Lok Sabha Question No. 430 (UNSTARRED), answered on 2017-12-18
Subject: Slowdown in Exports
Ministry: COMMERCE AND INDUSTRY
Asked by: S.P. MUDDAHANUMEGOWDA, SUKENDER REDDY GUTHA

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

## LOK SABHA UNSTARRED QUESTION NO. 430 TO BE ANSWERED ON 18 th  DECEMBER, 2017

## SLOWDOWN IN EXPORTS

## 430.   SHRI S.P. MUDDAHANUME GOWDA,:

SHRI GUTHA SUKENDER REDDY:

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

- (a) whether there is a continuous slowdown in exports from the country during the last three years and the current year;
- (b) if so, the details thereof, year-wise and the reasons therefor;
- (c) whether Government is planning for a better exchange rate policy to ensure that the rupee-dollar exchange rate reflects the realistic value of the rupee;
- (d) if  so,  the  details  thereof  along  with  the  other  steps  taken/being  taken  by  the Government to boost exports and increase competitiveness of our products; and
- (e) whether the Government is contemplating to constitute a Task Force to increase the exports and if so, the details thereof?

## ANSWER

okf.kT; ,oa m|ksx ea=ky; esa jkT; ea=h ¼Jh lh- vkj- pkS/kjh½

## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI C. R. CHAUDHARY)

- (a) & (b): India's overall export (merchandise and services) registered a positive growth of 4.58% during the year 2016-17 as compared to the year 2015-16 and also registered  a positive growth of 7.10% during 2017-18 (Apr-Sept) as compared to the corresponding period of previous year as per the details given below:

(In US$ billions)

| Years               |   Exports | %Change   |
|---------------------|-----------|-----------|
| 2014-15             |    468.46 | --        |
| 2015-16             |    417.43 | -10.89    |
| 2016-17             |    436.53 | 4.58      |
| 2016-17 (Apr-Sept)  |    211.6  | --        |
| 2017-18 (Apr-Sept)* |    226.63 | 7.10      |

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

(c) & (d): Since the initiation of reforms in the 1990s, India has adopted a market determined exchange  rate  system.  Accordingly,  the  exchange  rate  of  the  rupee  is  determined  by  the  forces  of demand and supply in the domestic foreign exchange market.

Under  the  extant  exchange  rate  policy,  the  primary  objective  of  the  RBI  is  maintenance  of orderly conditions in the forex market by meeting temporary demand-supply gaps, which may arise due to uncertainties or other reasons and curbing destabilizing and self-fulfilling speculative activities. The RBI does not have any fixed target or band for the exchange rate. The overall objective is to curb excessive volatility in the forex market and to ensure that the exchange rate movements are broadly in line  with  the  country's  economic  fundamentals.  Thus,  market  forces  play  a  predominant  role  in determining  the  exchange  rate  of  the  rupee.  During  the  current  fiscal  year  2017-18  so  far  (upto December 11), the rupee has been relatively stable, trading in the range of Rs.63.58 to 65.70 per US dollar.

In order to boost exports and increase competitiveness of our products, the Government has launched various schemes under the Foreign Trade policy (2015-20) such as Merchandise Exports from  India  Scheme  (MEIS),  Services  Exports  from  India  Scheme  (SEIS),  Duty  Drawback  scheme, Advance  Authorisation  scheme,  Export  Promotion  Capital  Goods  Scheme,  Interest  Equalisation Scheme and Self Ratification Scheme.

(e): An Expert Task Force on Employment and Exports was constituted by Government on 6 th September  2017  under  the  Chairmanship  of  Vice  Chairman,  NITI  Aayog  with  the  objective  of providing  major  thrust  to  job  creation  by  enhancing  India's  exports.  Members  of  the  Task  force include CEO, NITI Aayog, Secretary, Department of Commerce, Secretary, Department of Industrial Policy  and  Promotion,  Secretary,  Department  of  Economic  Affairs,  Secretary,  Ministry  of  Textiles, leading economists and industry experts. The Task Force has submitted its recommendations to the Government in December, 2017.

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