Lok Sabha Question No. 1930 (UNSTARRED), answered on 2016-11-28
Subject: India's Share in Global Trade
Ministry: COMMERCE AND INDUSTRY
Asked by: RAM KUMAR SHARMA KUSHWAHA

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

## LOK SABHA UNSTARRED QUESTION NO. 1930(H) TO BE ANSWERED ON 28 th  NOVEMBER, 2016

## INDIA'S SHARE IN GLOBAL TRADE

## 1930(H). SHRI RAM KUMAR SHARMA:

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

- (a) the details of annual average share of India in global trade;
- (b) whether India's  share  in  global  trade  is  negligible  and  if  so,  the  details  thereof  and  the reasons therefor;
- (c) whether the Government has taken steps to increase India's share in global trade; and
- (d) if  so,  the  details  thereof  indicating  the  sectors  and  new  markets  identified  by  the Government 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) India's performance in World trade based on the WTO database which provides the data calendar year-wise is given as follows:
- (c)  &  (d)  The  Government has launched several schemes and measures to increase India's share in global trade, which are as follows:
- (i) The Merchandise Exports from India Scheme (MEIS) was introduced in the Foreign Trade Policy (FTP) 2015-20 on April 1, 2015 with 4914 tariff lines at 8 digit levels.

| India's Trade Performance: Percentage Share in World Trade   | India's Trade Performance: Percentage Share in World Trade   | India's Trade Performance: Percentage Share in World Trade   | India's Trade Performance: Percentage Share in World Trade   |
|--------------------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------|
| Years                                                        | India's Share in World Merchandise Exports                   | India's Share in World Commercial Services Exports           | India's Share in World Merchandise Plus Services Exports     |
| 2011                                                         | 1.7                                                          | 3.2                                                          | 1.9                                                          |
| 2012                                                         | 1.6                                                          | 3.2                                                          | 1.9                                                          |
| 2013                                                         | 1.7                                                          | 3.1                                                          | 2.0                                                          |
| 2014                                                         | 1.7                                                          | 3.1                                                          | 2.0                                                          |
| 2015                                                         | 1.6                                                          | 3.3                                                          | 2.0                                                          |

Source:  World Trade Organization

The Government has extended the market coverage to all countries in respect of 7914 tariff  lines.  The  revenue  forgone  under  the  scheme  (MEIS)  has  increased  from  Rs. 22000 Crore to Rs. 23500 Crore per annum.

- (ii) The Government 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.
- (iii) 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.
- (iv) By way of trade facilitation and enhancing the ease of doing business, Government reduced the number of mandatory documents required for exports and imports to three each, which is comparable with international benchmarks. The trade community can file  applications  online  for  various  trade  related  schemes.  Online  payment  of application  fees  through  Credit/Debit  cards  and  electronic  funds  transfer  from  53 Banks has been put in place.
- (v) Interest  Equalization  Scheme  on  pre  &  post  shipment  credit  launched  to  provide cheaper credit to exporters.
- (vi) 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.

## The details of the sectors covered under MEIS are given below:

|   S. No. | Product Category                                                 |
|----------|------------------------------------------------------------------|
|        1 | Fruits, Flowers and Vegetables                                   |
|        2 | Tea, Coffee, Spices and Cashew                                   |
|        3 | Cereals preparation, Seeds, Shellac and Essential oils           |
|        4 | Processed foods, Cocoa products and Beverages                    |
|        5 | Eco Friendly products that add value to waste                    |
|        6 | Remaining Agriculture and Animal Products                        |
|        7 | Poultry &Dairy Products                                          |
|        8 | Marine Products                                                  |
|        9 | Wines and Beer &Liqueur                                          |
|       10 | Pharmaceuticals, Surgical and Herbal Products                    |
|       11 | Chemicals                                                        |
|       12 | Plastic Articles                                                 |
|       13 | Moulded and Extruded goods, Rubber, Ceramic and Glass            |
|       14 | Auto Tyres and Tubes                                             |
|       15 | Wood , Paper and Stationary Products                             |
|       16 | Handloom, Coir, Jute products and Technical Textiles             |
|       17 | Carpets                                                          |
|       18 | Handicrafts                                                      |
|       19 | Textile and Garments                                             |
|       20 | Sports Goods                                                     |
|       21 | Finished leather, Leather Garments and Goods, Saddlery Items and |

|    | Footwear                                                                                    |
|----|---------------------------------------------------------------------------------------------|
| 22 | Misc Manufactured articles, Auto seats, Steel furniture, Prefabs, Lighters, Mattresses etc. |
| 23 | Furniture and Wood Articles                                                                 |
| 24 | Iron, Steel and Base Metal Products                                                         |
| 25 | Industrial Machinery, Engineering items, IC Engines, Machine tools and Parts                |
| 26 | Hand Tools, Cutting Tools and Implements Made of Metals                                     |
| 27 | Pumps of All Types                                                                          |
| 28 | Automobiles, Two wheelers, Bicycles, Ships and Planes                                       |
| 29 | Auto Components/Parts                                                                       |
| 30 | Telecom, Computer and Electronics Products                                                  |

Merchandise Exports from India Scheme (MEIS) incentivises exports made to all countries w.e.f May, 2016.

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