mail-box-lead-generation

written by | September 20, 2022

What is FIEO? Role of FIEO in Growth of Indian Export Businesses

×

Table of Content


India’s target is to become an economy worth ₹350 trillion by 2025. To achieve this goal, the country must ensure a 200% increase in the value of its exports to ₹13 billion by that year. The Indian government will have to play a key role in facilitating the growth of its export community to hit that target. To aid Indian export businesses in expanding overseas, India has already established organisations and entities within the government to spur India’s export sector. One such organisation is the Federation of Indian Export Organisations (FIEO). This article will shed light on the role of FIEO in helping Indian businesses sell their products and services overseas.

Did you know?

In June 2022, petroleum products accounted for 98.01%, electronic goods for 50.67%, and RMG of all textiles for 44.67% of exports. Compared to June 2021, India imported ₹33,60,24,93,90,000 in merchandise, an increase of 51.02%.

What is the FIEO?

The Federation of Indian Export Organisations (FIEO) is the foremost organisation among the export development authorities, commodity boards and export promotion councils recognised by the Government of India. The Ministry of Commerce established this organisation in 1965 to bring together the stakeholders looking to promote Indian exports. The FIEO plays the role of a liaison between Indian trading companies and the governments at the state-and-national levels. The organisation also functions as an interface between Indian exporters and road transport, ports, railways and financial institutions, among other entities. Approximately two lakh exporters in the country across the services and industrial sectors will benefit from FIEO’s work as of 2021. The body is also ISO 9001:2015-certified and has 33,570 members as of 2021.

Also Read: Importing from China to India: All You Need to Know

Role of FIEO in the Indian Export Sector

FIEO plays a major role in guiding and supporting the Indian export sector. It ranges from basics such as setting up their online stores to collaborations with Indian and foreign governments. Lets look at them in detail:

Guides and Connects Exporters with Governments: 

  • The FIEO helps Indian exporters when they face roadblocks by bringing such issues to the attention of the authorities in question in India and across the world.
  • The organisation functions as a source of valuable guidance to Indian exporters, as FIEO experts are available online for advice on matters of policy and international trade.

Provides Resources

  • The FIEO runs a website, www.fieo.org, where exporters get access to trade promotion companies that have worldwide reach, business opportunities across the globe, and the latest revisions in trade policy and publications.
  • In addition to a website, FIEO owns and runs a mobile app called ‘Niryat Mitra’ that offers daily reporting on tariffs, forex markets, import/export policy updates and new business opportunities. The app also provides access to FIEO’s publications, events and all data mentioned above specified on the website.
  • The organisation allows exporters to put up a company profile, logo and product images on the FIEO website.
  • FIEO offers exporters the platform to establish an online store at no cost. The organisation is Enterprise Europe Network’s partner on behalf of India and helps MSMEs go international.

Takes Industry Feedback for Policy Changes

  • The FIEO arranges meetings with policymakers to bring trade issues to the government's notice for a quick resolution.
  • The organisation plays a key role in shaping trade policy by fielding individuals associated with FIEO in state-and-central government task forces and committees.
  • FIEO owns and operates www.indiantradeportal.in at the behest of the Indian government. This website provides information on tariffs in 87 international markets, data on India’s stake in the imports of these countries, guidance on India’s import/export policy in these markets, taxation specifics, duty drawbacks and domestic schemes to incentivise exports. This service is provided up to the minute for no cost over email and SMS as well.

Also Read: Import Export Business - Step By Step Guide for Starting An Import Export Business in India

Recognises and Motivates Export Businesses

  • The organisation recognises top export facilitators and export houses with awards regularly.
  • The organisation facilitates incoming-and-outgoing business delegations and organises catalogue shows and exhibitions. FIEO also signs MoUs with its counterparts from other countries.

Updates and Other Training 

  • FIEO publishes weekly and monthly bulletins available online that cover policy, banking, business opportunities, taxation and WTO, among other topics. The bulletins also publish requests and offer for technology and business, in addition to partnership opportunities in research and development. The bulletins boast global readership among exporters, importers, policymakers, commercial agencies, chambers of industry and commerce and economic agencies. The website is equipped with a directory of export companies that is kept updated and can be accessed via a search tool.
  • The organisation collaborates with Indian academic bodies to develop the requisite human resources that meet the need of the international trade sector.
  • FIEO spurs entrepreneurship in international trade through workshops, training programs and seminars.

Recruitment 

  • FIEO posts job vacancies, allows students and professionals to upload resumes and offers members access to the said resumes for recruitment, all on the website.

India in Global Trade

India possesses little stake in global exports at 1.61% as of 2020 and stands in 20th position in the world among export hubs. In the five years to 2020-21, the country witnessed a CAGR of 0.60% in imports and that 1.36% in exports. In the year 2020-21, the nation’s imports were valued at $393.61 billion, and its exports were valued at $291.16 billion, with the resulting trade deficit at $102.45 billion. Over the said five-year period, the trade deficit witnessed an annual contraction of 36%.

India's top ten export markets in 2020-21 were the USA, China, UAE, Hong Kong, Bangladesh, Singapore, UK, Germany, Nepal and the Netherlands. These markets accounted for 50.48% of India’s exports during the year. The nation recorded a decline in export growth in all markets but for Bangladesh and China.

By region, North America accounted for 19.81% of India’s exports with a value of $57.67 billion in 2020.21, North East Asia accounted for 14.47% with a value of $42.12 billion, the EU accounted for 14.21% with a value of $41.36 billion, ASEAN accounted for 10.81% with a value of $31.49 billion and West Asia – GCC accounted for 9.54% with a value of $27.77 billion. These regions accounted for 68.83% of the nation’s exports during the year, experiencing a decline in exports in these regions but for North East Asia.
 

Also Read: Best Tips To Start Import Export Business From Home - Complete Process Explained

Benefits of Federation of Indian Export Organisation Membership

  • Certificate of Origin (CO): The FIEO issues a CO for a member and recommendation letters for visas to support travel abroad.
  • Registration-Cum-Membership Certificate (RCMC): The organisation issues an RCMC to allow status-and-non-status holders to benefit from India’s policy on foreign trade.
  • Market Access Initiative (MAI) Scheme Grant: The FIEO issues funds under the MAI scheme to authorised members participating in international trade fairs and exhibitions. The members are also a part of delegations and are able to promote their offerings at booths at these events, albeit at a subsidised cost. The FIEO is affiliated with over 50 illustrious exhibitions across the globe.
  • Other benefits include access to FIEO-organised business-to-business (B2B) meetings, hosting the company product line on the FIEO website and a place on the FIEO search engine for promotion.

Registration Fee for FIEO Membership

The annual registration fee for pursuing membership with the FIEO is as follows:

Type

Amount

State Export Organisation

₹6,250

Individual Exporter

₹6,250

Multi-Product Group

₹6,250

Service Providers

₹6,250

Premier Multi-Product Group

₹7,000

One Star Export House

₹9,375

Units in Free Trade Zones and Export-Oriented Units

₹9,375

Two Star Export House

₹12,500

Three Star Export House

₹25,000

Four Star Export House

₹50,000

Five Star Export House

₹93,750
 

The fees enumerated do not take into account GST levies. However, FIEO members can get a discount of 10% if they pay the fee for five years upfront. Members can also get a discount of 5% if they pay the fee for three years upfront. FIEO members get access to the organisation’s FOREX services for ₹3000 per year, and non-members have to pay ₹4000 per year for the same service.

Conclusion:

The FIEO is a well-run organisation that looks to bring about the best in India’s export sector. The annual membership is valuable as the services the organisation offers to the Indian export sector aid exporters to run a better business and expand worldwide. So businesses interested in exporting their products need not worry about how they will get things done. They go to the website or download the app, and use it get started. FIEO’s resources will help them stay updated in any changes as they happen.  

Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.

FAQs

Q: What are the eligibility criteria for FIEO membership?

Ans:

The FIEO issues the RCMC to service providers, manufacturers of products, merchant exporters and merchant-cum-manufacturer exporters. The FIEO is the body that issues this certificate if the export product does not fall under the purview of a commodity board or an export promotion council. The FIEO issues the certificate to multi-product exporters if export promotion councils have not extended registration to these businesses. The FIEO serves service exporters similarly but for 14 lines of service businesses.

Q: What are the documents required to apply for FIEO membership?

Ans:

Enclose the following documents specified in the following list when submitting the application for FIEO membership:

  • Letter of Authority on the company’s letterhead
  • GSTIN
  • ID proof – Passport, Adhaar Card, Voter ID Card and Driving License – of the proprietor(s), partner(s) or director(s)
  • A demand draft, pay order or cheque towards gaining annual membership with FIEO.
  • Statement of earnings in foreign exchange concerning the last three years
  • Turnover from exports with a breakup by commodity and by country
  • A copy of the Import Export (IE) Code Number that is self-certified
  • A copy of the IEM, Industrial Licence or SSI Registration Certificate that is self-certified
  • A copy of the certificate that attests to the entity is a five-star export house, four-star export house, three-star export house, two-star export house and one-star export house. The copy has to be self-certified.

Q: What is the full form of FIEO?

Ans:

The Federation of Indian Export Organisations is the full form of FIEO.

Q: How does FIEO help businesses?

Ans:

FIEO helps businesses interested in exporting their products to other countries. These include from basics such helping them set up their online stores to interacting with domestic and foreign governments to simplify the ease of doing business.

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.
×
mail-box-lead-generation
Get Started
Access Tally data on Your Mobile
Error: Invalid Phone Number

Are you a licensed Tally user?

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.