Lok Sabha Question No. 3941 (UNSTARRED), answered on 2017-03-27
Subject: Development of Trade and Commerce
Ministry: COMMERCE AND INDUSTRY
Asked by: P.R. SUNDARAM

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY

## (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 3941 TO BE ANSWERED ON 27 th  MARCH, 2017

## DEVELOPMENT OF TRADE AND COMMERCE

## 3941. SHRI P.R. SUNDARAM:

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

- (a) whether  the  Government  has  implemented  any  new  initiatives  and  innovative projects for the overall development of Trade and Commerce in the country;
- (b) if so, the details and the performance thereof indicating profit/loss of the companies for the years 2014-15 and 2015-16 and till the 3rd quarter of 2016-17;
- (c) whether the Government has chalked out any strategy to balance our imports and exports according to supply and demand to ensure independence on commerce and trade activities; and
- (d) if so the details thereof?

## ANSWER

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## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)

(a) : The Government has implemented certain new initiatives for the overall development of  Trade  and  Commerce  in  the  Country  in  the  Foreign  Trade  Policy  announced  on 01.04.2015. The initiatives are listed below:

(i)  Rationalization  of  multiple  Schemes:  The  New  Foreign  Trade  Policy  (2015-20)  was launched  on  1st  April,  2015  with  a  focus  on  supporting  both  merchandise  and  services exports  and  improving  the  'Ease  of  Doing  Business'.   DGFT  consolidated  5  different incentive schemes under the earlier Foreign Trade Policy 2009-14 for rewarding merchandise exports into a single scheme, namely the Merchandise Exports from India Scheme (MEIS). MEIS  aims  to  incentivize  export  of  merchandise goods produced/manufactured  in  India. Rewards @ 2-5% under MEIS are payable as a percentage of realized FOB value of covered exports, by way of the MEIS duty credit scrip, which are transferable and can also be used for payment of  a  number  of  duties  including  the  basic  customs  duty.    At  present,  7914  tariff lines at 8 digit HS Codes are covered under MEIS scheme.

(ii).  DGFT  launched  a  new  Services  Exports  from  India  Scheme  (SEIS)  in  the  FTP  20152020.  The  Scheme  provides  rewards  to  service  providers  of  notified  services  who  are providing service from India. The rate of reward under the scheme is based on net foreign exchange earned. The present rates of reward are 3 % and 5%.

(iii)  The  Government  has  introduced  the  Interest  Equalization  Scheme  on  Pre  &  Post Shipment  Rupee  Export  Credit  with  effect  from  1.4.2015.  The  scheme  is  available  to  all exports  under  the  notified  tariff  lines  [at  ITC  (HS)  code  of  4  digit]  and  exports  made  by Micro,  Small  &  Medium  Enterprises  (MSMEs)  across  all  ITC  (HS)  codes.  The  rate  of interest equalisation is 3% per annum.

(iv).  In addition the Government continues to provide the facility of import of duty free raw materials  for  exports  through  schemes  like  Advance  Authorisation,  Duty  Free  Import Authorisation  (DFIA)  and  duty  free  import  of  capital  goods  for  exports  through  Export Promotion Capital Goods (EPCG) Scheme.

(v)  The Scheme for Deemed Export encourages 'Make in India' initiative by neutralizing the duty paid on inputs either imported or domestically sourced through refund of terminal excise duty and duty drawback at brand rate.

(vi)  The  Government  has  also  taken  the  following  measures  for  ensuring  ease  of  doing business under the new Foreign Trade Policy 2015-20:

-  Reducing  number  of  Documents: Number  of  mandatory  documents  required  for exports and imports have been reduced to 3 each.
-  Introduction of simplified e-IEC: Applications for Importer Exporter Code(IEC)has been simplified  and  only  two  documents  are  required  to  be  uploaded  along  with  the digital  photograph  while  applying  for  IEC.  eIEC  has  been  introduced  w.e.f.  April  1, 2016 doing away with the issuance of physical copy of IEC. IEC has been integrated with e-BIZ portal of DIPP so that firms have choice to use either DGFT portal or e-Biz portal for making an application. IEC and EPCG applications have been integrated with e-Nivesh portal implemented by PMG set up by Cabinet Secretariat.
-  Online Inter-ministerial consultations have been initiated for considering applications for issue of  authorizations  for  export  of  SCOMET  items  (Special Chemicals, Organisms, Materials, Equipment and Technologies) to reduce processing time of applications.
-  Sharing  of  export  proceeds  realization  Data :  DGFT  shares  exports  proceeds realization data generated by the electronic bank realization certificate (eBRC) system with 17 agencies. The eBRC system captures details of the foreign exchange received by exporters through the banking channel.
-  DGFT has simplified various 'Aayat Niryat Forms'(format for making applications under  Schemes  of  FTP) bringing in clarity in different provisions,  removing ambiguities and enhancing electronic governance.

(vii) A  new  scheme  called Trade  Infrastructure  for  Export  Scheme  (TIES) has  been announced  by  the  Government  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.

(viii)    Indian  Trade Portal launched by Department of Commerce and managed by FIEO displays  information  useful  for  export  import.  It  contains  the  Trade  enquiries  uploaded  by Indian trade missions, Tariff and Trade data of India's major trade partners, Export Market Reports and Trade Agreements etc.

(ix)    The  Government  is  implementing  the Niryat  Bandhu  Scheme with  an  objective  to reach out to the new  and  potential exporters 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.

(b) The performance indicating profit loss of the companies for the years 2014-15 and 201516 and till the 3 rd quarter of 2016-17 are not available with the Department of Commerce.

(c) & (d) India is a signatory to the World Trade Organization and is committed to Free and Fair Trade. Import/export take place depending on demand and supply.  Goods consumed by people  vary  in  terms  of  characteristics  and  parameters  given  the  differentiated  nature  of consumer demand.  In a globalised and interdependent world, no country can remain isolated. The Government has also been taking timely measures in order to boost the exports.  The Government regularly takes stock of the changing dynamics at the global and regional level; and based on the inputs from the stakeholders including industry & trade bodies/associations and think tanks, FTP is revised/improved.

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