Lok Sabha Question No. 1003 (UNSTARRED), answered on 2018-12-17
Subject: Excess Payment by Traders for Imported Goods
Ministry: COMMERCE AND INDUSTRY
Asked by: ANIRUDHAN SAMPATH

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

## LOK SABHA UNSTARRED QUESTION NO. 1003 TO BE ANSWERED ON 17 th  DECEMBER,2018

## EXCESS PAYMENT BY TRADERS FOR IMPORTED GOODS

## 1003. DR. A. SAMPATH:

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

- (a) whether the traders have to pay excess amount  on  account of continuous devaluation of Indian Rupee in comparison to dollar for imported goods resulting in adverse effect on industry and trade;
- (b) If so, the details thereof;
- (c) the details of the excess amount which has to be paid for imported goods on account of devaluation of Indian Rupee during the last three years; and
- (d) whether the Indian consumers have had to pay excess amount for goods resulting in inflation and if so, the details thereof?

## 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  Rupee  vis-a-vis  US  dollar  has  been  under  pressure  during  this  financial  year.  When rupee depreciates, India's importer has to pay more in INR. The month wise exchange rate of INR with US $s during this fiscal is given below:

| Months of 2018-19   |   Exchange Rate of Indian Rupee (INR) vs US$ |
|---------------------|----------------------------------------------|
| April,18            |                                        66.78 |
| May,18              |                                        67.45 |
| June,18             |                                        68.58 |
| July,18             |                                        68.61 |
| Augst,18            |                                        70.93 |
| Sept,18             |                                        72.55 |
| Oct,18              |                                        73.99 |
| Nov,18              |                                        69.66 |

Source: RBI & FBIL

During 2017, rupee generally exhibited strengthening trend with an appreciation of 6.4% against US $.  However,  during  2018  it  has  shown  a  depreciating  trend  due  to  rising  crude  prices  and  rising interest  rates  in  the  US  and  geo-political  issues  resulting  in  foreign  portfolio  outflows.  Since

November 2018,  there  has  been  a  appreciating  trend  of  rupee  due  to  easing  of  crude  oil  prices higher economic growth and foreign portfolio inflows during November, 2018.

(c) & (d): Trend of exchange rate of Indian rupee vis-à-vis US dollar during last three years is given below:

| Years   |   Exchange Rate of Indian Rupees vs US$ (End-year) |
|---------|----------------------------------------------------|
| 2015-16 |                                              66.33 |
| 2016-17 |                                              64.84 |
| 2017-18 |                                              65.04 |

Source

: Handbook of Statistics on the Indian Economy, RBI

From the above table, it is clear that Rupee vis-avis US$ remained almost stable through out the last three years. Hence, India's importers having to pay more during the same period in INR does not arise. It is clear from the tpable below.

India's Total import is in the table below:

| Year    |   Total Import in US billion$ | Total Import in INR Crores   |
|---------|-------------------------------|------------------------------|
| 2015-16 |                           381 | 24,90,305                    |
| 2016-17 |                           384 | 25,77,675                    |
| 2017-18 |                           466 | 30,01,033                    |

As can be seen from the above table, imports in US $ terms and INR terms have grown by 22% and 20.5% , respectively,  in 2015-16 to 2017-18.

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