Lok Sabha Question No. 143 (UNSTARRED), answered on 2017-07-17
Subject: New Markets for Exports
Ministry: COMMERCE AND INDUSTRY
Asked by: GAJANAN CHANDRAKANT KIRTIKAR, VIJAY KUMAR S.R., SUDHEER GUPTA, BIDYUT BARAN MAHATO, T. RADHAKRISHNAN, ASHOK SHANKARRAO CHAVAN, KUNWAR HARIBANSH SINGH

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

LOK SABHA UNSTARRED QUESTION NO.143 TO BE ANSWERED ON 17 th  JULY, 2017

## NEW MARKETS FOR EXPORTS

## 143.  SHRI GAJANAN KIRTIKAR:

SHRI S.R. VIJAYAKUMAR:

SHRI SUDHEER GUPTA:

SHRI BIDYUT BARAN MAHATO:

SHRI T. RADHAKRISHNAN:

SHRI ASHOK SHANKARRAO CHAVAN:

KUNWAR HARIBANSH SINGH:

Will the Minister of COMMERCE & INDUSTRY ( वािणÏय एवं उɮयोग मंत्री ) be pleased to state:

- (a) the details of annual average share of India in global trade;
- (b) whether India has lost global market share in the past five years in a large number of export items;
- (c) if so, the details thereof and the reasons therefor, item-wise;
- (d) whether the Federation of Indian Export Organisations has requested the Government to revisit the strategy for export of these items;
- (e) if so, the details and the outcome thereof; and
- (f) the steps taken/being taken by the Government to increase the global market share and boost the export?

## ANSWER

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THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE)

(SMT. NIRMALA SITHARAMAN)

- (a): The details of annual average share of India in global trade are as follows:

|   Years |   India's Share in World Merchandise Plus Services Exports |   India's Share in World Merchandise Plus Services Imports |
|---------|------------------------------------------------------------|------------------------------------------------------------|
|    2012 |                                                        1.9 |                                                        2.7 |
|    2013 |                                                        2   |                                                        2.5 |
|    2014 |                                                        2   |                                                        2.5 |
|    2015 |                                                        2   |                                                        2.4 |
|    2016 |                                                        2   |                                                        2.4 |

Source: WTO database

(b) & (c): As per information received from Federation of Indian Export Organisations (FIEO), of the 5800 tariff lines at 6 digit level (ITC-HS), 200 such lines contribute about 50% of India's exports. Of these 200 lines, in respect of 61 lines India's share of exports has fallen in Global imports between 2011 and 2016. These 61 lines are listed in Annexure-I.

(d) to (f): Suggestions  for  reform  of  trade  strategy  are  received  from  stakeholders, including FIEO, from time to time, which are taken into consideration as part of the regular ongoing process of review and reform of trade policy. As part of this process Government has taken the following steps to increase the competitiveness of India's exports:

- (i) The New Foreign Trade Policy (2015 -20) was  announced on 1 st April,  2015  with  a focus on supporting both manufacturing and services exports.
- (ii) The Merchandise  Exports  from  India  Scheme  (MEIS) has  been  introduced  in  the Foreign  Trade  Policy  (FTP)  2015-20  on  01.04.2015  with the  objective  to  offset infrastructural inefficiencies and associated costs involved in exporting goods/products which are produced/ manufactured in India and to provide a level playing  field  to  Indian  exporters,  especially  those  having  high  export  intensity  and employment  potential.  The  Scheme  incentivizes exporters in terms  of freely transferable Duty Credit Scrips which are transferable and can be used to pay certain Central duties/taxes including customs duties.  The Scheme covers exports of 7914 tariff lines at 8 digit levels to all countries.
- (iii) The Services Exports from India Scheme (SEIS) has been introduced in the Foreign Trade Policy (FTP) 2015-20 on 01.04.2015. The Scheme provides rewards at the rate of 3 to 5% on Net Foreign Exchange earnings, to service providers of notified services from  India  to  rest  of  the  world,  in  the  form  of  Duty  Credit  Scrips which  are transferable and can be used to pay certain Central duties/taxes including customs duties.
- (iv) The Government has implemented the Niryat Bandhu Scheme with an objective to reach out to the new and potential exporters including exporters from Micro, Small & Medium Enterprises (MSMEs) and mentor them through orientation programmes, counseling sessions, individual facilitation etc., on various aspects of foreign trade for being able to get into international trade and boost exports from India.
- (v) As  part  of  the  ' Ease  of  Doing  Business '  initiatives,  the  Government  has  launched Single Window Interface for Facilitating Trade (SWIFT) clearances project w.e.f 1 st April, 2016. The scheme enables the importers/exporters to file a common electronic 'Integrated Declaration' on the Indian Customs Electronic Commerce/Electronic Data Interchange  (EC/EDI)  Gateway  i.e.  ICEGATE  portal.  The  Integrated  Declaration compiles the information requirements of Customs, FSSAI, Plant Quarantine, Animal Quarantine,  Drug  Controller,  Wild  Life  Control  Bureau  and  Textile  Committee.  It replaces nine separate forms required by these 6 different agencies and Customs.
- (vi) Interest  Equalization  Scheme  on  pre  &  post  shipment  credit was  launched  to provide cheaper credit to exporters.
- (vii) A new scheme called Special Advance Authorisation Scheme for export of articles of Apparel and Clothing Accessories was introduced w.e.f. 1st September 2016 wherein exporters are entitled for an authorisation for fabrics including inter lining on preimport  basis  and  all  industry  rate  of  Duty  Drawback  for  non-fabric  inputs  on  the exports.
- (viii) Further, the Government continues to provide the facility of access to duty free raw materials and capital goods for exports through schemes like Advance Authorization, Duty Free Import Authorization (DFIA), Export Promotion Capital Goods (EPCG) and drawback / refund of duties.
- (ix) The  Government  launched  a  new  scheme  called Trade  Infrastructure  for  Export Scheme  (TIES) w.e.f.  15 th March,  2017  with  the  objective  to  enhance  export competitiveness  by  bridging  gaps  in  export  infrastructure,  creating  focused  export infrastructure, first mile and last mile connectivity for export oriented projects and addressing  quality  and  certification  measures.  The  Central  and  State  Agencies, including Export Promotion Councils, Commodities Boards, SEZ Authorities and Apex Trade Bodies recognised under the EXIM policy of Government of India are eligible for financial support under this scheme.
- (x) The Government has approved the proposal for notification of commitments under the Trade  Facilitation  Agreement  (TFA) of  World  Trade  Organization  (WTO), ratification and acceptance of the Instrument of Acceptance of Protocol of TFA to the WTO Secretariat and constitution  of  the  National  Committee  on  Trade  Facilitation (NCTF). The Trade Facilitation Agreement (TFA) contains provisions for expediting the movement, release and clearance of goods, including goods in transit. It also sets out measures  for effective cooperation between  customs  and  other appropriate authorities on trade facilitation and customs compliance issues. These objectives are in consonance with India's 'Ease of Doing Business' initiative.

***

Annexure-I Statement referred to in reply of part (b) & (c) of Lok Sabha Unstarred question no. 143 for answer on 17 th July 2017.

|   S. No. |   Product code | Commodities                                                                                       | India's Share of Exports in World Imports 2011   | India's Share of Exports in World Imports 2016   |
|----------|----------------|---------------------------------------------------------------------------------------------------|--------------------------------------------------|--------------------------------------------------|
|        1 |         710239 | Diamonds, worked, but not mounted or set (excluding industrial diamonds)                          | 31.36%                                           | 30.79%                                           |
|        2 |         711319 | Articles of jewellery and parts thereof, of precious metal other than silver                      | 22.10%                                           | 14.44%                                           |
|        3 |         870321 | Motor cars and other motor vehicles principally designed for the transport of persons             | 8.84%                                            | 5.77%                                            |
|        4 |         290243 | P-Xylene                                                                                          | 4.29%                                            | 3.37%                                            |
|        5 |         420221 | Handbags, whether or not with shoulder straps, incl. those without handles, with outer surface    | 3.46%                                            | 2.97%                                            |
|        6 |         390210 | Polypropylene, in primary forms                                                                   | 4.13%                                            | 2.53%                                            |
|        7 |         880330 | Parts of aeroplanes or helicopters, n.e.s. (excluding those for gliders)                          | 3.21%                                            | 2.00%                                            |
|        8 |         401120 | New pneumatic tyres, of rubber, of a kind used for buses and lorries (excluding typres            | 2.14%                                            | 1.92%                                            |
|        9 |         620342 | Men's or boys' trousers, bib and brace overalls, breeches and shorts, of cotton                   | 2.02%                                            | 1.68%                                            |
|       10 |         870210 | Motor vehicles for the transport of >= 10 persons, incl. driver, with compression-ignition        | 1.77%                                            | 1.57%                                            |
|       11 |         392190 | Plates, sheets, film, foil and strip, of plastics, reinforced, laminated, supported or similarly  | 1.81%                                            | 1.55%                                            |
|       12 |         841480 | Air pumps, air or other gas compressors and ventilating or recycling hoods incorporating          | 1.84%                                            | 1.29%                                            |
|       13 |         850300 | Parts suitable for use solely or principally with electric motors and generators, electric        | 1.91%                                            | 1.29%                                            |
|       14 |         230400 | Oilcake and other solid residues, whether or not ground or in the form of pellets                 | 8.31%                                            | 1.20%                                            |
|       15 |         620462 | Women's or girls' trousers, bib and brace overalls, breeches and shorts of cotton                 | 1.56%                                            | 0.93%                                            |
|       16 |         890190 | Vessels for the transport of goods and vessels for the transport of both persons and goods        | 1.02%                                            | 0.86%                                            |
|       17 |         640399 | Footwear with outer soles of rubber, plastics or composition leather, with uppers of leather      | 0.90%                                            | 0.84%                                            |
|       18 |         847990 | Parts of machines and mechanical appliances, n.e.s.                                               | 1.52%                                            | 0.81%                                            |
|       19 |         260111 | Non-agglomerated iron ores and concentrates (excluding roasted iron pyrites)                      | 2.65%                                            | 0.72%                                            |
|       20 |         611020 | Jerseys, pullovers, cardigans, waistcoats and similar articles, of cotton, knitted or crocheted   | 0.59%                                            | 0.56%                                            |
|       21 |         853690 | Electrical apparatus for switching electrical circuits, or for making connections to              | 0.59%                                            | 0.55%                                            |
|       22 |         330499 | Beauty or make-up preparations and preparations for the care of the skin (other than medicaments) | 0.63%                                            | 0.46%                                            |
|       23 |         390120 | Polyethylene with a specific gravity of >= 0,94, in primary forms                                 | 1.20%                                            | 0.44%                                            |
|       24 |         100590 | Maize (excluding seed for sowing)                                                                 | 3.31%                                            | 0.39%                                            |
|       25 |         851770 | Parts of telephone sets, telephones for cellular networks or for other wireless networks          | 0.95%                                            | 0.36%                                            |
|       26 |         853400 | Printed circuits                                                                                  | 0.30%                                            | 0.29%                                            |
|       27 |         841810 | Combined refrigerator-freezers, with separate external doors                                      | 0.65%                                            | 0.26%                                            |
|       28 |         300439 | Medicaments containing hormones or steroids used as hormones but not antibiotics                  | 0.33%                                            | 0.24%                                            |

|   S. No. |   Product code | Commodities                                                                                         | India's Share of Exports in World Imports 2011   | India's Share of Exports in World Imports 2016   |
|----------|----------------|-----------------------------------------------------------------------------------------------------|--------------------------------------------------|--------------------------------------------------|
|       29 |         841199 | Parts of gas turbines, n.e.s.                                                                       | 0.51%                                            | 0.23%                                            |
|       30 |         401110 | New pneumatic tyres, of rubber, of a kind used for motor cars, incl. station wagons and racing      | 0.33%                                            | 0.22%                                            |
|       31 |         854140 | Photosensitive semiconductor devices, incl. photovoltaic cells whether or not assembled             | 0.44%                                            | 0.22%                                            |
|       32 |         490199 | Printed books, brochures and similar printed matter (excluding those in single sheets; dictionaries | 0.26%                                            | 0.21%                                            |
|       33 |         270119 | Coal, whether or not pulverised, non-agglomerated (excluding anthracite and bituminous coal)        | 0.79%                                            | 0.20%                                            |
|       34 |         999999 | Commodities not elsewhere specified                                                                 | 2.87%                                            | 0.16%                                            |
|       35 |         847330 | Parts and accessories of automatic data-processing machines or for other machines                   | 0.13%                                            | 0.13%                                            |
|       36 |         940540 | Electric lamps and lighting fittings, n.e.s.                                                        | 0.17%                                            | 0.12%                                            |
|       37 |         851712 | Telephones for cellular networks "mobile telephones" or for other wireless networks                 | 1.71%                                            | 0.09%                                            |
|       38 |         740400 | Waste and scrap, of copper (excluding ingots or other similar unwrought shapes, of remelted         | 0.17%                                            | 0.09%                                            |
|       39 |         847180 | Units for automatic data-processing machines (excluding processing units, input or output units     | 0.12%                                            | 0.09%                                            |
|       40 |         890120 | Tankers                                                                                             | 0.16%                                            | 0.08%                                            |
|       41 |         847160 | Input or output units for automatic data-processing machines, whether or not containing storage     | 0.08%                                            | 0.07%                                            |
|       42 |         852872 | Reception apparatus for television, colour, whether or not incorporating radio-broadcast receivers  | 0.07%                                            | 0.06%                                            |
|       43 |         340220 | Surface-active preparations, washing preparations, auxiliary washing preparations and cleaning      | 0.11%                                            | 0.06%                                            |
|       44 |         852351 | Solid-state, non-volatile data storage devices for recording data from an external source           | 0.35%                                            | 0.04%                                            |
|       45 |         847170 | Storage units for automatic data-processing machines                                                | 0.13%                                            | 0.04%                                            |
|       46 |         847150 | Processing units for automatic data-processing machines, whether or not containing in the same      | 0.22%                                            | 0.04%                                            |
|       47 |         854129 | Transistors with a dissipation rate >= 1 W (excluding photosensitive transistors)                   | 0.03%                                            | 0.02%                                            |
|       48 |         848690 | Parts and accessories for machines and apparatus of a kind used solely or principally for the ...   | 0.07%                                            | 0.02%                                            |
|       49 |         847130 | Data-processing machines, automatic, portable, weighing <= 10 kg                                    | 0.03%                                            | 0.01%                                            |
|       50 |         854290 | Parts of electronic integrated circuits, n.e.s.                                                     | 0.05%                                            | 0.01%                                            |
|       51 |         854231 | Electronic integrated circuits as processors and controllers, whether or not combined               | 0.013%                                           | 0.008%                                           |
|       52 |         854233 | Electronic integrated circuits as amplifiers                                                        | 0.007%                                           | 0.006%                                           |
|       53 |         710813 | Gold, incl. gold plated with platinum, in semi- manufactured forms, for non-monetary purposes       | 0.008%                                           | 0.005%                                           |
|       54 |         854232 | Electronic integrated circuits as memories                                                          | 0.021%                                           | 0.005%                                           |
|       55 |         710691 | Silver, incl. silver plated with gold or platinum, unwrought (excluding silver in powder form)      | 0.007%                                           | 0.002%                                           |
|       56 |         848620 | Machines and apparatus for the manufacture of semiconductor devices or of electronic integrated     | 0.0019%                                          | 0.0009%                                          |
|       57 |         151190 | Palm oil and its fractions, whether or not refined (excluding chemically modified and crude)        | 0.0068%                                          | 0.0007%                                          |
|       58 |         440710 | Coniferous wood sawn or chipped lengthwise, sliced or peeled, whether or not planed, sanded         | 0.0016%                                          | 0.0005%                                          |
|       59 |         271112 | Propane, liquefied                                                                                  | 0.01207%                                         | 0.00001%                                         |
|       60 |         270112 | Bituminous coal, whether or not pulverised, non- agglomerated                                       | 0.00131%                                         | 0.00001%                                         |
|       61 |         270900 | Petroleum oils and oils obtained from bituminous minerals, crude                                    | 0.00094%                                         | 0.00000%                                         |

Source: Federation of Indian Export Organization (FIEO)