Lok Sabha Question No. 299 (UNSTARRED), answered on 2017-12-18
Subject: Impact of Demonetisation and GST on Commerce and Industry Sector
Ministry: COMMERCE AND INDUSTRY
Asked by: ANTO  ANTONY

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

## LOK SABHA UNSTARRED QUESTION NO. 299

## TO BE ANSWERED ON 18 th  DECEMBER, 2017

## IMPACT OF DEMONETISATION AND GST ON COMMERCE AND INDUSTRY SECTOR

299.   SHRI ANTO ANTONY

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

- (a) whether  the  demonetisation  and  the  implementation  of  Goods  and  Services  Tax have  badly  affected  key  sectors  like  manufacturing  sector,  export,  import  and construction industry in the country;
- (b) if so, the details thereof;
- (c) whether the Government has any statistics regarding revenue generation from these sectors in the country; and
- (d) if so, the details of revenue generation during the last 12 months, month-wise?

## ANSWER

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

- (a) & (b) The growth of different sectors of an economy depends on a number of factors, including structural, external, fiscal and monetary factors (which is partly reflected by demonetisation). Therefore, it is not possible to pinpoint the impact of demonetization and GST on sectoral outputs.

India's Import and Export data (month-wise) for the Financial Years 2016-17 and 2017-18 along with growth rate is as under:

| Month     | Value of Import (in US $ Million)   | Value of Import (in US $ Million)   | Growth Rate (in%)   |
|-----------|-------------------------------------|-------------------------------------|---------------------|
|           | 2017-18                             | 2016-17                             |                     |
| April     | 38209                               | 25689                               | 48.73               |
| May       | 38317                               | 28286                               | 35.46               |
| June      | 36983                               | 30917                               | 19.62               |
| July      | 33986                               | 29305                               | 15.97               |
| August    | 35561                               | 29303                               | 21.36               |
| September | 37628                               | 31839                               | 18.18               |
| October   | 37117                               | 34495                               | 7.60                |
| TOTAL     | 257800                              | 209835                              | 22.86               |

| Month     | Value of Export (in US $ Million)   | Value of Export (in US $ Million)   | Growth Rate (in %)   |
|-----------|-------------------------------------|-------------------------------------|----------------------|
|           | 2017-18                             | 2016-17                             |                      |
| April     | 24592                               | 20863                               | 17.87                |
| May       | 23969                               | 22407                               | 6.97                 |
| June      | 23108                               | 22656                               | 2.00                 |
| July      | 22382                               | 21692                               | 3.18                 |
| August    | 23517                               | 21597                               | 8.89                 |
| September | 28732                               | 22768                               | 26.19                |
| October   | 23050                               | 23361                               | -1.33                |
| TOTAL     | 169349                              | 155344                              | 9.02                 |

Note: Figures pertaining to the current Financial Year 2017-18 are provisional.

Source: DGCI&S

The growth of gross value added at constant basic prices for manufacturing and construction sectors of the economy up to second quarter (Q2) of 201718 are given in the table below.

|               |         |         | 2016-17   | 2016-17   | 2016-17   | 2016-17   | 2017-18   | 2017-18   |
|---------------|---------|---------|-----------|-----------|-----------|-----------|-----------|-----------|
| Sectors       | 2015-16 | 2016-17 | Q1        | Q2        | Q3        | Q4        | Q1        | Q2        |
| Manufacturing | 10.8    | 7.9     | 10.7      | 7.7       | 8.2       | 5.3       | 1.2       | 7.0       |
| Construction  | 5.0     | 1.7     | 3.1       | 4.3       | 3.4       | -3.7      | 2.0       | 2.6       |

Note: As per estimates released by Central Statistics Office

## (c) & (d) Yes, Madam.

Details of revenue generated from central excise & customs duty during the last 12 months is as under:

|   Sl. No. | Month                | Central Excise (in Rs. Crore)   | Customs Duty [On Export/ Import] (in Rs. Crore)   |
|-----------|----------------------|---------------------------------|---------------------------------------------------|
|         1 | 33159                | 18820                           | December, 2016                                    |
|         2 | January, 2017 34089  |                                 | 18974                                             |
|         3 | February, 2017 31927 |                                 | 18797                                             |
|         4 | March, 2017 35386    |                                 | 21665                                             |
|         5 | April, 2017 31817    |                                 | 20764                                             |
|         6 | 34150                | 22051                           | May, 2017                                         |
|         7 | June, 2017 25007     |                                 | 21147                                             |
|         8 | *July, 2017          | 21150                           | 30327                                             |
|         9 | *August, 2017 18960  |                                 | 31535                                             |
|        10 | *September, 2017     | 18191                           | 31217                                             |
|        11 | *October, 2017       | 17367                           | 29536                                             |
|        12 | *November, 2017      | 18127                           | 28631                                             |

Note:  *  w.e.f    1st  July,  2017  the  CVD/SAD  on  Imports,  Non-Petroleum  component  of  Central  Excise  duty  and complete Service Tax have been subsumed under GST. The Customs duty on Imports from July - November, 2017 are inclusive of IGST and GST Compensation Cess.

Source: Department of Revenue.

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