Lok Sabha Question No. 2898 (UNSTARRED), answered on 2017-03-20
Subject: Impact of Demonetisation on Imports and Exports
Ministry: COMMERCE AND INDUSTRY
Asked by: M. B. RAJESH, ANTO  ANTONY

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

## LOK SABHA UNSTARRED QUESTION NO. 2898 TO BE ANSWERED ON 20 th  MARCH, 2017

## IMPACT OF DEMONETISATION ON IMPORTS AND EXPORTS

## 2898.   SHRI M.B. RAJESH: SHRI ANTO ANTONY:

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

- (a) whether the Government has noticed any impact of demonetization on the country's imports and exports;
- (b) if  so,  the  details  thereof  along  with  the  comparing  data  for  imports  and  exports before and after demonetization;
- (c) the details of revenue generated through imports and exports after demonetization, month-wise indicating the decline therein; and
- (d) the details of other factors which influenced the growth of imports and exports of the country?

## ANSWER

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

(a) & (b): Demonetisation was announced on 8 th November, 2016. The monthly Merchandise Trade data for the period April-Feb 2015-16 and April-Feb 2016-17 are as under:

| Table 1 :Monthly Merchandise Trade for 2016-17   | Table 1 :Monthly Merchandise Trade for 2016-17   | Table 1 :Monthly Merchandise Trade for 2016-17   | Table 1 :Monthly Merchandise Trade for 2016-17   | Table 1 :Monthly Merchandise Trade for 2016-17   | Table 1 :Monthly Merchandise Trade for 2016-17   | Table 1 :Monthly Merchandise Trade for 2016-17   |
|--------------------------------------------------|--------------------------------------------------|--------------------------------------------------|--------------------------------------------------|--------------------------------------------------|--------------------------------------------------|--------------------------------------------------|
|                                                  |                                                  |                                                  |                                                  | Values in USD Billions                           | Values in USD Billions                           | Values in USD Billions                           |
| Month                                            | Export                                           | Export                                           | Export                                           | Import                                           | Import                                           | Import                                           |
|                                                  | 2015-16                                          | 2016-17                                          | %Growth                                          | 2015-16                                          | 2016-17                                          | %Growth                                          |
| April                                            | 22.14                                            | 20.57                                            | -7.08                                            | 33.51                                            | 25.41                                            | -24.15                                           |
| May                                              | 22.53                                            | 22.17                                            | -1.59                                            | 32.84                                            | 28.44                                            | -13.38                                           |
| June                                             | 22.32                                            | 22.57                                            | 1.11                                             | 33.54                                            | 30.69                                            | -8.49                                            |
| July                                             | 23.28                                            | 21.69                                            | -6.84                                            | 36.37                                            | 29.45                                            | -19.03                                           |
| August                                           | 21.58                                            | 21.52                                            | -0.30                                            | 33.98                                            | 29.19                                            | -14.09                                           |
| September                                        | 21.87                                            | 22.88                                            | 4.62                                             | 32.04                                            | 31.22                                            | -2.54                                            |
| October                                          | 21.46                                            | 23.51                                            | 9.59                                             | 31.15                                            | 33.67                                            | 8.11                                             |
| November                                         | 19.56                                            | 20.01                                            | 2.29                                             | 29.90                                            | 33.02                                            | 10.44                                            |
| December                                         | 22.59                                            | 23.88                                            | 5.72                                             | 34.10                                            | 34.25                                            | 0.46                                             |
| January                                          | 21.20                                            | 22.12                                            | 4.32                                             | 28.87                                            | 31.96                                            | 10.70                                            |
| February                                         | 20.85                                            | 24.49*                                           | 17.48                                            | 27.42                                            | 33.39*                                           | 21.76                                            |

Table 1 gives value of month wise exports and imports of merchandise and it is evident that both exports and imports continue to exhibit the positive growth since September, 2016 till February, 2017.

(c): Month-wise Net Customs duty (on imports and exports)collections for the periodAprilFeb 2015-16 and April-Feb 2016-17 are as under:

| Table2: Month-wise Net Customs duty (on imports and exports) Collections (Amount in ₹ Crore)   | Table2: Month-wise Net Customs duty (on imports and exports) Collections (Amount in ₹ Crore)   | Table2: Month-wise Net Customs duty (on imports and exports) Collections (Amount in ₹ Crore)   | Table2: Month-wise Net Customs duty (on imports and exports) Collections (Amount in ₹ Crore)   |
|------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------|
| Month                                                                                          | 2015-16                                                                                        | 2016-17                                                                                        | %Growth                                                                                        |
| April                                                                                          | 14286                                                                                          | 17495                                                                                          | 22.46                                                                                          |
| May                                                                                            | 15750                                                                                          | 18806                                                                                          | 19.40                                                                                          |
| June                                                                                           | 17414                                                                                          | 18507                                                                                          | 6.28                                                                                           |
| July                                                                                           | 19045                                                                                          | 16959                                                                                          | -10.95                                                                                         |
| August                                                                                         | 19062                                                                                          | 18681                                                                                          | -2.00                                                                                          |
| September                                                                                      | 18312                                                                                          | 18373                                                                                          | 0.33                                                                                           |
| October                                                                                        | 18998                                                                                          | 19104                                                                                          | 0.56                                                                                           |
| November                                                                                       | 17659                                                                                          | 20510                                                                                          | 16.14                                                                                          |
| December                                                                                       | 20093                                                                                          | 18820                                                                                          | -6.34                                                                                          |
| January                                                                                        | 17235                                                                                          | 18974                                                                                          | 10.09                                                                                          |
| February                                                                                       | 16950                                                                                          | 18797                                                                                          | 10.90                                                                                          |
| Source: Central Board of Excise and Customs, Department of Revenue                             | Source: Central Board of Excise and Customs, Department of Revenue                             | Source: Central Board of Excise and Customs, Department of Revenue                             | Source: Central Board of Excise and Customs, Department of Revenue                             |

While Demonetisation was announced on 8 th November 2016, from table 2 above, it is evident that growth in net customs duty collections was positive in  November (16.14%).However, in December,  2016 there was a negative  growth (-6.34%),followed  by positive growth of 10.09% and10.90% in January2017 and February 2017 respectively.

Part (d):  Other factors which influenced the growth of imports and exports of the country are;

-  Domestic Factors like cost of trade credit, trade infrastructural constraints along with Special Economic Zones (SEZ) related challenges, cost competitiveness.
-  Global  Factors  like  Level  of  growth  of  the  world  economy,  growth  and  economic stability of key trading partners, Movement in global prices of Brent and Commodity prices.

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