Lok Sabha Question No. 518 (UNSTARRED), answered on 2020-02-05
Subject: India’s Export Growth
Ministry: COMMERCE AND INDUSTRY
Asked by: Dibyendu Adhikari

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

## LOK SABHA UNSTARRED QUESTION NO. 518

## TO BE ANSWERED ON 05 th FEBRUARY, 2020

## INDIA'S EXPORT GROWTH

## 518. SHRI DIBYENDU ADHIKARI:

Will the Minister of COMMERCE & INDUSTRY ( वािण�य एवं उ�ोग मं�ी ) be pleased to state:

- (a) whether in almost all sectors the Government has failed to catch up with export growth and foreign currency in comparison to 2003-11 and 2012-17 period of business performance;
- (b) if so, whether exports of goods in 2012-17 has showed the deepest fall and all trade average has dipped by almost 34 per cent in 2012-17 when compared to 2003-11 period;
- (c) if  so,  the  details  of  export  performance  in  respect  of  GDP  growth,  Real  Exchange  Rate, Agriculture, Manufacturing, Goods export, services and financial sectors thereof; and
- (d) the details of restructuring and reform plan of the Government to compete the global trade thereto?

## ANSWER

## okf.kT; ,oa m|ksx ea=h ( Jh ih;w'k xks;y ) THE MINISTER OF  COMMERCE AND INDUSTRY (SHRI PIYUSH GOYAL)

- (a) to (c): India's merchandise exports and total merchandise trade ( export plus import) along with growth during the block of 8 years, 2011-12 to 2018-19 over the previous block of 8 years, 2003-04 to  2010-11  are  given  in  the  following  table,  which  reflects  that  India's  merchandise  export  has increased by 108.19 % during the block of 8 years, 2011-12 to 2018-19, over the block of previous 8 years,  2003-04 to 2010-11, while India's total  merchandise trade (both exports and  imports) has increased by 108.38% during the same period.

(Value in US$ Billion)

|                 | Merchandise Exports   | Merchandise Exports       | Merchandise Exports            | Total Merchandise Trade ( Export plus Import)   | Total Merchandise Trade ( Export plus Import)   | Total Merchandise Trade ( Export plus Import)   |
|-----------------|-----------------------|---------------------------|--------------------------------|-------------------------------------------------|-------------------------------------------------|-------------------------------------------------|
| Year            | Exports               | Total 2003-11 and 2012-19 | Growth in 2012-19 over 2003-11 | Total Trade                                     | Total 2003-11 and 2012-19                       | Growth in 2012-19 over 2003-11                  |
| 2003-04         | 63.98                 |                           | 108.19%                        | 141.99                                          |                                                 | 108.38%                                         |
| 2004-05         | 83.75                 |                           | 108.19%                        | 195.05                                          |                                                 | 108.38%                                         |
| 2005-06         | 103.04                |                           | 108.19%                        | 252.26                                          |                                                 | 108.38%                                         |
| 2006-07         | 126.41                | 1154.18                   | 108.19%                        | 312.15                                          | 2891.94                                         | 108.38%                                         |
| 2007-08         | 163.13                |                           | 108.19%                        | 414.79                                          |                                                 | 108.38%                                         |
| 2008-09         | 185.3                 |                           | 108.19%                        | 488.99                                          |                                                 | 108.38%                                         |
| 2009-10         | 178.75                |                           | 108.19%                        | 467.12                                          |                                                 | 108.38%                                         |
| 2010-11         | 249.82                |                           | 108.19%                        | 619.59                                          |                                                 | 108.38%                                         |
| 2011-12         | 305.96                | 2402.88                   | 108.19%                        | 795.28                                          | 6026.12                                         | 108.38%                                         |
| 2012-13         | 300.4                 | 2402.88                   | 108.19%                        | 791.14                                          | 6026.12                                         | 108.38%                                         |
| 2013-14         | 314.42                | 2402.88                   | 108.19%                        | 764.61                                          | 6026.12                                         | 108.38%                                         |
| 2014-15         | 310.35                | 2402.88                   | 108.19%                        | 758.37                                          | 6026.12                                         | 108.38%                                         |
| 2015-16         | 262.29                | 2402.88                   | 108.19%                        | 643.30                                          | 6026.12                                         | 108.38%                                         |
| 2016-17         | 275.85                | 2402.88                   | 108.19%                        | 660.21                                          | 6026.12                                         | 108.38%                                         |
| 2017-18 2017-18 | 303.53 303.53         | 2402.88                   | 108.19%                        | 769.11 769.11                                   | 6026.12                                         | 108.38%                                         |
| 2018-19         | 330.08                | 2402.88                   | 108.19%                        | 844.10                                          | 6026.12                                         | 108.38%                                         |

Source: DGCI&S, Kolkata

(d): India's rank  in global  merchandise export has improved in the last three years from 21 in 2015 to 19 in 2018 as per WTO. In order to boost India's exports and compete with the global trade, Government has taken following steps in last five years:

- (i) A new Foreign Trade Policy (FTP) 2015-20 was launched on 1 st April 2015. The policy, inter  alia,  rationalized  the  earlier  export  promotion  schemes  and  introduced  two  new schemes, namely Merchandise Exports from India Scheme (MEIS) for improving export of goods   and 'Services Exports from India Scheme (SEIS)' for increasing exports of services. Duty credit scrips issued under these schemes were made fully transferable.
- (ii) Based on Mid-term Review of the FTP 2015-20 undertaken on 5th December, 2017, incentives for labour intensive / MSME sectors were increased by 2%.
- (iii) A new Logistics Division was created in the Department of Commerce for integrated development of the logistics sector.  India's rank in World Bank's Logistics Performance Index moved up from 54 in 2014 to 44 in 2018.
- (iv) Interest  Equalization  Scheme  on  pre  and  post  shipment  rupee  export  credit  was introduced  from  1.4.2015  providing  interest  equalisation  at  3%  for  labour  intensive  /

MSME sectors.  The  rate  was  increased  to  5%  for  MSME  sectors  with  effect  from 2.11.2018  and  merchant  exporters  were  covered  under  the  scheme  with  effect  from 2.1.2019.

- (v) For improving ease of doing business, online issuance of Importer Exporter Codes (IEC), has been started. India's rank in World Bank 'Ease of Doing Business' ranking improved from 142 in 2014 to 63 in 2019 with the rank in 'trading across borders' moving up from 122 to 80.
- (vi) A new scheme called 'Trade Infrastructure for Export Scheme (TIES)' was launched with effect from 1 st April 2017 to address the export infrastructure gaps in the country.
- (vii) A comprehensive 'Agriculture Export Policy' was launched on 6th December, 2018 with an aim to double farmers' income by 2022 and provide an impetus to agricultural exports.
- (viii) A new scheme called 'Transport and Marketing Assistance' (TMA) has been launched for  mitigating  disadvantage  of  higher  cost  of  transportation  for  export  of  specified agriculture products.

Further, Government's restructuring and reform plan in this direction include:

- (a) A  new  Remission  of  Duties  and  Taxes  on  Exported  Products  (RoDTEP)  Scheme  has  been proposed in the Budget 2020-21 that would provide a long term WTO compliant framework under which the industry would be able to claim re-imbursement of duties and taxes. The new RoDTEP Scheme would refund, currently un-refunded:

(i)  Duties/  taxes  /  levies,  at  the  Central,  State  and  local  level,  borne  on  the  exported  product, including prior stage cumulative indirect taxes on goods and services used in the production of the exported product and

- (ii) Such indirect Duties/ taxes / levies in respect of distribution of exported product.
- (b)  A new Rebate of State and Central Taxes and Levies (RoSCTL) Scheme ha s been notified by the Ministry of Textiles for the apparel and made-ups sector on 07.03.2019 after approval of the Cabinet, under which rates of rebate as present in the earlier Rebate of State Levies scheme (ROSL) were revised and revised rates were also notified on 08.03.2019. The rebates under this scheme are notified to be issued in the form of MEIS type scrips, from the Department of Commerce/DGFT.
- (c)  A new Scheme, NIRVIK Yojana, has been designed, which is a supplementary cover to existing ECIB cover of ECGC under the stimulus package of the Government, to catalyze flow of export credit to all exporters.