Lok Sabha Question No. 3757 (UNSTARRED), answered on 2018-03-19
Subject: Exports from Labour Intensive Sectors
Ministry: COMMERCE AND INDUSTRY
Asked by: ANOOP MISHRA

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

## LOK SABHA UNSTARRED QUESTION NO. 3757 TO BE ANSWERED ON 19 th  MARCH,2018

## EXPORTS FROM LABOUR INTENSIVE SECTORS

## 3757. SHRI ANOOP MISHRA:

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

- (a) the total quantity and value of exports from labour-intensive sectors during the last three years and the current year, year and sector-wise;
- (b) whether the exports from the labour intensive sectors have declined during the said period and if so, the details thereof and the reasons therefor, sectorwise;
- (c) whether the Government has formulated any scheme to promote the exports from such sectors and if so, the details thereof; and
- (d) whether  the  Government  has  any  proposal  to  include  any  agricultural  products produced in Madhya Pradesh under the said scheme and if so, the details thereof?

## ANSWER

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

(a) & (b): The total value of exports from the major labour-intensive sectors during the last three years and the current year are as follows:

| Export from Labour Intensive Sector   | Export from Labour Intensive Sector   | Export from Labour Intensive Sector   | Export from Labour Intensive Sector   | (Values In Million USD)   | (Values In Million USD)   | (Values In Million USD)                     |
|---------------------------------------|---------------------------------------|---------------------------------------|---------------------------------------|---------------------------|---------------------------|---------------------------------------------|
| COMMODITY                             | 2014-15                               | 2015-16                               | 2016-17                               | 2016-17 (Upto Jan'17)     | 2017-18 (Upto Jan'18)     | %growth (Apr'17-jan'18 over Apr'16- Jan'17) |
| Tea                                   | 681.79                                | 720.03                                | 731.26                                | 609.12                    | 706.93                    | 16.06                                       |
| Coffee                                | 814.02                                | 783.87                                | 842.84                                | 660.28                    | 771.66                    | 16.87                                       |
| Gems and Jewellery                    | 41266.07                              | 39284.27                              | 43412.76                              | 35290.66                  | 34302.98                  | -2.80                                       |

| Sectors                                           |   2014-15 |   2015-16 |   2016-17 |   2016-17 (Upto Jan'17) |   2017-18 (Upto Jan'18)* |   %growth (Apr'17- jan'18 over Apr'16- Jan'17) |
|---------------------------------------------------|-----------|-----------|-----------|-------------------------|--------------------------|------------------------------------------------|
| Engineering Goods                                 |  73074.8  |  61949.5  |  67216.1  |                52635    |                 63961.9  |                                          21.52 |
| Cotton Yarn/Fabs./Madeups, Handloom Products Etc. |  10774.6  |  10119.4  |   9862.2  |                 8110.07 |                  8374.84 |                                           3.26 |
| Man-Made Yarn/ Fabs./Madeups etc.                 |   5275.03 |   4621.66 |   4557.08 |                 3732.05 |                  3959.11 |                                           6.08 |
| RMG of All Textiles                               |  16833.3  |  16964.4  |  17368.2  |                13949.4  |                 13772.6  |                                          -1.27 |
| Jute Mfg. Including Floor Covering                |    296.96 |    295.36 |    309.95 |                  259.87 |                   284.27 |                                           9.39 |
| Carpet                                            |   1360.77 |   1440.07 |   1490.19 |                 1217.25 |                  1189.88 |                                          -2.25 |
| Handicrafts Excl. Hand Made Carpet                |   1378.04 |   1648    |   1926.75 |                 1605.58 |                  1479.81 |                                          -7.83 |
| Sports Goods                                      |    274.5  |    227.72 |    224.83 |                  191.2  |                   194.49 |                                           1.72 |
| Rubber and Articles                               |   1378.31 |   1379.26 |   1409.66 |                 1343.48 |                  1323.43 |                                          -1.49 |
| Total                                             | 153408    | 139433    | 149352    |               119604    |                130322    |                                           8.96 |

Source: DGCI&S, Kolkata (*Provisional)

Due to different units of measurement, the quantity of sector-wise is not additive and hence total quantity of export is not available. The data in the above table reflects that India's total  export  from  major  labour-intensive  sectors  has  increased  by  8.96%  during  2017-18 (Apr-  Jan)  as  compared  to  corresponding  period  of  previous  year.  Some  labour  intensive sectors  like  Gems  and  Jewellery,  RMG  of  all  Textiles,  Carpet  and  Handicrafts  excluding handmade carpet have shown decline in export during (Apr 2017- Jan 2018) as compared to corresponding  period  of  previous  year.  The  main  reasons  for  declining  trend  of  exports include global and domestic factors such as demand and supply in domestic and international markets, currency fluctuations, cost of credit, logistics costs, etc.

(c): In  order  to  promote  the  India's  export  including  labour  intensive  sector,  the government  has  announced  a  major  relief  package  for  exporters  in  October  2017  by extending the Advance Authorization (AA)/ Export Promotion Capital Goods (EPCG)/ 100% EOU schemes for sourcing inputs etc. from abroad as well as domestic suppliers.  During the mid-term review of Foreign Trade Policy, export incentives under Merchandise Exports from India (MEIS) have been increased by 2%   for labour intensive and MSME sectors leading to additional  annual  incentive  of  Rs  4,567  crore.  This  was  in  addition  to  already  announced increase in MEIS incentives from 2% to 4% for Ready-made Garments and Made Ups in the labour  intensive  Textiles  Sector  with  an  additional  annual  incentive  of  Rs  2,743  crore. Further,  incentives  under  Services  Exports  from  India  Scheme  (SEIS)  have  also  been increased by 2% leading to additional annual incentive of Rs 1,140 crore.

In  addition  to  above,  financial  assistance  schemes  under  12th  Agriculture  Export Promotion  Plan  Scheme  of  APEDA  were  provided  to  exporters  for  export  of  APEDA's scheduled products under the following components:

- i. Scheme for infrastructure Development
- ii. Scheme for  Quality Development
- iii. Scheme for Market Promotion

(d):  Export  promotion  schemes  are  uniformly  applicable  to  all  States,  including  Madhya Pradesh.

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