Lok Sabha Question No. 306 (UNSTARRED), answered on 2018-02-05
Subject: Impact of GST and Demonetisation on Exports and Imports
Ministry: COMMERCE AND INDUSTRY
Asked by: K. C. VENUGOPAL

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

## LOK SABHA UNSTARRED QUESTION NO. 306 TO BE ANSWERED ON 05 th  FEBRUARY,2018

## IMPACT OF GST AND DEMONETISATION ON EXPORTS AND IMPORTS

## 306. SHRI K.C. VENUGOPAL:

Will the Minister of COMMERCE & INDUSTRY ( वा ͨणÏय एवं उɮयोग मंğी ) be pleased to state:

- (a) whether  the  Government  has  made  any  analysis  on  the  impact  of  GST  and demonetization on the country's exports and imports and the manufacturing sector;
- (b) if  so,  the  details  thereof  along  with  the  export  and  import  rates  in  the  last  three years; and
- (c) the details of the revenue generation from major industrial sectors during the said period?

## ANSWER

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

- (a) ,  (b)  &(c)  No  Madam.  The  country's  exports  and  imports  and  the manufacturing  sector  are  impacted  by  a  number  of  factors  including structural, external, fiscal and monetary factors (which is partly reflected in demonetization).  Therefore  it  is  not  possible  to  pinpoint  the  impact  of demonetization  and  GST  on  the  country's  exports  and  imports  and manufacturing sector.

However, India's Merchandise and Services Import and Export data for the Financial Years 2015-16 and 2016-17 along with growth rate is as under:

## Value (in US $ Million)

| Financial      | Import       | Import   | Import   | Import   | Export       | Export   | Export   | Export   |
|----------------|--------------|----------|----------|----------|--------------|----------|----------|----------|
| Year           | Mercha ndise | Growth   | Services | Growth   | Merchan dise | Growth   | Services | Growth   |
| 2015-16 381006 | -14.96       |          | 85717    | +5.04    | 262290       | -15.48   | 155136   | -3.26    |
| 2016-17        | 384356       | +0.88    | 95469    | +11.37   | 275852       | +5.17    | 160683   | +3.58    |

Import  and  Export  data  of  Merchandise  Sectors  (upto  December  2017) and  Services  Sectors  (upto  November  2017)  along  with  growth  rate  for current Financial Year 2017-18 (month-wise) is as under:

## Import

## Value (in US $ Million)

| Month                    | Merchandise   | Merchandise   | Merchandise   | *Services   | *Services   | *Services   |
|--------------------------|---------------|---------------|---------------|-------------|-------------|-------------|
| Month                    | 2017-18       | 2016-17       | Growth        | 2017-18     | 2016-17     | Growth      |
| April                    | 38208         | 25689         | +48.73        | 7222        | 7183        | +0.54       |
| May                      | 38315         | 28286         | +35.46        | 7615        | 7922        | -3.88       |
| June                     | 36982         | 30917         | +19.62        | 7457        | 8389        | -11.11      |
| July                     | 33973         | 29305         | +15.97        | 7334        | 7409        | -1.01       |
| August                   | 35613         | 29303         | +21.36        | 8658        | 8054        | +7.50       |
| September                | 37624         | 31839         | +18.18        | 8450        | 8304        | +1.76       |
| October                  | 37097         | 34495         | +7.60         | 8700        | 7680        | +13.28      |
| November                 | 40011         | 33462         | +19.57        | 9647        | 8323        | +15.91      |
| December                 | 41883         | 34602         | +21.04        |             |             |             |
| TOTAL (April- December)  | 339706        | 277898        | +22.24        |             |             |             |
| *TOTAL (April- November) |               |               |               | 65083       | 63264       | +2.88       |

## Export

| Month     | Merchandise   | Merchandise   | Merchandise   | *Services   | *Services   | *Services   |
|-----------|---------------|---------------|---------------|-------------|-------------|-------------|
|           | 2017-18       | 2016-17       | Growth        | 2017-18     | 2016-17     | Growth      |
| April     | 24594         | 20863         | +17.87        | 12904       | 12908       | -0.03       |
| May       | 23978         | 22407         | +6.97         | 13430       | 13460       | -0.22       |
| June      | 23059         | 22656         | +2.00         | 13388       | 13322       | +0.50       |
| July      | 22350         | 21692         | +3.18         | 13178       | 12775       | +3.15       |
| August    | 23523         | 21597         | +8.89         | 13701       | 13381       | +2.39       |
| September | 28727         | 22768         | +26.19        | 13732       | 13773       | -0.30       |
| October   | 22815         | 23361         | -1.33         | 14152       | 13113       | +7.92       |

## Value (in US $ Million)

| November                 | 25924   | 20066   | +29.19   | 15392   | 13338   | +15.40   |
|--------------------------|---------|---------|----------|---------|---------|----------|
| December                 | 27069   | 24056   | +12.52   |         |         |          |
| TOTAL (April- December)  | 222039  | 199466  | +11.32   |         |         |          |
| *TOTAL (April- November) |         |         |          | 109877  | 106070  | +3.59    |

Note: Figures pertaining to the current Financial Year 2017-18 are provisional.

Source: DGCI&S.

The growth of gross value added at constant basic prices for manufacturing sector of the economy up to second quarter (Q2) of 2017-18 is given in the table below:

| Sector        |   2015- |   2016- | 2016-17   | 2016-17   | 2016-17   | 2016-17   | 2017-18   | 2017-18   |
|---------------|---------|---------|-----------|-----------|-----------|-----------|-----------|-----------|
|               |    16   |    17   | Q1        | Q2        | Q3        | Q4        | Q1        | Q2        |
| Manufacturing |    10.8 |     7.9 | 10.7      | 7.7       | 8.2       | 5.3       | 1.2       | 7.0       |

Note: As per estimates released by Central Statistics Office.

Details of revenue generated from central excise & customs duty during the last 12 months is as under:

|   Sl. No. | Month               | Central Excise (in Rs. Crore)   | Customs Duty [On Export/ Import] (in Rs. Crore)   |
|-----------|---------------------|---------------------------------|---------------------------------------------------|
|         1 | 33159               | 18820                           | December, 2016                                    |
|         2 | January, 2017 34089 |                                 | 18974                                             |
|         3 | 31927               | 18797                           | February, 2017                                    |
|         4 | March, 2017 35386   |                                 | 21665                                             |
|         5 | April, 2017 31817   |                                 | 20764                                             |
|         6 | 2017 34150          | 22051                           | May,                                              |
|         7 | June, 2017 25007    |                                 | 21147                                             |
|         8 | *July, 2017         | 21150                           | 30327                                             |
|         9 | *August, 2017 18960 |                                 | 31535                                             |
|        10 | *September, 2017    | 18191                           | 31217                                             |
|        11 | *October, 2017      | 17367                           | 29536                                             |
|        12 | *November, 2017     | 18127                           | 28631                                             |

Note:  *  w.e.f    1st  July,  2017  the  CVD/SAD  on  Imports,  Non-Petroleum  component  of  Central  Excise  duty  and complete Service Tax have been subsumed under GST. The Customs duty on Imports from July - November, 2017 are inclusive of IGST and GST Compensation Cess.

Source: Department of Revenue.

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