By 2025, India hopes to have an economy worth $365 trillion. It can only be done by doubling the current value of exports to a total of 13 billion by the target year. To achieve this goal, the Indian government must play a pivotal role in encouraging the expansion of India’s export sector.
India’s government has set up various agencies and departments to support its export businesses as they grow internationally. The FIEO (Federation of Indian Export Organisations) is one such group. This post will explain how FIEO assists Indian companies in expanding their exports.
FIEO: What is it?
Among the various export development authorities, commodities boards, and export promotion councils recognized by the Government of India, the Federation of Indian Export Organizations (FIEO) is far and away above the others. In 1965, the government of India formed this group to coordinate the efforts of many parties interested in boosting India’s exports.
The Federation of Indian Export Organizations (FIEO) acts as a go-between for Indian businesses and the federal and state governments. The group also links Indian exporters and other sectors, including transportation (road, port, rail), finance (banks), and more.
As of 2021, FIEO’s efforts will help about 2 lakh exporters in the country’s services and industrial sectors. As of 2021, the organization reported 33,570 members and ISO 9001:2015 certification.
How FIEO Contributes to India’s Export Market
Regarding directing and bolstering India’s export industry, FIEO is vital. Everything from working with the government of India to putting up an online storefront is on the table. Let’s take a look at them:
Supports Exporters and Facilitates Communication with Governments
The FIEO assists stagnated Indian exporters by raising awareness of their situation amongst relevant authorities in India and abroad. Because FIEO specialists are accessible online to provide information on policy and international commerce, the organization serves as a vital resource for Indian exporters.
Offers Access to Materials
The Federation of International Export Organizations (FIEO) maintains a website (www.fieo.org) that provides exporters with information about trade promotion firms with global reach, international business possibilities, trade policies, and publication updates.
Niryat Mitra, an app owned and operated by FIEO, provides users with daily reports on tariffs, foreign exchange markets, import/export policy revisions, and emerging business possibilities. All the above information and access to FIEO’s publications and events calendar are available within the app.
The FIEO website is an excellent place for exporters to showcase their businesses, brand, and products. FIEO provides a free online store for exporters to use. A partner of Enterprise Europe Network on behalf of India, the organization, facilitates worldwide expansion for micro, small, and medium-sized enterprises.
Incorporates business sector input into policymaking
The FIEO sets up conferences with government officials to raise trade issues and resolve them rapidly. Members of FIEO are heavily represented on governmental working groups and committees at the federal and state levels, where they help shape trade policy.
On behalf of the Indian government, FIEO owns and runs the website www.indiantradeportal.in. This site details tariffs in 87 different countries, data on India’s share of those nations’ imports, advice on India’s import/export strategy, and information on taxation details, duty disadvantages, and local programs to incentivize exports. Free, minute-by-minute updates are sent via email and text message.
Recognizes and Encourages Exporters
Award ceremonies are held frequently to recognize the best export companies and facilitators.
The group coordinates exhibitions, catalog shows, and business delegates domestically and internationally. FIEO also signs MoUs with their international equivalents.
Training and Other Updates
Policy, banking, commercial prospects, taxes, and the World Trade Organization (WTO) are only some of the themes covered in FIEO’s weekly and monthly web bulletins. The bulletins include feature commercial and technological requirements and R&D collaboration announcements.
A wide variety of international business professionals, government officials, and economic organizations read the publications. The website features a regularly updated listing of export businesses that can be viewed via a search bar.
The organization works with Indian academic institutions to train professionals who can fill positions in the booming international commerce industry. Workshops, training programs, and seminars are just some of how FIEO encourages entrepreneurship in international trade.
FIEO uses its website for open advertising positions, letting students and professionals post their resumes and giving members access to those resumes for recruitment.
India’s Role in International Business
As of 2020, India’s share of global exports is only 1.61 percent, placing it 20th among the world’s export centers. Imports grew at a CAGR of 0.60 percentage points, while exports rose at a CAGR of 1.36% in the five years through 2020-21.
The trade imbalance for 2020-21 was $102.45 billion, with imports totaling $393.61 billion and exports coming in at $291.16 billion. The trade deficit shrank by an average of 36% per year over those five years.
In 2020-21, the United States of America, China, the United Arab Emirates, Bangladesh, Hong Kong, Germany, Singapore, the United Kingdom, Nepal, and the Netherlands were India’s top 10 export markets.
Sales to these regions constituted 50.48 percent of India’s total exports that year. The country’s export growth slowed across all areas besides Bangladesh and China. In 2020, 19.81% of India’s total value of exports of $57.67 billion went to the North American region.
Of the 21 regions, North East Asia contributed 14.47% ($42.12 billion), the European Union 14.21% ($41.36 billion), ASEAN 10.81% ($31.49 billion), and West Asia-GCC 9.54% ($27.77 billion). There was a reduction in shipments to all of these regions except for North East Asia, which accounted for 1.83% of total exports last year.
Advantages of the Indian Exporters’ Federation
COO, or Certificate of Origin:
The FIEO provides its members with a COO and visa recommendation letters.
RCMC, or the Registration cum Membership Certificate:
The group issued the RCMC so that status and non-status holders could take advantage of India’s international trade strategy.
A grant from the MAI (Market Access Initiative)
To support its members’ participation at global trade fairs and exhibitions, the FIEO issues money under the MAI scheme. Members can promote their products at subsidized booths at various events and participate in delegations. Over fifty of the world’s most prestigious trade shows are associated with the FIEO.
In addition to these search engine optimization features, FIEO members can participate in FIEO-organized business-to-business (B2B) meetings and have their product lines featured on the FIEO website.
The Federation of Indian Export Organizations (FIEO) is a professionally operated group to improve India’s export industry. Companies serious about expanding their exports need not be concerned about logistics. They initiate their use by visiting the site or installing the app. They can use FIEO’s tools to keep up with developments as they occur.
The government of India has initiated several initiatives to boost exports. The advance Authorization Scheme is one such initiative. Any materials used to make an export-bound product qualify for duty-free entry through the Advance Authorization Scheme. Usually, getting an advance authorization means that you have to fulfill an export obligation.