Trade Infrastructure for Export Scheme (TIES)

The Trade Infrastructure for Export Scheme (TIES) is an initiative launched by the Government of India to strengthen and modernize the trade-related infrastructure in the country with a focus on promoting exports. The scheme aims to enhance India’s export competitiveness by providing support for the development of critical infrastructure facilities and services for the export sector.

Objectives of TIES

The primary objectives of the Trade Infrastructure for Export Scheme include:

1. Improving Export Infrastructure: TIES aims to enhance the quality and capacity of export-related infrastructure, including ports, airports, rail and road connectivity, cold storage facilities, and trade promotion centers.
2. Promoting Export Clusters: The scheme focuses on supporting the development of export clusters and special economic zones (SEZs) to boost exports from specific regions and industries.
3. Upgrading Testing and Certification Facilities: TIES provides funding for the establishment and modernization of testing and certification laboratories, ensuring compliance with international quality standards.
4. Facilitating Market Access: The scheme aims to reduce transaction costs and enhance the efficiency of export processes, thereby facilitating market access for Indian exporters.

Key Features of TIES

1. Financial Assistance: TIES provides financial assistance to eligible entities, including state governments, export promotion councils, trade and industry associations, and other relevant stakeholders.
2. Project-Based Approach: The scheme follows a project-based approach, where proposals for infrastructure development are evaluated and approved based on their potential to improve export competitiveness.
3. Focus on MSMEs: TIES emphasizes supporting Micro, Small, and Medium Enterprises (MSMEs) in accessing export markets by providing them with necessary infrastructure and logistical support.
4. Technology Upgradation: The scheme encourages the adoption of modern technology and best practices in export infrastructure development.
5. Public-Private Partnership (PPP): TIES promotes private sector participation in export infrastructure development through Public-Private Partnership (PPP) projects.
6. Agencies for financial assistance: all State as well as Central agencies are eligible for providing financial assistance including Export Promotion Councils, SEZ authorities, Commodities Boards and the apex trade agencies acknowledged under the Government EXIM policy.
7. Monitoring Authority: a Committee will be set up that will exclusively look after the progress of the work done under this Scheme and ensure that the projects are rolled out effectively.

Advantages of TIES

• Boost in exports: the main purpose of TIES is to boost exports development and growth in all the States as well as the country. It will ensure that the recent slowdown in global exports does not affect India to a big extent and exports are not slowed down over a longer period of time.
• Alternative for controlling trade deficit: although the Central Government could control trade deficit by controlling the cost of imported products, those costs cannot be controlled for long and the Government will be left with looking for new strategies to boost exports. TIES will be of great help in this regard.
• Strengthen bond between Centre and State: as the Central Government will be proving financial help to the State Governments under this scheme and the State Governments will need to work closely and hand-in-hand with the Centre, this will ultimately improve the relationship between the State Governments and the Centre as both of them will be responsible for the overall exports growth in the country.
• National Policy Trade: the Sates will be required to grow their exports as they have urged to develop their strategy keeping in line with National Policy Trade. This feature of TIES will ensure that the State Governments are coming up with suitable framework and is working under proper authority.

Implementation and Funding

TIES is implemented by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry, Government of India. The scheme is funded through the Foreign Trade (Development and Regulation) Act Fund (FTDR Act Fund).

Impact of TIES

The Trade Infrastructure for Export Scheme has contributed significantly to India’s export growth by addressing infrastructure bottlenecks and improving logistics. It has supported the development of export-oriented clusters, modernized port and airport facilities, and upgraded testing and certification infrastructure, making Indian products more competitive in the global market.