Why do we need to know trade policies and schemes?

Looking at Western Maharashtra to understand the importance of knowledge of trade policies and schemes.

ANY TRADE ACTIVITY HAS MAJORITY TWO IMPLICATIONS

LEGAL

Revolving around the laws and policies of trade which can save a business or break it. Penal consequences are usually heavier than what we normally think of.

ECONOMICAL

Rrevolving around the schemes formulated by the DGFT that can help save us a lot of money and make our goods more competitive in the international market. One can save the cost of involved in every stage of production of goods.

# Moving on: Western Maharashtra

Western Maharashtra is one of the important regions of Maharashtra for exporting commodities ranging from software to plastic and plastic items; pharmaceutical goods and inorganic chemicals to textiles, jewelry etc. It includes the five districts i.e. Kolhapur, Pune, Satara, Sagali and Solapur. The region is the most industrialized region in India and exports to Oceania region, Eastern Europe, SAARC countries, OPEC and OCED countries etc.

What does Research say?

81.67 percent exporters reported documentary fraud
55.00 percent exporters reported difficulty in getting license
20.17 percent reported problems in banking documentation
55.00 percent face problems due to differences in trade laws of other countries
57.00 percent of exporters were troubled due to financial crisis
32.50 percent of exporters have problems due to excise duty
85.00 percent of exporters reported issues with inspection certificate

CONCLUSION
Western Maharashtra has the best prospects than any other region in the entire country for trade related activity yet the exporters face such setbacks.
So, we conclude that the lack of awareness of basics of documentation and legal procedures is a bottleneck for Indian exporters. It is quite natural for a country like India which has such a diversity in demography because not everyone is well versed with the language used in documents and not everyone has the time to understand each and every aspect of trade. This calls for consulting. A good consultant can save exporters lakhs of money, time and unnecessary legal procedures.

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