Lok Sabha Question No. 879 (UNSTARRED), answered on 2016-11-21
Subject: Trade Deficit
Ministry: COMMERCE AND INDUSTRY
Asked by: RAVINDRA BABU  PANDULA, VISHNU DAYAL RAM, K. GOPAL

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

## LOK SABHA UNSTARRED QUESTION NO. 879 TO BE ANSWERED ON 21 st  NOVEMBER, 2016

## TRADE DEFICIT

## 879.  DR. RAVINDRA BABU: SHRI VISHNU DAYAL RAM: DR. K. GOPAL:

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

- (a) the details of India's imports and exports during the last three years and the current year, year-wise indicating total imports from China;
- (b) the  percentage of gap between the imports and exports of the country  during the said period;
- (c) whether the trade gap of the country has increased during the period and if so, the details thereof and the reasons thereof;
- (d) whether the Government has taken several measures to improve the trade deficit with other countries and if so, the details thereof; and
- (e) whether  the  Government  has  asked  its  missions  abroad  to  explore  all  avenues  in  this regard and if so, the response received 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) India's  merchandise  imports  and  exports  and  imports  from  China  during  the  last three years and the current year are as follows:
- (b) The gap between the imports and exports of the country during the last three years and the current year is as follows:
- (c) The above data reveals that there is a small increase in the trade gap during the period 2014-15 over 2013-14. However, the trade gap has decreased in 2015-16 and the current year compared to corresponding period of previous year.

|                     | (in US$ Billions)   | (in US$ Billions)   | (in US$ Billions)   |
|---------------------|---------------------|---------------------|---------------------|
| Years               | Total Imports       | Total Exports       | Imports from China  |
| 2013-14             | 450.2               | 314.4               | 51.0                |
| 2014-15             | 448.0               | 310.4               | 60.4                |
| 2015-16             | 381.0               | 262.3               | 61.7                |
| 2016-17 (Apr-Sept)* | 175.1               | 132.0               | 29.2                |

Source: Directorate General of Commercial Intelligence & Statistics (* Provisional)

|                     | (in terms of US$ Billions)   | (in terms of US$ Billions)   | (in terms of US$ Billions)   | (in terms of US$ Billions)     |
|---------------------|------------------------------|------------------------------|------------------------------|--------------------------------|
| Years               | Export                       | Import                       | Trade Gap                    | % Trade Gap over previous year |
| 2013-14             | 314.42                       | 450.21                       | -135.79                      | -                              |
| 2014-15             | 310.35                       | 448.03                       | -137.68                      | 1.39                           |
| 2015-16             | 262.29                       | 381.02                       | -118.726                     | -13.77                         |
| 2015-16 (Apr-Sept)  | 133.72                       | 202.27                       | -68.55                       | -                              |
| 2016-17 (Apr-Sept)* | 132.03                       | 175.10                       | -43.07                       | -37.17                         |

Source: Directorate General of Commercial Intelligence & Statistics (* Provisional)

(d)  The  Government has taken following measures to improve the trade deficit with other countries:

- (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.  The  Government  has  extended  the market coverage to all countries in respect of 7914 lines. The revenue forgone under the  scheme  (MEIS)  has  increased  from  Rs.  22000  Crore  to  Rs.  23500  Crore  per annum.
- (iii) 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.
- (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, counselling sessions, individual facilitation, etc., on various aspects of foreign trade for being able to get into international trade and boost exports from India.
- (v) 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.
- (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.
- (e) Efforts are continuously made through missions abroad to increase overall exports by diversifying the trade basket with emphasis on manufactured goods, services, resolution of market access issues and other non-tariff barriers.