Export Promotional System in India

Abstract

This Paper puts in propor perspoctivo tho role, which export promotion measures/system should play to ensure continuing �expansion and diversification of India's exports in the context of the highly competitivo, complex and fast changing international marketing environment. The entire export promotion system in India, according to the author, has to be overhauled and scientifically orientod to the oxport marketing promotion/development needs rather than just catering to the cost reduction/profitability enhancement objectives, which indeed have some, but very limited, contribution to tho export expansion and diversification efforts of the country. A popular method of appraising benefits from export promotion measures in India has been to compare the net foreign exchange realization from exports with the total cost of administering export promotion measures to national exchequer-a fiscalist approach. The benefit analysis of export promotion system in any country should, however, necessarily bo based on a comparison between Domestic Resource Cost of export promotion measures/system and the Domestic Resource Gain as well as Net Foreign Exchange Earning. The cost-benefit analysis in terms of cost of export promotion system and measures as compared with net foreign exchange earning resulting therefrom can, therefore, be treated only as a partial approach.