Lok Sabha Question No. 730 (UNSTARRED), answered on 2019-06-26
Subject: India’s Global Trade
Ministry: COMMERCE AND INDUSTRY
Asked by: Pankaj Chowdhary

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

## LOK SABHA UNSTARRED QUESTION NO. 730 (H) TO BE ANSWERED ON  26 th  JUNE, 2019

## INDIA'S GLOBAL TRADE

## 730(H). SHRI PANKAJ CHAUDHARY

Will  the  Minister  of COMMERCE & INDUSTRY ( वािण᭔य  एवं  उ᳒ोग  मंᮢी ) be pleased to state:

- (a) the steps taken by the Government to increase India's share in global business;
- (b) the  details  of  difficulties  being  faced  by  the  Government  on  trade  front  in  foreign countries;
- (c) whether  the  Government  is  likely  to  prepare  an  action  plan  to  overcome  those difficulties; and
- (d) if so, the details thereof?

## ANWSER

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

- (a) India's share in global trade (merchandise and services) was 2.1% (481.74 USD Bn out of total 23,044 USD Bn) for exports and 2.6% (600.62 USD Bn out of total 23,112 USD Bn) for imports  in 2017.  Exports  have  been  growing  on  a  regular  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 key measures for promotion of exports:
- 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. 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 77 in 2018 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) scheme 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.
- (b) Key difficulties faced by the exporters are as follows:
- i Technical  and  non-technical  barriers  to  trade  such  as  Sanitary  and  PhytoSanitary (SPS) standards imposed on agricultural items and quality standards on manufactured goods.
- ii Tariff advantages to the exporters of competing countries in key export markets due to trade agreements between their countries and destination countries/regions.
- iii Higher logistics and financing costs for Indian exporters.

(c) & (d) Government has formulated a detailed action plan which is updated regularly based on  the  feedback  from  the  exporting  community,  the  Export  Promotion  Councils  and  other industry  associations.  State  Governments  have  also  been  requested  to  develop  an  Export Strategy for the State keeping in view the State Specific opportunities and challenges. The Board of Trade and the Council for Trade Development and Promotion provide a platform for all the stakeholders, including State governments to discuss the issues impacting exports.

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