RESEARCH REPORT

ON

EXPORT/IMPORT OF METAL

HANDICRAFTS

Submitted by
ABHISHEK MALIK
BBA
BATCH- (2017-2020)
ROLL NO- 170241015

Under the guidance of

Internal supervisor Designation

SCHOOL OF BUSINESS STUDIES

SHARDA UNIVERSITY,GREATER NOIDA-201306
 STUDENT DECLARATION

I hereby declare that the research report entitled “ EXPORT/IMPORT OF METAL

HANDICRAFTS” submitted to the school of business studies, Sharda university in partial

fulfilment of the requirement for the award of thte degree of Bachelor of business

administration is a record of dissertation work done by me, under the guidance and

supervision of PROF Deepa kumari. It has not formed on the basis for the award of any

degree/diploma/associateship/fellowship or other similar title to any candidate of any

university.

Due sources in the research report have been cited and acknowledged wherever necessary.
 ACKNOWLEDGEMENT

First and foremost, praises and thanks to the god, the almighty , for his showers of blessings
throughtout my research work to complete the research successfully.
I would like to exress my deep and sincere gratitude to my research provider Prof swati
oberoi for giving me the opportunity to do research andproviding invakuable guidance
throughout this research. Her dynamism vision , sincerity and motivationhave deeply inspired
me. She has taught me the methodology to carry out the research and to present the research
work as clearly as possible. It was great privilege and honour to work and study under her
guidance.I am extremely grateful for what she has offered me. I would also like to thank her
for her friendship , empathy and great sense of humour.
Last but not the least , i thank everybody who helped directly or indirectly in completing the
project that will go a long way in my career. The research report was knowledgeable and
memorable one.

PLACE: SIGNATURE OF THECANDIDATE:

DATE: NAME:
 .TABLES OF CONTENT

CHAPTER PARTICULAR(S) PAGE NO.

1 INTRODUCTION
2 REGULATIONS & RISK IN TRADE
3 PRODUCTION &OTHER BARRIES
4 PROBLEMS FACED IN EXPORT SECTOR
5 HISTORY OF INDIAN TRADE
6 VARIOUS METAL HANDICRAFTS
7 RESEARCH METHODOLOGY
8 RESEARCH DESIGN
10 ANALYSIS & DATA TABULATIONS
11 FINDINGS AND SUGGESTIONS
12 BIBLIOGRAPHY & REFERENCES

Executive Summary
The research report is required for the completion of the BBA in entrepreneurship at Sharda

University , Greater Noida. I have completed this project report with the help of my mentor,

Ms Deepa kumari mam. This project report is based on the export and import of the metal

handicrafts globally. As we know INDIA is tha main manufacturer of metal handicrafts and

other metal items. This report tells about the laws,rules,etc followed by the export/import and

manufacturing industries in making and supplying and demand of these metal handicrafts

INTRODUCTION

INTRODUCTION TO INTERNATIONAL TRADING

Import export businesses, also known as international trading, are one of the hottest

commercial trends of this decade. American companies trade in over 2.5 trillion dollars a year

in merchandise, of which small businesses control over 95 percent. As the owner of an import

export enterprise, you can work as a distributor by focusing on exporting and importing

goods and services that cannot be obtained on national soil (e.g., Russian caviar and French

perfumes) or those that are cheaper when imported from other countries (e.g., Chinese

electronics). In addition, you can also open an export management company (EMC), where

you can help an existing corporation market its products in a foreign country by arranging the

shipping and storing of the merchandise for them without doing the actual selling. EMCs can

specialize in one industry or work with different types of import export manufacturers. It is

also possible to act as a broker for a company, working on commission over the actual sales.

This is a great choice for products that are guaranteed to sell because of high demand or an

established brand name. International trade is exchange of capital, goods, and services across

international borders or territories.[1]. In most countries, it represents a significant share of

gross domestic product (GDP). While international trade has been present throughout much

of history (see Silk Road, Amber Road), its economic, social, and political importance has

been on the rise in recent centuries. Industrialization, advanced transportation, globalization,

multinational corporations, and outsourcing are all having a major impact on the international

trade system. Increasing international trade is crucial to the continuance of globalization.

Without international trade, nations would be limited to the goods and services produced

within their own borders. International trade is in principle not different from domestic trade

as the motivation and the behavior of parties involved in a trade do not change fundamentally

regardless of whether trade is across a border or not. The main difference is that international

trade is typically more costly than domestic trade. The reason is that a border typically

imposes additional costs such as tariffs, time costs due to border delays and costs associated
with country differences such as language, the legal system or culture. Another difference

between domestic and international trade is that factors of production such as capital and

labour are typically more mobile within a country than across countries. Thus international

trade is mostly restricted to trade in goods and services, and only to a lesser extent to trade in

capital, labor or other factors of production. Then trade in goods and services can serve as a

substitute for trade in factors of production. Instead of importing a factor of production, a

country can import goods that make intensive use of the factor of production and are thus

embodying the respective factor. An example is the import of labor-intensive goods by the

United States from China. Instead of importing Chinese labor the United States is importing

goods from China that were produced with Chinese labor.

International trade is also a branch of economics, which, together with international finance,

forms the larger branch of international economics.

Regulation in international trade

Traditionally trade was regulated through bilateral treaties between two nations. For centuries

under the belief in mercantilism most nations had high tariffs and many restrictions on

international trade. In the 19th century, especially in the United Kingdom, a belief in free

trade became paramount. This belief became the dominant thinking among western nations

since then. In the years since the Second World War, controversial multilateral treaties like

the General Agreement on Tariffs and Trade (GATT) and World Trade Organization have

attempted to promote free trade while creating a globally regulated trade structure. These

trade agreements have often resulted in discontent and protest with claims of unfair trade that

is not beneficial to developing countries. Free trade is usually most strongly supported by the

most economically powerful nations, though they often engage in selective protectionism for

those industries which are strategically important such as the protective tariffs applied to
agriculture by the United States and Europe. The Netherlands and the United Kingdom were

both strong advocates of free trade when they were economically dominant, today the United

States, the United Kingdom, Australia and Japan are its greatest proponents. However, many

other countries (such as India, China and Russia) are increasingly becoming advocates of free

trade as they become more economically powerful themselves. As tariff levels fall there is

also an increasing willingness to negotiate non tariff measures, including foreign direct

investment, procurement and trade facilitation. The latter looks at the transaction cost

associated with meeting trade and customs procedures. Traditionally agricultural interests are

usually in favour of free trade while manufacturing sectors often support protectionism. This

has changed somewhat in recent years, however. In fact, agricultural lobbies, particularly in

the United States, Europe and Japan, are chiefly responsible for particular rules in the major

international trade treaties which allow for more protectionist measures in agriculture than for

most other goods and services. During recessions there is often strong domestic pressure to

increase tariffs to protect domestic industries. This occurred around the world during the

Great Depression. Many economists have attempted to portray tariffs as the underlining

reason behind the collapse in world trade that many believe seriously deepened the

depression. The regulation of international trade is done through the World Trade

Organization at the global level, and through several other regional arrangements such as

MERCOSUR in South America, the North American Free Trade Agreement (NAFTA)

between the United States, Canada and Mexico, and the European Union between 27

independent states. The 2005 Buenos Aires talks on the planned establishment of the Free

Trade Area of the Americas (FTAA) failed largely because of opposition from the

populations of Latin American nations. Similar agreements such as the Multilateral

Agreement on Investment (MAI) have also failed in recent years.

Risk in international trade

Companies doing business across international borders face many of the same risks as would

normally be evident in strictly domestic transactions. For example,

 Buyer insolvency (purchaser cannot pay);

 Non-acceptance (buyer rejects goods as different from the agreed upon

specifications);

 Credit risk (allowing the buyer to take possession of goods prior to payment);

 Regulatory risk (e.g., a change in rules that prevents the transaction);

 Intervention (governmental action to prevent a transaction being completed);

 Political risk (change in leadership interfering with transactions or prices); and

 War and other uncontrollable events.

In addition, international trade also faces the risk of unfavorable exchange rate movements

(and, the potential benefit of favorable movements).

(2) Impediment to the growth of foreign trade

Even though, International Trade is doing very well these days, there lies a challenge at every

step. With increase in competition, international trade is subjected to many challenges.

Challenge of international trade may be psychological, infrastructural, and physical. The

challenge of international trade and other associated information and guidelines are usually

made known in the trade policies. The above mentioned three challenges affect the economy

at the enterprise and micro levels. In addition to the trade associated challenges in

international trade, a new challenge, which is lurking large, and had practically devastated the

United States of America, is the fight against terrorism. After the terrorist attacks on the

World Trade Center, there was global economic slowdown. International trade suffered

massively. There were tremendous fluctuations in the exchange rates. Starting from anthrax
attacks to the terrorist attacks on Sept 11th, the trade scenario worldwide has changed

dramatically since then. It is argued that International Trade adversely affects wages,

particularly when trade takes place between two countries in one of which wages are very

low and in the other very high. Like the trade between countries like America and China or

Japan.

Certain Arguments against International Trade

Some of the arguments advanced against international trade include the following:

* A country which depends on imports is in a vulnerable position during war.

* International Trade become a reason for economic instability and result into

conflicts with economic planning.

* International Trade inflicts harm on those home industries whose prduct are

displaced by the imports.

* It implied dependence on foreign markets as sources of supply and as outlets

for domestic production. Some people felt dependence to be dangerous.

They felt to reduce such dependence or entirely eradicated.

Hindrances Faced

International trade involves many countries. Every country is expected to abide by certain

norms, which govern the logistics in international trade. The economic condition, political

make up of a particular nation is never constant. In the event of an unforeseen event, taking

place in any country, the trading partners are also affected to a great extent.

National Defence
If a nation is depended on foreign sources of supply is in a woeful situation during war.

Taking the experience of England world war is a cited proof, in which the blockade of

England by German submarines had brought England to their knees by cutting off imports of

food and essential raw materials.

Instability and Economic Planning

In 1930s when the Great Depression spread from one country to another by disrupting the

international flow of goods, services and capital. Today the argument against international

trade has been reinforced by government policies directed toward achieving full employment

and economic growth. Most nations are unable to achieve the objectives of full employment

and growth as members of an in international trading system.

Production

Attacks on international trade have been directed against imports. There is always a risk for

the protection of domestic industry against foreign competition. It also affects national

security, economic stability, employment, protectionism and others.

Non Tariff Barriers

There are certain restrictions such as Quantitative Restrictions, Voluntary Export Restraint

(VER), Licensing and Administered Protection. Quotas are aimed at reducing the quantity of

imports/exports in order to protect the interests of domestic producers or to conserve foreign

exchange. There are certain chances for misusing the liberalization.

Other Barriers
There are also other common barriers which are faced by all nations like Language Barrier,

Political Barrier, Infrastructure Barriers, Currency Barriers which becomes impediments to

International Trade. It also affects Growth of the country which affects their GDP and also

relationship between two countries.

In order to overcome the challenges faced by the international trade market, several

measures can be adopted. With regard to shipments, export and import of

commodities, if the shipment can be traced in real time, loss worth several million dollar can

be prevented.

Problems faced in import export sector

  CPPCC Vice Chairman Bai Lichen on August 2, 2008 at the second session of the APEC

Business Advisory Council SME Summit, the opening ceremony of the Asia-Pacific, said the

size and the market prices due to the influence of other factors, the SME development is

faced with Many common problems, where the financing problem is encountered in the

development of SMEs, the biggest bottleneck. Bai Lichen said that China's small and medium

enterprises account for about 99% of total number of enterprises, the output value accounts

for 58% of gross domestic product, the export volume of 68%, paid 48% taxes, providing 75

percent of urban employment opportunities. Whether the State rich and powerful people,

whether rich, life is rich and colorful, the economy is vibrant, with this country is closely

related to the degree of development of SMEs. SME is less than five million yuan registered

capital, total assets of 20 million yuan the following annual sales income of 40 million yuan

the following business. Along with the deepening of China's economic restructuring, SMEs

in the national economy is playing an increasingly important role. Since the removal of non-

public economy countries to engage in foreign trade restrictions, more and more SMEs to

obtain foreign trade rights. However, late start due to small and medium enterprises, small
own capital accumulation, capital shortage has become a bottleneck restricting the further

development of small and medium enterprises. Although the mode of operation of China's

small and medium enterprises and marketing initiatives and flexible than the large

enterprises, the difficulty of financing have to much higher than on large enterprises. As the

banks continue to develop new financing products, and work intensity increased, trade

finance income in total income in the bank gradually increase the proportion. At the same

time, the face of the credit crunch this year, the new situation, for various commercial

regarded development objectives aimed at the SME credit market. In this way, how to

combine the features of the development of SMEs in international trade finance for SMEs has

a major research and practical significance.

     Second, the main reason for SMEs to trade finance difficult

     International Trade Finance is based on relying on international settlement in the

international settlement of the related links provided on the financial intermediation,

importers and exporters a choice of method of settlement will determine the types of trade

financing and operational processes, through the settlement areas of financing, to accelerate

the enterprise's liquidity to solve the enterprise accounts receivable payments and external

financial difficulties faced. International Trade Finance is based on the international trade-

based, and it involves not only both domestic and foreign trade market, with different rules of

law and multi-faceted aspect of the complex, but also closely integrated with the import and

export related banking and commercial dual-credit . Relative to large enterprises, SMEs,

trade finance faces more risk factors, and therefore face more difficulties.

     1, SMEs internal reasons. Small and medium enterprises operating in China's import and

export large number, but the overall poor efficiency. Some loss-making enterprise

management confusion, poor credit, often due to lack of funds and the use of financing,

loans, letters of credit financing means packing cash in bank funds. Short-term bank
financing is often long-term occupation in fact, seriously affect the liquidity of banking

assets, and security. At the same time the existence of trade speculation course of business

operations, for example, in a certain period, a difference larger domestic and foreign goods,

domestic traders competing imports of such goods. Such as newsprint, pulp, chemical fiber,

steel, sugar, refined oil, but once the domestic market prices of these commodities decline,

payment can not be recycled, they pose a risk to the bank funds.

     International import and export trade, from negotiation, contract to fulfillment is a kind of

commercial credit. To this end, the two sides of the credit status of import and export

enterprises, management capabilities, import and export of goods, price, quality, delivery

period, market conditions and exchange rate movements as well as the productivity of

enterprises and many other factors will affect the trade, whether it completed successfully.

During this period, any one part of a problem, are likely to lead to business failure, resulting

in trade disputes and claims, a trade risk. To mechanical and electrical equipment imports the

project, for example, SMEs due to lack of adequate technical support, once the imported

equipment not working correctly, or can not meet the technical requirements of the end-user

situation, refused to pay end-users will be faced with the problem, leading to the risk of

lending.

     From the bank's point of view, the banks as a financial enterprise, commercial banks

operating principle is the mobility, safety and profitability. Which profit is the fundamental

purpose of security is the basic premise. Therefore, in business activities, commercial banks

must ensure that their funds were safe, that is, losses and shortages can not occur, so that

commercial banks loans to SMEs want the enthusiasm is not high.

     2, the reasons for the banking system. Import and Export Bank to promote trade, the two

sides played a key role in the completion of foreign banks are operating according to

commercial principles in the management, such as poor management and are subject to the
possibility of failure. And medium-sized bank in the selection agent, in the absence of

adequate capacity to conduct a full investigation agents abroad, the lack of experience in

long-term cooperation and their agents, while some developing countries, external trade,

financial practices, insufficient knowledge of foreign trade management policy , in the trade

settlement from time to time may have been unreasonably refuse to pay and so on. A general

lack of domestic bank financing for SMEs applicable to financial products, credit evaluation

system and guarantee system. China's financial policies and financial systems are based on

state-owned enterprises, especially large state-owned enterprises as the main target of design

implementation, the bank's credit evaluation system, lack of evaluation module for small and

medium enterprises, but rather refer to large enterprise standards, too much to consider

corporate financial targets, leading to a financing needs of enterprises are unable to obtain

loans. Therefore, to solve the problem of SME financing difficulties, we must address the

characteristics of small and medium enterprises, the development of more effective financing

model.

     3, the external policy reasons. Importers and exporters in countries where political and

economic stability, legal soundness, trade, foreign exchange control is strict and other factors

critical to the smooth conduct of trade. Because trade finance between different countries

involved in claims settlement and payment of debt, when the trading partner appears political

instability, exchange controls, sanctions and other factors, can make it difficult to fulfill trade

contracts, so that the bank's trade finance at risk. So, ignore the country and political risks,

there are still potential risk loans.

     3, SME trade finance measures

     1, drawing on the experience of developed countries in international trade financing. The

developed countries in international trade financing, start early, rapid development, there are

many success stories we can learn from:

     1) to support national exports. Developed countries generally adhere to their export

financing for the purchase of machinery and equipment and other commodities.

     2) The loan approval separation. Export credit and guarantees for critical review of the

project, and strive to ensure the repayment of loans. USA review the loan request transaction-

and decide to review the status of foreign importers and the creditworthiness of the property.

     3) financing the diversification of funds. Mainly the state budget funds, multi-party to

raise other funds. Western countries, the source of export financing relies mainly on the state

budget, in addition, there are private funds and local funding. Such as Italy's export credit and

guarantees, mainly depend on the state budget funds, lack of funds at home and abroad to

issue bonds to raise funds.

     2, enhance the credit rating of SMEs. The implementation of the policy on the need

predictability, stability and continuity, in which predictability is the key. Of disloyal behavior

must be severely punished, so that disloyal people can get benefits, so that enterprises can

become consciously disloyal behavior; the same time, small and medium enterprises in order

to obtain bank support to a large extent determined by the enterprise itself, so enterprises will

have to practice hard, "Strength", and strive to create a good business performance.

     3, to increase the capital supply side and the mutual communication between the lenders.

At present, China mainly come from the banks lending to SMEs, therefore, allow banks to

learn more about their business situation and future development prospects and timely

payment of interest repayment, to maintain a good credit history. SMEs should also be

understood that the bank's trade finance business and banking conditions for approval of trade

finance, process and audit the focus of Bank trade financing business do not understand the

situation, it is very difficult to expand the effective use of the banking trade finance business

volume of SMEs. Accordingly, banks should also be based on the current trade market, the

emergence of new trends and new requirements for the development and launch of the actual
needs of SMEs, trade finance products.

     4, to improve China's trade financing system. Banks to speed up the pace of reform, and

actively adjust the credit structure, vigorously develop diversified financial services,

especially in trade finance for SMEs should be conducted to financial services, and promote

the development of SMEs. As soon as possible to formulate relevant laws and regulations,

strengthening self-regulation as well as the construction of credit system for private security

agencies to create a good living environment and guide private investment into the area of

trade finance for SMEs. To create a policy-oriented financial system for SMEs, and should

gradually improve relevant systems, with a view to SME trade finance solution to the

problem. The legislative branch should be integrated with the international trade in the actual

work and future development trends, based on national conditions and also with international

standards as soon as possible to establish a sound legal system for trade financing. Banks and

SMEs should carefully examine the existing laws and regulations, analysis of international

practices and China's current problems between the legal environment to develop feasible

operating plans to build the product-oriented business operating procedures in order to

carefully study the standard contract certificate format the text to avoid business legal risks

that may arise.

     5, train relevant professionals. First, banking, foreign trade enterprises to personnel on the

business of international trade, international finance, law and other related knowledge and

training so that they understand the bank's trade finance products, understanding the

characteristics of various products; followed by operational staff to strengthen the sense of

risk. In peacetime work, should pay attention to lessons learned continue to accumulate

experience and knowledge, especially versed in international trade and transport insurance,

pay close attention to international trade market trends, understand the commodities market

on changes in foster international trade market insight, enhance recognition the potential
risks.

     6, the development of low-risk bank financing Forfaiting. Banks should be able in due

course of business to the enterprise to promote the appropriate species, to play the role of

financial advisers. According to small and medium enterprises to conduct normal business,

trade, import and export financing needs to be a positive innovation in financial services, for

traditional products, to run out of new ideas. If packaged loan business is not limited to

operations under the letter of credit, should be gradually expanded to the collection and

export invoice financing, import business in turn can be used to open letters of credit, standby

letters of credit and other forms of business to meet the various financing needs of SMEs to

promote enterprise development. In addition, domestic letters of credit, government

procurement, closed credit, business and other derivative instruments are also more suitable

for international financing of SMEs.

(3) Future Challenges in import export sector

The World Trade Report 2007 has traced sixty years of multilateral trade co-operation,

starting with the birth of the GATT on 1 January, 1948. The world has changed a good deal

over those six decades and so too has the multilateral trading system. Globalization has

brought economic interaction among nations closer than ever before, thanks in no small part

to revolutions in information and transport technology and growing openness in government

policy. The trend towards increased inter-dependency has rendered international economic

co-operation more complex and multi-faceted. Co-operation among nations has become

harder to manage and more influential in shaping the circumstances in which people live. The

subject matter covered by the system has expanded significantly and many more players are

involved in shaping the system. The 23 original signatories of the GATT have now become

the 151 Members of the WTO.

This report has attempted to provide a better understanding of why countries have chosen to

cooperate with one another in trade matters down the years. This may seem a simple

question, but it turns out to have several answers. Governments embrace varying objectives at

different times, reflecting, among other things, the relative standing of their economies in the

international order, and the priorities imposed by their level of economic development. By

demonstrating the sheer heterogeneity of interests at stake, there port highlights the fragile

and incomplete nature of cooperative endeavors in a changing and uncertain world – in other

words, the continuing challenge of shaping and maintaining mutually advantageous co-

operative arrangements. Effective co-operation among diverse economies with differing

priorities requires clarity of thought and foresight, as well as a willingness to seek

accommodation. A failure to

secure co-operative outcomes may well disadvantage all parties to a potential agreement in

one way or another, but deals can nevertheless prove elusive. An additional requirement for

sustainable and stable co-operation is that governments find ways of addressing adjustment

costs and the re-distributional impact of change – in other words, of managing the challenges

of globalization. Adjustment and income distribution have not been explored here, and they

pose challenges that go well beyond the impact of trade policy changes in an economy.

An historical review of trade relations prior to the establishment of the GATT/WTO strongly

points to the importance of building and sustaining institutional arrangements to underwrite

international trade relations. International institutions can become moribund, with shrinking

relevance, if governments do not take care of them, and institutional decline will likely be

harder to reverse the further it goes. At the same time, it has been repeatedly demonstrated

that if institutions do not adapt to change, they will wither, becoming increasingly regarded as

vestiges of an older world driven by different interests than

those that shape the present. Even when governments show willing to adapt and refashion

their co-operative arrangements in recognition of changing circumstances, there will always

be a sense in which trade agreements remain incomplete. Agreements cannot foresee every

eventuality. So while institutions and contractual provisions can mitigate the uncertainties

connected with contractual incompleteness, they can hardly eliminate them. This brings with

it two implications. One is that disputes are a natural outflow of contractual in completeness.

The other is that dealing with incompleteness requires a delicate balance between flexibility

and adaptation on the one hand, and the preservation of predictability and stability on the

other.

The report has reviewed a rich history of change and institutional adaptation in the

multilateral trading system. It has identified lessons from past experience as well as a number

of challenges to come. History shows how the multilateral trading system’s focus of purpose

proved to be its strength in the early years. The system expanded inexorably over the

decades, in terms of membership, issue coverage and institutional purpose, culminating in the

establishment of the WTO in 1995. A rather uniform set of issues has tended to dominate the

multilateral trading agenda over the life of the institution. Sometimes the idiom has changed

and the details may differ through time, but many of the essential challenges involved in

searching out mutually beneficial cooperative arrangements remain much the same. II

Moving beyond the general requirements of successful cooperation – adaptability and

flexibility in the face of change, effective management of increasingly complex agendas

among ever more numerous and

diverse economies, and an ability to manage the effects of change on domestic populations –

mention may be made of specific challenges that are still with us and others that may emerge.

Among the greatest challenges that the multilateral trading system faces is how to integrate

developing economies into the system in a manner that contributes to their growth and
development aspirations. Managing the relationship between the multilateral trading system

and regional/bilateral trade agreements is another continuing challenge. Thirdly, over at least

the last thirty years governments have had to manage a continuing debate on the shape and

content of the multilateral trading rules, especially around the question of whether and how to

bring new topics onto the agenda. The world changes and institutions have to find new

accommodations within this shifting environment. Fourth, the system has had to manage

trade disputes among parties that centre on their perceptions of acquired rights and

obligations. Not with standing a

continuing interest among some parties in modifying the GATT/WTO dispute settlement

system, it has done an impressive job of this over the years. These are all issues we have

taken up and analyzed at some length in the report.

But what of future challenges, of issues that are beginning to emerge and that call for new co-

operative efforts? These are not issues we have explored in this retrospective on the trading

system, and any listing of future challenges is inevitably speculative and incomplete. It is

nevertheless interesting to consider briefly what might demand the attention of the

international trading community in the years to come. Multilateral, plurilateral and unilateral

actions to reduce tariffs have raised the profile of other measures that determine trade flows,

the conditions of competition and opportunities to gain from trade. Often referred to

generically as non-tariff measures, these cover a wide range of interventions. They have long

been a GATT/WTO concern and the subject of negotiated agreements. These concerns will

probably assume greater prominence in the future. More generally, there is the whole

question of how regulation

affects economic conditions and what challenges are implied in regulatory co-operation

internationally, not least in terms of minimizing discrimination among countries. Another

issue bound to increase in prominence is trade in services. Indeed, the WTO’s efforts to

provide

a framework for co-operation in the services area since 1995 – which we have dealt with only

scantily in this report – provides a good example of creative international co-operation in a

new field, but also a stark illustration of how much remains to be done. The complexity of

services transactions complicates the architecture of institutional arrangements for co-

operation. But there is growing realization of how vital services are in the workings of all

economies, and what the role of trade might be in providing opportunities to benefit from an

efficient and well priced supply of services. Trade in services has become even more

important in recent years in light of evolving business practices, including growing trends in

production sharing and off-shoring. A final issue that might be mentioned here is not a new

one, but one that will almost certainly assume greater prominence. We refer to environmental

issues and their relationship to trade. While we arguably understand better today than we did

two or three decades ago how environment and trade interact, many new and more intensified

environmental concerns, such as global warming, are assuming greater prominence in the

public mind and in policy circles. How trade and the multilateral trading system will

contribute to managing environmental challenges is doubtless an issues about which we shall

hear a lot more. Continuing and future challenges notwithstanding, the shared international

experience of sixty years of the GATT/WTO is a positive story. Plenty of governments, non-

state actors, commentators and critics want to improve the system, but very few would

gainsay its core contribution to a more stable and

prosperous world. An unvarnished look at the less than fully resolved issues of the past, the

outstanding challenges, and the successes – as attempted in this report – will, we hope,

stimulate thought on how best to manage the future.

(4) Initiatives taken by Indian Govt. to promote import export sector

Promotion of export has been a major thrust area of the Ministry of Commerce and Industry

for the last three decades. Apart from this. many other Central / State Ministries have also

been involved in the promotion of India’s exports. Many Export Promotion Councils, Public

Sector Undertakings, Chambers of Commerce, Industries’ Associations and Services

Organizations are also contributing towards the promotion of Indian exports. The facilities

and incentives presently available to the Indian exporters include the following.

1) Marketing Development Assistance (MDA)

The Ministry of Commerce and Industry has a scheme of MDA, which was launched in 1963

with a view to stimulate and diversify the export trade, along with the development of

marketing of Indian products and commodities abroad. The MDA is utilized for: Market

research, commodity research, area survey and research; Participation in trade fairs and

exhibitions; Export publicity and dissemination of information; Trade delegation and study

teams; Establishment of offices and branches in abroad; Grant-in-aid to Export Promotion

Councils and other approved organizations for the development of exports and the promotion

of foreign trade; and any other scheme which is generally aimed at promoting the

development of markets for Indian products and commodities abroad.

2) Market Access Initiative (MAI)

The Ministry of Commerce and Industry has introduced the MAI in April 2001 with the idea

that the Government shall assist the industry in R&D, market research, specific market and

product studies, warehousing and retail marketing infrastructure in select countries and direct

market promotion activities through media advertising and buyer-seller meets. Financial

assistance shall be available under the scheme to EPCs, industry and trade associations and

other eligible activities, as may be notified from time to time. A small allocation of Rs 42

crore has been made for 2002-03. 83

3) Central Assistance to States

The State Governments shall be encouraged to fully participate in encouraging exports from

their respective States. For this purpose, a new scheme “Assistance to States for

Infrastructural Development for Exports” (ASIDE) has been initiated which would provide

funds to the States based on the twin criteria or gross exports and the rate of growth of

exports from different States. Eighty per cent of the total funds would be allotted to the States

based on the above criteria and remaining 20 per cent will be utilized by the Centre for

various infrastructure activities that cut across State boundaries, etc. A sum of Rs 49.5 crore

has already been sanctioned for 2001-02 and further a sum of Rs 330 crore has also been

approved for 2002-03. The State shall utilize this amount for developing complementary and

critical infrastructure.

4) Towns of Export Excellence

A number of towns in specific geographical locations have emerged as dynamic industrial

locations and handsomely contributing to India’s exports. These industrial cluster-towns have

been recognized with a view to maximizing their export profiles and help in upgrading them

to move up the higher value markets. A beginning is being made to consider industrial cluster

towns such as Tirupur for Hosiery, Panipat for Woollen Blankets and Ludhiana for Woollen

knitwear. Common service providers in these areas shall be entitled for EPCG Scheme, funds

under the MAI scheme for creating focused technological services, priority assistance for

identified critical infrastructural gaps from the Scheme on Central Assistance to States. Units

in these notified areas would be eligible for availing all the Exim Policy Scheme.

5) Special Economic Zones (SEZ)

The Government of India had announced an SEZ scheme in April 2000 to promote India’s

exports. Four Export Processing Zones (EPZ), namely Noida (UP), Falta (West Bengal),

Chennai (Tamilnadu), and Viskhapatnam (Andhra Pradesh) have been converted into SEZs
from 1 January 2003. There are seven EPZs in the country. In addition, three formal

approvals and 14 in-principle approvals have been granted for the establishment of SEZs in

private, state, and joint sectors. Policy initiatives taken to promote SEZs include duty-free

import/domestic procurement of goods for development, 84

operation and maintenance of SEZs and SEZ units, external commercial borrowing up to

$500 million in a year without any maturity restriction through recognised banking channels

and a facility to set up overseas banking units in SEZs. The SEZ units have also been getting

exemption from central sales tax on sales made from the domestic tariff area to SEZ units and

exemption from service tax to SEZ units and developers.

6) Duty Drawback on Goods Exported

Under this Duty Drawback scheme export products get relief of incidence of customs and

excise duties paid on raw materials and components used at various stages of production. It is

defined as “rebate of duty chargeable on any imported or excisable material used in the

manufacture of goods exported from India. Duty Drawback is admissible for exports

irrespective of mode of export, i.e. whether dispatched by Sea, Air, Land Customs or by Post.

7) Export Financing

Financial assistance extended by the banks to exporters at pre-shipment and post shipment

stages. While the pre-shipment finance is provided for working capital for the purchase of

raw material, processing, packing, transportation, warehousing, etc, of the goods meant for

export, post-shipment finance is generally provided in order to bridge the gap between the

shipping of goods and the realization of proceeds. With a view to providing pre-shipment

credit to Indian exporter at internationally competitive rates, interest, Reserve bank of India

announced a new scheme in November 1993 to provide Pre-shipment Credit in Foreign

Currency (PCFC) by the banks in India. The PCFC scheme is in addition to normal packing
credit schemes in Indian rupees presently available to Indian exporters. Exporters are also

permitted to draw foreign exchange from the authorized dealers for the purposes such as

foreign travel or for giving

advertisement aboard. Therefore, a person resident in India may open, hold and maintain with

an authorized dealer, a foreign currency to be known as Exchange Earners’ Foreign Currency

(EEFC) Account, subject to the terms and conditions of the EEFC Account Schemes.

8) Exim Bank Finance

The Export-Import Bank of India (Exim Bank) provides financial assistance to promote

Indian exports through direct financial assistance. Overseas investment finance, term 85

finance for export production and export development pre-shipment credit, buyers’ buyers

credit, lines of credit, relining credit facility, export bills rediscounting, refinance to

commercial banks finance for computer software export, finance for export marketing, and

bulk import finance. The Exim Bank also extends non-funded facility to Indian exporters in

form of guarantees. The diversified landing of the Exim Bank now covers various stages of

export, that is from the development of export market to expansion of production capacity for

exports, production for export and pre-shipment financing. The Exim Bank’s focus is on

export of manufactured goods, project exports and export of technology services.

9) Indian JVs / WOS Abroad

Facilities are provided for the proposals from Indian companies for overseas investment in

joint ventures and wholly owned subsidiaries abroad are considered in terms of the Foreign

Exchange Management (Transfer or Issue of any Foreign security) Regulations, 2000.

10) Technology Trade Promotion

The Department of Scientific & Industrial Research (DSIR) operates a scheme called

Transfer and Trading in Technology (TATT) under which it can grant assistance for

technology exports. Apart from financial assistance, the prospective technology / service
exporters can also identify possible export opportunities by studying profiles of various

developing countries, which have been prepared with the support of DSIR to identify the

technology needs of those countries. Under this scheme, the DSIR provides support by way

of grant, to finance efforts for technology exports. The quantum of grant and eligibility is

determined on case-to-case basis, but grant can be extended to 100 per cent of the eligible

expenses.

11) Exim Policy 2002-07

The objectives of the Exim Policy 2002-07 include the enhancement of the technological

strength and efficiency of Indian agriculture, industry and services, thereby improving their

competitive strength while generating new employment opportunities, and encouraging the

attainment of internationally accepted standards of quality. Objectives to be met through the

coordinated efforts of the State Governments and all the Government Departments. 86

Provisions

• Entitled for the import of capital goods, raw material, intermediates, components,

consumables, spares, parts, accessories, instruments and other goods, new or second hand

capital goods, equipments, which are importable without any restriction. However, if such

imports require a license/certificate/permission, actual user condition is specifically dispensed

with by the licensing authority.

• Import on export basis without a license/certificate/permission on execution of legal

undertaking/bank guarantee with the customs authority.

• Re-import of goods repaired abroad.

• Equipment may be sent for repairs, testing, quality improvement on up gradation or

standardization of technology and re-imported without a license/certificate/permission.

• After completion of the projects abroad, project contractors may import, without a

license/certificate/permission, used goods including capital goods provided they have been

used for at least one year.

• For duty free import or where otherwise specially stated, importer shall execute a legal

undertaking (LUT), bank guarantee (BG) with the customs authority before clearance of

goods through customs in the prescribed manner.

• Export of spares – warranty spares, whether indigenous or imported, of plant, equipment,

machinery, automobiles or any other goods may be exported up to 7.5 per cent of FOB value

of exports – within contracted warranty period of such goods.

• Service Exports – include all the 161 tradable services covered under the General

Agreement on Trade in Services where payment for such service is received in free foreign

exchange. The Services Sector includes: - Business Services – Computer and Related

Services, R&D Services, Real Estate Services, Rental/Lending Services without Operators,

Other Business Services, Communication Services, Construction and Related Engineering

Services, Distribution Services, Financial Services, Health-Related and Social Services,

Tourism and Travel-Related Services, Recreational, Cultural and Sporting Services, and

Transport Services.

• The Duty Remission Scheme enables post-export replenishment/remission of duty on inputs

used in the export product. This Scheme consists of Duty Free Replenishment Certificate

(DFRC) and Duty Entitlement Pass Book (DEPB).

• The Duty Exemption Scheme enables duty-free import of inputs for export production. An

Advance License is issued for Physical Exports, Intermediate Supplies, and Deemed Exports.

• Export Promotion Capital Goods Scheme (EPCG) allows import of new capital goods
including CKD/SKD thereof as well as software system at 5 per cent customs duty 87 subject

to an export obligation equivalent to 5 times CIF value of capital goods to be fulfilled under a

period of 8 years.

• EOUs in Export Processing Zones, Electronics Hardware Technology Parks, and Software

Technology Parks.

- Import without payment of duty all types of goods including capital goods

- Second hand capital goods may be imported without payment of duty

• Deemed Exports – refers to those transactions in which the goods supplied do not leave

the country provided the goods are manufactured in India. Supply of goods against Advance

License / DFRC under the Duty Exemption/Remission Scheme

- Supply of goods to EOUs, Units in EPZs, SEZs, STPs, EHTPs.

- Supply of capital goods under the EPCG Scheme License holder.

- Supply of goods to projects financed by multilateral or bilateral agencies/funds notified by

the Department of Economic Affairs, Ministry of Finance.

- Supply of projects founded by UN agencies.

Special Focus on Cottage and Handicraft Sector – In recognition of the export

performance of Cottage and Handicraft Sector, a special focus has been made to further

increase its competitiveness and following facilities will be made available to them:

(i) Initially an amount of Rs 5 crore has been earmarked for promoting cottage sector

exports for coming under the KVIC.

(ii) Units in Handicrafts Sector can also access funds from Market Access Initiative.

(iii)Under the EPCG Scheme, these units will not be required to maintain average level of

exports.

(iv)Units shall be entitled to the benefit of Export House status on achieving lower average

export performance of Rs 5 crore as against Rs 15 crore for others.

(v) Units in Handicrafts Sector shall be entitled to duty free imports of specified items as

embellishments up to 3 per cent of FOB value of their exports.

Brand Promotion and Quality — The Central Government aims to encourage

manufacturers and exporters to attain internationally accepted standards of quality for their

products. The Central Government will extend support and assistance to trade and industry to

launch a nationwide programme on quality awareness and to promote the concept of total

quality management. 88

Test Houses—The Central Government will assist in the modernization and up gradation

of test houses and laboratories in order to bring them at par with international standards.

Electronic Hardware—The Electronic Hardware Technology Park (EHTP) scheme is

being modified to enable the sector to face the zero duty regimes under Information

Technology Agreement (ITA)-1. Units shall be entitled to following facility:

(i) NFEP positive in 5 years.

(ii) No other export obligation for units in EHTP.

(iii)Supplies of ITA—1 Items having zero duty in the domestic market to be eligible for

counting of export obligation.

Focus Africa Programme—Focus Africa Programme is launched this year giving a

boost to India’s trade with the sub-Saharan African Region. In the first phase of the

programme, the target countries are: Nigeria, South Africa, Mauritius, Kenya, Ethiopia,

Tanzania, and Ghana.

These seven countries accounted for nearly 70 per cent of India’s total trade with the sub-

Saharan African Region in 2000-01. Certain target areas for export focus have also been

identified. These are:

• Cotton yarn, fabrics and other textile items

• Drugs & pharmaceuticals

• Machinery & instruments

• Transport equipment

• Telecom and information technology

Exporters exporting to these markets would be given Export House status on export worth Rs

5 crore. Next year “Focus: CIS Programme” would be launched.

SALIENT FEATURES CONCERNING TECHNOLOGY

EXPORTS AS

ANNOUNCED IN UNION BUDGET 2002-03

1. Budget Strategy

• Continue the emphasis on agriculture and food economy reforms.

• Enhance public and private investment in infrastructure.

• Strengthen the financial sector and capital markets.

• Deepen structural reforms and regenerate industrial growth.

2. Agricultural Exports

Agri-export Zones, 15 zones approved so far. APEDA will catalyze development of

infrastructure and flow of credit to the units in these agri-export zones.

3. Infrastructure Development

Power, Roads, Civil Aviation, Ports, Telecommunications, etc. 89

4. Capital Account Liberalization

• Full convertibility of deposit schemes for NIRs.

• Indian companies wishing to invest abroad may now invest up to US$100 million on an

annual basis through the automatic route, up from the existing limit of US$50 million.
• Indian companies making overseas investment in joint venture abroad by market purchases

may now do so without prior approval up to 50 per cent of their net worth, up from the

current limit of 25 per cent.

• Foreign currency convertible bond (FCCB) scheme under the automatic route up to US$50

million.

5. Exports

• Special Economic Zones

• Creation of new export promotion industrial parks and associated facilities through State

Governments, outlay increased from Rs 97 crore to Rs 330 crore in 2002-03. Overall outlay

for Department of Commerce increased by 55 per cent to Rs 775 crore in 2002-03. SEZ

would be entitled to procure duty free equipment, raw materials, components, etc., also to

units located therein.

6. Television Channels

India has technical capability to become an uplinking hub for television channels for the

SAARC countries. In order to promote state of the art uplinking facilities at competitive cost,

customs duty to be reduced on certain earth station equipment and studio equipment from 35

per cent to 25 per cent.

7. Fresh Investment

Additional depreciation of 15 per cent on new plant and machinery acquired on or after

1.4.2002 for setting up new industrial units or for expanding the installed capacity of existing

units by at least 25 per cent.

8. Corporate Tax

Corporate tax reduced to 40 per cent from 48 per cent for foreign companies.

9. Indian System of Medicine

Budgetary support increased by 25 per cent to Rs 150 crore next year.

10. Science & Technology (S&T)

Fund for improvement of S&T (FIST) for augmenting laboratory facilities in universities,

increased by 115 per cent to Rs 75 crore. A micro venture capital fund for small innovators to

be initiated by SIDBI, in cooperation with National Innovation Foundation to facilitate the

transitions of innovations into enterprises. 90 Tenth Plan emphasises on promotion of

technology intensive exports. The S&T budget outlay considerably increased for 2002-03.

11. Information Technology

Implementation of zero duty regime under ITAI agreement postponed from 2003 to 2005.

Custom duty on a number of hardware inputs reduced to 5 per cent and on certain capital

goods to 15 per cent duty on certain IT items would be reduced to 1 per cent or 5 per cent as

per the WTO provisions.

12. Free Trade Zones etc. and 100% Export Oriented Units

Restrict the deductions to 90 per cent of profits and gains as are derived by an undertaking

from the export of articles or things or complete software for the assessment year 2003-04

only.

13. FDI

Most of the sectors are open to automatic FDI.

14. Customs Duties

Moving towards customs duty on raw materials/components, etc. to be generally at 10 per

cent and that for finished goods/products at 20 per cent.

15. Auto Policy

Auto policy does not envisage any limitations on investments and is being considered as a

thrust sector for accelerating industrial and economic developments, enhancing exports and
employment. generation. Excise duty exemptions for undertaking R&D in this sector are

allowed.

16. Small Scale Industry

Removal of small-scale industry reservations for more than 50 items contributing

substantially to the overall small industry production. These include knitwear, agricultural

implements, auto components, some chemicals and drugs. Others will now be reserved.

Credit linked capital subsidy scheme for technology up gradation is announced. PLAN

OUTLAY BY SECTOR

METAL HANDICRAFTS HISTORY

IINDIAN HANDICRAFTS AND GIFTS

India is one of the major exporter and supplier of handicrafts and gift products to the world
market. The Indian handicrafts industry is highly labor intensive and decentralized, being
spread all across the country in rural and urban areas. The sector is considered as the second
largest employment-generating sector after agriculture with numerous artisans engaged in
craft work on a part-time basis. The industry offers employment to over 6 million artisans,
including a large number of women and people from the weaker sections of society.

The present day handicraft tradition of India is a perfect example of assimilation between the
traditional designs and modern techniques. The fast growing demand for Indian handicraft
and gifts products have made this sector a full-fledged large scale organized industry that is
growingdaybyday.

History
The rich history of India’s craft tradition has evolved over the centuries offering a legacy of
Indian culture promising everything - beauty, dignity, form and style. The variety is
comprehensive and ranges from age-old stone carvings to modern handicrafts making use of
glass flints and mirrors. The most popular crafts, include metalware, earthenware, pottery,
sculpting, woodwork, hand-printed textiles and scarves, embroidered and crocheted goods,
shawls,zariproducts,stonecarvingandimitationjewelry.

There is a myriad of art and craft traditions in India that depend on social, economic and
regional factors. The present status of the sector in India owes much to the rich crafts history
and tradition of the past. Majority of the crafts from the past continues to flourish due to their
utilitarian characteristics, availability to the common people and popularity in domestic and
global markets.
Today, some of the sectors within the craft industry have even become full fledged industries
in their own, like - carpet weaving, traditional textile (Banarsi silk sari, Chikankari etc), gem
cutting and polishing, jewelry making, the world famous diamond cutting and polishing
industry, brassware, jute products, etc. The growth of these industries is due to their ever-
increasing demand and the popularity of Indian crafts in the domestic market and overseas.
Gems and jewelry, carpet making, metalware, leather products, jute products etc. are some
industries, which are growing rapidly.

Exports
Generally considered a cottage industry, Indian Handicrafts and Gifts Industry has outgrown
its image to evolve into a rapid growing industry with a turnover from US $ 1.2 million to
US$ 1.9 billion in the last decade. There has been a consistent annual growth rate of more
than 15 per cent over a 10-year period, from 3.6% to a respectable 10% share in global
handicraft exports. In 2005-2006 the exports of Indian handicrafts has shown an increase of
US$ 298.87 million, i.e. the exports increases by 10.02% over the similar period during 2004-
2005. Though India's share in international handicrafts market is just about 2 %, the world
handicrafts market is estimated to be of the order of US $235 billion. The industry is
expected to triple its export turnover to Rs. 39,000 crore by 2009-10 that in turn will also
create around 20 lakh new job opportunities.

PRODUCTS EXPORTED
The items, which account for a major share of export turnover, include - art metalware, woodware,
hand-printed textiles, hand-knotted and embroidered textiles, leather goods, stoneware, paintings and
sculpture, jewelry and antique & collectibles.

With 26 states, 18 languages and more than 1500 dialects, the country offers an enormous range of
handicrafts from different states and regions. Major production centers are, in Uttar Pradesh -
Moradabad also known as the "Peetalnagari" (City of Brass), Saharanpur for its wooden articles,
Ferozabad for Glass. The North-Western state of Rajasthan is known for its Jaipuri quilts, Bagru and
Sanganer printed textiles and wooden and wrought iron furniture. The coastal state of Gujarat offers
famous embroidered articles from Kutch. Narsapur in Andhra Pradesh is known for its Lace and Lace
goods. But all this is only a small portion of total product range. The country offers much more.

Country-Wise Export of Indian Crafts

Major buyers of Indian handicrafts are

U.S.A., Germany, U.K. &

Art Metalwares
Italy

   

U.S.A., U.K., Germany &

Wood Wares
France

   

Hand Printed & Textiles & U.S.A., U.K. , Germany &

Scarves Canada

Embroidered & Crocheted U.S.A., Saudi Arabia, U.K.,

Goods Germany

Saudi Arabia, U.S.A. Japan

Shawls as Artwares
& U.K

U.K. U.S.A., Japan &

Zari & Zari goods
Saudi Arabia

U.S.A., U.K., Saudi Arabia

Imitation Jewelry
& Germany

U.S.A., Germany, U.K. &

Miscellaneous Handicrafts
France

Art Concentration Areas

A comprehensive range of handicrafts and gifts products is made all over India. Although it is
quite difficult to limit a particular place for a specific craft, the following places are well
known for their unique crafts.

Moradabad, Sambhal, Aligarh, Jodhpur, Jaipur, Delhi, Rewari,

Art Metalware
Thanjavur, Madras, Mandap, Beedar, Kerala, Jagadhari and Jaselmer

Saharanpur, Nagina, Hoshiarpor, Srinagar, Amritsar, Jaipur, Jodhpur,

Wooden Artwares Jagdalpur, Bangalore, Mysore, Chennapatna, Madras, Kerala &
Behrampur (WB)

Hand printed Textiles

Amroha, Jodhpur, Jaipur, Farrukhabad, Sagru & Sanganer
and Scarves

Kutch (Gujarat), Jaisalmer, Baroda, Lucknow, Jodhpur, Agra,

Embroidered Goods
Amritsar, Kullu, Dharmshala / Chamba & Srinagar

Marble & Stone

Agra, Madras, Baster and Jodhpur
Craft

Terracotta Agra, Madras, Baster, and Jodhpur

Zari & Zari Goods Rajasthan, Madras and Baster

Papier Machine Craft Kashmir and Jaipur

Artistic Leather lndore, Kolhapur and Shanti Niketan (WB)

Goods

Imitation Jewelry Delhi, Moradabad, Sambhal, Jaipur and Kohima (Tribal)

FUTURE PROSPECTS
The dynamism of handicrafts industry in India is unparalleled - be it the traditional Indian
arts and crafts or a customized version of an overseas art form. Unlike in the past when the
industry was battling to carve a niche in the market, there is a great demand for Indian
handicrafts today that is being nurtured by different government and non-governmental
organizations.

The sector is economically important from the point of view of low capital investment, high
ratio of value addition, and high potential for export and foreign exchange earnings for the
country. The export earnings from Indian handicrafts industry for the period 1998-99
amounted to US$ 1.2 billion.

The market is developing due to the huge demand of its products in terms of utility, cost and
aesthetics. To centralize and better organize the sector, the government has also initiated the
concept of 'Towns of Excellence' that are providing recognition to production areas where the
handicrafts have been traditionally developed. Today, there are 35 urban 'Haats' all across the
country, that allow for the allotment of built-up stalls to artisans on a fortnightly rotation
basis at nominal costs.

The industrial revolution and the increasing productivity had slowed down the growth and the
quality of arts and crafts, but for some decades now, the scenario has changed and machine-
made products no longer attract the people. Presently handicrafts are being considered as
vocational media and it is also opted for style statement and the leisure pursuit. Today, the
crafts and craftspeople have a vital role to play in modern India – not just as part of its
cultural and tradition, but as part of its economic future.
SOME VARIOUS METAL HANDICRAFTS OF INDIA -:
 RESEARCH METHODOLOGY

The purpose of methodology in the report making is to describe the research process that is

followed while doing the main part. This would however include the research design, the

sampling procedure, the data collection method. This section is perhaps difficult to write as it

tunderstand the terminology use. The methodology followed by the researcher, during the

prepration of the report was:

RESEARCH OBJECTIVE

 To study the financial viability of the project.

 To study the economic impact of the project

 To study the revenue stream of the project

RESEARCH DESIGN

A research design is purelyand simply the framework or plan for a study that guides the

collection and analysis for data. The survey research was used in this project, because

consumers feedback was necessary for obtaining the data.

RESEARCH INTRUMENT

For doing the research, structured reports on the sites related to the import and export of the

handicrafts were used .

 DATA TABULATIONS, INTERPRETATIONS, ANALYSIS &

FINDINGS

Top Ten Destinations of India's Export for Handicrafts

2000 - 2001 Value (In 2001 - 2002 Value (In 2002 - 2003 Value (In
Rank Country Name
Million US$) Million US$) Million US$)

1 USA 294.8517 219.176 324.6047

2 UK 61.6174 56.1987 79.1673

3 Germany 37.554 30.4357 47.2585

4 France 31.013 29.4103 37.5341

5 Netherlands 29.243 25.8394 37.3164

6 Spain 21.8287 19.0162 30.4608

7 Italy 27.9376 19.89 24.0536

8 UAE 14.6376 12.205 20.9196

9 Canada 15.2344 12.8124 17.6554

Belgium-
10 9.0019 9.5755 14.5125
Luxembourg
  According to the provisional data available, the export of handicrafts has shown an
increase of Rs. 2761.29 crores, from Rs.14, 526.85 to Rs.17, 288.14 crores (increase
of 19.01% in rupees term). In dollar terms, the export figures have shown an increase
of US$ 528.70 millions, i.e. the exports increased by 16.11% over the similar period
during 2005 - 06. Details are given below –

STATEMENT PRESENTING PROVISIONAL EXPORT FIGURES OF

HANDICRAFTS DURING THE PERIOD APRIL- MARCH 2006 - 07 COMPARED
TO THE CORRESPONDING PERIOD OF APRIL- MARCH 2005 - 2006.

INCREASE
US$ IN INCREASE IN
RUPEES IN CR. (April- IN %
Items MILLIONS % OVER 2005-
March) OVER 2005-
(April-March) 06
06

INCREASE IN
2005-06 2006-07
% OVER 2005- 2006-07
*44.2546 *45.3607
06

Artmetal
3662.98 4135.06 12.89 827.90 911.60 10.14
Wares

Woodwares 853.06 1180.02 38.33 192.76 260.14 34.96

Handprinted
2053.70 2465.18 464.07 543.46
Textiles
20.04 17.11
& Scaraves 4711.45 5860.35 1064.62 1291.94

Embroidered
110.23 216.82 24.91 47.80
&
24.39 21.35
Crocheted
347.05 392.45 78.42 86.52
Goods

Shawls as
274.86 386.09 96.70 62.11 85.12 91.89
Artwares

Zari & Zari

2513.52 2652.17 13.08 567.97 584.68 10.33
Goods

Imitation
14526.85 17288.14 40.47 3282.56 3811.26 37.05
Jewelry

Misc.
    5.52     2.94
Handicrafts

Total 19.01 16.11

US$ at the rate of Major Importers of Indian Handicraft Products (2004-05) (Source –
Export Promotion Council for Handicrafts)
 MAJOR BUYERS OF VARIOUS INDIAN HANDICRAFTS

Major buyers of Indian handicrafts are

U.S.A., Germany, U.K. &

Art Metalwares
Italy

   

U.S.A., U.K., Germany &

Wood Wares
France

   

Hand Printed & Textiles & U.S.A., U.K. , Germany &

Scarves Canada

Embroidered & Crocheted U.S.A., Saudi Arabia,

Goods U.K., Germany

U.S.A., Germany, U.K. &

Miscellaneous Handicrafts
France
BIBLIOGRAPHY

Export import management justin paul, rajiv aserkar oxford higher education

(5) References

http://en.wikipedia.org/wiki/International_trade

http://www.scribd.com/doc/19357723/Impediments-to-International-Trade

http://www.piie.com/publications/chapters_preview/66/1iie2350.pdf

http://www.dsir.gov.in/reports/techint/annex5.pdf

http://www.dateyvs.com/custom03.htm

http://www.economywatch.com/international-trade/

http://www.economywatch.com/international-trade/trade-barriers.html

Objectives of Study

The objective of this study is to learn about the functioning of export house and

working of various departments particularly production, merchandising, data entry,

sampling and earning knowledge about different departments of the company, their

function and information flow during work. Also to do internship for the completion of
BBA degree from sharda university it was compulsory and to make a report on it.

Observe and participate in business operations and decision-making.

Meet professional role models and potential mentors who can provide guidance,

feedback, and support.Expand network of professional relationships and contacts.

Develop a solid work ethic and professional demeanor, as well as a commitment to

ethical conduct and social responsibility.

Data collection Method

I collected this by following method-

# Personal interviews from various departments

# Close observations during work

# Internal data from various departments

# And secondary data was collected from the website of OM ENTERPRISES.

# knowledge gained during the internship