Lok Sabha Question No. 4075 (UNSTARRED), answered on 2017-03-27
Subject: Boosting Exports
Ministry: COMMERCE AND INDUSTRY
Asked by: VEENA DEVI, VIRENDRA  KUMAR, MOHANBHAI KALYANJIBHAI KUNDARIYA, ANIRUDHAN SAMPATH, MANOJ RAJORIA, DILIP PATEL

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

## LOK SABHA UNSTARRED QUESTION NO. 4075 TO BE ANSWERED ON 27 th  MARCH, 2017

## BOOSTING EXPORTS

4075(H). SHRIMATI VEENA DEVI:

DR. VIRENDRA KUMAR:

SHRI KUNDARIYA MOHAN BHAI KALYANJI BHAI:

DR. A. SAMPATH:

DR. MANOJ RAJORIA:

SHRI DILIP PATEL:

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

- (a) the  total  quantity  and  value  of  Indian  exports  including  the  merchandise  exports from  Labour  Intensive  Sectors  of  the  country  during  the  last  three  years  and  the current year, commodity/ sector-wise and year-wise;
- (b) the details of growth/decline registered in country's exports during the said period, commodity and sector-wise  along  with  the  factors  affecting  the  exports  from  the country;
- (c) the  details  of  various  impediments  affecting  exports  from  the  country  including those  raised  by  the  Federation  of  Indian  Export  Organizations  along  with  the reaction of the Government thererto;
- (d) whether the Government has reviewed the impact of previous stimulus package for the  sectors  which  are  lagging  behind  in  exports  particularly  Labour  Intensive Sectors and if so, the details and the outcome thereof; and
- (e) the measures taken or being taken by the Government to boost the said exports from the  country  including  the  Schemes  launched  for  the  same  along  with  their monitoring mechanism?

## ANSWER

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

(SMT. NIRMALA SITHARAMAN)

- (a): The  value  of  India's  merchandise  exports  including  exports  from  Labour  Intensive Sectors of the country during the last three years and the current year are as follows:

|                      | Value of exports (in US$ Millions)    | Value of exports (in US$ Millions)   |
|----------------------|---------------------------------------|--------------------------------------|
| Years                | Exports from Labour Intensive Sectors | India's Total Merchandise Exports    |
| 2013-14              | 115384.82                             | 314415.73                            |
| 2014-15              | 129134.05                             | 310352.01                            |
| 2015-16              | 115454.31                             | 262290.13                            |
| 2016-17 (April-Jan)* | 98391.02                              | 221776.35                            |

Source: DGCI&S, Kolkata (* Provisional)

Due to different units of measurement, the quantity figures are not additive and hence total quantity  is  not  compiled.  The  details  of  commodity-wise  exports  from  Labour  Intensive Sectors for the last three years and the current year are enclosed at Annexure-I .

(b): The  details  of  growth/decline  in  India's  merchandise  exports  during  the  last  three years and the current year are as follows:

|                    | India's Merchandise Exports   | India's Merchandise Exports   |
|--------------------|-------------------------------|-------------------------------|
| Years              | Value (in US$ Billions)       | Percentage Growth             |
| 314.41             | --                            | 2013-14                       |
| 310.34             | -1.29                         | 2014-15                       |
| 262.29             | -15.48                        | 2015-16                       |
|                    | --                            | 2015-16 (Apr-Jan) 218.53      |
| 2016-17 (Apr-Jan)* | 221.78                        | 1.48                          |

Source: DGCI&S, Kolkata (* Provisional)

The  details  of  India's  exports  commodity  sector-wise  during  the  last  three  years  and  the current year are given at Annexure-II .

The factors affecting the exports of the country are as follows:

- (a) Fall  in  global  demand  and  fall  in  commodity  prices,  impacting  terms  of  trade  for commodity exporters.
- (b) 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.
- (c) EU countries that account for nearly 16% of India's export are facing problems of stagnation and deflation. China is also experiencing a slowdown. The recovery in US has been moderate and uncertain in terms of sustainability.
- (d) Fall  in  demand  of  precious  goods  like  Pearls,  Precious  and  Semi-Precious  stones, especially from oil producing countries.

(c): The various organisations including Federation of Indian Export Organisation (FIEO) has  raised  the  various  impediments  affecting  exports  like  marketing  support,  Interest Equalization for merchant exporters, high logistic cost and infrastructure inadequacies, export through  e-Commerce,  grant  of  export  benefit  at  the  time  of  exports  without  waiting  for realization, withdrawal of landing certificate for MEIS, combined applications for different norms, grant of TED refund on receipt of even part payment and investment linked benefit for MSMEs. Issues/suggestions received by Government from time to time are processed for suitable  action  as  found  appropriate.  Government  has  already  done  away  with  landing certificate under the MEIS scheme, as requested above.

(d) & (e): The  Government  monitors  the  export  performance  of  different  sectors  and takes  need  based  measures  from  time  to  time,  keeping  in  view  the  global  economic environment. Department of Commerce/Directorate General of Foreign Trade engages with stake  holders  including  Export  Promotion  Councils  to  assess  the  export  sector  situation. Based on the assessments and feedback received from exporting community, Government has taken suitable measures to promote exports including labour intensive sectors which are as follows:

- (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) was  introduced  in the  Foreign  Trade  Policy  (FTP)  2015-20  on  April  1,  2015  and  is  a  major export  promotion  scheme  implemented  by  the  Ministry  of  Commerce  and Industry. MEIS aims to incentivize export of merchandise which is produced/ manufactured  in  India.  Rewards  @  2-5%  under  MEIS  are  payable  as  a percentage  of  realized  FOB  value  of  covered  exports,  by  way  of  the  MEIS duty credit scrip, which are transferable and can also be used for payment of a number  of  duties  including  the  basic  customs  duty. At  present,  7914  tariff lines at 8 digit HS Codes are covered under MEIS scheme.
- (iii) The  Government  has  also  launched Services  Exports  from  India  Scheme (SEIS) in  the FTP  2015-2020.   The  Scheme  provided  rewards  to  service providers of notified services who are providing service from India. The rate of reward under the scheme would be based on net foreign exchange earned. The present rates of reward are 3% and 5%.
- (iv) The  Government  is  implementing  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 1st 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  launched  to provide cheaper credit to exporters.
- (vii) 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.
- (viii) A new scheme called Trade Infrastructure for Export Scheme (TIES) has been  announced  by  the  Government  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.

- (ix) 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. The  Trade Facilitation  Agreement  shall  enter  into  force  for  the  notified  members  upon acceptance by two-third WTO Members.

## Statement  referred  to  in  reply  of  part  (a)  of  Lok  Sabha  Unstarred  question  no.  4075  for  answer  on  27 th March 2017.

## India's merchandise exports by Labour Intensive Sectors

| Commodities                             | Unit    | 2013-14   | 2013-14   | 2014-15   | 2014-15   | 2015-16   | 2015-16   | 2016-17(Apr-Jan)*   | 2016-17(Apr-Jan)*   |
|-----------------------------------------|---------|-----------|-----------|-----------|-----------|-----------|-----------|---------------------|---------------------|
| Commodities                             | Unit    | Qty       | Value     | Qty       | Value     | Qty       | Value     | Qty                 | Value               |
| Ac, refrigeration machinery etc         | (blank) |           | 1164.12   |           | 1168.33   |           | 1048.09   |                     | 790.07              |
| Aircraft, spacecraft and parts          | (blank) |           | 4584.96   |           | 6158.51   |           | 3729.36   |                     | 2429.07             |
| Aluminium, products of aluminium        | TON     | 714409    | 1943.26   | 1039922   | 2859.37   | 1158776   | 2639.77   | 1255686             | 2573.70             |
| Atm, injctng mlding machinery etc       | (blank) |           | 1244.20   |           | 1344.42   |           | 1262.83   |                     | 1033.57             |
| Auto components/parts                   | (blank) |           | 3971.76   |           | 4438.56   |           | 4217.37   |                     | 3453.27             |
| Auto tyres and tubes                    | NOS     | 32966400  | 1687.52   | 30711609  | 1648.11   | 27905414  | 1387.25   | 26744308            | 1212.80             |
| Bicycle and parts                       | (blank) |           | 348.66    |           | 354.16    |           | 298.44    |                     | 239.47              |
| Carpet(excl. Silk) handmade             | SQM     | 85475234  | 1175.76   | 79364754  | 1358.16   | 101010010 | 1437.60   | 87916833            | 1211.05             |
| Copper and products made of copper      | TON     | 341065    | 2855.11   | 468979    | 3420.30   | 424484    | 2539.74   | 367926              | 2080.16             |
| Cotton fabrics, madeups etc.            | (blank) |           | 5118.64   |           | 5516.41   |           | 5266.17   |                     | 4271.06             |
| Cotton yarn                             | TON     | 1310879   | 4550.41   | 1272374   | 3937.41   | 1307109   | 3608.12   | 1005005             | 2744.76             |
| Cranes, lifts and winches               | (blank) |           | 309.72    |           | 341.79    |           | 423.63    |                     | 328.85              |
| Electric machinery and equipments       | (blank) |           | 3683.15   |           | 3974.04   |           | 3689.51   |                     | 3729.60             |
| Finished leather                        | KGS     | 67163410  | 1285.15   | 64530167  | 1331.76   | 51661459  | 1049.26   | 39297022            | 737.26              |
| Floor covering of jute                  | SQM     | 9287763   | 35.73     | 7808248   | 39.09     | 6257361   | 34.00     | 4345403             | 30.97               |
| Footwear of leather                     | (blank) |           | 2025.73   |           | 2279.00   |           | 2148.41   |                     | 1786.56             |
| Gold                                    | KGS     | 72006     | 3086.46   | 70819     | 2845.15   | 150752    | 5573.54   | 106639              | 4288.63             |
| Gold and other precious metal jewellery | (blank) |           | 10801.38  |           | 13242.41  |           | 10958.01  |                     | 10568.47            |
| Handloom products                       | (blank) |           | 373.02    |           | 369.55    |           | 368.52    |                     | 295.22              |
| Hand tool, cutting tool of metals       | (blank) |           | 711.13    |           | 755.70    |           | 640.60    |                     | 525.99              |
| Ic engines and parts                    | (blank) |           | 1770.36   |           | 2397.98   |           | 2106.23   |                     | 1752.16             |
| Indl. Machinery for dairy etc           | (blank) |           | 4276.28   |           | 4769.28   |           | 4641.95   |                     | 3707.59             |
| Iron and steel                          | TON     | 12918438  | 9223.70   | 11148889  | 8684.40   | 7570231   | 5492.75   | 10833507            | 6328.94             |
| Jute hessian                            | (blank) |           | 141.70    |           | 126.00    |           | 125.54    |                     | 115.02              |
| Jute yarn                               | TON     | 24963     | 23.46     | 23567     | 22.64     | 16930     | 18.34     | 6185                | 7.39                |
| Jute, raw                               | TON     | 44016     | 18.81     | 37390     | 19.41     | 25107     | 17.18     | 12776               | 8.39                |
| Lead and products made of led           | TON     | 80867     | 194.71    | 76296     | 173.20    | 89390     | 181.53    | 72103               | 151.06              |
| Leather garments                        | KGS     | 7931870   | 591.81    | 8186533   | 604.58    | 7770027   | 553.98    | 6566790             | 458.46              |
| Leather goods                           | (blank) |           | 1350.06   |           | 1453.20   |           | 1370.84   |                     | 1103.44             |
| Machine tools                           | (blank) |           | 334.92    |           | 376.89    |           | 392.35    |                     | 369.56              |
| Manmade yarn, fabrics, madeups          | (blank) |           | 5183.66   |           | 5275.03   |           | 4621.63   |                     | 3707.24             |
| Medical and scientific instrument       | (blank) |           | 966.88    |           | 1080.28   |           | 989.24    |                     | 947.18              |
| Motor vehicle/cars                      | NOS     | 1014974   | 6147.95   | 1110409   | 6684.05   | 1139407   | 6727.44   | 945782              | 6171.17             |
| Nickel, product made of nickel          | TON     | 26448     | 437.27    | 47002     | 897.58    | 37606     | 492.88    | 8717                | 88.22               |
| Nuclear reactor, indl boiler, part      | (blank) |           | 563.10    |           | 603.89    |           | 680.77    |                     | 554.99              |

(in US$ Millions)

| Commodities                          | Unit    | 2013-14   | 2013-14   | 2014-15   | 2014-15   | 2015-16   | 2015-16   | 2016-17(Apr-Jan)*   | 2016-17(Apr-Jan)*   |
|--------------------------------------|---------|-----------|-----------|-----------|-----------|-----------|-----------|---------------------|---------------------|
| Commodities                          | Unit    | Qty       | Value     | Qty       | Value     | Qty       | Value     | Qty                 | Value               |
| Office equipments                    | (blank) |           | 30.89     |           | 54.77     |           | 89.49     |                     | 100.78              |
| Other non ferrous metal and product  | KGS     | 89651275  | 416.14    | 105144331 | 499.29    | 91130761  | 431.88    | 76038840            | 364.20              |
| Other construction machinery         | (blank) |           | 1008.68   |           | 1177.40   |           | 1077.86   |                     | 823.55              |
| Other jute manufactures              | (blank) |           | 150.77    |           | 109.24    |           | 117.47    |                     | 107.54              |
| Other misc. Engineering items        | (blank) |           | 1585.97   |           | 1835.43   |           | 1988.33   |                     | 1718.55             |
| Other precious and base metals       | (blank) |           | 321.55    |           | 414.05    |           | 447.29    |                     | 297.25              |
| Other rubber product except footwear | (blank) |           | 964.19    |           | 1071.11   |           | 922.30    |                     | 776.11              |
| Prime mica and mica products         | KGS     | 1175902   | 19.10     | 894268    | 19.51     | 1047819   | 17.15     | 852877              | 14.92               |
| Products of iron and steel           | (blank) |           | 6780.41   |           | 7562.81   |           | 6134.95   |                     | 4743.13             |
| Project goods                        | KGS     | 4289109   | 47.35     | 7502610   | 36.59     | 3784411   | 25.13     | 2960070             | 26.61               |
| Pumps of all types                   | (blank) |           | 690.90    |           | 773.24    |           | 707.18    |                     | 623.62              |
| Railway transport equipments, parts  | (blank) |           | 178.17    |           | 135.35    |           | 109.93    |                     | 186.25              |
| Rmg cotton including accessories     | (blank) |           | 9106.74   |           | 9282.83   |           | 9091.55   |                     | 6870.64             |
| Rmg manmade fibres                   | (blank) |           | 3148.96   |           | 3997.13   |           | 4181.71   |                     | 3957.54             |
| Rmg of other textile material        | (blank) |           | 2190.77   |           | 2941.65   |           | 3184.54   |                     | 2783.68             |
| Rmg silk                             | (blank) |           | 236.55    |           | 303.97    |           | 244.06    |                     | 146.81              |
| Rmg wool                             | (blank) |           | 307.48    |           | 307.75    |           | 262.37    |                     | 186.67              |
| Ship, boat and floating structure    | (blank) |           | 3724.85   |           | 5268.36   |           | 3088.46   |                     | 2872.03             |
| Silk carpet                          | SQM     | 29476     | 2.57      | 21983     | 2.62      | 29835     | 2.60      | 27298               | 6.08                |
| Silver                               | KGS     | 34247     | 18.52     | 7572      | 5.68      | 29945     | 7.35      | 27136               | 9.02                |
| Sports goods                         | (blank) |           | 236.46    |           | 274.50    |           | 227.70    |                     | 191.16              |
| Tin and products made of tin         | TON     | 3345      | 80.39     | 1660      | 37.73     | 3654      | 57.22     | 388                 | 6.22                |
| Two and three wheelers               | NOS     | 2110443   | 1521.47   | 2594255   | 1864.34   | 2531370   | 1777.84   | 1973671             | 1326.71             |
| Zinc and products made of zinc       | TON     | 194978    | 435.39    | 246388    | 608.06    | 257627    | 527.07    | 175470              | 450.61              |
| Grand total                          |         |           | 115384.82 |           | 129134.05 |           | 115454.31 |                     | 98391.02            |
| India's total exports                |         |           | 314415.73 |           | 310352.01 |           | 262290.13 |                     | 221776.35           |

Source: DGCI&S, Kolkata (* Provisional)

Statement  referred  to  in  reply  of  part  (b)  of  Lok  Sabha  Unstarred  question  no.  4075  for  answer  on  27 th March 2017.

India's Merchandise Exports: Commodity Sector-wise

| S. No.   | Commodities                                                                                                    |   2013-14 |   %Growth |   2014-15 |   %Growth |   2015-16 |   %Growth |   2016-17 (Apr-Jan)* |   %Growth |
|----------|----------------------------------------------------------------------------------------------------------------|-----------|-----------|-----------|-----------|-----------|-----------|----------------------|-----------|
| 1        | Plantation                                                                                                     |      1.63 |    -11.72 |      1.5  |     -7.52 |      1.56 |      3.97 |                 1.29 |      0.36 |
| 2        | Agriculture &allied products                                                                                   |     32.95 |      0.91 |     30.15 |     -8.52 |     24.52 |    -18.66 |                19.57 |     -3.67 |
| 3        | Marine products                                                                                                |      5.02 |     44.81 |      5.51 |      9.85 |      4.77 |    -13.48 |                 4.99 |     21.63 |
| 4        | Ores &minerals                                                                                                 |      3.58 |     -2.65 |      2.41 |    -32.75 |      2.01 |    -16.4  |                 2.32 |     42.69 |
| 5        | Leather &leather manufactures                                                                                  |      5.72 |     17.17 |      6.2  |      8.26 |      5.55 |    -10.34 |                 4.45 |     -5.2  |
| 6        | Gems &jewellery                                                                                                |     41.39 |     -3.72 |     41.27 |     -0.3  |     39.28 |     -4.8  |                35.29 |     11.29 |
| 7        | Sports goods                                                                                                   |      0.24 |     14.44 |      0.27 |     16.09 |      0.23 |    -17.05 |                 0.19 |     -2.3  |
| 8        | Chemicals &related products                                                                                    |     30.79 |      6.5  |     31.73 |      3.04 |     32.17 |      1.38 |                27.01 |      1.26 |
| 9        | Plastic &rubber articles                                                                                       |      6.86 |     11.02 |      6.62 |     -3.57 |      6.42 |     -3.01 |                 5.23 |     -3.03 |
| 10       | Articles of stone, plaster, cement, asbestos, mica or similar materials; ceramic products; glass and glassware |      3.6  |     13.34 |      4.04 |     12.27 |      3.88 |     -4.04 |                 3.33 |      4.45 |
| 11       | Paper &related products                                                                                        |      2.1  |      8.47 |      2.18 |      3.85 |      2.35 |      7.66 |                 1.95 |     -0.11 |
| 12       | Base metals                                                                                                    |     22.37 |      4.24 |     24.74 |     10.63 |     18.5  |    -25.24 |                16.78 |      6.97 |
| 13       | Optical, medical &surgical instruments                                                                         |      1.56 |      2.92 |      1.69 |      7.89 |      1.64 |     -3.04 |                 1.54 |     14.13 |
| 14       | Electronics items                                                                                              |      7.63 |     -5.19 |      6.01 |    -21.29 |      5.69 |     -5.31 |                 4.62 |     -0.16 |
| 15       | Machinery                                                                                                      |     17.57 |      5.78 |     19.71 |     12.16 |     18.92 |     -3.97 |                16.16 |      3.58 |
| 16       | Office equipments                                                                                              |      0.03 |    -40.49 |      0.05 |     77.31 |      0.09 |     63.4  |                 0.1  |     39.76 |
| 17       | Transport equipments                                                                                           |     22.16 |     15.19 |     26.64 |     20.17 |     21.34 |    -19.9  |                17.9  |     -0.13 |
| 18       | Project goods                                                                                                  |      0.05 |    -67.56 |      0.04 |    -22.73 |      0.03 |    -31.33 |                 0.03 |     15.32 |
| 19       | Textiles &allied products                                                                                      |     36.97 |     12.41 |     37.14 |      0.47 |     35.95 |     -3.2  |                28.82 |     -3.42 |
| 20       | Petroleum crude &products                                                                                      |     63.18 |      3.81 |     56.79 |    -10.1  |     30.58 |    -46.15 |                25.28 |     -4.46 |
| 21       | Others                                                                                                         |      9    |     -6.71 |      5.66 |    -37.18 |      6.81 |     20.47 |                 4.92 |    -15.26 |
|          | Total                                                                                                          |    314.41 |      4.66 |    310.34 |     -1.29 |    262.29 |    -15.48 |               221.78 |      1.48 |

Source: DGCI&S, Kolkata (* Provisional)

(Values in USD Billions)