Lok Sabha Question No. 290 (UNSTARRED), answered on 2017-12-18
Subject: Export Growth
Ministry: COMMERCE AND INDUSTRY
Asked by: M. B. RAJESH

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 290 TO BE ANSWERED ON 18 th  DECEMBER, 2017

## EXPORT GROWTH

## 290. SHRI M.B. RAJESH:

Will the Minister of COMMERCE & INDUSTRY ( वा ͨणÏय एवं उɮयोग मंğी ) be pleased to state:

- (a) whether  export  growth  of  major  items  like  Gems  and  Jewellery,  Textiles,  Dairy, Meat and Poultry and Leather have slowed down in the current financial year and if so, the details thereof and the reasons therefor;
- (b) the details of export performance of these items during the last five years along with the reasons for slow growth;
- (c) whether  the  restriction  of  cattle  trade  for  slaughter  has  been  a  reason  for  slow growth of meat products and if so, the details thereof; and
- (d) the measures taken or proposed to be taken by the Government to enhance export growth of these major items?

## ANSWER

okf.kT; ,oa m|ksx ea=ky; esa jkT; ea=h ¼Jh lh- vkj- pkS/kjh½

## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI C. R. CHAUDHARY)

(a) & (b): The  details  of export of  items  like Gems  and  Jewellery,  Textiles,  Leather, Meat, Dairy and Poultry products during the last five years and the current year are given below:

(Value in US$ billion)

| Items                         |   2012-13 |   2013-14 |   2014-15 |   2015-16 |   2016-17 |   2016-17 (Apr-Oct) |   2017-18 (Apr-Oct)* |   % Change |
|-------------------------------|-----------|-----------|-----------|-----------|-----------|---------------------|----------------------|------------|
| Gems& Jewellery               |     42.99 |     41.39 |     41.27 |     39.28 |     43.41 |               26.6  |                24.66 |      -7.32 |
| Textile & Allied Products     |     32.87 |     36.94 |     37.09 |     35.95 |     35.77 |               19.63 |                20.41 |       4.01 |
| Leather &Leather Manufactures |      4.88 |      5.72 |      6.2  |      5.55 |      5.31 |                3.15 |                 3.18 |       0.79 |
| Meat Products                 |      3.28 |      4.47 |      4.92 |      4.2  |      4.03 |                2.34 |                 2.38 |       1.45 |
| Dairy Products                |      0.43 |      0.73 |      0.36 |      0.26 |      0.25 |                0.13 |                 0.16 |      15.14 |
| Poultry Products              |      0.09 |      0.09 |      0.11 |      0.12 |      0.08 |                0.04 |                 0.04 |      -0.89 |

Source: DGCI&S, Kolkata (* Provisional)

The  above  table  reveals  that  the  items  gems  &  jewellery  and  poultry  products registered  a  negative  growth  during  the  current  year  as  compared  to  the  corresponding period  of  the  previous  year.  Exports  depend  upon  many  global  and  domestic  factors including  demand  in  international  markets,  currency  fluctuations,  cost  of  credit,  logistics costs, etc. (c): There has been a positive growth of 1.45% in exports of meat products during the current year. (d): The Government announced a major relief package for exporters in October 2017 by  extending  the  Advance  Authorization  (AA)  /  Export  Promotion  Capital  Goods  (EPCG)  / 100%  EOU  schemes  to  sourcing  inputs  etc.  from  abroad  as  well  as  domestic  suppliers. Holders of AA / EPCG and EOUs would not have to pay Integrated Goods and Services Tax (IGST),  Cess  etc.  on  imports.  Also,  domestic  supplies  to  holders  of  AA  /  EPCG  and  EOUs would be treated as deemed exports. During the mid-term review of Foreign Trade Policy in December, 2017, export incentives under Merchandise Exports from India (MEIS) have been increased by 2% across the board for labour intensive MSME sectors leading to additional annual incentive of Rs 4,567 cr. This was in addition to already announced  increase in MEIS incentives from 2% to 4% for Ready-made Garments and Made Ups in the labour intensive Textiles Sector with an additional annual incentive of Rs 2,743 cr. For Leather and Footwear Articles,  an  additional  benefit  of  Rs.  749  crore  is  part  of  the  relief  package.  Further, incentives under Services Exports from India Scheme (SEIS) have also been increased by 2% leading to additional annual incentive of Rs 1,140 cr.

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