Exports up 13.2% in July

Exports grew by 13.2 per cent to USD 16.24 billion in July compared to the same period last fiscal, posting growth for the ninth month in a row. Imports too jumped by 34.3 per cent to USD 29.17 billion in July compared to the same month last fiscal, according to the official data released on Wednesday. During April-July this fiscal, exports posted a growth rate of 30 per cent to USD 68.62 billion on year-on-year basis. Imports during the April-July period grew by 33.3 per cent to USD 112.2 billion. Oil imports in July grew by 4.4 per cent to USD 7.6 billion, while non-oil imports jumped by 49.6 per cent to USD 21.5 billion. The country's trade deficit widened to USD 12.93 billion in July compared to the year-ago period.

More sops for exporters on the cards as Govt mulls sectoral review by December

Exporters might look forward to yet another booster dose from the government after it concludes a sector-wise review by December, said commerce and industry minister Anand Sharma.

At an interaction with some of the chambers of commerce, he said the government would also implement measures to reduce procedural and transaction costs of exports by early October. Challenges remain on container transport under the railways, he said, and on port charges that come under the shipping ministry, which might take some time to address.

The sectoral review would be undertaken in November, with the report in December. This would be done to especially evaluate and analyse the performance of some ailing sectors like handicrafts, carpets, toys and readymade garments, which were given a series of incentives under the annual supplement of the Foreign Trade Policy 2009-2014.

The government had done a couple of similar reviews in 2009-10, too, which induced it to come out with incentives worth Rs 1,050 crore through the FTP announced on Monday, aimed mainly at labour-intensive sectors.

While Sharma sounded confident of achieving exports of $200 billion (Rs 9.34 lakh crore) during the year, he also expressed apprehension over sustaining the growth in the remaining months, saying there would be "bumpy rides". Merchandise exports from India grew by 48 per cent during April-September in 2008, after which it started plummeting due to the slowdown in demand in some significant markets such as the US, Germany, France and Japan, which account for almost 60 per cent of our exports.

The decline in exports was sharpest in May last year, when the fall inched towards 40 per cent year-on-year. However, things started taking a positive turn from October onwards. During the period between October 2009 and March 2010, exports posted a growth rate of 32 per cent, compared to the same period in 2008-09.

Export and Import Correspondence

The Correspondence  in Overseas Business if very Important and the Success of Business is depends on the way of Correspondence. while dealing with Overseas Client : Always use clear, simple and straightforward language when corresponding with a foreign buyer. Avoid poetic and artistic expressions, idioms, colloquialisms, and slang, these will confuse the buyer

Global Business Opportunities and the Importance of Trade Commissions Abroad

The trade commissions abroad are very important. They are the market intelligence unit of the exporting country. Unfortunately, some people unfairly brand the trade commission as a spy agency. Its market information gathering is an overt operation that is sanctioned by the host country, as opposed to the unauthorized covert operation of spying.

Export market information, such as business opportunities and market analysis of target products and services, and various trade publications from the host country are being relayed by trade commissions abroad to the head office. Such information is then relayed by the head office to the exporting community through its trade publication.

Exporters in some countries may find it unnecessary to contact their trade commissions abroad for export information. The information is often available at the head office.

The responsibilities of a trade commission generally are similar from country to country. The primary responsibility is to assist its exporters in selling their products in the foreign markets. The trade commission, however, cannot do everything for the exporter. Some of the can do's and cannot do's of the Canadian Trade Commissions to the Canadian exporters that are outlined by the Department of Foreign Affairs and International Trade (DFAIT) in Canada are as follows:

Can :-

• Recommend appropriate technical experts to help exporter negotiate a deal
• Help exporter find good translators and interpreters
• Help exporter select effective agents
• Maintain a liaison with exporter's agents and encourage them
• Advise on the settlement of overdue accounts
• Advise exporter on situations and circumstances affecting travel to and within a country

Cannot :-


• Be present at all the negotiations when exporter is closing a deal
• Serve as exporter's translator and interpreter
• Act as exporter's agent
• Train or supervise exporter's agents
• Act as exporter's collector
• Act as exporter's travel agent

The Trade Commission are help full to make Export Business easy and Exporters develop the Strong International Business.

By : Bhadresh Bhatt

International Business Communications --- Crossing the Language Barriers in Exporting-Importing

English is the principal language of world trade. Knowledge of more than one language is helpful in exporting, but it is not a prerequisite.

In international business, knowing how to speak and write in English is a necessity. However, proficiency in English or any languages is not a guarantee of export success. Being able to speak and write in the buyer's language will be advantageous in countries where the use of the native tongue is of national pride.

Learning a language other than English in order to export is not absolutely required, as translation services are readily available in most countries. Certain countries even have foreign language escort services to accommodate the exporters' needs. The services of the foreign language escorts are to translate for and accompany the foreign buyer on dining and tour. The escort usually knows very little or nothing about the products of the exporter.

English is not the official language in many countries. Learning a language like English can be tedious. It is important to understand that an English word is not always pronounced the same way everywhere. The varied pronunciation is influenced by the native tongue and ethnic background.

There is no such thing as perfect English. It is not uncommon to hear the novice export person say "I don't quite understand what the buyer has said" (in English). Ironically, the export person is often not from the English speaking country, while the buyer is from U.S.A., United Kingdom, or another English speaking country.

The export person may have spent several years mastering the so-called correct English pronunciation. A different accent puts the export person at a disadvantage. The U.S.A., like Canada, is a multicultural society having a diverse ethnic background. The people in the United Kingdom usually speak English, Welsh and Gaelic.

Fluency in a language is merely a tool to facilitate communication. To fully understand what the buyer says and wants is the essence of export communication. An exporter having difficulty in conversation and comprehension seldom arouses the buyer's interest.

Sometimes it may be impolite to say 'No' directly to show disagreement in such countries as the Japan and China. 'Yes' may mean what is said is understood, but not necessarily accepted. In exporting and importing, it is important to say what is meant and to mean what is said.

The exporter must verify with the buyer in case of doubt about the message received. Do not guess or assume, for example, that the word "dinero" in the message "We want to have the dinero at 6 p.m." must be "dinner." The word "dinero" in Spanish means money.

The use of language 'mixtures' in export communication must be avoided because it may generate confusion.