Lok Sabha Question No. 1116 (UNSTARRED), answered on 2018-12-17
Subject: India’s Foreign Trade
Ministry: COMMERCE AND INDUSTRY
Asked by: PRITAM GOPINATH MUNDE, A. ARUNMOZHITHEVAN, VINAYAK BHAURAO RAUT, Shrirang Appa Barne, DHARMENDRA YADAV

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

## LOK SABHA UNSTARRED QUESTION NO. 1116 TO BE ANSWERED ON 17 th  DECEMBER,2018

## INDIA'S FOREIGN TRADE

## 1116.   DR. PRITAM GOPINATH MUNDE:

SHRI A. ARUNMOZHITHEVAN:

SHRI VINAYAK BHAURAO RAUT:

SHRI SHRIRANG APPA BARNE:

SHRI DHARMENDRA YADAV:

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

- (a) whether India has trade deficit with 10 Regional  Economic Co-operation Partnership (RECP) member countries and if so, the details thereof along with the reasons therefor;
- (b) whether  trade  gap  with  China  has  increased  to  USD  63.12  billion  in  2017-18, against  USD  51.11  billion  in  the  previous  financial  year  and  if  so,  the  details thereof and the reasons therefor;
- (c) whether concerns have been raised by industry, exporters and trade experts on Free Trade  Agreements  (FTAs)  being  implemented  by  India  and  if  so,  the  details thereof;
- (d) whether  the  Government  proposes  to  appoint  two  independent  agencies  for preparing a template to negotiate FTAs and if so, the details thereof;
- (e) whether  India's  export  in  SAARC  region  itself  is  sub-optimal  despite  huge potential  exists  to  boost  exports  in  this  region  and  if  so,  the  response  of  the Government in this regard; and
- (f) the other steps taken by the Government to reduce the trade deficit with member countries  of  RECP  and  also  the  steps  to  increase  trade  with  neighbouring countries?

## ANSWER

okf.kT; ,oa m|ksx ea=ky; esa jkT; ea=h ¼Jh lh- vkj- pkS/kjh½

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

- (a)  to  (b):    The  details  of  trade  deficit/surplus  with  15  Regional  Comprehensive Economic Partnership (RCEP) Partner Countries (RPCs) during 2017-18 are given at Annexure I. The trade deficit/surplus with any country is a function of many factors including export interest, domestic demand, changing consumption pattern and level of competitiveness. The trade deficit with China during the period 2017-18 was on

account of increase in imports of electronics, machinery, organic chemicals, plastics, instruments and appliances etc.

- (c)  and  (d)  The  government  holds  regular  stakeholders'  consultations  with  industry, exporters  and  trade  experts  for  taking  inputs  for  formulating  India's  positions  in trade  negotiations.  Independent  think  tanks  and  research  bodies  are  also  consulted from time to time on trade negotiations with partner countries.
- (e)  India has a trade surplus with countries in SAARC region as indicated in Annexure II.  In  order  to  boost  our  exports  to  the  region,  government  has  taken  measures  to improve  trade  infrastructure,  including  upgradation  of  Land  Customs  Stations, establishment  of  Integrated  Check  Posts/Border  Haats,  facilitation  of  bilateral  and sub-regional  connectivity,  etc.  The  Government  has  engaged  pro-actively  with SAARC countries to strengthen trade and economic relations through dialogue and cooperation.
- (f)  Further, Government is supporting Indian exporters through various initiatives, such as Merchandise Exports from India Scheme (MEIS), Market Access Initiative (MAI) for participation in trade fairs/ exhibitions in foreign countries; Market Development Assistance (MDA); 3% interest equalisation assistance; duty  free imports of inputs and  machinery  for  export  production;  refund  of  duties  paid  on  export  products; simplification  of  customs  clearance  through  setting  up  of  Customs  Clearance Facilitation  Committee  at  every  major  seaport  and  airport;  promotion  of  product standards, packaging and branding of Indian products, etc.

******

## India's trade with RCEP countries during 2017-18 (In $ million)

| Country     | Export   | Import    | Total Trade   | Trade Balance   |
|-------------|----------|-----------|---------------|-----------------|
| Australia   | 3,824.7  | 13,989.0  | 17,813.7      | -10,164.3       |
| Brunei      | 63.2     | 434.8     | 498.0         | -371.6          |
| Cambodia    | 121.4    | 55.8      | 177.2         | 65.6            |
| China       | 13,131.4 | 76,251.6  | 89,383.1      | -63,120.2       |
| Indonesia   | 3,962.0  | 16,435.9  | 20,397.8      | -12,473.9       |
| Japan       | 4,733.1  | 10,975.1  | 15,708.2      | -6,242.1        |
| Lao         | 25.0     | 168.6     | 193.6         | -143.6          |
| Malaysia    | 5,664.0  | 9,009.8   | 14,673.8      | -3,345.8        |
| Myanmar     | 966.1    | 639.5     | 1,605.6       | 326.6           |
| New Zealand | 352.8    | 643.7     | 996.5         | -290.9          |
| Philippines | 1,686.7  | 764.4     | 2,451.1       | 922.4           |
| Singapore   | 9,815.6  | 7,434.9   | 17,250.6      | 2,380.7         |
| South Korea | 4,394.9  | 16,357.9  | 20,752.8      | -11,963.0       |
| Thailand    | 3,636.4  | 7,127.2   | 10,763.6      | -3,490.8        |
| Vietnam     | 7,810.4  | 4,947.5   | 12,757.8      | 2,862.9         |
| RCEP        | 60,187.7 | 165,235.7 | 225,423.4     | -105,048.0      |

## India's trade with SAARC countries (in $ million)

| Country                         | Parameter                       | 2015-2016   | 2016-2017   | 2017-2018   |
|---------------------------------|---------------------------------|-------------|-------------|-------------|
| AFGHANISTAN                     | EXPORT                          | 526.6       | 506.34      | 709.75      |
|                                 | IMPORT                          | 307.9       | 292.9       | 433.78      |
| BANGLADESH                      | EXPORT                          | 6,034.94    | 6,820.1 1   | 8,614.35    |
|                                 | IMPORT                          | 727.15      | 701.68      | 685.65      |
|                                 | EXPORT                          | 468.95      | 509.28      | 546.12      |
| BHUTAN                          | IMPORT                          | 281.27      | 307.82      | 377.99      |
| NEPAL                           | EXPORT                          | 3,902.70    | 5,453.59    | 6,612.96    |
|                                 | IMPORT                          | 470.59      | 445.13      | 438.38      |
| SRI LANKA                       | EXPORT                          | 5,310.75    | 3,913.15    | 4,476.46    |
|                                 | IMPORT                          | 742.79      | 602.2       | 772.63      |
| PAKISTAN                        | EXPORT                          | 2,171.17    | 1 ,821.87   | 1 ,924.28   |
|                                 | IMPORT                          | 441.03      | 454.49      | 488.56      |
| MALDIVES                        | EXPORT                          | 179.07      | 197.79      | 217         |
|                                 | IMPORT                          | 4.29        | 9.17        | 5.68        |
| Total Export to SAARC Region    | Total Export to SAARC Region    | 18,594.18   | 49 222.13   | 23,100.92   |
| Total Imports from SAARC Region | Total Imports from SAARC Region | 2975.02     | 2813.39     | 3202.67     |