Foreign trade as a career

by Taru Bahl

FOREIGN trade is a key element in any country's march towards prosperity. The trade scenario in India was overhauled in the post-reform period in 1991. There was a visible change in direction, composition and quality of trade taking place from Indian shores. Trade policy reforms announced thereafter provided an export friendly environment with simplified procedures like the abolition of Inspector Raj. They in turn helped to strengthen export production base, remove procedural irritants, facilitate input availability and focus on quality and technological upgradation.

Over the years an extensive export promotion system has evolved. Export promotion bodies and export service institutions have been set up, throwing open new employment opportunities for men and women. Foreign trade includes both the export and import side of the business. This could be in finished products or raw materials. As a foreign trade professional you could explore job options in buying houses, export units, international business and trade divisions of companies having overseas trade links, industry associations like CII, ASSOCHAM, FICCI, ACMA, IMTMA, Government set-ups like State Trading Corporation (STC) and the Metals and Minerals Trading Corporation (MMTC). You could also set up your own export unit or consultancy.

All has however not been hunky-dory on the export front. According to figures released by the Ministry of Commerce, GOI, India's exports during April-March. ((1997-98) were valued at $ 33,980 million over the exports level valued at $ 33,106 million for the same period last year, registering a growth of 2.64 per cent. Imports during April-March, 1997-98 were valued at $ 40,779 million which is 5.8 per cent higher than the level of $ 38,548 million during the same period last year. The trade deficit for April-March (1997-98) was valued at $ 6,700 million which is higher than the deficit at $ 5,442 million during April-March, (1996-97).

Overall exports have been affected by the sluggishness in international trade and the crisis in south-east Asia. Due to a sharp depreciation in the currencies of these countries, not only has India's competitiveness in terms of common interests with these countries been affected but the direct exports of India to this region have also suffered considerably. Internally, the slow growth of industrial output, coupled with infrastructural bottlenecks and a high cost of export finance, have hampered the growth of exports.

The Government of India undertook a number of policy initiatives to overcome the slow growth in exports. The Export Promotion Board was set up to provide policy and infrastructural support through greater co-ordination among concerned ministries to boosting the exports. Recognising the fact that infrastructure at important locations is crucial and in need of immediate attention, a special scheme is being implemented for providing critical infrastructure balance at designated pressure points. The India Brand Equity Fund has been operationalised with a view to enhancing the brand image of Indian products in the overseas market.

To improve trading efficiency electronic data interchange and electronic commerce too has been launched. The New Exim Policy (1997-2002) has incorporated certain positive features to boost exports.

There is nothing that stops you from entering this profession without a formal foreign trade or export-import management degree/diploma. However, with increasing competition and the delicate nature of the financial markets, it would be -wise do a recee of the available courses and to-enroll for one of them. Fortunately there are short, medium and full-term courses in the regular, part-time and correspondence segments.

The best place to study foreign trade in India is undoubtedly the prestigious Indian Institute of Foreign Trade (IIFT) in New Delhi. Their Masters programme in international business is a two-year, full-time course. It equips you with a good understanding of international business operations. You are eligible for the course if you have a Master's degree or an equivalent degree in any discipline with an aggregate of 60 per cent. There is an All-India test on general awareness, English, an analysis of business situations and mathematical ability followed by a group discussion and interview. They also have a one-year postgraduate diploma in international trade for which you have to have two-year work experience and a postgraduate degree in any discipline with an aggregate of 55 per cent. If you want to specialise in export management and marketing then you could opt for a certificate course, which is a part time programme for four months and can be combined with a regular job. In addition to these courses, the IIFT conducts a number of executive development programmes like the one on shipping and documentation for foreign trade managers. These are round the year and can easily be availed of by working executives and managers.

All the courses offered by IIFT are after postgraduation but the Delhi School of Economics', department of commerce offers a one-year postgraduate diploma in international marketing. Panjab University, Chandigarh offers a one-year postgraduate diploma in international trade. The Indian Institute of Packaging, Mumbai offers a two-year postgraduate programme in packaging. They also hold three-month duration programmes at other centres like Delhi, Calcutta and Chennai. Chennai's Export Inspection Council has set up its own training centre, The IIM, Lucknow, The National Productivity Council, Small Industries Service Institute and Small Industry Extension Training Institute, Hyderabad also offer courses in international trade. Private institutes like Indian International Trade Centre, Mumbai, Delhi's Institute of Management and Studies and the Indo-American Society organise comprehensive programmes in the field of trade and export promotion. Foreign Trade Development Centre has a four-month diploma in export management to equip participants to undertake responsibilities at the middle level in any foreign trade enterprise.

With an appropriate degree/diploma safely tucked under your belt, you can set your sights on positions in the export, purchase, documentation, manufacturing or inspection divisions. Export managers liase with clients, suppliers and merchandisers. They handle all functional and administrative functions like incentives, drawbacks, credits and export policies. The documentation department deals with the paper work. This entails detailed meetings with export promotion councils, shipping agents and other government departments wherever clearances, permits etc are required. This is a very tricky area since the future of the export consignment depends entirely on this trade link. Any delay here could render the order defunct.

The purchase department sources all the raw material at competitive prices, keeps itself abreast of the latest developments in the market, visits and participates in domestic and international trade shows to make sure that their team doesn't lag behind anywhere.

Inspectors are responsible for ensuring quality standards at all levels. Business associates could be individual exporters or export houses which are hired either on a contract basis or on a time-bound arrangement by channelling agencies like the STC. These associates guide the exporter on current market trends by giving relevant feedback and suggestions since they understand the domestic market better.

As a foreign trade professional you have ample opportunities both in India and overseas. It is a practical hands — on experience kind of job where any company or government body getting into exports would willingly absorb you. Where setting up your own export units is concerned, it may be best to wait and watch right now since the rupee is unstable, there has been a hike in petroleum and freight prices and the entire political climate is uncertain. Indian exporters are not supposed to be very well acquainted with hedging mechanism. For which reason it is best to work with a reputed firm or government agency and gather as much experience as possible till India's trade policy becomes more consistent.