Lok Sabha Question No. 2512 (UNSTARRED), answered on 2017-07-31
Subject: Decline in Exports
Ministry: COMMERCE AND INDUSTRY
Asked by: BHARATENDRA SINGH, KAUSHALENDRA KUMAR

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

## LOK SABHA UNSTARRED QUESTION NO. 2512 TO BE ANSWERED ON 31 st JULY, 2017

## DECLINE IN EXPORTS

## 2512.  KUNWAR BHARATENDRA: SHRI KAUSHALENDRA KUMAR:

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

- (a) the  details  of  the  reasons  for  the  continuous  downfall  in  country's  exports  along with the steps taken by the Government to increase the exports;
- (b) the details of meeting convened with various export promotion councils along with the further consultations planned in this regard;
- (c) whether the Government has stopped imports and exports during the last week of June and first week of July, 2017 due to Goods and Services Tax works; and
- (d) if  so,  the  details  thereof  along  with  the  damage  caused  to  Indian  Industries  as  a result thereof?

## ANSWER

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

## (SMT. NIRMALA SITHARAMAN)

- (a). India did not have a continuous downfall in exports. India had a positive annual export growth for the year April 2016-March 2017. In addition, India also had a positive export growth for the last nine months starting September 2016.

The Government has taken following steps to increase India's exports:

- (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)  has  been  introduced  in  the  Foreign Trade  Policy  (FTP)  2015-20  on  01.04.2015  with the  objective  to  offset  infrastructural inefficiencies and associated costs involved in exporting goods/products which are produced/ manufactured in India and to provide a level playing field to Indian exporters, especially those having high export intensity and employment potential. The Scheme incentivizes exporters in terms of freely transferable Duty Credit Scrips, which are transferable and can be used to pay certain  Central  duties/taxes  including  customs  duties.   The  Scheme  covers  exports  of  7914 tariff lines at 8 digit levels to all countries.
- (iii) The Services Exports from India Scheme (SEIS) has been introduced in the Foreign Trade Policy (FTP) 2015-20 on 01.04.2015. The Scheme provides rewards at the rate of 3 to 5% on Net Foreign Exchange earnings, to service providers of notified services from India to rest of the world, in the form of Duty Credit Scrips which are transferable and can be used to pay certain Central duties/taxes including customs duties.
- (iv) The Government has implemented the NiryatBandhu 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 1 st 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 was launched to provide cheaper credit to exporters.
- (vii) A new scheme called Special Advance Authorisation Scheme for export of articles of Apparel and  Clothing  Accessories  was  introduced  w.e.f.  1st  September  2016  wherein  exporters  are entitled  for  an  authorisation  for  fabrics  including  inter  lining  on  pre-import  basis  and  all industry rate of Duty Drawback for non-fabric inputs on the exports.
- (viii) 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.
- (ix) The  Government  launched  a  new  scheme  called  Trade  Infrastructure  for  Export  Scheme (TIES)  w.e.f.  15 th March,  2017  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.
- (x) 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.
- (b)     Government regularly consults the export promotion councils and other organizations on export related issues. Government has conducted 24 consultations in this calendar year with the export promotion councils in relation to mid-term review of the Foreign Trade Policy.
- (c)    No madam
- (d)   Question does not arise

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