Lok Sabha Question No. 678 (UNSTARRED), answered on 2019-11-20
Subject: Decline in Export Trade
Ministry: COMMERCE AND INDUSTRY
Asked by: V. Kalanidhi, Andimuthu Raja

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

## LOK SABHA UNSTARRED QUESTION NO. 678 TO BE ANSWERED ON 20 th NOVEMBER, 2019

## DECLINE IN EXPORT TRADE

678. DR. KALANIDHI VEERASWAMY: SHRI A. RAJA:

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

- (a) the details of the country's Export and Export Sector debt during the last one year within the country;
- (b) whether both have dipped/declined during the last one year across the country;
- (c) if so, the details thereof, State/UTwise, including Tamil Nadu and the reasons therefor along with the action taken/being taken by the Government in this regard;
- (d) whether  the  Government  is  also  planning  to  introduce  new  Export  Policy  within  the country or has received any proposal from any State in this regard; and
- (e) if so, the details thereof including the time by which it is likely to be implemented and if not, the reasons therefor?

## 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 has increased from 303.53 US$ billion in 2017-18 to 330. 07 US$ billion in 2018-19, registering a positive growth of 8.75% as compared to the previous year. The State/UT -wise exports including Tamil Nadu in 2017-18 and 2018-19 and growth are at Annexure-I.  India's  export  sector  faced  many  challenges  in  the  post  2013 -14  period  due  to accentuation of the global economic / financial crisis. However, exports have been growing on a secular basis since 2016-17 for almost three years and total exports reached a new peak of more than half a trillion dollars, for the first time in 2018-19.

Government has taken following steps to increase exports:

- i A new Foreign Trade Policy (FTP) 2015 -20 was launched on 1 st 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 The  Mid-term  Review  of  the  FTP  2015-20  was  undertaken  on  5th  December,  2017. Incentive rates for labour intensive / MSME sectors were increased by 2% with a financial implication of Rs 8,450 cr per year.
- iii A  new  Logistics  Division  was  created  in  the  Department  of  Commerce  to  coordinate 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 Various measures for improving ease of doing business were taken. 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  provides  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.
- ix A new scheme called Scheme for Rebate of State and Central Taxes and Levies (RoSCTL) covering export of garments and made-ups was notified on 7.3.2019 providing refund of duties/taxes at higher rates.

(d) to ( e): The export policy is dynamic and is reviewed from time to time depending on the inputs/recommendations  received  from  concerned  line  Ministries/Departments/States.  A  new Foreign  Trade  Policy  will  replace  the  current  Foreign  Trade  Policy  (2015-2020),  before  its expiring on 31 st March 2020.

***

Statement referred to in reply of part (a) to (c) of Lok Sabha Unstarred question no. 678 for answer on 20 th November 2019

State/UT-wise export during 2017-18 and 2018-19

| No:                        | States/UTs                 |   2017-18 |   2018-19 |   (value in US$ Million) %Change in 2018-19 over 2017-18 |
|----------------------------|----------------------------|-----------|-----------|----------------------------------------------------------|
| 1                          | Maharashtra                |  69731.5  |  72809.3  |                                                     4.41 |
| 2                          | Gujarat                    |  66818    |  67412.1  |                                                     0.89 |
| 3                          | Tamil Nadu                 |  29754.2  |  30525.9  |                                                     2.59 |
| 4                          | Karnataka                  |  18052.3  |  17341.3  |                                                    -3.94 |
| 5                          | Uttar Pradesh              |  13803.9  |  16289.2  |                                                    18    |
| 6                          | Andhra Pradesh             |  13019.5  |  14085.6  |                                                     8.19 |
| 7                          | Haryana                    |  13263.4  |  13833.2  |                                                     4.3  |
| 8                          | West Bengal                |   9148.22 |  10057.1  |                                                     9.94 |
| 9                          | Kerala                     |   7308.07 |   9834.25 |                                                    34.57 |
| 10                         | Delhi                      |   8713.88 |   9464.6  |                                                     8.62 |
| 11                         | Telangana                  |   6568.71 |   7168.26 |                                                     9.13 |
| 12                         | Rajasthan                  |   6952.05 |   7061.61 |                                                     1.58 |
| 13                         | Madhya Pradesh             |   5249.96 |   6382.37 |                                                    21.57 |
| 14                         | Odisha                     |   7585.01 |   6303.36 |                                                   -16.9  |
| 15                         | Punjab                     |   5788.25 |   6038.07 |                                                     4.32 |
| 16                         | Uttaranchal                |   1455.46 |   2351.18 |                                                    61.54 |
| 17                         | Dadra &Nagar Haveli        |   2051.25 |   2143.38 |                                                     4.49 |
| 18                         | Goa                        |   2103.17 |   2063.64 |                                                    -1.88 |
| 19                         | Bihar                      |   1345.31 |   1640.91 |                                                    21.97 |
| 20                         | Himachal Pradesh           |   1221.67 |   1323.43 |                                                     8.33 |
| 21                         | Jharkhand                  |   1116.53 |   1252.79 |                                                    12.2  |
| 22                         | Chattisgarh                |   1522.7  |   1244.1  |                                                   -18.3  |
| 23                         | Daman &Diu                 |    956.98 |   1053.39 |                                                    10.07 |
| 24                         | Pondicherry                |    415.05 |    392.79 |                                                    -5.36 |
| 25                         | Assam                      |    382.35 |    369.9  |                                                    -3.26 |
| 26                         | Jammu &Kashmir             |    148.31 |    196.43 |                                                    32.45 |
| 27                         | Chandigarh                 |     69.93 |     71.89 |                                                     2.81 |
| 28                         | Meghalaya                  |     85.13 |     53.86 |                                                   -36.73 |
| 29                         | Sikkim                     |     13.96 |      7.94 |                                                   -43.15 |
| 30                         | Andaman& Nicobar           |     31.46 |      4.01 |                                                   -87.26 |
| 31                         | Nagaland                   |      3.92 |      2.78 |                                                   -28.92 |
| 32                         | Manipur                    |      1.33 |      2.66 |                                                    99.48 |
| 33                         | Arunachal Pradesh          |      5.32 |      2.31 |                                                   -56.63 |
| 34                         | Tripura                    |      2.36 |      1.72 |                                                   -27.13 |
| 35                         | Mizoram                    |      1.07 |      1.41 |                                                    31.67 |
| 36                         | Lakshadweep                |      0.64 |      0.41 |                                                   -35.9  |
| Unspecified India's Export | Unspecified India's Export | 303526    | 330078    |                                                     8.75 |

Source: DGCI&S, Kolkata                                          *********