Lok Sabha Question No. 3821 (UNSTARRED), answered on 2018-03-19
Subject: Target for Manufacturing Revenues
Ministry: COMMERCE AND INDUSTRY
Asked by: A. ARUNMOZHITHEVAN

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT OF INDUSTRIAL POLICY & PROMOTION

## LOK SABHA

UNSTARRED QUESTION NO. 3821.

TO BE ANSWERED ON MONDAY, THE 19 TH  MARCH, 2018.

## TARGET FOR MANUFACTURING REVENUES

## 3821.  SHRI A. ARUNMOZHITHEVAN: SHRIMATI POONAMBEN MAADAM:

Will th e Minister of COMMERCE AND INDUSTRY be pleased to state:

## वाणिज् यवव द्योग म त्री

- (a) whether the Government has set a timeline and roadmap for achieving USD 1 trillion in manufacturing revenue and take its share in GDP to 20 per cent and if so, the present position thereof;
- (b) whether the Government is in the process of setting up pan organisation to promote India's exports, developing global linkages and promoting the brand equity  of India and if so, the details thereof;
- (c) whether the Government is taking up the issue with the concerned authorities on the challenges that the exports are facing in the GST regime and if so, the details thereof;
- (d) whether the Government is looking at opening offices in different geographies to penetrate in the global market and if so, the details thereof; and
- (e) whether  the  Government  is  looking  at  working  on  developing  global  supply chains for agriculture sector and if so, the details thereof?

## ANSWER

## वाणिज् यवव द्योग म त्रालयमेंराज् यम त्री(श्री सी.आर.चौधरी) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI C.R. CHAUDHARY)

- (a): National  Manufacturing  Policy  of  2011  has,  inter-alia,  an  objective  of  enhancing the share of manufacturing in GDP to 25 per cent by 2022.
- (b): Government undertakes through India Trade Promotion Organization (ITPO), India Brand Equity Foundation (IBEF), Export Promotion Councils (EPCs) and the Trade Bodies regular activities for promotion of India's brand equity through participation in India Shows, major international trade exhibitions in India and abroad, Business to Business meets, interaction with journalists and media, communication strategy and sectoral brand promotion.
- (c): The GST related challenges faced by the exporters are continuously reviewed by the Government and taken up with the GST Council. GST council is meeting at regular interval to address concerns of industry regarding various issues related to GST including rationalisation of GST rates, simplification in filing of GST returns, expediting  the  process  of  refunds  of  Integrated  GST  and  Input  Tax  Credit  for exporters.

The Government announced a major relief package, whereby the benefits under the Advance Authorization Scheme, Export Promotion Capital Goods Scheme and 100%  Export  Oriented  Unit  Scheme  were  extended  for  sourcing  inputs  from abroad as well as domestic suppliers without payment of GST and Customs Duty. Exports  were  allowed  on  furnishing  of  Legal  Undertaking  (LUT),  without  the requirement  of  Bond/bank  guarantee.  Further,  GST  on  sale  of  scrips  has  been reduced to Zero from the earlier rate of 12%. In addition, merchant exporters have been allowed to pay a nominal 0.1% GST for procurement of goods from domestic suppliers for exports. GST on job work in textiles sector, diamond processing in jewellery sector and leather and footwear sectors has been brought down to 5%. The Government has also taken measures and issued instructions to expeditiously disburse the refund of IGST paid on goods exported.

- (d): In the Mid Term Review of the Foreign Trade Policy (2015-20),  the focus in on increasing India's exports in under and untapped markets in high potential regions like Africa and also on greater engagement with Latin America and the Caribbean Region.
- (e): The Agricultural and Processed Food Export Development Authority (APEDA), an autonomous  Organisation  under  the  Department  of  Commerce  mandated  to promote exports, has initiated work on development of agri-clusters for boosting the export of agri based produce by identifying certain pockets of export potential fruits  and  vegetables  in  different  states  in  the  country.  The  concept  of  cluster development entails focused channelization of efforts in a converged manner for the  overall  development  of  supply  and  value  chain  of  the  identified  produce.  To ensure  credibility  of  Indian  agriculture  products  in  the  international  markets, APEDA has also developed traceability, information technology enabled monitoring  systems  co-opting  all  stakeholders  in  the  supply  chain  into  a  single system  to  ensure  food  safety,  monitoring  of  pesticide  residues  like  aflatoxin, product  standardization  and  export  of  quality  products  from  India  to  eliminate export constraints like non-tariff barriers etc.

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