Lok Sabha Question No. 4134 (UNSTARRED), answered on 2020-03-18
Subject: Exports form India
Ministry: COMMERCE AND INDUSTRY
Asked by: Jugal Kishore Sharma, Riti Pathak, Sudarshan Bhagat, Deepak (Dev) Adhikari

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

## LOK SABHA UNSTARRED QUESTION NO. 4134 (H) TO BE ANSWERED ON 18 th MARCH, 2020

## EXPORTS FROM INDIA

## 4134(H). SHRI JUGAL KISHORE SHARMA:

SHRIMATI RITI PATHAK:

SHRI SUDARSHAN BHAGAT:

SHRI ADHIKARI DEEPAK (DEV):

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

- (a) whether India is likely to miss its export target in the year 2018-19;
- (b) if so, the details thereof and the reasons therefor along with its impact on the economy, sector-wise;
- (c) the details of the domestic sectors that have been affected the most due to economic recession along with the extent to which the domestic employment opportunities have reduced or are created owing to India's export policy;
- (d) whether the Government has received representations from various Export Promotion Councils for the promotion of such sectors so as to improve their performance and the reaction of the Government thereon; and
- (e) the details of remedial measures taken to address the issue including changing its export policy?

## 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%. India's export sector faced many challenges 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. The sector-wise values of exports for 2018-19 and percentage change over the previous year 201718  are  given  at Annexure. The  Foreign  Trade  Policy  (2015-20), launched  on  1 st April  2015, provides  a  framework  for  increasing  exports  of  goods  and  services  as  well  as  generation  of employment and increasing value addition in the country, in line with the 'Make in India', 'Digital India', 'Skill India', 'Startup India' and 'Ease of Doing Business' initiatives.

(d): and (e): Representations/suggestions are received from trade organizations/export promotion councils from time to time for promotion of exports which are taken into consideration as part of the regular ongoing process of review and reform of trade policies. To promote export, Government has taken following remedial measures including changes in the export policy:

- (i) The  Foreign  Trade  Policy  (2015-20),  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) A Mid-term Review of the FTP 2015-20  was undertaken in December, 2017 under which incentives for labour intensive / MSME sectors were increased by 2% under MEIS.
- (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 was 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 01.04.2015 providing interest equalisation at 3% for labour intensive /  MSME sectors. The rate was increased to 5% for MSME sectors with effect from 02.11.2018 and merchant exporters were covered under the Scheme with effect from 02.01.2019.
- (v) Measures to increase procurement of capital goods  from  indigenous  manufacturers under  the  Export  Promotion  Capital  Goods  (EPCG)  scheme  by  reducing  specific export obligation from 90 percent to 75 percent of the normal export obligation.
- (vi) Issue of Advance Authorisation to allow duty free import of inputs for export product within a specified timeline.
- (vii) 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 was improved from 142 in 2014 to 63 in 2019 with the rank in 'trading across borders' moving up from 122 to 80.
- (viii) 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.
- (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.
- (x) 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.
- (xi) 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.
- (xii) Government  has  introduced a  new  Scheme  for  Remission  of  Duties  and  Taxes  on Exported  Products  (RoDTEP)  on  13-03-2020 for  re-imbursement  of  taxes/  duties/ levies, which are currently not being refunded under any other mechanism, at the central, state and local level.

## Statement referred to in reply of part (a) to (c) of Lok Sabha Unstarred question no. 4134 for answer on 18 th March 2020

India's Merchandise Export, sector-wise for  2017-18 and 2018-19

Source: DGCI&S

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| S. No QE Groups 1 Engineering Goods 2 Petroleum Products   | 2017-18 78696   | (Value in 2018-19   | US$ Million) %Change 6.26   |
|------------------------------------------------------------|-----------------|---------------------|-----------------------------|
|                                                            |                 | 83622               |                             |
|                                                            | 37465           | 46554               | 24.26                       |
| Gems And Jewellery                                         | 41544           | 40251               | -3.11                       |
| 3 4 Organic &Inorganic Chemical                            | 18508           | 22379               | 20.91                       |
| 5 Drugs And Pharmaceuticals                                | 17283           | 19147               | 10.78                       |
| 6 Rmg Of All Textiles                                      | 16707           | 16138               | -3.40                       |
| 7 Electronic Goods                                         | 6393            | 8829                | 38.11                       |
| 8 Cotton Yarn/Fabs./Madeups, Handloom Products Etc.        | 10260           | 11215               | 9.31                        |
| Plastic And Linoleum                                       | 6851            | 8607                | 25.64                       |
| 9 10 Marine Products                                       | 7389            | 6803                | -7.94                       |
| 11 Rice                                                    | 7806            | 7751                | -0.71                       |
| 12 Man-Made Yarn/Fabs./Madeups Etc.                        | 4826            | 4981                | 3.19                        |
| 13 Leather And Leather Manufactures                        | 5289            | 5141                | -2.80                       |
| 14 Mica, CoalAnd Other Ores, Minerals Including Process    | 3777            | 4255                | 12.65                       |
| Meat, DairyAnd Poultry Products                            | 4610            | 4364                | -5.34                       |
| 15 16 Spices                                               | 3115            | 3322                | 6.65                        |
| Ceramic Products And Glassware                             | 2132            | 2649                | 24.27                       |
| 17 18 Iron Ore                                             | 1471            | 1317                | -10.45                      |
| 19 Fruits And Vegetables                                   | 2513            | 2541                | 1.10                        |
| 20 Handicrafts Excl. Hand Made Carpet                      | 1823            | 1838                | 0.81                        |
| 21 Cereal Preparations And Miscellaneous                   | 1417            | 1555                | 9.80                        |
| Processed Item 22 Carpet                                   | 1430            | 1482                | 3.64                        |
| 23 Oil Seeds                                               | 1174            | 1157                | -1.50                       |
| 24 Tobacco                                                 | 934             | 981                 | 5.04                        |
| 25 Tea                                                     | 837             | 831                 | -0.77                       |
| 26 Oil Meals                                               | 1093            | 1509                | 38.01                       |
| Coffee                                                     | 969             | 822                 | -15.10                      |
| 27 28 Cashew                                               | 922             | 654                 | -29.05                      |
| 29 Jute Mfg. Including Floor Covering                      | 335             | 325                 | -3.03                       |
| 30 Other Cereals                                           | 249             | 349                 | 40.38                       |
| 31 Others Total Export                                     | 15705 303526    | 18709 330078        | 19.13 8.75                  |

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