Lok Sabha Question No. 2939 (UNSTARRED), answered on 2017-03-20
Subject: Problems Faced by Exporters
Ministry: COMMERCE AND INDUSTRY
Asked by: K. GOPAL, GOKARAJU GANGA RAJU, A. ARUNMOZHITHEVAN, ADVOCATE NARENDRA KESHAV SAWAIKAR

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

## LOK SABHA UNSTARRED QUESTION NO. 2939 TO BE ANSWERED ON 20 th  MARCH, 2017

## PROBLEMS FACED BY EXPORTERS

2939.   DR. K. GOPAL:

DR. GOKARAJU GANGA RAJU:

SHRI A. ARUNMOZHITHEVAN:

ADV. NARENDRA KESHAV SAWAIKAR:

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

- (a) whether  the  exporters  have  demanded  an  Export  Development  Fund  to  help marketing of the products of small exporters in global market and if so, the steps taken  by  the  Government  in  this  regard  and  if  not,  the  other  steps  taken  to  help marketing of the products of these exporters;
- (b) whether the exporters/ Federation of Indian Export Organizations have requested to extend 3 per cent interest equalization scheme to merchant exporters and increase in the cash withdrawal ceiling and if so, the action taken by the Government in this regard along with the contribution of merchant exporters in total exports from the country;
- (c) whether Indian exporters have expressed many  concerns including delayed payments for export of their products and if so, the details thereof along with the action taken by the Government to address them; and
- (d) whether many countries have supported aggressive marketing aimed at the limited orders  available  following  a  global  trade  slowdown  and  if  so,  the  reaction  of  the Government thereto?

## ANSWER

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

- (a) Yes, Madam. Though there is a demand by exporters to create Export Development Fund, Department of Commerce is already running two schemes i.e. Market Access Initiative Scheme (MAI) And Marketing Development Assistance Scheme (MDA) for development and promotional activities to promote exports from India and marketing assistance  in  foreign  markets  by  providing  financial  support  to  exporters  through Export  Promotion  Councils/  Trade  bodies  and  other  eligible  agencies  including MSMEs. There is no proposal to create Export Development Fund. However, there is already an Export Development Fund [EDF] created and administered by EXIM Bank under the provisions of the  Export-Import Bank of India Act, 1981. Under this fund

assistance  is  provided  to  Indian  firms  in  their  globalization  efforts  by  locating overseas distributor(s)/ buyer(s)/ partner(s).

- (b) The  Government  has  introduced  the  Interest  Equalisation  Scheme  on  Pre  &  Post Shipment Rupee Export Credit with effect from 1.4.2015. The scheme is available to manufacturers for all exports under 416 specified tariff lines [at ITC (HS) Codes at 4 digit  level]  and  to  exports  made  by  manufacturers  in  Micro,  Small  and  Medium Enterprises  across  all  ITC  (HS)  Codes.  The  rate  of  interest  equalisation  is  3%  per annum. This scheme provides the facility of affordable credit to exporters and enables them to be more competitive.

Though there was a demand for extending the benefit of 3 % interest equalisation to Merchant  Exporters,  the  benefit  of  3%  interest  equalisation  was  not  extended  to Merchant Exporters as the contribution of merchant exporters to total exports from India is not specifically maintained by Government.

- (c) No, Madam. As such no concerns in this regard have been received.
- (d) As such there is no information available with the Government.

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