The Directorate General of Foreign Trade (DGFT)
    31Dec, 2024
    What Is DGFT ?

    Directorate General of Foreign Trade (DGFT)

    The Directorate General of Foreign Trade (DGFT) is a government body responsible for implementing the country’s foreign trade policy.

    The Directorate General of Foreign Trade (DGFT)

    Directorate General of Foreign Trade (DGFT) – Introduction

    The DGFT is the chief body that administers laws related to foreign trade and foreign investment in India.

    1. It implements the foreign trade policy or the EXIM (export-import) policy of the government.
    2. Its main mandate is to promote exports from India.
    3. It is an attached body of the Ministry of Commerce & Industry, GOI.
    4. It is headed by the Director-General of Foreign Trade. He/she is at the apex position of the Indian Trade Services (ITS).
    5. The DGFT was formed in 1991 when the LGP (liberalization, globalization, privatization) policies of the government took off. Read more on the Economic Reforms of 1991.
    6. Before 1991, the DGFT was known as the Chief Controller of Imports & Exports (CCI&E).
    7. The organization formulates guidelines for Indian exporters and importers.
    8. Since the liberalization, the DGFT is no longer the ‘controller’, rather it is a facilitator in matters of foreign trade.
      • There was a policy shift from control/prohibition to facilitate/promotion of foreign trade.
    9. The office works in tandem with other similar organizations such as the Customs Commissionerate, the DRI authorities, the Central Excise authorities, and the Enforcement Directorate.
    10. The DGFT is the licensing authority for export/import businesses in India.
    11. The DGFT’s offices offer facilitation to exporters in connection with developments in international trade such as WTO Agreements, Rules of Origin and anti-dumping issues, etc. to aid them in their export and import decisions in an international dynamic environment.
    12. The Directorate is headquartered in New Delhi with 38 regional offices all over the country.

    DGFT – Functions

    The functions of the DGFT are given below.

    1. Implementing the foreign trade or EXIM policy of the government.
    2. Providing a complete database of all exporters and importers in India.
    3. Granting of the Exporter Importer Code (EIC) Number to exporters and importers in India.
      • The EIC Number is a ten-digit number that is needed for people to export and/or import.
    4. It has the authority to prohibit, restrict, and regulate importers and exporters.
    5. Regulating and permitting the transit of goods from India to adjacent countries according to the bilateral trade agreements.
    6. Promoting trade between India and her neighbouring countries.
    7. Granting permission of free export wherever necessary.
    8. It plays a vital role in controlling DEPB rates.
      • DEPB: Duty Entitlement Pass Book
      • DEPB Scheme is an export incentive scheme of the GOI given to exporters.
    9. Handling quality complaints of the foreign buyers of Indian export products.
    10. Formulating or adding new codes in the ITC-HS Codes.
      • ITC-HS codes are also known as Indian Trade Clarification based on the Harmonized System of Coding.
      • These are codes given to export/import products.

    Directorate General of Foreign Trade (DGFT)

    UPSC Questions related to DGFT

    Q1: Who is the present DGFT?

    The current Director-General of Foreign Trade is Amit Yadav, IAS.

    Q2: What is a Bank Realisation Certificate (BRC)?

    It is a certificate issued by banks as a confirmation that the exporter has received payment against the export of goods from his buyer.

    Monthly-Bulletin-on-Foreign-Trade-October_24Download

    IEC

    The Importer -Exporter Code (IEC) is a key business identification number which is mandatory for Exports or Imports. No person shall make any import or export except under an IEC Number granted by the DGFT. In case of import or export of services or technology, the IEC shall be required only when the service or technology provider is taking benefits under the Foreign Trade Policy or is dealing with specified services or technologies.

    Apply Now , Aakash Shrivastav

    Textiles- niryaat.in
    24May, 2024
    Top 10 Largest Textile Exporting Countries in the World.

    Explore the global textile market’s dynamics by examining the leading textile exporting countries, including the Largest textile exporters, Top textile exporting countries, and Key players in the global textile market and export statistics worldwide.

    Top 10 Largest Textile Exporting Countries in the World: China is the largest textile exporter country in the world. The selling and purchasing or trading of textile products from one nation to another can be referred to as “textile export.” This sector plays a major role in the global economy.

    The top 10 largest textile export countries in the world are China, India, Germany, Italy, Vietnam, Bangladesh, Turkey, USA, Mexico, and Indonesia. These nations possess access to inexpensive materials, competent labor, and appropriate trade agreements that create job opportunities and revenues.

    This article will explain all the world’s top 10 largest textile export countries and their export value.

    Largest Textile Exporters

    “Textile export” refers to the practice of selling textiles that are produced domestically and are in demand abroad. One of the most significant economic factors in nations that generate large quantities of textile goods is the export of textiles. Millions of workers rely on it for their livelihoods and jobs. It also contributes significantly to income generation and trade system balancing in the nation. 

    Textile manufacturing and exportation is a fiercely competitive sector of the economy. Therefore, to stand out in the global marketplace, textile producers must add a unique touch to their products. The exporters have always been reductionists. They continuously upgrade their techniques, employ and adopt the latest technologies, and provide services, and essential needs to their customers.

    About the Largest Textile Exporting Countries

    Around the world, several countries are good at making and selling clothes and fabrics. China is the top dog here, making lots of different stuff. India is right behind, famous for its beautiful fabrics like cotton and silk. Bangladesh is also a big player, especially in making clothes quickly and cheaply. Vietnam is growing fast too, with lots of skilled workers and good trade deals. Pakistan is known for making lots of cotton, while Turkey is known for its high-quality fabrics. Germany and Italy make fancy clothes and fabrics, while the United States and Thailand also make and sell a bunch of textiles. All of these countries work together to make sure people all over the world have clothes to wear and fabrics for their homes.

    Top 10 Largest Textile Exporting Countries in the World

    The table given below lists the top 10 largest textile-exporting countries in the world:

    Top Textile Exporting Countries
    CountryExport Value
    China$176 billion
    Germany$38.99 billion
    India$37.11 billion
    Italy$36.57 billion
    Bangladesh$34 billion
    Vietnam$27 billion
    Turkey$19.7 billion
    Mexico$13.8 billion
    USA$11.6 billion
    Indonesia$11 billion

    Largest Textile Export Country In The World – China

    • In the month of December in the year 2023 nearly 2.77 billion metres of clothing fabrics were produced in China. 
    • The monthly production of the textile was about 2.72 billion meters in the last one year. 
    • China nearly exported around $274 billion textiles in the year 2013.

    Second Largest Textile Export Country In The World – Germany

    • Annual gross earnings for the Germany home textile market is valued near around USD 8.2 Billion at this point of time. 
    • Estimated to be near around a CAGR of 2.65% during the forecasted period. 
    • The entire market of textiles in Germany is projected to be near around USD 1,403.22 billion till the year 2030.

    Third Largest Textile Export Country In The World – India 

    • India is dominant in the global textile industry. It stands at 3rd position in the top 10 countries of the world in textile export. 
    • In the year 2021 the Indian textile industries market size was around 223 billion U.S. dollars. 
    • It tremendously increased in comparison to a year back at the time when market size was 150 billion U.S. dollars in India. The whole market size is likely to increase till 250 billion dollars in the year 2030. 

    Fourth Largest Textile Export Country In The World – Italy

    • Textile market is near the amount of US$ 6.5 billion in the year 2024. An annual growth rate compounded at the rate of 2.35% is estimated to be CAGR 2024-2028. 
    • The total output in the textile industry is estimated to be near around the amount of US$ 17.13 billion in the year 2024. 
    • The number of such organisations in the entire Textiles market is estimated to be around 10.25k in 2024. 

    Fifth Largest Textile Export Country In The World – Bangladesh

    • Bangladesh’s economy heavily relies on its textile and garment industry, which ranks 5th in the top 10 list of textile exports. Its annual export revenue is around 34 billion dollars. 
    • The textile sector benefits from competitive labour costs and a large, skilled workforce dedicated to garment manufacturing. 
    • Despite facing challenges related to working conditions and sustainability, efforts to improve standards and invest in greener practices are enhancing Bangladesh’s reputation and capabilities in the global textile market.

    Sixth Largest Textile Export Country In The World – Vietnam

    • Vietnam’s textile and garment industry is one of the most important sectors of its economy, standing at 6th position with an annual revenue of 27 billion dollars. 
    • It is famous for its low labour costs, skilled workforce, and increasingly modernised manufacturing processes. The country has become a major hub for textile exports, especially to the United States and Europe, because of its favourable trade agreements and a focus on compliance with international labour and environmental standards. Vietnam’s textile industry is expected to continue growing in the global markets. 

    Seventh Largest Textile Export Country In The World – Turkey

    • The textile value exported from Turkey increased with a few oscillations from 2020 and 2021. 
    • In the particular year 2021, the main value of the textiles exported from the country peaked at roughly around 15.2 billion U.S. dollars.

    Eight Largest Textile Export Country In The World – Mexico

    • Currently ranking among the strongest in the nation, Mexico’s textile and clothing sector exports $7 billion worth of products annually. It is anticipated that the Mexico Home Textile Market will grow at a compound annual growth rate (CAGR) of more than 4% from 2024 to 2029
    • Mexico’s textile industry stands at 8th position with annual export revenue of 13.8 billion dollars. 
    • To fulfil the need for higher-value textile goods, Mexico’s textile industry is experiencing a considerable shift and is increasingly concentrating on the aerospace and automotive industries.

    Ninth Largest Textile Export Country In The World – USA

    USA holds the 9th place in the global textile industry, known for its vast production of textiles:

    • The textile market size globally reached US$ 985 billion in the year 2022. The publishers were expecting the market to reach US$ 1,268 billion by the year 2028. 
    • Which is exhibiting a particular growth rate of near around 4.3% during the years 2022 to 2028. 
    • The market for US textiles was estimated near around USD 251.79 billion for the year 2022 which is almost expected to be near around USD 259.15 billion in the year 2023. 

    Tenth Largest Textile Export Country In The World – Indonesia

    Indonesia holds the 10th place in the global textile industry, known for its vast production of textiles and garments. 

    • The Textile market industry of Indonesia is estimated to be near around USD 13.83 billion in 2024 which is almost reaching USD 18.10 billion by the year 2029. Which will grow at a CAGR of more than 5.54% meanwhile the period of forecasting. 
    • Indonesia’s location in Southeast Asia also facilitates easy export to major markets. This particular sector has almost accounted for around 6.1% of Indonesia’s manufacturing sector GDP for the year 2021, worth USD 12.3 billion. 

    Largest Textile Exporters

    • The global textile market is dominated by countries with robust manufacturing capabilities.
    • China leads as the largest textile exporter, followed by the European Union, India, and Bangladesh.

    Top Textile Exporting Countries

    • Key players include China, India, Bangladesh, Vietnam, and Turkey.
    • These nations excel due to their extensive production facilities and skilled labor force.

    World’s Biggest Textile Exporters

    • China’s vast manufacturing industry places it at the forefront of global textile exports.
    • India and Bangladesh are notable for their high-quality cotton and garment production.

    Textile Industry Global Leaders

    • The global leaders are recognized for their innovation, quality, and sustainability practices.
    • China, the European Union, and India are pivotal in setting industry standards.

    Major Textile Exporters Worldwide

    • This group encompasses countries with significant contributions to the global textile supply chain.
    • Vietnam and Turkey have emerged as key exporters, thanks to their strategic location and trade agreements.

    Top Countries in Textile Production

    • Countries leading in textile production often have rich histories in textile craftsmanship.
    • India and China are renowned for their diverse textile products, from traditional to modern fabrics.

    Global Textile Export Rankings

    • Rankings fluctuate based on factors like production capacity, export volume, and market demand.
    • China consistently ranks at the top, with India and the European Union also featuring prominently.

    Leading Textile Exporting Nations

    • These nations have a strong export-oriented textile industry, contributing significantly to their economies.
    • Bangladesh and Vietnam have seen remarkable growth in their textile sectors due to competitive labor costs.

    Textile Export Statistics by Country

    • Statistical data highlights the scale and scope of the textile export industry.
    • China, India, and Bangladesh lead in volume, while Italy and Germany excel in high-end textile exports.

    Key Players in the Global Textile Market

    • The key players are not only the largest exporters but also pioneers in textile innovation and sustainability.
    • Companies and countries alike are focusing on eco-friendly practices to meet global demand.

    People Also Read:

    • Cotton Textile Industry in India
    • Fiber to Fabric – Understanding the Textile Journey
    • History of Clothing & Clothing Materials.

    Summary – Top 10 Largest Textile Exports Countries in the World

    The global textile industry is huge, with countries like China, India, Germany, and Italy leading the pack in making and selling clothes and fabrics all over the world. They have lots of skilled workers, good trade deals, and use modern technology to make quality products. Other countries like Bangladesh, Vietnam, and Turkey are also big players, known for making clothes quickly, having low labor costs, and producing high-quality fabrics. Even countries like the USA and Mexico are important in the textile world. They all work hard to ensure people everywhere have clothes to wear and fabrics for their homes.

    Top 10 Largest Textile Exports Countries in the World – FAQs

    Which country is the largest textile exporter in the world?

    China is the leading textile exporter globally, with a significant export value.

    What are some of the top textile exporting countries?

    The top textile exporting countries include China, India, Germany, Bangladesh, and Vietnam.

    How significant is the textile industry in the USA?

    The United States of America is among the top textile exporting countries, reflecting its significant role in the global textile industry.

    Can you name a European country that is a major textile exporter?

    Italy and Germany are notable European countries that are major textile exporters.

    What role does Bangladesh play in the textile export market?

    Bangladesh is a key player in the textile export market, particularly known for its garment manufacturing and export.

    How does Turkey fit into the global textile export industry?

    Turkey is a significant textile exporter, known for its high-quality textiles and garments.

    Are there any Asian countries besides China and India that are major textile exporters?

    Yes, countries like Bangladesh, Vietnam, and Pakistan are also major textile exporters in Asia.

    What is the value of China’s textile exports?

    In 2022, China’s textile exports were valued at approximately 148 billion U.S. dollars.

    Which country is a notable textile exporter to European markets?

    Spain is a notable textile exporter, primarily to European markets such as France, Italy, Portugal, and Poland.

    What factors play the most crucial role in the textile export industry? 

    Low labour costs, easy access to raw materials, favourable government policies, strong infrastructure and competitive skills to make a considerable place in the market are some of the crucial factors in the textile export industry.

    Which country is in the first position in the textile export market? 

    China is the largest manufacturer and exporter of textiles. The revenue generated from its textile exports includes 40% of the total export revenue of the country. 

    Which city is known as the ‘Cottonopolis of India’?

    The city of Mumbai is known as the ‘Cottonopolis of India’ as it is the most important centre of cotton textiles. It is also known as the ‘Manchester of India’ and the capital of cotton textiles in India.

    What major products are exported by the top 10 textile export countries? 

    The top 10 textile export countries trade products such as apparel, fabrics, yarn, home textiles, and technical textiles.

    Which countries have top clothing brands? 

    The United States and France have the most number of top clothing brands such as Nike in the USA; and Louis Vuitton, Dior, Chanel, and Cartier in France. Germany is the home to Adidas and Italy to Gucci.

    Why is Turkey known for its textiles? 

    The textile market of Turkey dates back to the Ottoman Empire. It offers a wide range of traditional textiles that add value to its market.

    Niryaat , Textile
    How To Export
    23May, 2024
    How To Export ?
    INTRODUCTION

    EEPC India has been the face of Indian engineering exports over a span of 65 years when India grew from a nation exporting just $10 million of engineering goods in 1955 to $76.04 billion in 2019-20 and is regarded as the model EPC in India by the Union Ministry of Commerce and Industry– How to Export ?

    FIRST CONTACT POINT FOR EXPORTS

    The Directorate General of Foreign Trade (DGFT) with its four zonal offices Mumbai, Delhi, Chennai and Kolkata along with 35 other offices are your first point of contact when you want to export.

    PRINCIPLE OF EXPORTS

    Taxes, duties and charges cannot be exported, so you can avail refunds/reimbursements on duties and taxes paid if you export.

    STARTING EXPORTS

    To start exports any merchant export / manufacturer exporter/ service exporter holding a Proprietary firm/ Partnership Firm/Public and Private company needs to name his company having a company logo and company website.

    STEPS IN ESTABILISHING AN EXPORT BUSINESS

    Firstly an exporter needs to open a current account with a bank authorised to deal in Foreign Exchange.

    Secondly the exporter (even importer) needs to obtain a PAN number from the Income Tax Department.

    Thirdly an exporter has to obtain a 10 digit number IEC (Importer-Exporter Code) from the regional offices of DGFT in form ANF 2A along with documents. Applicants can also apply for e-IEC on the DGFT website (http://dgft.gov.in/). It is to be noted only one IEC can be obtained against a single PAN.

    WHAT TO EXPORT?

    Almost everything is allowed to be freely exported, except the list of restricted and prohibited items given on the DGFT website. The primary search unit forany product in the international trade is ITC HS Code (International Trade Classification Harmonised System Code).

    Finding the right product to export requires extensive and thorough data mining. Studying the recent trend of exports of different products from India enables one to decide on the product to be exported.

    SELECTING YOUR DESTINATION COUNTRY.

    An overseas market should be selected after extensively studying the customs tariffs of the products (to be exported) around the world, rules of origin, FTAs, NTMs , payment terms and etc. Almost all the engineering items fall under the perimeter of EEPC India, who will help in promoting an exporter’s products in international markets by facilitating participation in trade fairs, exhibitions abroad. An exporter willing to be a member of EEPC India needs to register for Registration-cum-Membership Certificate (RCMC).

    FINDING BUYERS

    Participation in various trade fairs, buyer seller meets, exhibitions, B2B portals, is an effective tool to find buyers. After identifying one’s potential buyer an exporter needs to procure orders. He has to decide upon crucial points like pricing, freight charges, and payment terms. Finally it leads to signing of the contract, managing production and supplies, resolve quality issues, delivery of goods and follow up and realization of payments.

    INCO TERMS

    An exporter has to negotiate a sales contract with the buyer for trade to take place. International Commercial or INCO terms significantly reduce misunderstandings among traders and thereby minimize trade disputes and litigation.

    Inco terms that apply to any mode of transport are: EXW (Ex Works), FCA (Free Carrier), CPT (Carriage Paid To), CIP (Carriage and Insurance Paid To), DAT (Delivered at Terminal), DAP (Delivered at Place), DDP (Delivered Duty Paid).

    Inco terms that apply to sea and inland waterway transport only: FAS (Free Alongside Ship), FOB (Free on Board), CFR (Cost and Freight), CIF (Cost, Insurance, and Freight).

    PAYMENT TERMS

    While negotiating Sales Contract an exporter also needs to decide on the way money will be paid to him for his exports. Letter of Credit solves Issues of Mutual Mistrust by using Banks as arbiters.

    INDUSTRY REGISTRATION

    Your factory should register with the department of Industries of the relevant state government. Right documentation and regular update of your company data is often a pre-requisite for access to government funds.

    EXIM BANK

    EXIM Bank assists an exporter in taking buyer’s credit. If an exporter plans to export projects , EXIM Bank gives Line of Credit to the destination country.

    COVERING RISKS THROUGH ECGC

    The Export Credit Guarantee Corporation of India Limited (ECGC) is a government owned company to assist an exporter in mitigating export risks. Types ofrisks covered by ECGC:

    Commercial Risks-Buyer goes bankrupt, death, default of payment for any reason other than product dispute.

    Political Risks- Government preventing release of funds, war/revolution.

    PROCESSING AN EXPORT ORDER
    i. Confirmation of order

    On receiving an export order, it should be examined carefully in respect of items, specification, payment conditions, packaging, delivery schedule, etc. and then the order should be confirmed. Accordingly, the exporter may enter into a formal contract with the overseas buyer.

    ii. Procurement of Goods

    After confirmation of the export order, immediate steps may be taken for procurement/manufacture of the goods meant for export. It should be remembered that the order has been obtained with much efforts and competition so the procurement should also be strictly as per buyer’s requirement.

    iii. Quality Control

    In today’s competitive era, it is important to be strictly quality conscious about the export goods. The Government has notified certain private Inspection Agencies who can do pre-shipment inspections.

    Foreign buyers may also lay down their own standards/specifications and insist upon inspection by their own nominated agencies. Maintaining high quality is necessary to sustain in export business.

    iv. Finance

    Exporters are eligible to obtain pre-shipment and post-shipment finance from Commercial Banks at concessional interest rates to complete the export transaction. Packing Credit advance in pre-shipment stage is granted to new exporters against lodgment of L/C or confirmed order for 180 days to meet working capital requirements for purchase of raw material/finished goods, labour expenses, packing, transporting, etc. Normally Banks give 75% to 90% advances of the value of the order keeping the balance as margin. Banks adjust the packing credit advance from the proceeds of export bills negotiated, purchased or discounted.

    Post Shipment finance is given to exporters normally upto 90% of the Invoice value for normal transit period and in cases of usance export bills upto notional due date. The maximum period for post-shipment advances is 180 days from the date of shipment. Advances granted by Banks are adjusted by realization of the sale proceeds of the export bills. In case export bill becomes overdue Banks will charge commercial lending rate of interest.

    v. Labeling, Packaging, Packing and Marking

    The export goods should be labeled, packaged and packed strictly as per the buyer’s specific instructions. Regular interface packaging firms is necessary in order to comply with varied equipments. Packaging is specified by the product’s requirements, consumer requirements, distribution requirements, transportation and storage requirements.

    vi. Insurance

    An exporter can avail four types of marine insurance policy covers risks of loss or damage to the goods during the while the goods are in transit. Hull Insurance covers the insurance of the vessel and its equipment. Cargo Insurance includes the cargo or goods contained in the ship. Freight insurance is applicable if the ship is lost on the way or the cargo is damaged or stolen. Liability insurance is the one in which the insurer undertakes to indemnify against the loss which the insured may suffer on account of liability to a third party caused by collision of the ship and other similar hazards. Generally in CIF contract the exporters arrange the insurance whereas for C&F and FOB contract the buyers obtain insurance policy.

    vii. Delivery

    It is important feature of export and the exporter must adhere the delivery schedule. Planning should be there to let nothing stand in the way of fast and efficient delivery.

    viii. Customs Procedures

    It is necessary to obtain PAN based Business Identification Number (BIN) from the Customs prior to filing of shipping bill for clearance of export good and open a current account in the designated bank for crediting of any drawback amount and the same has to be registered on the system.

    In case of Non-EDI, the shipping bills or bills of export are required to be filled in the format as prescribed in the Shipping Bill and Bill of Export (Form) regulations, 1991. An exporter need to apply different forms of shipping bill/ bill of export for export of duty free goods, export of dutiable goods and export under drawback etc.

    Under EDI System, declarations in prescribed format are to be filed through the Service Centers of Customs. A checklist is generated for verification of data by the exporter/CHA. After verification, the data is submitted to the System by the Service Center operator and the System generates a Shipping Bill Number, which is endorsed on the printed checklist and returned to the exporter/CHA. In most of the cases, a Shipping Bill is processed by the system on the basis of declarations made by the exporters without any human intervention. Where the Appraiser Dock (export) orders for samples to be drawn and tested, the Customs Officer may proceed to draw two samples from the consignment and enter the particulars thereof along with details of the testing agency in the ICES/E system.

    Any correction/amendments in the check list generated after filing of declaration can be made at the service center, if the documents have not yet been submitted in the system and the shipping bill number has not been generated. In situations, where corrections are required to be made after the generation of the shipping bill number or after the goods have been brought into the Export Dock, amendments is carried out in the following manners.

    1. The goods have not yet been allowed “let export” amendments may be permitted by the Assistant Commissioner (Exports).

    2. Where the “Let Export” order has already been given, amendments may be permitted only by the Additional/Joint Commissioner, Custom House, in charge of export section.

    In both the cases, after the permission for amendments has been granted, the Assistant Commissioner / Deputy Commissioner (Export) may approve the amendments on the system on behalf of the Additional /Joint Commissioner. Where the print out of the Shipping Bill has already been generated, the exporter may first surrender all copies of the shipping bill to the Dock Appraiser for cancellation before amendment is approved on the system.

    ix. Customs House Agents

    Custom House Agent (CHA) is licensed to do an exporter’s transactions with customs. CHA assist an exporter in custom related documentation for exports.

    x. Documentation

    FTP 2015-2020 describe the following mandatory documents for import and export.

    • Bill of Lading/ Airway bill
    • Commercial invoice cum packing list
    • shipping bill/ bill of export/ bill of entry (for imports)

    (Other documents like certificate of origin, inspection certificate etc may be required as per the case.)

    xi. Submission of documents to Bank

    After shipment, it is obligatory to present the documents to the Bank within 21 days for onward dispatch to the foreign Bank for arranging payment. Documents should be drawn under Collection/Purchase/Negotiation under L/C as the case may be, along with the following documents

    • – Bill of Exchange
    • – Letter of Credit (if shipment is under L/C)
    • – Invoice
    • – Packing List
    • – Airway Bill/Bill of Lading
    • – Declaration under Foreign Exchange
    • – Certificate of Origin/GSP
    • – Inspection Certificate, wherever necessary
    • – Any other document as required in the L/C or by the buyer or statutorily.
    xii. Realization of Export Proceeds

    As per FTP 2015-2020, all export contracts and invoices shall be denominated either in freely convertible currency of Indian rupees, but export proceeds should be realized in freely convertible currency except for export to Iran.

    Export proceeds should be realized in 9 months. INDIA

    ECGC
    21May, 2024
    ECGC – Export Credit Guarantee Corporation of India

    Export Credit Guarantee Corporation of India (ECGC) is an Indian enterprise that is administered by the Government of India through the Ministry of Commerce and Industry. ECGC which is wholly owned by the Indian Government was set up in year 1957 with the intention to promote exports by offering credit risk insurance and allied services to the exporters.

    What is Export Credit Guarantee Corporation?

    Export Credit Guarantee Corporation of India is fundamentally an export promotion organization, which seeks to enhance the competitiveness of Indian exports by offering them credit insurance covers. 

    Over the years ECGC has considered various export credit risk insurance products suiting the needs of Indian exporters. This corporation was set up for ensuring the smooth functioning of Indian exporters by minimizing the risks associated with the payments emanating from other nations. This insurance cover which is provided by ECGC also assists the Indian exporters with better access to credit facilities from banks and other financial institutions. 

    ECGC is the 5th largest credit insurance company dealing with the exports of any country. Export Credit Guarantee Corporation of India offers protection against the non-payment by an importer. Due to this insurance cover, the financial institutions are better placed for lending and providing larger credit to exporters. ECGC also offers credit ratings as well as shares information on various countries and risks associated with doing business with/in those countries.

    What does an ECGC do?

    • It offers an array of credit risk insurance covers to the Indian exporters against the loss with respect to the export of their goods and services.
    • It provides Export Credit Insurance covers to the banks and other financial institutions for enabling exporters to find better services from them. 
    • It offers Overseas Investment Insurance to the Indian companies investing in Joint Ventures (JVs) abroad in the form of loans or equity.

    How does ECGC help the exporters?

    ECGC provides insurance protection to Indian exporters against payment risks. It helps the exporters in a number of ways which include: 

    • Guiding export-related activities 
    • Making information available with respect to various countries with its credit ratings 
    • Making it easy to get export finance from the banks and other financial institutions 
    • Helping Indian exporters recover bad debts 
    • Providing information on the credit worthiness of foreign buyers ECGC further ensures exporter’s credit risks against both political as well as commercial conditions and guarantees the payment to exporters. 

    ECGC offers several types of insurance covers and these could be classified into the following groups:

    • Standard policies that protect Indian exporters against overseas credit risks 
    • Construction works and services policies 
    • Financial Guarantees

    Special policies ECGC offers the following types of guarantees to the exporters:

    • Export finance guarantee
    • Packing credit guarantee
    • Post-shipment export credit guarantee
    • Export production finance guarantee
    • Transfer guarantee
    • Export performance guarantee

    Over the years the Export Credit Guarantee Corporation of India has proved to be useful to Indian exporters. It pays 80 to 90% of the loss incurred by Indian exporters. The remaining 10 to 20% of the loss alone has to be borne by the exporters. 

    However, it doesn’t cover the risks mentioned below:

    • Exchange loss due to fluctuations in exchange rates
    • Failure on the part of the buyer abroad to obtain the import authorization or exchange
    • A default of the exporter or his agent
    • Any loss which arises due to dispute in quality
    • Risk which is inherent in the nature of goods

    knowedge For ECGC , For all corporate bookings click here , Export With Niryaat

    Oil Exporters - Niryaat.in
    25Apr, 2024
    The World’s 10 Biggest Oil Exporters

    Saudi Arabia takes the top spot as the world’s largest oil exporter: By Niryaat

    Crude oil is the world’s most widely traded product. It is used to manufacture many products, including gasoline, heating fuel, and plastics. Global crude oil trade amounted to $1.45 trillion in 2022 with exports growing by 46.1% between 2021 and 2022.1- Oil Exporters

    Saudi Arabia led the world in annual oil exports, but that changed in 2019 when the United Arab Emirates overtook it as the world’s biggest oil exporter. Saudi Arabia recaptured the top spot the following year and still holds the number one position, exporting 16.2% of the world’s crude petroleum. The United States is also a large exporter, accounting for 8.16% of exports in 2022.1

    This article looks at the top 10 oil-exporting countries in the world. Together, these 10 countries accounted for nearly three-quarters of global oil exports in 2022.

    KEY TAKEAWAYS

    • Oil is the leading export product in the world.
    • Saudi Arabia is the world’s largest oil exporter, followed by Russia and Canada.
    • Norway, Nigeria, and Kazakhstan round out the list of top 10 oil exporters.

    1. Saudi Arabia- Oil Exporters

    This Middle Eastern oil powerhouse was the world’s top oil exporter in 2022 with $236 billion in oil exports. That represents 16.2% of global oil exports.1

    The Saudi kingdom also remains one of the top oil-producing countries in the Organization of the Petroleum Exporting Countries (OPEC) and the world. According to the U.S. Energy Information Administration, Saudi Arabia produced 12.44 million barrels of oil per day in 2022. Saudi Arabia possesses approximately 13% of the world’s oil reserves.2

    Oil Heats Up

    Russia’s invasion of Ukraine in 2022 sent the price of oil soaring to over $110 per barrel.3

    2. Russia

    Russia takes the second spot, accounting for 9.14% of global exports in 2022. This amounted to $133 billion.1 Production reached an annual average of 10.13 million barrels per day, produced by major names like Rosneft, Surgutneftegas, and Gazprom. This accounts for 10% of global oil production.2

    In 2014, the U.S. and the European Union (EU) slapped economic sanctions on Russia after it annexed Crimea from Ukraine. As a result, Russian energy companies are prohibited from accessing capital markets in these regions. Russia’s invasion of Ukraine in February 2022 compelled the U.S. to adopt even more severe sanctions, including a ban on imports of Russian oil.45

    The European market was highly reliant on Russian oil exports until Russia invaded Ukraine in 2022, which saw the world move away from importing Russian oil after sanctions were put on the country.6

    3. Canada- Oil Exporters

    Canada is the world’s third-largest exporter of oil, exporting $123 billion worth of oil in 2022. This accounts for 8.48% of all oil exported in the world.1 The country’s known oil reserves of 168 billion barrels are the fourth-largest in the world. The bulk of those reserves are located in Alberta’s oil sands.7

    As is often the case, Canada’s oil industry is closely connected to the U.S. economy. In 2022, 95.4% of Canadian oil exports went to the United States.1 Some of the world’s major energy companies call Canada home, including Enbridge (ENB.TO), Suncor (SU.TO), and Imperial Oil (IMO.TO).

    4. United States

    The United States exported $118 billion worth of oil in 2022, comprising 8.16% of global exports.1 The country significantly increased its oil output between 2011 and 2020. In 2022, the U.S. produced 20.30 million barrels of oil per day, about 21% of the global total, making it the world’s largest oil producer.2

    The U.S. is home to some of the world’s largest oil companies, including Chevron (CVX), ConocoPhillips (COP), and Exxon Mobil (XOM).

    5. Iraq-Oil Exporters

    Iraq is the second largest exporter of crude oil from the Middle East, with $111 billion in revenue. This translated to 7.62% of all oil exports in 2022.1

    Iraq has the fifth-largest oil reserves in the world, but according to the U.S. Energy Information Agency, the majority of those reserves are already tapped or being developed. Iraq also faces the challenge of being over-reliant on oil revenues, which accounted for an estimated 95% of government revenues in 2022.8

    $198.52

    The all-time high price of crude oil, which was reached in June 2008.3

    6. United Arab Emirates (UAE)

    The United Arab Emirates, a small country approximately the size of South Carolina, exported $105 billion worth of oil in 2022. This accounts for 7.24% of global oil exports.1 The UAE produced 4.23 million barrels per day in 2022, accounting for 4% of global output.2

    The UAE is estimated to have the sixth-largest oil reserves in the world, totaling approximately 100 billion barrels. The country’s economy is less dependent on oil than it once was, though oil and gas output still accounts for a good share of the country’s GDP.9

    7. Kuwait- Oil Exporters

    Given its small size, it is impressive that Kuwait is on the list of the world’s top oil exporters. The country is located in the Arabian peninsula and is about the size of Connecticut.

    Kuwait accounted for 4.31% of global oil exports in 2022, shipping $62.6 billion worth of oil.1 This Middle Eastern nation produced about 3.01 million barrels of oil per day in 2022, which accounts for 3% of global production.2

    8. Norway

    Norway exported $58.9 billion worth of oil in 2021, accounting for 4.06% of the global oil trade. This makes it the eighth-largest oil exporter in the world.1 Norway has the largest oil reserves in Western Europe and sends the vast majority of its oil to its European neighbors. The oil industry accounts for 50% of Norwegian exports and over 20% of GDP.1011

    9. Nigeria- Oil Exporters

    Nigeria exported $52.1 billion worth of oil or 3.59% of the global total.1 Nigeria has the largest proven oil reserves in Africa. Most of its 37.1 billion barrels of reserves are located along the Niger River Delta and offshore in the Gulf of Guinea, Bight of Benin, and Bight of Bonny.12

    10. Kazakhstan- Oil Exporters

    Kazakhstan is the tenth-largest exporter of oil in the world, exporting $47.6 billion worth of oil in 2022, accounting for 3.28% of the world’s total.1 The country has three major crude oil refineries. with proven reserves of 30 billion barrels. it is among the 20 top producers of energy in the world.13

    Who Is the Largest Oil Producer in the World?

    The world’s largest producer of oil is the United States, accounting for 21% of oil production. The country took the number one spot from Russia in 2018, thanks to shale production and energy independence policies.142

    On Average, How Many Billion Barrels of Oil per Day Does the U.S. Export?

    The United States exports roughly 9.52 million barrels of oil per day in 2022, according to the U.S. Energy Information Administration.15

    What Percentage of the Global Gross Domestic Product Does Oil Account for?

    According to World Bank figures, oil accounts for roughly 1.3% of the world’s gross domestic product, as of the most recent figures from 2021.16

    The Bottom Line – Oil Exporters

    Oil is the most in-demand product in the world, which comes as no surprise given its many uses. The largest oil exporters span the globe, with Saudi Arabia taking the top spot. Each spot on the list changes every year due to the global political climate, the price of oil, and the domestic atmosphere of each country.

    Russia held the top spot in 2021, which was the latest figure available; however, it will significantly drop from that spot after it invaded Ukraine in 2022, which caused the world to slap sanctions on the country and move away from its oil. For all of these nations, however, oil is a prized commodity and a strong contributor to GDP.

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