Lok Sabha Question No. 2402 (UNSTARRED), answered on 2017-07-31
Subject: Growth in Goods Exports
Ministry: COMMERCE AND INDUSTRY
Asked by: R. VANAROJA

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

## LOK SABHA UNSTARRED QUESTION NO. 2402 TO BE ANSWERED ON 31 st JULY, 2017

## GROWTH IN GOODS EXPORTS

## 2402. SHRIMATI VANAROJA R.:

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

- (a) whether it is a fact that India's goods exports recorded positive growth for the fifth consecutive months with a rise in shipments in January this year;
- (b) if so, the details thereof;
- (c) whether it is also true that the slowdown in global trade continues to impact India as well and if so, the details thereof;
- (d) whether it is also true that the uncertainties in global economy are expected to pose challenges for exports in 2017; and
- (e) if so, the details thereof along with the steps proposed to be taken in this regard?

## ANSWER

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THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY

## (INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)

## (a) & (b):

The value of India's merchandise exports during last six months is as follows:

| Months              | Value of exports (US$ Billions)   | Value of exports (US$ Billions)   | %growth over corresponding month of previous year   |
|---------------------|-----------------------------------|-----------------------------------|-----------------------------------------------------|
|                     | 2016*                             | 2017*                             |                                                     |
| January             | 21.20                             | 22.29                             | 5.13                                                |
| February            | 20.85                             | 25.54                             | 22.54                                               |
| March               | 22.91                             | 29.14                             | 27.20                                               |
| April               | 20.89                             | 24.62                             | 17.85                                               |
| May                 | 22.40                             | 24.01                             | 7.20                                                |
| June                | 22.66                             | 23.56                             | 3.97                                                |
| Total of six months | 130.90                            | 149.16                            | 13.95                                               |

Source: DGCI&S, Kolkata, (* Provisional)

The above data reflect that India's merchandise exports recorded positive growth during the last six months as compared to the exports of corresponding month of previous year.

(c) to (e): Though India has registered a positive growth rate in merchandise exports for the last ten months consecutively since August, 2016, the slowdown in global trade may continue to impact India during 2017 due to the following reasons

- i. Fall in global demand and fall in commodity prices, impacting terms of trade for commodity exporters.
- ii. Fall in the prices of petroleum crude resulting in consequent decline in prices as well as export realizations for petroleum products, which are major terms of exports for India.
- iii. Fall  in  demand  of  precious  goods  like  Pearls,  Precious  and  Semi-Precious stones, especially from oil producing countries.

The  Government  has  taken  the  following  steps  to  boost  India's  exports  and  to  face  the challenges that may pose for exports in the year 2017:

- (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.