Question

What is the full form of EPCG?

• A. Export Promotion Capital Goods
• B. Export Promotion Council of Goods
• C. Export Potential of Capital Goods
• D. Export Promotion Council of Government

Answer 1

The Correct Option is A

To determine the full form of EPCG, we need to understand the context in which this abbreviation is used. EPCG is a term related to India's foreign trade policy designed to facilitate the import of capital goods for producing quality goods and services to enhance export competitiveness.

The correct answer is Export Promotion Capital Goods. Let's verify by analyzing the options:

1. Export Promotion Capital Goods: This is a scheme under the Indian Foreign Trade Policy that allows importers to import capital goods without paying customs duties, on the condition that they commit to an export obligation. This aligns directly with the goals of promoting exports by enhancing production capabilities.
2. Export Promotion Council of Goods: There is no such established entity or scheme under this name in the context of Indian trade or innovation policy, making this option incorrect.
3. Export Potential of Capital Goods: While this phrase discusses the potential of capital goods in the export market, it doesn't refer to any specific scheme or policy term, making it an incorrect choice for the abbreviation EPCG.
4. Export Promotion Council of Government: This option doesn't fit as EPCG means a scheme and not a council, further confirming that it's an incorrect option regarding EPCG's meaning.

The correct answer, Export Promotion Capital Goods, relates to a policy aimed at enhancing India's exports through the modernization of production facilities, thereby increasing the overall competitiveness of Indian goods and services.

In summary, understanding the context and objective of EPCG helps us determine its correct full form, which is beneficial for trade and export-related initiatives in India.