Lok Sabha Question No. 2165 (UNSTARRED), answered on 2020-03-04
Subject: Decline in Export
Ministry: COMMERCE AND INDUSTRY
Asked by: Jyotirmay Singh Mahato

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY

## (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 2165 (H) TO BE ANSWERED ON 04 th MARCH, 2020

## DECLINE IN EXPORT

2165(H). SHRI JYOTIRMAY SINGH MAHATO:

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

- (a) whether export has declined during the last two years;
- (b) if  so,  the  reasons  therefor  along  with  the  month-wise  and  region-wise  details  thereof  at present; and
- (c) the action taken by the Government to boost export and increase foreign exchange?

## ANSWER

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## THE MINISTER OF  COMMERCE AND INDUSTRY (SHRI PIYUSH GOYAL)

(a) and (b ):      India's merchandise export during last three years and current year are as follows:

| Years               |   Export ( US$ Billion) | %Change   |   Export ( US$ Billion) ( excluding Petroleum Products and Gems& Jewellery) | %Change   |
|---------------------|-------------------------|-----------|-----------------------------------------------------------------------------|-----------|
| 2016-17             |                  275.85 | -         |                                                                      200.89 | -         |
| 2017-18             |                  303.53 | 10.03     |                                                                      224.51 | 11.77     |
| 2018-19             |                  330.07 | 8.75      |                                                                      243.27 | 8.35      |
| 2018-19 ( Apr-Jan)  |                  270.49 | -         |                                                                      197.59 | -         |
| 2019-20 ( Apr-Jan)* |                  265.26 | -1.93     |                                                                      197.6  | 0.01      |

Source: DGCI&S. * Provisional

The above table reveals that India's merchandise export has increased from 275.85 US$ billion in 2016-17 to 303.53 US$ billion in 2017-18 and to 330.07 US$ billion in 2018-19, registering a positive growth of 10.03% and 8.75% as compared to the previous years. Excluding Petroleum Products and Gems & Jewellery, India's merchandise export has increased from 200.89 US$ billion in 2016-17 to

224.51 US$ billion in 2017-18 and to 243.27 US$ billion in 2018-19, registering a positive growth of 11.77% and 8.75% as compared to the previous years and there is 0.01% positive growth during the current year(April 2019 to January 2020). The month-wise and region-wise merchandise export for the current year (April 2019 to January 2020) is at Annexure-I .

(c): In order to  boost India's  exports  and  increase  foreign  exchange,  some  of  the  steps  taken  by Government are as follows:

- (i) A new Foreign Trade Policy (FTP) 2015-20 was launched on 1st April 2015. The policy, inter alia,  rationalised 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 1st 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.

Statement referred to in reply of part (a) to (b) of Lok Sabha Unstarred question no. 2165 for answer on 4 th March 2020

## Month Wise and Region -wise India's Exports during  in the current year (April 2019 to  January 2020)

| Value in US $ Billion                      | Value in US $ Billion   | Value in US $ Billion   | Value in US $ Billion   | Value in US $ Billion   | Value in US $ Billion   | Value in US $ Billion   | Value in US $ Billion   | Value in US $ Billion   | Value in US $ Billion   | Value in US $ Billion   |
|--------------------------------------------|-------------------------|-------------------------|-------------------------|-------------------------|-------------------------|-------------------------|-------------------------|-------------------------|-------------------------|-------------------------|
| Region                                     | Apr,19                  | May,19                  | Jun, 19                 | Jul, 19                 | Aug, 19                 | Sep, 19                 | Oct, 19                 | Nov,19                  | Dec, 19                 | Jan, 20                 |
| 1) Europe                                  | 5.09                    | 5.78                    | 5.13                    | 4.91                    | 5.14                    | 4.92                    | 4.95                    | 4.65                    | 5.36                    | 5.34                    |
| 1.1 EU Countries                           | 4.53                    | 5.23                    | 4.56                    | 4.35                    | 4.49                    | 4.31                    | 4.32                    | 4.12                    | 4.78                    | 4.79                    |
| 1.2 European Free Trade Association (EFTA) | 0.13                    | 0.16                    | 0.21                    | 0.12                    | 0.17                    | 0.13                    | 0.12                    | 0.10                    | 0.13                    | 0.12                    |
| 1.3 Other European Countries               | 0.43                    | 0.40                    | 0.37                    | 0.45                    | 0.47                    | 0.48                    | 0.51                    | 0.43                    | 0.46                    | 0.43                    |
| 2) Africa                                  | 2.41                    | 2.46                    | 2.23                    | 2.61                    | 2.36                    | 2.54                    | 2.49                    | 2.37                    | 2.47                    | 2.39                    |
| 2.1 Southern African Customs Union (SACU)  | 0.29                    | 0.37                    | 0.38                    | 0.44                    | 0.39                    | 0.34                    | 0.44                    | 0.35                    | 0.37                    | 0.32                    |
| 2.2 Other South African Countries          | 0.18                    | 0.26                    | 0.19                    | 0.28                    | 0.25                    | 0.32                    | 0.22                    | 0.23                    | 0.26                    | 0.22                    |
| 2.3 West Africa                            | 0.70                    | 0.66                    | 0.60                    | 0.69                    | 0.63                    | 0.73                    | 0.69                    | 0.74                    | 0.69                    | 0.72                    |
| 2.4 Central Africa                         | 0.12                    | 0.11                    | 0.12                    | 0.12                    | 0.15                    | 0.11                    | 0.12                    | 0.12                    | 0.14                    | 0.12                    |
| 2.5 East Africa                            | 0.64                    | 0.50                    | 0.49                    | 0.66                    | 0.53                    | 0.59                    | 0.57                    | 0.51                    | 0.51                    | 0.61                    |
| 2.6 North Africa 2.6 North Africa          | 0.49 0.49               | 0.57 0.57               | 0.46 0.46               | 0.42 0.42               | 0.41 0.41               | 0.44 0.44               | 0.44 0.44               | 0.43 0.43               | 0.49 0.49               | 0.39 0.39               |
| 3) America                                 | 5.31                    | 6.36                    | 5.62                    | 5.85                    | 5.91                    | 5.74                    | 5.93                    | 5.75                    | 6.28                    | 5.95                    |
| 3.1 North America                          | 4.63                    | 5.49                    | 4.83                    | 5.01                    | 5.09                    | 4.92                    | 5.14                    | 4.83                    | 5.31                    | 4.98                    |
| 3.2 Latin America                          | 0.68                    | 0.87                    | 0.79                    | 0.84                    | 0.83                    | 0.82                    | 0.79                    | 0.93                    | 0.98                    | 0.97                    |
| 4) Asia                                    | 12.70                   | 14.59                   | 11.21                   | 12.31                   | 11.87                   | 12.26                   | 12.11                   | 12.21                   | 12.49                   | 11.76                   |
| 4.1 East Asia (Oceania)                    | 0.23                    | 0.27                    | 0.26                    | 0.34                    | 0.33                    | 0.28                    | 0.27                    | 0.26                    | 0.36                    | 0.25                    |
| 4.2ASEAN                                   | 3.07                    | 3.16                    | 2.17                    | 2.79                    | 2.65                    | 2.54                    | 2.51                    | 2.62                    | 2.51                    | 2.45                    |
| 4.3 West Asia - GCC                        | 3.23                    | 4.41                    | 2.91                    | 3.33                    | 3.10                    | 3.10                    | 3.43                    | 3.41                    | 3.48                    | 3.24                    |
| 4.4 Other West Asia                        | 1.04                    | 1.30                    | 1.03                    | 0.85                    | 0.89                    | 0.76                    | 0.74                    | 0.81                    | 0.88                    | 0.84                    |
| 4.5 NEAsia                                 | 3.16                    | 3.48                    | 3.16                    | 3.24                    | 3.13                    | 3.75                    | 3.45                    | 3.26                    | 3.31                    | 3.15                    |
| 4.6 South Asia                             | 1.97                    | 1.97                    | 1.69                    | 1.75                    | 1.77                    | 1.83                    | 1.72                    | 1.85                    | 1.96                    | 1.83                    |
| 5) CIS &Baltics                            | 0.27                    | 0.34                    | 0.32                    | 0.36                    | 0.36                    | 0.32                    | 0.39                    | 0.39                    | 0.35                    | 0.33                    |
| 5.1 CARs Countries                         | 0.03                    | 0.05                    | 0.05                    | 0.04                    | 0.04                    | 0.03                    | 0.03                    | 0.05                    | 0.03                    | 0.04                    |
| 5.2 Other CIS Countries                    | 0.24                    | 0.29                    | 0.28                    | 0.31                    | 0.32                    | 0.29                    | 0.35                    | 0.35                    | 0.31                    | 0.29                    |
| 6) Unspecified Region                      | 0.25                    | 0.31                    | 0.50                    | 0.20                    | 0.34                    | 0.23                    | 0.35                    | 0.26                    | 0.19                    | 0.20                    |
| Total                                      | 26.03                   | 29.85                   | 25.02                   | 26.23                   | 25.98                   | 26.01                   | 26.21                   | 25.63                   | 27.14                   | 25.97                   |

Source: DGCI&S, Data are provisional.

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