What is the full form of EDF?

Introduction to EDF

Export development fund (EDF) is an autonomous body that works under sovereign authority. It was approved under different EDF laws of the state. The fund aims to enhance the international export and import of a country and increase business.

• In India “EDF” was set up under “Export-Import Bank of India Act 1981”.

• The main objective of EDF is to increase countries' competitiveness, expansion and modernization of industries at all levels.

• EDF through investment helps in setting up enterprises, expanding them and promoting exports.

Objectives of EDF

There are two main objectives of the export development fund. These are as follows;

• The first objective of the EDF is to reform the export-import policies of the country and its administration.

• The second objective is to boost manufacturing and increase competitiveness so that export can be boosted.

• Another objective is to assist exporters so that they enhance exporting.

• Aid exporters in finding potential markets to boost sales and increase revenue.

• Link exporters with financial institutions to fund their projects.

• Export development funds aid entrepreneurs in developing target markets, conducting research, helping in interaction with potential consumers, and finding the obstacles faced by an exporter during the process.

• The objective of EDF is also to generate the interest of exporters in contributing to the economy of the country by participation.

• The target of the EDF is also to deploy state and foreign investment in export.

• The objective of EDF is to boost nations' economies through exporting.

Benefits of EDF

The government's drive to boost exports and enhance foreign exchange in the nation has established an Export development fund that helps countries in various means.

• The government has established the EDF under the new Foreign Trade Policy (2015-20) to develop export trade and boost foreign exchange.

• To promote foreign trade, the government has launched two new schemes “Merchandise Export from India Scheme” and “Service Export from India Scheme” to boost services and trade in the nation.

• These schemes are established to aid exporters and entrepreneurs for ease of doing business.

• The government has established a logistics division for boosting the logistics industry and increasing growth.

• EDF gives recognition to exporters that boost foreign trade and contribute to countries' economies.

• EDF boosts cash flow in countries by boosting overseas sales.

• It helps businesses in accessing venture capital for the sale and purchase of goods.

Operations of EDF

Export development fund work to benefit new and old businesses in revamping. Let’s understand how it works;

• EDF first establishes a target market and conducts research, finds buyers, and identifies the hurdles faced by exporters in the process.

• Export development authority prepares an analysis report and helps in setting the target market and removing hurdles.

• Export development authority design and establish network market.

• To get funds from the export development authority company has to fulfil some criteria.

• The beneficiary has to register themselves with the Corporate affair authority, and government.

• The company has to get an export-import code for export-import activities. After applying for the code company, get the code within a week.

• The exporter gets the fund in the form of loans, grants, advances and other facilities.

• The EDF helps exporters cope with cash flow issues until clients pay for the goods.

• Entrepreneurs get funds in 30-120 days.

• The EDF checks the creditworthiness of the exporters and importer, their relation and financial tracking before financing funds.

Conclusion

The export development fund (EDF) is a crucial scheme launched by the government to boost exports in the nation. Countries boost exports to foster their economy. It aims to fund, prepare, facilitate, and aid exporters to enhance sales in the global market. Export development funds provide funds to exporters at a low rate of interest to cope with cash flow issues until payment is done by the buyer. EDF also helps in the development of products and approaching the global market.

FAQs

Q1. What is the source of funds given under the Export development fund?

Ans: The fund given to exporters by the export development fund is given under donations, loans, and endowments. These grants are approved by the government. The surcharge collected on the grants is taken by the government.

Q2. What is an Export declaration form (EDF)?

Ans: Export declaration forms are declarations of export transactions to authorised dealers or banks with shipping details submitted to authorised dealers or banks. The exporter has to submit these forms within 21 days of the shipment. These forms are simplified versions of goods and software EDF forms. These forms are available on the RBI website.

Q3. What is the Full form of EIC?

Ans: The full form of EIC is “Export Inspection Council”. It is an official export certification authority of India. It ensures the shipment of products with safety and quality from India. EIC was established by the government of India under section-3 of the Export (Quality and Inspection) Act 1963.