Lok Sabha Question No. 343 (STARRED), answered on 2017-03-27
Subject: Export Performance
Ministry: COMMERCE AND INDUSTRY
Asked by: MALLIKARJUN  KHARGE

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

## LOK SABHA STARRED QUESTION NO. 343

## TO BE ANSWERED ON 27 th  MARCH, 2017

## EXPORT PERFORMANCE

## *343.  SHRI MALLIKARJUN KHARGE:

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

- (a) the value of Indian exports in terms of both rupees and US dollars, respectively in the financial years 2013-14, 2014-15, 2015-16 and in the current financial year, so far;
- (b) the  details  of  commodities  facing  downtrend  in  exports  and  the  reasons  for slowdown; and
- (c) the steps taken or being taken by the Government to promote the exports?

## ANSWER

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THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY

(INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)

- a) to  c):  A Statement is laid on the Table of the House.

*****

## STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (c) OF LOK SABHA STARRED QUESTION NO. 343   FOR ANSWER ON 27 th  MARCH, 2017 REGARDING ' EXPORT PERFORMANCE '

- (a): The  value  of  India's  merchandise  exports  in  terms  of  both  rupees  and  US  dollars during last three years and the current year is as follows:

| Value of exports     | Value of exports            | Value of exports           |
|----------------------|-----------------------------|----------------------------|
| Years                | (In terms of Rupees crores) | (in terms of US$ billions) |
| 2013-14              | 1905011.09                  | 314.42                     |
| 2014-15              | 1896445.47                  | 310.35                     |
| 2015-16              | 1716378.05                  | 262.29                     |
| 2016-17 (April-Feb)* | 1648743.26                  | 245.41                     |

Source: DGCI&S, Kolkata (* Provisional)

- (b): The  details  of  group  of  commodities  facing  downtrend  exports  during  2015-16  as compared to previous year is enclosed at Annexure-I . The reasons for slowdown in exports include the following:
- i. Fall in global demand and fall in commodity prices, impacting terms of trade for commodity exporters.
- ii. Fall in the prices of petroleum crude resulting in consequent decline in prices as well as export realizations for petroleum products, which are major items of exports for India.
- iii. EU  countries  that  account  for  nearly  16%  of  India's  export  are  facing problems of stagnation and deflation. China is also experiencing a slowdown. The recovery in US has been moderate and uncertain in terms of sustainability.
- iv. Fall  in  demand  of  precious  goods  like  Pearls,  Precious  and  Semi-Precious stones, especially from oil producing countries.
- (c): The Government has taken following steps to promote country'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) was  introduced  in  the Foreign  Trade  Policy  (FTP)  2015-20  on  April  1,  2015  and  is  a  major  export promotion scheme implemented by the Ministry of Commerce and Industry. MEIS aims to incentivize export of merchandise which is 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.

- (iii)The Government has also launched Services Exports from India Scheme (SEIS) in the FTP 2015-2020.  The Scheme provided rewards to service providers of notified services who are providing service from India. The rate of reward under the scheme would be based on net foreign exchange earned. The present rates of reward are 3% and 5%.
- (iv) The Government is implementing the Niryat Bandhu 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 1st 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  launched  to  provide cheaper credit to exporters.
- (vii) 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.
- (viii) 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.
- (ix) 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. The Trade Facilitation Agreement  shall enter into force for the notified  members  upon acceptance by two-third WTO Members.

***

Statement referred to in reply of part (b) of Lok Sabha Starred question no. 343 for answer on      27 th March 2017. (Figures in Rs. Crore)

| Commodities                                |   2014-15 |   2015-16 |   %Growth in 2015-16 over 2014-15 |
|--------------------------------------------|-----------|-----------|-----------------------------------|
| Other meat                                 |      2.67 |      0    |                           -100    |
| Raw hides and skins                        |     11.44 |      1.82 |                            -84.06 |
| Wheat                                      |   4991.81 |   1061.77 |                            -78.73 |
| Other cereals                              |   5262.16 |   1702.5  |                            -67.65 |
| Guergam meal                               |   9478.26 |   3233.87 |                            -65.88 |
| Newsprint                                  |     48.79 |     17.55 |                            -64.03 |
| Iron ore                                   |   3142.81 |   1263.19 |                            -59.81 |
| Processed meat                             |     14.2  |      6.16 |                            -56.58 |
| Oil meals                                  |   8129.18 |   3599.56 |                            -55.72 |
| Petroleum products                         | 346082    | 199638    |                            -42.31 |
| Nickel, product made of nickel             |   5526.55 |   3210.56 |                            -41.91 |
| Ship, boat and floating structure          |  32155.8  |  20027.4  |                            -37.72 |
| Sesame seeds                               |   4717.77 |   3012.31 |                            -36.15 |
| Aircraft, spacecraft and parts             |  37747.8  |  24203.4  |                            -35.88 |
| Iron and steel                             |  53075.1  |  35830.2  |                            -32.49 |
| Natural silk yarn, fabrics, madeup         |    762.91 |    548.24 |                            -28.14 |
| Project goods                              |    224.44 |    164.53 |                            -26.69 |
| Rice(other than basmati)                   |  20441.5  |  15483.4  |                            -24.26 |
| Shellac                                    |    267.47 |    203.31 |                            -23.99 |
| Other crude minerals                       |    927.46 |    709.37 |                            -23.51 |
| Dairy products                             |   2169.03 |   1677.32 |                            -22.67 |
| Copper and products made of copper         |  20938.6  |  16580.6  |                            -20.81 |
| Dye intermediates                          |   1460.8  |   1183.13 |                            -19.01 |
| Silk waste                                 |    109.12 |     89.81 |                            -17.7  |
| Rice -basmati                              |  27586.7  |  22718.6  |                            -17.65 |
| Leather footwear component                 |   2209.09 |   1861.51 |                            -15.73 |
| Finished leather                           |   8129.49 |   6850.96 |                            -15.73 |
| Other oil seeds                            |   1135.36 |    964.47 |                            -15.05 |
| Jute yarn                                  |    138.74 |    118.56 |                            -14.54 |
| Rmg silk                                   |   1857.36 |   1587.56 |                            -14.53 |
| Consumer electronics                       |   4937.32 |   4274.61 |                            -13.42 |
| Products of iron and steel                 |  46266    |  40114.2  |                            -13.3  |
| Groundnut                                  |   4675.37 |   4075.63 |                            -12.83 |
| Railway transport equipments, parts        |    827.46 |    723.63 |                            -12.55 |
| Telecom instruments                        |   6550.79 |   5759.36 |                            -12.08 |
| Animal casings                             |     19.33 |     17.02 |                            -11.94 |
| Gold and other precious metal jewellery    |  80892.1  |  71853.2  |                            -11.17 |
| Sports goods                               |   1674.08 |   1487.15 |                            -11.17 |
| Alcoholic beverages                        |   2264.89 |   2030.92 |                            -10.33 |
| Other textile yarn, fabric madeup articles |   2443.92 |   2196.32 |                            -10.13 |

| Commodities                          |   2014-15 |   2015-16 |   %Growth in 2015-16 over 2014-15 |
|--------------------------------------|-----------|-----------|-----------------------------------|
| Auto tyres and tubes                 |  10070.9  |   9077.52 |                             -9.86 |
| Vegetable oils                       |    580.13 |    522.94 |                             -9.86 |
| Bicycle and parts                    |   2166.12 |   1955.6  |                             -9.72 |
| Cashew                               |   5565.85 |   5027.99 |                             -9.66 |
| Processed minerals                   |   6324.78 |   5720.51 |                             -9.55 |
| Hand tool, cutting tool of metals    |   4620.64 |   4190.04 |                             -9.32 |
| Rmg wool                             |   1878.11 |   1707.84 |                             -9.07 |
| Buffalo meat                         |  29282.6  |  26684.2  |                             -8.87 |
| Zinc and products made of zinc       |   3755.31 |   3434.57 |                             -8.54 |
| Other rubber product except footwear |   6543.36 |   6035.84 |                             -7.76 |
| Other non ferrous metal and product  |   3060.63 |   2826.46 |                             -7.65 |
| Marine products                      |  33688.4  |  31219.4  |                             -7.33 |
| Floor covering of jute               |    238.9  |    222.32 |                             -6.94 |
| Manmade yarn, fabrics, madeups       |  32254.6  |  30219    |                             -6.31 |
| Prime mica and mica products         |    119.26 |    112.1  |                             -6    |
| Ic engines and parts                 |  14669.7  |  13790.8  |                             -5.99 |
| Dyes                                 |  12998.2  |  12255.5  |                             -5.71 |
| Other plastic items                  |   2567.79 |   2426.92 |                             -5.49 |
| Cement, clinker and asbestos cement  |   2313.51 |   2201.11 |                             -4.86 |
| Paint, varnish and allied products   |   4087.04 |   3893.16 |                             -4.74 |
| Jute, raw                            |    119.2  |    113.58 |                             -4.71 |
| Human hair, products thereof         |   2057.74 |   1968.02 |                             -4.36 |
| Ac, refrigeration machinery etc      |   7140.92 |   6860.49 |                             -3.93 |
| Saddlery and harness                 |    994.83 |    958.36 |                             -3.67 |
| Organic chemicals                    |  32970.9  |  31797.2  |                             -3.56 |
| Pearl, precious, semiprecious stones | 151293    | 146099    |                             -3.43 |
| Other miscellaneous chemicals        |   4543.18 |   4403.8  |                             -3.07 |
| Granite, natural stone and product   |  12336    |  11982.6  |                             -2.87 |
| Pumps of all types                   |   4731.05 |   4623.84 |                             -2.27 |
| Other construction machinery         |   7197.56 |   7047.14 |                             -2.09 |
| Cotton yarn                          |  24103.2  |  23602.2  |                             -2.08 |
| Leather garments                     |   3695.21 |   3621.16 |                             -2    |
| Castor oil                           |   4710.42 |   4616.1  |                             -2    |
| Medical and scientific instrument    |   6607.43 |   6478.64 |                             -1.95 |
| Inorganic chemicals                  |   4179.38 |   4116.56 |                             -1.5  |
| Processed vegetables                 |   1721.89 |   1697.21 |                             -1.43 |
| Aluminium, products of aluminium     |  17535.5  |  17284.9  |                             -1.43 |
| Electric machinery and equipments    |  24302.2  |  24149    |                             -0.63 |
| Coir and coir manufactures           |   1724.74 |   1717.48 |                             -0.42 |