Trade Infrastructure for Export Scheme [TIES]

By : Neha Dhyani

Updated : Jun 6, 2022, 5:31

Trade infrastructure or logistics is a crucial aspect for any government given that it supports the movement of goods and services from one country to another. Efficient infrastructure is crucial to facilitating a smooth and comfortable process.

The outcome of efficient trade infrastructure is that it helps make the transportation process faster and with fewer roadblocks, in turn, benefiting the end customer who gets a wider range of goods at lower prices.

Types of Trade Modes under Trade Infrastructure for Export Scheme [TIES]

The different types of trade infrastructures modes that come under the Trade Infrastructure for Export Scheme [TIES] are-

  • Roadways
  • Railways
  • Airways
  • Seaports
  • Integrated Transport and Logistics Services, which include packaging, storage, transport, administration, and inventory management
  • Telecommunication Networks
  • Financial Services

Trade Infrastructure for Export Scheme [TIES] Aims

With the aim to facilitate, monitor, assist and channel efforts to increase exports and thereby its share in the GDP or the Gross Domestic Product, the Government of India launched the Trade Infrastructure for Export Scheme [TIES], which focused on addressing the needs of exporters and traders.

In this article, we share the key points about this scheme and how it aims to achieve its objectives.

About Trade Infrastructure for Export Scheme [TIES]

The Trade Infrastructure for Export Scheme [TIES] is a centrally sponsored scheme focused on enhancing export competitiveness. The scheme focuses on export infrastructure, creating better logistic processes, providing first-mile and last-mile connectivity, maintaining and enhancing quality, and enforcing strict regulations for export projects.

The scheme replaces the centrally sponsored project that was in existence until 2015, which was called the Assistance to States for Infrastructure Development of Exports (ASIDE).

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Trade Infrastructure for Export Scheme [TIES] Objectives

As mentioned in the scope of the Trade Infrastructure for Export Scheme [TIES] guidelines shared by the Government of India Ministry of Commerce & Industry, the objective of TIES is to assist individuals or organizations who are engaged in infrastructure projects.

The scheme focuses on the creation of multiple facilities like Border trading posts, quality-testing units, certification labs, export warehousing and packaging, cold storage provisions, trade promotion centres, dry ports, allocation of Special Economic Zones for trade activity, and ports/airports cargo terminals.

In addition, the scheme also promises to separately fund studies related to Export logistics, including identification of sector-specific infrastructure, gap identification, mapping of assets, and other logistical processes. The objective of this study is to enable export-related activities to be fast-tracked and made efficient.

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Eligibility & Provisions of Trade Infrastructure for Export Scheme [TIES]

  • The agencies eligible for financial support under this scheme include Commodity Boards, SEZ authorities, Trade Bodies, Central & State Govt agencies, or joint ventures of any government agency with a private player.

  • As per the scheme, s Central Government funding is provided as a grant-in-aid to the chosen institutes or companies. This grant cannot be more than 50% of the total equity put in by the agency in the project.
  • However, a special provision has been made for projects that are located in North-East India (Assam, Tripura, Meghalaya, Arunachal Pradesh, Nagaland, and Mizoram) and the Himalayan region (Jammu & Kashmir and Leh-Ladakh), where the Centre promises to bear up to 80% of the cost.
  • This grant for an individual infrastructure project is limited to a maximum of Rs. 20 crore.

Under the Trade Infrastructure for Export Scheme [TIES], financial assistance for 44 export infrastructure projects has been approved during FY 2017-18, 2018-19, 2019-20 & 2020-21 (as of 12 March 2021). In addition, under the Trade Infrastructure for Export Scheme [TIES], the Department of Commerce, the Union Ministry of Commerce & Industry, and the Government of India gave the go-ahead for providing financial assistance to set up three trade promotion centres in India.

These approved projects are-

  • Establishing the Main Exhibition Building (Phase-II) at the Trade cum Permanent Exhibition Center in Imphal Manipur.
  • Establishing the Trade Promotion Centre at Minto Hall, Bhopal, Madhya Pradesh
  • Expansion of Chennai Trade Centre in Chennai, Tamil Nadu
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FAQs on Trade Infrastructure for Export Scheme [TIES]

Q1. What is the Trade Infrastructure for Export Scheme [TIES]?

The Trade Infrastructure for Export Scheme [TIES] is a centrally sponsored scheme focused on enhancing export competitiveness. The scheme focuses on export infrastructure, creating better logistic processes, providing first-mile and last-mile connectivity, maintaining and enhancing quality, and enforcing strict regulations for export projects.

Q2. What is trade infrastructure, and how is it a part of the Trade Infrastructure for Export Scheme [TIES]?

Trade infrastructure includes any logistical facilities that enable the smooth movement of goods from one location to the other and come under the purview of the Government of India as part of the Trade Infrastructure for Export Scheme [TIES]. The different types of trade infrastructures include:

  • Roadways
  • Railways
  • Airports
  • Seaports
  • Integrated Transport and Logistics Services, which include packaging, storage, transport, administration, and inventory management
  • Telecommunication Networks
  • Financial Services

Q3. What is the ASIDE Scheme?

Assistance to States for Infrastructure Development of Exports (ASIDE) was a scheme launched by the Indian Government in 2002 to help states develop infrastructure related to exports. This scheme was replaced by the Trade Infrastructure for Export Scheme [TIES] in 2015-16.

Q4. What is the objective of the Trade Infrastructure for Export Scheme [TIES]?

the objective of the Trade Infrastructure for Export Scheme [TIES] is to assist individuals or organizations with infrastructure projects and cover multiple facilities like Border trading posts, quality-testing units, certification labs, export warehousing and packaging, cold storage provisions, trade promotion centres, dry ports, allocation of Special Economic Zones for trade activity, and ports/airports cargo terminals.