Lok Sabha Question No. 1990 (UNSTARRED), answered on 2016-11-28
Subject: Heavy Losses incurred in Trade with China
Ministry: COMMERCE AND INDUSTRY
Asked by: ANANT KUMAR DATTATREYA HEGDE

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

## LOK SABHA UNSTARRED QUESTION NO. 1990(H) TO BE ANSWERED ON 28 th  NOVEMBER, 2016

## HEAVY LOSSES INCURRED IN TRADE WITH CHINA

## 1990(H). SHRI ANANTKUMAR HEGDE:

Will the Minister of COMMERCE & INDUSTRY ( वाͨणÏय एवं उɮयोग मंğी )

be pleased to state:

- (a) whether India has suffered heavy losses in trade with China;
- (b) if so, the details thereof;
- (c) the percentage of the said loss incurred in comparison to the total loss incurred in foreign trade during 2015-16;
- (d) whether the Government has taken concrete steps to reduce the said loss; and
- (e) if so, the details thereof?

## ANSWER

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THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE)

(SMT. NIRMALA SITHARAMAN)

(a) to (c): Details of trade and  trade deficit with China vis-à-vis India's total trade and trade deficit during the year 2015-16  are given below:-

Trade between India and China vis-à-vis India's Total Trade during  2015-16

Value in USD Billion

|                   | Import   | Export   | Total Trade   | Trade Deficit   |
|-------------------|----------|----------|---------------|-----------------|
| Trade with China  | 61.70    | 9.01     | 70.71         | 52.69           |
| India' Trade with | 381.00   | 262.29   | 643.29        | 118.71          |
| All Countries     |          |          |               |                 |
| %Share            | 16.20    | 3.44     | 10.99         | 44.38           |

(Source; DGCI&S)

(d) & (e ):  Efforts  to  increase  overall  exports  by  diversifying    the  trade  basket  with emphasis  on  manufactured  goods,  services,    resolution  of      market  access  issues  and other  non-tariff  barriers  is  an  ongoing  process.  This  is  done  through  bilateral  meetings and institutional dialogues. Indian exporters are encouraged to participate in major trade fairs in China and other countries to show-case Indian products.

The Government has also taken various measures to extend support to exporters which are indicated below: 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 and improving the 'Ease of DoingBusiness'. The FTP introduced two new schemes, namely, 'Merchandise Exports from  IndiaScheme'  (MEIS)  for  incentivising  export  of  specified  goods  to  specified markets  and  'ServiceExports  from  India  Scheme'  (SEIS)  for  promoting  export  of notified services from India, byconsolidating earlier schemes. ii. In the light of the major challenges being faced by Indian exporters in the backdrop of theglobal economic slowdown, the envisaged revenue outgo under MEIS was increased from  Rs.  18000  Crore  to  Rs.  21000  Crore  in  October  2015  with  accompanying enhancement in benefits on certain products and inclusion of certain additional items.

iii.  By  way  of  trade facilitation and enhancing  the ease of doing business Government has reduced the number of mandatory documents required for exports and imports. The trade community can file applications online for various trade related schemes.

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