Lok Sabha Question No. 87 (UNSTARRED), answered on 2019-02-04
Subject: Export of Engineering Goods
Ministry: COMMERCE AND INDUSTRY
Asked by: VIJAYSINH MOHITE PATIL, HEENA VIJAYKUMAR GAVIT, DHANANJAY BHIMRAO MAHADIK, P.R. SUNDARAM, RAJEEV SHANKARRAO SATAV, SUPRIYA SADANAND SULE, JAYAKUMAR JAYAVARDHAN

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

## LOK SABHA UNSTARRED QUESTION NO. 87 TO BE ANSWERED ON  04 th  FEBRUARY, 2019

## EXPORT OF ENGINEERING GOODS

87. SHRI MOHITE PATIL VIJAYSINH SHANKARRAO:

DR. HEENA VIJAYKUMAR GAVIT:

SHRI DHANANJAY MAHADIK:

SHRI P.R. SUNDARAM:

SHRI SATAV RAJEEV:

SHRIMATI SUPRIYA SULE:

DR. J. JAYAVARDHAN:

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

- (a) whether  there  has  been  a  decline  in  the  export  of  engineering  goods  from  the country during the last three years and the current year;
- (b) if so, the details thereof and the reasons therefor;
- (c) the details of target fixed and achieved for the export of engineering goods during the said period, country-wise and product-wise;
- (d) whether the Government proposes to provide fiscal incentives including extension of interest subvention scheme and other stimulus to the engineering sector to stem the fall in export of engineering goods; and
- (e) if  so,  the  details  thereof  along  with  the  specific  steps  taken/being  taken  by  the Government to boost the export of engineering goods from the country?

## 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) & (b) : The value of engineering exports from India in the last three years and the current year is given below:

(In US$ billion)

|                                                           | 2015-16    | 2016-17   | 2017-18   | 2017-18 (Apr-Dec)   | 2018-19 (Apr-Dec)   |
|-----------------------------------------------------------|------------|-----------|-----------|---------------------|---------------------|
| Engineering Exports                                       | 58.60      | 65.24     | 76.21     | 55.81               | 59.12               |
| Growth (%) over the corresponding period of previous year | (-) 17.07% | 11.26%    | 16.87%    |                     | 5.95%               |

As shown above,engineering exports witnessed a decline of 17.1 % in 2015-16 vis-à-vis the previous year due to slump in demand following economic slowdown and recession in many regions of the world, especially the developed ones. However, the engineering exports have been on the rise since then.

- (c) The targets for engineering exports fixed by the EEPC India, the export promotion council for engineering products and actual exports during 2015-16 to 2018-19in respect of engineering  sector,are  given  below.  No  country-wise/product-wise  targets  are  fixed  by  the Council.

## Engineering Exports (US$ billion)

|                |   2015-16 |   2016-17 |   2017-18 | 2018-19           |
|----------------|-----------|-----------|-----------|-------------------|
| Target         |      75   |     65    |     70    | 80                |
| Actual Exports |      58.6 |     65.24 |     76.21 | 59.12 (April-Dec) |

- (d)  & (e): The Government has taken several initiatives for enhancing competitiveness of Indian exports, especially the engineering sector which, inter-alia,include :
- (i) Under  the  Interest  Equalization  Scheme,  equalization  @  3%  was  allowed  to manufacturer  exporters  for  products  covered  under  416  tariff  lines,  including many engineering products, and for all tariff lines to MSME manufacturers. With effect from 02.11.2018, the rate of interest equalization has been enhanced to 5% for MSME manufacturers for all tariff lines, including all engineering products;
- (ii) Merchant  exporters  have  recently  been  included  under  the  Interest  Equalization Scheme;
- (iii) A  variety  of  export  promotion  activities  are  being  undertaken  through  EEPC India, including the annual International Engineering Sourcing Show in India and the  Indian  Engineering  Exhibitions  across  the  world, for  promoting  engineering exports;
- (iv) The brand `Indian Engineering' is being promoted to enhance the global image of Indian engineering products;
- (v) A  technology  upgradation  initiative  is  being  implemented  for  development  of cutting-edge export-oriented technologies, etc.

****