute has also entered into a MOU with Korean Institute for Industrial
Economics and Trade for collaborative research. ESCAP has recognized the Institute as a
Centre of Maritime Education and Training. The Centre offers a specialized part-time
programme for the benefit of shippers and others involved in this area.
The Institute has so far offered its training services to about 700 professionals
from 30 developing countries. As a part of Technical Cooperation among Developing
Countries, the Institute has conducted training programmers in Mongolia and Vietnam. It
has also organized inter-regional Seminars/ Workshops in association with International
Trade Centre, UNCTAD/WTO.
Within the country, IIFT has institutional linkages with major trade and industry
associations, such as Confederation of Indian Industries (CII), Federation of Indian
Export Organizations (FIEO) etc. Joint Seminars on important national issues are the
primary outcomes of these linkages.
The Indian Institute of Foreign Trade (IIFT) aims to serve as catalyst for new
ideas, concepts and skills for the internationalizations of the Indian economy. It works
with a range of regional, national and international partners to undertake research
sstudies. The Institute also offers academic programmes aimed at international business
executives and mid-career professionals alike.
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20. The IIFT's research is focused on the following areas:
•
WTO issues
•
EU studies
•
Free and Preferential trading arrangements
•
Agriculture
•
markets
•
South Asia and Southeast Asia
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21. 2.2.3 INDIAN TRADE PROMOTION ORGANISATION
Indian trade promotion organization (ITPO) is the nodal agency of the
government of India for promoting the country’s external trade.ITPO, during its existence
of nearly three decades, in the form of Trade Fair Authority of I NDIA and Trade
Development Autority,has played a proactive role in catalyzing trade, investment and
technology transfer processes. Its promotional tools include organizing of fairs and
exhibitions in India and abroad, Buyer-Seller Meets, Contact Promotion Programmers
Product Promotion Programmes, Promotion through Overseas Department Stores, Market
Surveys and Information Dissemination.
ITPO, the premier trade promotion agency of the Ministry of Commerce&
Industry, Govt. of India is committed to showcase excellence achieved by the country in
diverse fields especially trade and commerce.
ITPO provides a wide spectrum of services to trade and industry and acts as a
catalyst for growth of India’s trade .ITPO approves holding of international trade fairs in
India and regulates holding of various expositions in India primarily to avoid any
duplication of efforts while ensuring proper timing .It manages India’s world class
exhibition complex which is constantly upgraded to keep it in a high standard of
readiness. Spread over 149 acres of prime land in the heart of India’s capital, New Delhi,
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22. Pragati Maidan offers about 61,290 sq. meters. Of open display area. The state-of –the –
art exhibition halls have enhanced the appeal of Pragati Maidan as the ideal center for an
increasing number of fair organizers and business visitors from different parts of the
world.
ITPO has an extensive infrastructure as well as marketing and information
facilities that are availed by both exporters and importers .ITPO overseas offices assist
buyers seeking information relating to sourcing products from India. IT PO’s overseas
offices at New York, Frankfurt, Tokyo, Moscow and Sao Paulo are pursuing
opportunities for enhancement of India’s trade and investment.
Similarly, IT Po’s regional offices at Bangalore, Chennai, Kolkata and
Mumbai, through their respective profile of activities, ensure a concerted and well
coordinated trade promotion drive throughout the country.
With the commissioning of the state-of –the-art Chennai Trade Centre in January
2001 and the Trade Centre, Bangalore in September 2004, ITPO has successfully
completed the first phase of the setting up of modern exhibition facilities outside Delhi.
A modern convention center has also been set up in Chennai Trade Center.
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23. As an apex agency of the Government, ITPO accords approvals for holding
of international trade fairs in India in order to ensure and facilitate, inter alias, customs
clearance of imported exhibits. ITPO has been conferred the status of Mini Ratan by the
Government of India. This honour is bestowed on select Public Sector Enterprises which
register profits for three years in a row
MISSION:
To strive to be the pre-eminent trade promotion organization of India and
such to promote, facilitate, encourage and coordinate various activities and programmers
which would enhance India's share in international trade and contribute in maximizing
the country's foreign exchange earnings through the instrument of trade in goods and
services.
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24. OBJECTIVES:
The main corporate objectives of the ITPO are enumerated below:
•
To organizes and participate in international trade fairs in India and abroad
•
To organize trade development and promotion through specialized programmes
such as buyer-seller meets: contact promotion programmes: India promotion
through department stores, market surveys; exchange and coordinate business
delegations etc; and conduct need based research on trade and export promotion.
•
To develop quality exhibition space, premises, services and management so as to
enable holding of trade promotion events of international standards.
•
To enlist the involvement and support of the State Governments in the promotion
of India's foreign trade and promote establishment of exhibition centers in
selected regions of the country.
•
To disseminate trade information
Main Activities and Services of ITPO:
•
Organizing various trade fairs and exhibitions at its exhibition complex, Pragati
Maidan and other centers in India.
•
Participating in overseas trade fairs and exhibitions
•
Cultivating overseas buyers through timely and efficient services
•
Extending the use of Pragati Maidan for holding trade fairs and exhibitions by
other fair organizers both from India and abroad
•
Assisting Indian companies in product development and adaptation to meet
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25. buyers requirements
•
Encouraging and involving small and medium scale units in export promotion
efforts.
•
Promoting establishment of facilities and infrastructure for holding trade fairs in
State Capitals or other suitable locations in India, in consultation with State
Governments concerned.
•
Organizing Buyer-Seller Meets and other exclusive India Shows in order to bring
buyers and sellers together
•
Assisting Indian companies in product development and adaptation to meet
buyers requirements.
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26. 2.2.4 EXPORT CREDIT GUARANTEE CORPORATION OF INDIA
The Government of India set up the Export Risks Insurance
Corporation (ERIC) .In the July 1957 in order to provide export credit insurance
support to Indian exporters. It was transformed into Export Credit &Guarantee
Corporation Limited (ECGC) in 1964. To bring the Indian identity into sharper
focus, the Corporation’s name was once again changed to the present Export Credit
Guarantee Corporation of India Limited in 1983. ECGC is a company wholly
owned by the Government of India .It function under the administrative control of
the Ministry of Commerce and managed by a Board of Directors representing
Government, Banking, Insurance, Trade, Industry, etc.
SALIENT FEATURES:
Various guarantees offered by ECGC to banks are:
Packing Credit Guarantee
Export Production Finance Guarantee
Post –shipment Credit guarantee
Export Finance Guarantee
Export Performance Guarantee
Export Finance (Overseas Lending) Guarantee
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27. RISK COVERED:
Commercial risks covered are insolvency of the buyer /LC opening bank
(as applicable); default by the buyer/LC opening bank to make payment within
four months from the due date; and the buyer’s failure to accept the goods, subject
to certain conditions/bank’s failure to accept the bill drawn on it
under
the
letter of credit opened by it.
Political risks covered are the imposition of restriction by the Government
action which may block or delay the transfer of payment made by the buyer; war,
civil war ,revolution or civil disturbances in the buyer’s country; new import
restrictions or cancellations of a valid resulting in payment of additional freight or
insurance charge which cannot be recovered from the buyer; and any other cause of
loss occurring outside India , not normally insured by general insures and beyond
the control of both the exporter and the buyer.
Premium is payable on the projected turnover for each quarter in advance.
Important obligation of the exporter is the declaration of shipments made during
the quarter within 15 days after the end of the quarter and that of payment overdue
for a period pf 30 days or more from the due date at the end of the month. The
Exporter should, in consultation with ECGC, take effective steps for recovery of
the debt. All amounts recovered, net of recovery expenses, shall be shared with
ECGC in the same ratio in which the loss was shared.
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28. RISK COVER BY ECGC:
Guarantees to banks- ECGC
Construction works policy-ECGC
Insurance cover for buyer’s credit and line of credit-ECGC
Shipment (comprehensive risks) policy-ECGC
Small exporter’s policy-ECGC
Special scheme-ECGC
Specific policy for supply contracts-ECGC
Specific policy for services contracts-ECGC
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29. 2.2.5 INDIAN INSTITUTE OF EXPORT MANAGEMENT
Indian Institution of Export Management (IIEM) was set up in 1990, with its
corporate office at Bangalore. The institute has been established with a mission to impart
training to entrepreneurs wishing to start export ventures and executives intending to
make a career in export management.
Head quartered at Bangalore, IIEM acts primarily as a promotional and
operational institution to help students, new entrants in exports, existing businessmen and
managers in export organizations.
In the 12 years since inception, more than 40,000 students have enrolled
for various Export Management courses at IIEM.
The course material is designed to widen the knowledge base of young
managers and to equip them with necessary skills to meet the challenges of globally
competitive environment. It is meant for professionals and students working in the field
of management who have no formal education in the field of business.
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30. OBJECTIVES:
•
To create a new cadre of professionals in export management disciplines.
•
To fully equip young graduates, aspiring to make career in various departments of
trade management.
•
To impart training to the professionals in export and import management
disciplines and to upgrade their management skills.
•
To help practicing managers to become more effective decision makers in their
fields through up gradation of knowledge and managerial skills.
•
To help managers blend their experience with a structured learning which can be
applied to decision making in planned way.
•
To broaden the overall perspective of the managers so that they become catalysts
for relevant changes.
•
To develop conceptual, interpersonal management awareness for implementation
of new structures and strategies.
•
To improve managerial effectiveness and prepare managers for senior positions.
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31. 2.2.6 FEDERATION OF INDIAN EXPORT ORGANIZATIONS
The Federation of Indian Export Organizations is an
apex
body of various export
promotion organizations and institutions. The
Federation of Indian Export Organizations represents the Indian entrepreneur’s
spirit of enterprise global market set up in October, 1965, the Federation,
known popularly as “FIEO”, has kept pace with countries evolving Economic
and trade policies and provided the content, direction and thrust to India’s
expanding international trade.
Its membership, largely comprising professional exporting films
or long experience called government recognized Export Houses, Trading Houses,
Star Trading Houses and Super Star Trading Houses and consultancy exporting
firms. The Federation keeps its members posted with the latest development field of
Export/Import by organizing seminars and workshops, inviting delegations,
rganizing buyers-sellers meets in India and abroad. Trade Fairs, providing advisory
and consultative services brings constant interaction between member exporters and
various government departments. The Federation continued its program of creating
awareness of EDI and E-commerce among Indian exporters and importers through
publication of FIEO News.
FIEO has forged strong links with counterpart organizations in
several countries as well as international agencies to enable direct communication and
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32. interaction between India and world businessmen. It is registered with UNCTAD as a
national non-Government organisation, and has direct access to information/data
originating from UN bodies and world agencies like the IMF, ADB, ESCAP,
WORLD of information as well as for liasioning with several overseas chambers of
commerce, and trade and industry associations.
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33. 2.2.7 COMMERCIAL BANKS
The Commercial Bank was organized in 1934 as a financial service institution
for the purposes of providing the quality of service that can be offered only by a
community bank. Our professional staffs are constantly looking for ways in which to
expand the level of services and products that you expect and deserve, whether it is
through a traditional checking account, club account, auto loan, business account, or a
mortgage loan for the home of your dreams. There are many possibilities from which to
choose and you can be assured that we will work hard to provide them for you.
We are pleased that you are presently using or considering The Commercial
Bank as your provider of financial services. Please don’t hesitate to call on the People
You know at any time.
MISSION STATEMENT:
The Mission of The Commercial Bank is to continue the tradition of
providing quality financial services for customers; a pleasant work environment with
career opportunities for personal growth for employees; and an outstanding return for
shareholders; all under the structure of a successful independent bank.
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34. IMPORTANT OF COMMERICAL BANKS:
Commercial banks (other than EXIM bank & other Export oriented financial
institutions) play an important and crucial role in the development of exports. They
provide a package of services to exporters covering not only pre-shipment (Short Term)
and post-shipment (Medium & Long Term) credit including financing of export incentive
receivable but also giving guarantees for tender bids and performance guarantees. These
are the principal agencies through which RBI’s and EXIM bank’s schemes of credit and
finance for export are implemented.
Commercial banks are mostly scheduled banks i.e. those include in an
appropriate schedule of the RBI , which are in the field of export credit. However, these
banks may or may not be authorized dealers (AD s) in foreign exchange, although, by a
and large, all the scheduled banks are Ads as well.
Export credit is a major part of the operational volume of many commercial
banks and constitutes almost the entire business of specialized export banks like the
EXIM bank. It involves essentially automatic advances against specified documents
conforming an export order, and subsequent progressive liquidation of these advances as
payments are made, from a letter of credit or otherwise, to accordance with the sale
contract, against other documents certifying shipment, delivery, inspection, etc. of the
goods.
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35. BENIFITS:
•
Option to give easier credit terms to customers – better protection than an
ILC, without the need to insist on establishing one
•
More friendly delivery terms offered, like direct delivery to the customer (as
against DP/DA) without any risk
•
Reduced foreign bank handling charges on documents
•
Substantial cost savings and complete freedom in monitoring and follow up
(telephones, faxes, follow-up visits) of receivables, overdue bank interest on
delayed collections and recovery expenses relating to bad debts.
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36. 2.2.8 TRADE FAIR AUTHORITY OF INDIA
Established since 1970, Textile Asia caters for a specialized readership
which in embraces the economic decision-making elite in the industry.
This monthly magazine is indispensable for everyone concerned with
Textile trade, manufacturing, fashion trends, engineering needs, management changes
and development of new plant and equipment in the industry.
It offers news and comment on the current state of cotton, wool, silk and
manmade fiber textile trade and industry - including finishing and garments - throughout
Asia.
Up to now, the fair trade movement was mainly working with agricultural
products such as coffee, rice, dried fruits as well as artisan handicrafts. In the fair trade
shops there is so far a very limited range of garments. The production chain for garments
seemed to be too complicated for fair trade: it goes from the crop growing and spinning
company to the dyeing factory and the actual making of the clothes. How can all this be
controlled? It is a huge challenge for Max Havelaar to make sure, that all producers and
fair trade - partners are following minimal social standards. But the monitoring of the
whole production chain could be an opportunity to enforce social minimal standards and
to promote multi-stakeholder verification. If the fair-trade labeling organizations develop
a close cooperation with trade unions and other initiatives in the garments sector, the
new label initiative can have a positive impact on the aim of Clean Clothes Campaign to
improve working conditions in the garment factories.
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37. 3.1 PERCENTAGE ANALYSIS
3.1.1Number of years of experience
Table3.1.1 shows the number of years of experience the respondents have
in the field of exports.
Table No. 3.1.1
Table showing the number of years of experience
Number of years of experience
No. of respondents
Percentage
Less than 3 Years
13
13
3 - 5 Years
32
32
5 - 8 Years
38
38
More than 8 Years
17
17
100
100
Total
It is known from the above table that out of the total respondents taken for
study, 38% of the respondents have 5 – 8 Years of experience, 32% of the
respondents have an experience of 3 – 5 Years, 17% of the respondents have an
experience of more than 8 Years and 13% of the respondents have an experience
of less than 3 Years in the field of exports.
It is concluded that majority (38%) of the respondents have an experience
of 5 – 8 Years in the field of exports.
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38. Chart No. 3.1.1
Exhibit showing the number of years of experience
120
Percentage
100
No. of
respondents
Percentage
80
60
40
20
0
Less
3-5
than 3 Years
Years
5 - 8 More
Years than 8
Years
No of respondents
38
Total
39. 3.1.2Branches
Table3.1.2 shows whether the organization has a branch.
Table No. 3.1.2
Table showing the branches
Branches
No. of respondents
Percentage
Yes
28
28
No
72
72
100
100
Total
It is known from the above table out of the total respondents taken for
study, 72% of the organizations do not have any branches and only 28% of the
organization has branches.
It is concluded that majority (72%) of the organization does not have any
branches.
39
40. Chart No. 3.1.2
Exhibit showing the Branches
120
Percentage
100
80
No. of
respondents
Percentage
60
40
20
0
Yes
No
Total
No of respondents
40
41. 3.1.3Number of branches
Table 3.1.3 shows the number of branches the organization has.
Table No. 3.1.3
Table showing the number of branches
No. of branches
No. of respondents
Percentage
One
3
10.71
Two
17
60.71
Three
4
14.29
More than three
4
14.29
28
100
Total
It is known from the above table that out of the organizations that have
branches, 60.71% of the respondents have two branches, 14.29% of the
respondents have three branches, 14.29% of the respondents have more than 3
branches and only 10.71% of the respondents have one branch.
It is concluded that majority (60.71%) of the respondents have two
branches.
41
42. Chart No. 3.1.3
Exhibit showing the Number of branches
120
Percentage
100
80
No. of respondents
Percentage
60
40
20
0
One
Two
Three
More
than
three
No of respondents
42
Total
43. 3.1.4Export destinations
Table 3.1.4 shows the destinations where the organizations export their
products.
Table No. 3.1.4
Table showing the Export destinations
Export destinations
No. of respondents
Percentage
European Countries
56
56
Western Countries
38
38
Gulf Countries
3
3
Others
3
3
100
100
Total
It is known from the above table that out of the total respondents taken for
study, 56% of the respondents export their goods to European countries, 38% of
the respondents export their goods to Western Countries, 3% of the respondents
export to gulf countries and 3% of the respondents export their products to Gulf
countries.
It is concluded that majority (56%) of the respondents export their goods to
European countries.
43
45. 3.1.5Number of countries operated with
Table 3.1.5 shows the number of countries the exporters operated with.
Table No. 3.1.5
Table showing the number of countries operated with
No. of countries
No. of respondents
Percentage
Up to 2 Countries
24
24
3 - 5 Countries
51
51
More than 5 Countries
25
25
Total
100
100
It is known from the above table that out of the total respondents taken for
study, 51% of the respondents export their products to 3 – 5 Countries, 25% of the
respondents operate with more than 5 Countries and 24% of the respondents
operate with up to 2 countries.
It is concluded that majority (51%) of the respondents export their products
to 3 – 5 Countries.
45
46. Chart No. 3.1.5
Exhibit showing the number of countries operated with
120
Percentage
100
80
No. of
respondents
Percentage
60
40
20
0
Up to 2
3-5
More than
Countries Countries
5
Countries
No of respondents
46
Total
47. 3.1.6Membership
Table 3.1.6 shows the councils and committees in which the respondents
have their Membership.
Table No. 3.1.6
Table showing the Membership
Councils / Committee
No. of respondents
Percentage
Export Promotion Council
72
48.65
Textile Committee
54
36.49
Tex Procil
22
14.86
Others
0
0.00
148
100
Total
It is known from the above table that out of the total respondents taken for
study, 48.65% of the respondents are members in Export promotion Council,
36.49% of the respondents are members in Textile Committee and 14.86% of the
respondents are members in Tex Procil.
It is concluded that majority (48.65%) of the respondents are members in
Export Promotion Council.
47
49. 3.1.7Opinion towards importance of Education Institutions
Table 3.1.7 shows the opinion of the respondents towards the importance of
Education Institutions to exporters.
Table No. 3.1.7
Table showing the Opinion towards importance of Education Institutions
Opinion towards importance
of Education Institutions
No. of respondents
Percentage
Yes
90
90
No
10
10
100
100
Total
It is known from the above table that out of the total respondents taken for
study, 90% of the respondents feel that the Education Institutions are important
and 10% of the respondents feel that the Education Institutions are not very
essential.
It is concluded that majority (90%) of the respondents feel that the
education institutions are important.
49
51. 3.1.8 Institution that offers required assistance and provides knowledge
Table 3.1.8 shows the institution that offers required assistance and provide
knowledge.
Table No. 3.1.8
Table showing the Institution that offers required assistance and provides
knowledge
Institutions
No. of respondents
Percentage
Chamber of Commerce
67
22.41
Commercial banks
37
12.37
Indian Trade Promotion Organization
23
7.69
Indian Institute of Foreign trade
36
12.04
Export Credit Guarantee Corporation
58
19.40
Indian Institute of Export Organization
21
7.02
Trade Fair Authority of India
30
10.03
Federation of Indian Export Management
27
9.03
Others
0
0.00
299
100
Total
It is known from the above table that out of the total respondents taken for
study, 22.41% of the respondents have preferred Chamber of Commerce to be the
institution that provides required assistance and the organization that inculcates
required knowledge. 19.4% of the respondents have marked Export promotion
Guarantee Corporation, 12.37% have marked Commercial banks, 12.04% of the
respondents Indian Institute of Foreign trade, 10.03% of the respondents have
51
52. marked Trade Fair authority of India, 9.03% of the respondents have marked
Federation of Indian Export management, 7.69% of the respondents have said that
Indian Trade Promotion Organization provides the knowledge and 7.02% of the
respondents have opted Indian Institute of Export Organization.
It is concluded that majority (22.41%) of the respondents have marked
Chamber of Commerce to be the organization that offers assistance and that
inculcates knowledge about export procedures.
52
53. Chart No. 3.1.8
Exhibit showing the Institution that offers required assistance and provides
knowledge
53
54. 3.1.9 Institution offering Export and import incentives
Table 3.1.9 shows the institution that offers export and import incentives to
the organizations.
Table No. 3.1.9
Table showing the Institution offering Export and import incentives
Institutions
No. of respondents Percentage
Chamber of Commerce
81
28.42
Commercial banks
Indian Trade Promotion Organization
Indian Institute of Foreign trade
37
23
43
12.98
8.07
15.09
Export Credit Guarantee Corporation
Indian Institute of Export Organization
Trade Fair Authority of India
61
18
11
21.40
6.32
3.86
Federation of Indian Export Management
Others
Total
11
0
285
3.86
0.00
100
It is known that 28.42% of the respondents say that they receive export and
import incentives from Chamber of Commerce, 21.4% of them say that Export
Credit Guarantee Corporation offers them the incentives, 15.09% of the
respondents have opted Indian Institute of Foreign trade, 12.98% of the
respondents have opted commercial banks, 8.07% of the respondents have opted
Indian Trade Promotion Organization, 6.32% of the respondents have prefer
Indian Institute of export organization, 3.86% of the respondents prefer Trade Fair
Authority of India and an another 3.86% say that Federation of Indian Export
Management offers import and export incentives.It is concluded that majority
(28.42%) of the respondents say that Chamber of Commerce offers export and
import incentives.
54
56. 3.1.10Assistance from Chamber of Commerce
Table 3.1.10 shows the type of assistance the respondents receive from
Chamber of commerce.
Table No.3.1.10
Table showing the Assistance from Chamber of Commerce
Assistance from Chamber of
Commerce
No. of respondents
Percentage
Duty drawback
44
56.41
Government Policies
7
8.97
Customs Clearance
15
19.23
Certificate of origin
4
5.13
Export market trends
4
5.13
General useful information
4
5.13
78
100
Total
It is known from the above table that out of the total respondents taken for
study, 56.41% of the respondents receive assistance to receive Duty drawback
from Chamber of Commerce, 19.23% of the respondents are assisted in Customs
Clearance, 8.97% of the respondents are received assistance by way of
government Policies, 5.13% of the respondents receive help to avail the certificate
of origin, 5.13% are informed about the market trends and 5.13% of the
respondents receive other useful information from Chamber of Commerce.
It is concluded that majority (56.41%) of the respondents receive assistance
for the purpose of Duty drawback from chamber of commerce.
56
58. 3.1.11Nature of assistance from Indian Institute of Foreign Trade and Indian
Institute of Export management
Table 3.1.11 shows the nature of the assistance the organization receives
from Indian Institute of Foreign Trade and Indian Institute of Export management.
Table No. 3.1.11
Table showing the Nature of assistance from Indian Institute of Foreign
Trade and Indian Institute of Export management
Nature of assistance
No. of respondents
Percentage
Research Project
35
28.69
Collection of Data
45
36.89
Training
42
34.43
Others
0
0.00
122
100
Total
It is known from the above table that out of the total respondents taken for
study, 36.89% of the respondents are provided with help for Collection of data,
34.43% of the respondents are provided with training and 28.69% of the
respondents receive help by way of research projects from Indian institute of
Foreign Trade and Indian Institute of Export management.
It is concluded that majority (36.89%) of the respondents avail assistance in
Collection of Data from Indian Institute of Foreign Trade and Indian Institute of
Export management.
58
59. Chart No. 3.1.11
Exhibit showing the Nature of assistance from Indian Institute of Foreign
Trade and Indian Institute of Export Management
59
60. 3.1.12Nature of assistance from Indian Promotion organization and Trade
Fair Authority of India
Table 3.1.12 shows the nature of assistance the Indian Promotion
organization and Trade Fair Authority of India provides to the respondents.
Table No. 3.1.12
Table showing the Nature of assistance from Indian Promotion organization
and Trade Fair Authority of India
Nature of assistance
No. of respondents
Percentage
Upgrade technology
49
43.36
Organize visits of foreign trade
32
28.32
Undertake publicity to print and
electronic media
32
28.32
Total
113
100
It is known from the above table that out of the total respondents taken for
study, 43.36% of the respondents receive upgraded technology, 28.32% of the
respondents get organized visits of foreign trade and 28.32% of the respondents
are availed publicity to print and electronic media from Indian Promotion
organization and Trade Fair Authority of India.
It is concluded that majority (43.36%) of the respondents receive upgraded
technology assistance from Indian Promotion organization and Trade Fair
Authority of India.
60
61. Chart No. 3.1.12
Exhibit showing the Nature of assistance from Indian Trade promotion
Organization and Trade Fair Authority of India
61
62. 3.1.13Nature of assistance availed through Federation of Indian Export
Table 3.1.13 shows the nature of assistance availed through Federation of
Indian Export.
Table No. 3.1.13
Table showing the Nature of assistance availed through Federation of Indian
Export
No. of
respondents
Percentage
Consultancy services
58
50.00
Organizing seminars
48
41.38
Conducting exhibition abroad & creating
10
8.62
Total
116
100
Nature of assistance
It is known from the above table that out of the total respondents taken for
study, 50% of the respondents have received Consultancy services, 41.38% of the
respondents are assisted by means of organized seminars and 8.62% of the
respondents are helped for the purpose of conducting exhibition abroad.
It is concluded that majority (50%) of the respondents are provided with
consultancy services from Federation of Indian Export.
62
64. 3.1.14Nature of assistance through Export Credit Guarantee Corporation
Table 3.1.14 shows the nature of assistance the respondents receive from
Export Credit Guarantee Corporation.
Table No. 3.1.14
Table showing the Nature of assistance through Export Credit Guarantee
Corporation
No. of
respondents
Percentage
Resale of unexpected goods
17
10.69
Claim due to loss or damage
48
30.19
Guarantees to banks
63
39.62
Export Performance Guarantee
31
19.50
Total
159
100
Nature of assistance
It is known from the above table that out of the total respondents taken for
study, 39.62% of the respondents receive help to avail guarantee to banks, 30.19%
of the respondents receive help in order to claim due to loss or damage, 19.5% of
the respondents receive Export Performance Guarantee and 10.69% of the
respondents are provided assistance to resell unexpected goods.
It is concluded that majority (39.62%) of the respondents are provided with
guarantees to the banks from Export Credit Guarantee Corporation.
64
65. Chart No. 3.1.14
Exhibit showing the Nature of assistance through Export Credit Guarantee
Corporation
65
66. 3.1.15Level of satisfaction towards assistance from Education Institutions
Table 3.1.15 shows the level of satisfaction of the respondents towards the
assistance provided by the Education Institutions.
Table No. 3.1.15
Table showing the Level of satisfaction towards assistance from Education
Highly satisfied
Satisfied
Neutral
Dissatisfied
dissatisfiedHighly
Total
Institutions
Chamber of Commerce
19
78
3
0
0
100
Commercial banks
42
49
9
0
0
100
Indian Trade Promotion Organization
12
76
12
0
0
100
Indian Institute of Foreign trade
9
88
3
0
0
100
Export Credit Guarantee Corporation
19
74
7
0
0
100
Indian Institute of Export Organization
15
79
6
0
0
100
Trade Fair Authority India
6
75
19
0
0
100
Federation of Indian Export Management
9
85
3
3
0
100
Level of satisfaction
Institutions
It is known from the above table that out of the total respondents taken for
study, majority of the respondents are satisfied towards the assistance provided by
Chamber
of
Commerce,
Commercial
banks,
Indian
Trade
Promotion
Organization, Indian Institute of Foreign trade, Export Credit Guarantee
66
67. Corporation, Indian Institute of Export Organization, Trade Fair Authority India
and Federation of Indian Export Management.
It is concluded that majority of the respondents are satisfied towards the
assistance provided by various education institutions.
67
68. 3.1.16 Credit limit
Table3.1.16 shows the credit limit facility availed by the respondents from
the banks.
Table No. 3.1.16
Table showing the Credit limit
Credit limit facility
No. of respondents
Percentage
Below 50 lakhs
18
18
50 lakhs to 75 lakhs
22
22
75 lakhs to 1 Crore
23
23
Above 1 Crore
37
37
100
100
Total
It is known from the above table that out of the total respondents taken for
study, 37% of the respondents have a credit limit of more than 1 Crore, 23% of the
respondents possess a credit limit of 75 lakhs to 1 Crore, 22% of the respondents
possess a credit limit of 50 lakhs to 75 lakhs and 18% of the respondents are
provided with a credit limit of less than 50 lakhs by the bank.
It is concluded that majority (37%) of the respondents possess a credit limit
of more than 1 Crore.
68
70. 3.1.17Securities preferred by the Institutions
Table 3.1.17 shows the securities that are preferred by the Institutions to
provide credit.
Table No. 3.1.17
Table showing the Securities preferred by the Institutions
Securities
No. of respondents
Percentage
Letter of credit
75
75
Purchase order
18
18
Others
7
7
100
100
Total
It is known from the above table that out of the total respondents taken for
study, 75% of the respondents prefer Letter of Credit as the security, 18% of the
respondents prefer Purchase order and 7% of the respondents prefer collateral
securities to provide credit.
It is concluded that majority (75%) of the institutions prefer Letter of Credit
as the security to provide credit to the respondents.
70
72. 3.1.18 Level of agreeability towards Problems faced
Table 3.1.18 shows the level of agreeability of the respondents towards the
problem faced in various areas of exports.
Table No. 3.1.18
Problems
Strongly agree
Agree
Neutral
Disagree
DisagreeStrongly
Table showing the Level of agreeability towards Problems faced
Problems in availing credit
11
37
17
22
13
Problem in receiving Duty draw back
17
23
16
35
9
Problem in the rate of Incentives
15
18
19
34
14
Export procedures
11
40
16
17
16
Training Advancement
9
45
15
22
9
Level of agreeability
It is known from the above table that out of the total respondents taken for
study, majority of the respondents agree that they have problems in availing credit,
the exporters feel that the export procedures to be lengthy and tough and training
provided by the educational institutions are more advanced thus the training
content must be simplified as to meet the needs of the exporters. The respondents
disagree that they have problem is receiving Duty draw back and rate of
incentives.
72
73. It is concluded that majority of the respondents agree that they have
problems in availing credit, export procedures and training advancement.
73
74. Average score for number of years of experience and level of satisfaction
towards assistance provided by Education institution
Table3.1.19 shows the average score for number of years of experience and
level of satisfaction of the respondents towards the assistance provided by
Education Institution.
Table No.3.1.19
Table showing the Average score for number of years of experience and level
of satisfaction towards assistance provided by Education institution
Number of years of
Less
3-5
experience than 3
Years
Education institutions
Years
More
5-8
than 8
Years
Years
Chamber of Commerce
3.92
4.13
4.32
4.06
Commercial banks
4.54
4.28
4.32
4.29
Indian Trade Promotion Organization
4.00
4.13
3.92
3.94
Indian Institute of Foreign trade
4.08
4.00
4.08
4.12
Export Credit Guarantee Corporation
4.15
4.09
4.08
4.24
Indian Institute of Export Organization
4.00
4.06
4.11
4.18
Trade Fair Authority India
3.85
3.94
3.87
3.76
Federation of Indian Export Management
4.00
3.94
4.03
4.06
It is known from the above tables that out of the respondents having
different years of experience in the field of exports, respondents with less than 3
years of experience are highly satisfied towards the assistance provided by the
commercial banks and are satisfied towards the performance of other education
74
75. institutions. Respondents with 3 – 5 Years, 5 – 8 Years and more than 8 Years are
highly satisfied towards the assistance provided by the education institutions.
It is concluded that respondents with different years of experience in the
field of exports are satisfied towards the Education Institutions.
75
76. Average score for export destination and level of satisfaction towards
assistance provided by Education institutions
Table3.1.20 shows the average score values for the export destination and
level of satisfaction of the respondents towards the assistance provided by the
education institutions.
Table No. 3.1.20
Table showing the Average score for export destination and level of
Education Institutions
CountriesEuropean
Western Countries
Gulf Countries
Others
satisfaction towards assistance provided by Education institutions
Chamber of Commerce
4.05
4.26
4.00
5.00
Commercial banks
4.45
4.21
5.00
3.00
Indian Trade Promotion Organization
4.11
3.84
4.00
4.00
Indian Institute of Foreign trade
4.00
4.16
4.00
4.00
Export Credit Guarantee Corporation
4.13
4.05
5.00
4.00
Indian Institute of Export Organization
4.00
4.24
4.00
4.00
Trade Fair Authority India
4.00
3.66
4.00
4.00
Federation of Indian Export Management
4.05
4.08
4.00
2.00
Export destinations
It is known from the above table that out of the respondents exporting their
goods to different export destinations, respondents exporting to European
76
77. countries and Western countries are satisfied towards the assistance of all
education institutions, respondents exporting to Gulf countries are highly satisfied
towards the Commercial banks and export credit Guarantee Corporations
assistance and respondents exporting to other countries are highly satisfied
towards the assistance provided by chamber of commerce, they have opined
neutrally towards the assistance provided by commercial banks and are dissatisfied
towards the assistance provided by Federation of Indian Export Management.
It is concluded that Respondents exporting to different export destinations
are satisfied towards the assistance provided by different educational institutions.
77
78. Average score for Number of countries operated with and level of satisfaction
towards the assistance provided by the education institutions
Table 3.1.21 shows the average score values for number of countries with
which the exporters operate with and their level of satisfaction towards the
assistance provided by the education institutions.
Table No. 3.1.21
Table showing the Average score for Number of countries operated with and
level of satisfaction towards the assistance provided by the Education
Institutions
Number of countries Up to 2
3-5
More than
Education Institutions
Countries Countries 5 Countries
Chamber of Commerce
4.29
4.08
4.20
Commercial banks
4.38
4.29
4.36
Indian Trade Promotion Organization
4.04
4.04
3.88
Indian Institute of Foreign trade
4.13
4.04
4.04
Export Credit Guarantee Corporation
4.04
4.12
4.20
Indian Institute of Export Organization
4.08
4.06
4.16
Trade Fair Authority India
4.04
3.82
3.80
Federation of Indian Export Management
3.96
4.06
3.92
It is known from the above table that out of the respondents dealing with
different number of countries, respondents working with up to 2 Countries, 3 – 5
Countries and more than 5 countries are satisfied towards the assistance provided
by all the education institutions.
It is concluded that respondents operating with different countries are
satisfied towards the assistance provided by the education institution.
78
79. Average score for membership and level of satisfaction towards the assistance
provided by the education institutions
Table 3.1.22 shows the average score values for membership and level of
satisfaction towards the assistance provided by the education institutions.
Table No. 3.1.22
Education Institutions
CouncilExport Promotion
Textile Committee
Tex procil
Others
Table showing the Average score for membership and level of satisfaction
towards the assistance provided by the education institutions
Chamber of Commerce
4.05
4.29
4.30
-
Commercial banks
4.47
4.11
4.30
-
Indian Trade Promotion Organization
4.05
4.00
3.70
-
Indian Institute of Foreign trade
4.00
4.09
4.30
-
Export Credit Guarantee Corporation
4.24
3.89
4.30
-
Indian Institute of Export Organization
4.00
4.09
4.60
-
Trade Fair Authority India
3.93
3.83
3.70
-
Federation of Indian Export Management
4.05
4.00
3.70
-
Councils / Committee
It is known from the above table that out of the respondents having
membership in different councils and committees, respondents having
membership in Export promotion council and Textile Committee are satisfied
towards the assistance provided by the Education Institutions and respondents
having membership in Tex Procil are highly satisfied towards the assistance
provided by Indian Institute of Export Organization.
79
80. It is concluded that respondents with membership in different organizations
are satisfied towards the assistance provided by different education institutions.
Average score for number of years of experience and level of agreeability
towards problems faced
Table 3.1.23 shows the average score values for number of years of
experience and level of agreeability towards problems faced.
Table No. 3.1.23
Table showing the Average score for number of years of experience and level
of agreeability towards problems faced
No. of years of Experience
Less
than 3
Years
3-5
Years
5-8
Years
More
than 8
Years
Problems in availing credit
3.31
3.06
2.89
3.53
Problem in receiving Duty draw back
3.62
2.69
2.95
3.47
Problem in the rate of Incentives
2.92
2.88
2.87
2.76
Export procedures
3.38
3.19
2.97
3.18
Training Advancement
3.15
3.09
3.47
3.00
Problems
It is known from the above table that out of the respondents having
different years of experience, respondents with less than 3 years of experience
agree that they face problems in receiving the duty drawback, respondents with 3 –
5 Years and 5 – 8 Years of experience have opined neutrally towards all the
problems and respondents with more than 8 years of experience in this field agree
that they have problem in availing credit.
80
81. It is concluded that respondents with different years of experience have
opined neutrally towards majority of the factors.
81
82. Average score for Export destination and level of agreeability towards
problems faced
Table 3.1.24 shows the average score values for Export destination and
level of agreeability towards problems faced.
Table No. 3.1.24
Table showing the Average score for Export destination and level of
agreeability towards problems faced
Problems
Export
European Western
Gulf
destinations
Others
Countries Countries Countries
Problems in availing credit
3.29
2.92
2.33
3.00
3.09
2.97
3.33
2.67
2.86
2.76
2.67
4.33
Export procedures
3.23
3.00
3.33
2.67
Training Advancement
3.16
3.42
2.67
2.67
Problem in receiving Duty
draw back
Problem in the rate of
Incentives
It is known from the above table that out of the organization that export
their goods to different destinations, respondents exporting for European countries
and Western countries have opined neutrally, respondents exporting for Gulf
countries disagree that they have problems in availing credit and respondents
exporting to other countries agree that they have problems in the rate of incentives.
It is concluded that respondents exporting to different destinations have
opined neutrally towards the problems faced.
82
83. Average score for No. of countries operated and level of agreeability towards
problems faced
Table 3.1.25 shows the average score values for No. of countries operated
and level of agreeability towards problems faced.
Table No. 3.1.25
Table showing the Average score for No. of countries operated and level of
agreeability towards problems faced
No. of countries operated
Up to 2
Countries
3-5
Countries
More
than 5
Countries
Problems in availing credit
3.25
3.24
2.72
Problem in receiving Duty draw back
3.04
2.92
3.28
Problem in the rate of Incentives
2.75
2.75
3.20
Export procedures
3.13
3.22
2.96
Training Advancement
3.46
3.18
3.12
Problems
It is known from the above table that out of the respondents operating with
different number of countries, respondents working with up to 2 countries, 3 – 5
countries and more than 5 countries have opined neutrally towards the problems
faced.
It is concluded that respondents operating in different countries opine
neutrally towards the problems faced.
83
84. Average score for membership and level of agreeability towards problems
faced
Table 3.1.26 shows the average score values for membership and level of
agreeability towards problems faced.
Table No. 3.1.26
Table showing the Average score for membership and level of agreeability
CouncilExport Promotion
Textile Committee
Tex procil
Others
towards problems faced
Problems in availing credit
3.22
2.94
3.10
-
Problem in receiving Duty draw back
3.04
2.94
3.40
-
Problem in the rate of Incentives
2.62
3.11
3.30
-
Export procedures
3.22
3.03
3.00
-
Training Advancement
3.18
3.26
3.40
-
Council / Committee
Problems
It is known from the above table that out of the respondents having
membership in different councils or committees like export promotion council,
textile committee, Tex Procil and others have opined neutrally towards
problems faced.
84
the
85. It is concluded that respondents having membership in different councils
and committees have opined neutrally towards problems faced.
85
86. 3.2CHI-SQUARE ANALYSIS
Personal factors versus opinion towards the institution that offers assistance
and inculcates knowledge
Table 3.2.1 shows the chi-square values and hypothesis testing of personal
factors and opinion of the respondents towards the institution that offers assistance
and inculcates knowledge.
Hypothesis: There is no significant relationship between the personal factors and
opinion of the respondents towards the institution that offers assistance and
inculcates knowledge.
86
87. Table No. 3.2.1
Table showing the Personal factors versus opinion towards the institution
that offers assistance and inculcates knowledge
ChiSquare
analysis
p
value
Significant /
Not significant
Hypothesis
Accepted /
Rejected
Number of years of
experience
15.382
0.636
Not significant
Accepted
Export destinations
223.140
0.000
Significant
Rejected
Number of countries
operated with
14.023
0.299
Not significant
Accepted
Membership
36.922
0.000
Significant
Rejected
Personal factors
Significance p value < 0.05
It is known from the above table that there is no significant relationship
between number of years of experience and number of countries operated with and
the opinion of the respondents towards the institution that offers assistance and
inculcates knowledge. There is significant relationship between the export
destinations and membership and the opinion of the respondents towards the
institution that offers assistance and inculcates knowledge.
It is concluded that there is significant relationship with export destinations
and membership and there is no significant relationship between number of years
of experience and number of countries operated with and the opinion of the
respondents towards the institution that offers assistance and inculcates
knowledge.
87
88. 4.1 FINDINGS
Majority (38%) of the respondents have an experience of 5 – 8 Years in the field
of exports.
Majority (72%) of the organization does not have any branches.
Majority (60.71%) of the respondents have two branches.
Majority (56%) of the respondents export their goods to European countries.
Majority (51%) of the respondents export their products to 3 – 5 Countries.
Majority (48.65%) of the respondents are members in Export Promotion Council.
Majority (90%) of the respondents feel that the education institutions are
important.
Majority (22.41%) of the respondents have marked Chamber of Commerce to be
the organization that offers assistance and that inculcates knowledge about export
procedures.
Majority (28.42%) of the respondents say that Chamber of Commerce offers
export and import incentives.
Majority (56.41%) of the respondents receive assistance for the purpose of Duty
drawback from chamber of commerce.
Majority (36.89%) of the respondents avail assistance in Collection of Data from
Indian Institute of Foreign Trade and Indian Institute of Export management.
88
89. Majority (43.36%) of the respondents receive upgraded technology assistance
from Indian Promotion organization and Trade Fair Authority of India.
Majority (50%) of the respondents are provided with consultancy services from
Federation of Indian Export.
Majority (39.62%) of the respondents are provided with guarantees to the banks
from Export Credit Guarantee Corporation.
Majority of the respondents are satisfied towards the assistance provided by
various education institutions.
Majority (37%) of the respondents possess a credit limit of more than 1 Crore.
Majority (75%) of the institutions prefer Letter of Credit as the security to provide
credit to the respondents.
Majority of the respondents agree that they have problems in availing credit,
export procedures and training advancement.
Respondents with different years of experience in the field of exports are satisfied
towards the Education Institutions.
Respondents exporting to different export destinations are satisfied towards the
assistance provided by different educational institutions.
Respondents operating with different countries are satisfied towards the assistance
provided by the education institutions
Respondents with membership in different organizations are satisfied towards the
assistance provided by different education institutions.
89
90. Respondents with different years of experience have opined neutrally towards
majority of the factors.
Respondents exporting to different destinations have opined neutrally towards the
problems faced.
Respondents operating in different countries opine neutrally towards the problems
faced.
Respondents having membership in different councils and committees have
opined neutrally towards problems faced.
There is significant relationship with export destinations and membership and
there is no significant relationship between number of years of experience and
number of countries operated with and the opinion of the respondents towards the
institution that offers assistance and inculcates knowledge.
90
91. 4.2 SUGGESTIONS
Export procedure is considered to be very complex and tough to be followed, thus
simplifying them in such a way that it is adaptable by every exporter.
Though many exporters are aware of the various assistance and are successful in
getting the assistance from various institution, it takes aback to notice that few
exporters any of the assistance provided by many institution.
The exporters encounter problems in availing the duty draw back, which is a
major incentive that encourages the exporters to export their products. Thus duty
draw back schemes must be made easily.
The incentives provided to the agriculture products and core products are to be
increased as this will entertain the exporters to concentrate on those industries.
The training provided by the education institutions must be simplified in such a
way that it is understandable and adaptable by the exporters.
Many exporters have expressed their grievance regarding the lengthy procedure
and time consuming formalities in getting the assistance.
The general opinion among many exporters is that the required loan is to be made
available by offering minimum security and the interest rate is to be reduced for
long term loans. They also would like to have minimum tax burden.
All the needs of the exporters can very well be taken care by the Government
provided necessary changes are implemented in its policy.
91
92. 4.3 CONCLUSION
Exports are one of the major Foreign earning industry in the country.
Concentration and due care are provided in order to encourage and improve the quantity
of exports. Government provides incentives, duty draw backs and other specialized
schemes and offers to the exporters. One such way to encourage export is by way of
educating the potential businessmen and small export units about the complex export
procedures, terms and conditions. The educational institutions like Chamber of
commerce, Export promotion council, Textile committee etc., are engaged in such
educational activities. The institutions are performing in a very successful manner by
educating the exporters in different areas of exports in a satisfactory manner. This has
increased a good number of exporters to export in an efficient manner. The exporters are
satisfied towards the assistance provided to them and other monetary benefits provided
by the institutions. Buy liquidating the procedure for exports, simplifying the training and
by providing incentives and support to the exporters exports can be enhanced very
successfully.
92