SMu Export Import Management Chapter 13 Outlines and Structure

Outlines and Structure Chapter 13 SMU Export Import Management  

Unit 13: Export Incentives and Status Holders

13.1 Introduction

Objectives

13.2 Various Schemes Offered to Exporters

Assistance to States for Developing Export Infrastructure and Allied Activities (ASIDE) Scheme

Market Access Initiative (MAI) Scheme

Marketing Development Assistance (MDA) Scheme

13.3 Special Economic Zone (SEZ)

13.4 Agri Export Zone (AEZ)

13.5 Software Technology Parks

Importance of STPs

Services offered

13.6 Summary

13.7 Glossary

13.8 Terminal Questions

13.9 Answers

13.10 Case Study

Caselet

Can India Emulate China?

A look into the Chinese foreign policy shows lucrative incentives offered by state government to Foreign Invested Enterprises or FIEs. FIEs enjoy a complete business tax waiving. Besides, those FIEs engaged in transfer of technology are allowed to apply for 100% business tax refund, in case it is already paid.

(i) A yearly volume of export of at least 10 million US dollars or more. Moreover the enterprise must have its actual export growth more than 25% over the last year, (ii) A yearly export volume of such an enterprise must have at least 5 million US dollars. Its actual export growth must be more than 40% over the last year, and it must have inward remittances earned from exports of at least 80%.

If the above story of FIE is an example of provincial government’s financial incentive. The measures taken within the city of Zhen Zhou is remarkable in offering leverage to the indigenous companies. Among the myriad incentives export incentives seem to be the most rewarding one.

Such aggressive measures of granting export incentives by China’s local governments give a promise to uplift the economy. The benefits of export incentive for an economy are manifold. The native companies, as they expand through incentives, will require workers which will reduce unemployment to a large extent. Above all, the country will be able to develop its infrastructural facilities through expansion of companies. Needless to say, that this development is a sure call for foreign investments in China.

Could similar incentives help India in boosting their export in international market?