There is no precise definition of State trading. There are various types of’ government participation in foreign trade, all of which can be defined as State trading. For example, in the centrally-planned economies the entire foreign trade is nationalized and is, therefore, conducted directly by government departments or government-owned corporations. On the other hand, there are countries, which are essentially free enterprise economies, but export and import of specific commodities are entrusted to government trading organisations or departments.
Objectives of State Trading Corporation of India Limited
- To develop core competencies in selected areas and exploit the market opportunities
- To continuously undertake horizontal and vertical diversifications thereby enabling sustained growth of business.
- To make best use of financial strength of the Corporation in expanding its business.
- To lay emphasis on quality of services to customers so as to develop long-term business relationship with buyers and suppliers in and outside the country.
- To undertake market intervention operation as and when advised by the Government of India.
- To create new infrastructure and make optimum utilisation of infrastructure available with the Corporation.
- To strive to pay adequate returns to the stakeholders.
- To fulfil Corporation’s social responsibility by following ethical business practices and reinforcing commitment to customers, employees, partners and communities.
- To undertake on a continuous basis training / re-training of existing manpower and induct professionally qualified young talent so as to create a cadre of highly professional and motivated managers.
- To ensure an efficient and streamlined system of operations, with minimum transaction costs.
- To act as a facilitator to small and medium exporters and importers