Lok Sabha Question No. 3916 (UNSTARRED), answered on 2019-07-17
Subject: Export Promotion Scheme
Ministry: COMMERCE AND INDUSTRY
Asked by: Rajendra Agrawal

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

## LOK SABHA UNSTARRED QUESTION NO. 3916 (H) TO BE ANSWERED ON 17 th JULY, 2019

## EXPORT PROMOTION SCHEME

## 3916(H). SHRI RAJENDRA AGRAWAL:

Will the Minister of COMMERCE & INDUSTRY ( वा�ण�य एवं उ�योग मं�ी ) be pleased to state:

- (a) whether the Government has any scheme for providing assistance to the States to promote their exports;
- (b) if so, the details thereof;
- (c) the details of total funds allocated to various States to promote exports during each year of the last three years, region-wise and State/UT-wise;
- (d) the steps taken by the Government to involve States in the efforts meant for promoting export;
- (e) the measures taken by the Government to improve the system and remove the bottlenecks to achieve the export target of the country; and
- (f) whether the Government has made provisions for exemption in tax too to promote export and if so, the details thereof?

## ANSWER

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## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI HARDEEP SINGH PURI)

- (a) to (c) The Government of India has launched a scheme namely, 'Trade Infrastructure for Export Scheme (TIES)' w.e.f FY 2017 -18 with the objective to assist Central and State Government Agencies for creation of  appropriate  infrastructure  for  growth  of  exports  from  the  States.  The  Scheme  provides  financial assistance in the form of grant-in-aid to Central/State Government owned agencies for setting up or for up-gradation of export infrastructure as per the guidelines of the Scheme. The scheme can be availed by the  States  through  their  Implementing Agencies,  for  infrastructure  projects  with  overwhelming  export linkages like the Border Haats, Land customs stations, quality testing and certification labs, cold chains, trade  promotion  centres,  dry  ports,  export  warehousing  and  packaging,  SEZs  and  ports/airports  cargo terminuses. The Scheme guidelines are available at http://commerce.gov.in.

Under the TIES Scheme, a total of 28 export infrastructure projects have been provided financial assistance during FY 2017-18, 2018-19 and 2019-20 (as on 1 st July, 2019). The state-wise and Year -wise details of projects, located in various States/UTs, is given at Annexure-I.

(d) The Government of India strives to ensure a continuous dialogue with the State Governments and Union Territories on measures for promoting exports and for providing an international trade enabling environment in the States, and to create a framework for making the States active partners in boosting exports from India.

(e) Under the Foreign Trade Policy (FTP), DGFT operates various Export promotion schemes such as Advance Authorization, Duty Free Import Authorization, Export Promotion of Capital Goods, Merchandise Exports from India Scheme (MEIS) and Services Exports from India Scheme (SEIS). To give effect to these schemes, Central Board  of  Indirect  Taxes  and  Customs  has  issued  various  exemption  notifications.  The  details  of  various exemptions provided for these schemes are given in the FTP.

MEIS was introduced in  the  FTP  w.e.f.  01.04.2015,  providing  rewards  for  exporters  of  specified  goods.  The objective  of  the  MEIS  is  to  offset  infrastructural  inefficiencies  and  associated  costs  involved  in  exporting goods/products which are produced/manufactured in India. The scheme incentivizes exporters in terms of Duty Credit Scrips at the rate of 2, 3, 4, 5, 7 % of FOB Value of exports realized. These scrips are transferable and can be used to pay certain Central Duties/taxes including Customs Duties.

As regards promotion of trade in services, Government of India provides fiscal benefits through Services Exports from India Scheme (SEIS) for some identified sectors. Government of India is following a multi -pronged strategy, including negotiating meaningful market access through multilateral, regional and bilateral trade agreements, trade  promotion  through  participation  in  international  fairs/exhibitions  and  focused  strategies  for  specific markets and sectors to promote Trade in Ser vices. An 'Action Plan for Champion Sectors in Services' has also been approved in February, 2018 to give focussed attention to 12 Champion Services Sector like Information Technology / Information Technology Enabled Services, Tourism and Hospitality Servi ces, Medical value Travel, etc.

The Agriculture Export Policy was launched in 2018 to harness export potential of Indian agriculture, through suitable policy instruments, to make India global power in agriculture and raise farmers'       income. This comprehensive 'Agriculture Export Policy' aims to increase agricultural exports by integrating Indian farmers and agricultural products with the global value chains.

- (f) Section 10AA of the Income-tax Act, 1961 provides for deduction of profits and gains derived from the export of articles or things or from services in respect of newly established Units in Special Economic Zones. Such deduction is allowed to an  entrepreneur as referred to in clause (j) of section 2 of the Special Economic Zones Act, 2005, from his Unit, who begins to manufacture or produce articles or things or provide any services during the previous year relevant to any assessment year commencing on or after the 1st day of April, 2006, but before the first day of April, 2021.  The deduction is allowed as under:
- (i) hundred per cent of profits and gains derived from the export, of such articles or things or from services for a period of five consecutive assessment years beginning with the assessment year relevant to the previous year in which the Unit begins to manufacture or produce such articles or things or provide services, as the case may be, and fifty per cent of such profits and gains for further five assessment years and thereafter;
- (ii) for the next five consecutive assessment years, so much of the amount not exceeding fifty per cent of the profit as is debited to the profit and loss account of the previous year in respect of which the deduction is to be allowed and credited to a reserve account (to be called the "Special Economic Zone Re-investment Reserve Account") to be created and utilized for the purposes of the business of the assessee in the manner laid down.

## Annexure-I

## ANNEXURE REFERRED TO IN REPLY TO PARTS (a)  TO (c) OF LOK SABHA UNSTARRED QUESTION NO. 3916 FOR ANSWER ON 17.7.2019 BY SHRI RAJENDRA AGRAWAL REGARDING EXPORT PROMOTION SCHEME.

Details of projects approved under TIES [FY 17-18 to FY 19-20 (till 01.07.2019)]

|   S.No. | Nameof State/UT   | Year    |   Numberof new projects approved | TIES fund released (in Rs.Cr.)   |
|---------|-------------------|---------|----------------------------------|----------------------------------|
|       1 | Karnataka         | 2017-18 |                                3 | 5.85                             |
|       1 | Karnataka         | 2018-19 |                                0 | 2.85*                            |
|       1 | Karnataka         | 2019-20 |                                0 | 0                                |
|       1 | Karnataka         | Total   |                                3 | 8.7                              |
|       2 | Kerala            | 2017-18 |                                1 | 6.5                              |
|       2 | Kerala            | 2018-19 |                                0 | 6.5*                             |
|       2 | Kerala            | 2019-20 |                                0 | 0                                |
|       2 | Kerala            | Total   |                                1 | 13                               |
|       3 | Manipur           | 2017-18 |                                1 | 6                                |
|       3 | Manipur           | 2018-19 |                                1 | 5.83                             |
|       3 | Manipur           | 2019-20 |                                0 | 0                                |
|       3 | Manipur           | Total   |                                2 | 11.83                            |
|       4 | Andhra Pradesh    | 2017-18 |                                2 | 8.15                             |
|       4 | Andhra Pradesh    | 2018-19 |                                0 | 26.01*                           |
|       4 | Andhra Pradesh    | 2019-20 |                                0 | 1.99*                            |
|       4 | Andhra Pradesh    | Total   |                                2 | 36.15                            |
|       5 | Tamil Nadu        | 2017-18 |                                2 | 14.78                            |
|       5 | Tamil Nadu        | 2018-19 |                                4 | 15.65                            |
|       5 | Tamil Nadu        | 2019-20 |                                3 | 6.56                             |
|       5 | Tamil Nadu        | Total   |                                9 | 36.99                            |
|       6 | Madhya Pradesh    | 2017-18 |                                2 | 25.71                            |
|       6 | Madhya Pradesh    | 2018-19 |                                0 | 0                                |
|       6 | Madhya Pradesh    | 2019-20 |                                0 | 0                                |
|       6 | Madhya Pradesh    | Total   |                                2 | 25.71                            |
|       7 | Uttar Pradesh     | 2017-18 |                                1 | 1.07                             |
|       7 | Uttar Pradesh     | 2018-19 |                                0 | 0                                |
|       7 | Uttar Pradesh     | 2019-20 |                                0 | 0                                |
|       7 | Uttar Pradesh     | Total   |                                1 | 1.07                             |
|       8 | Maharashtra       | 2017-18 |                                1 | 1.52                             |
|       8 | Maharashtra       | 2018-19 |                                0 | 0                                |
|       8 | Maharashtra       | 2019-20 |                                0 | 0                                |
|       8 | Maharashtra       | Total   |                                1 | 1.52                             |
|       9 | Tripura           | 2017-18 |                                1 | 6.15                             |
|       9 | Tripura           | 2018-19 |                                0 | 0                                |
|       9 | Tripura           | 2019-20 |                                0 | 0                                |
|       9 | Tripura           | Total   |                                1 | 6.15                             |
|      10 | West Bengal       | 2017-18 |                                1 | 4.27                             |
|      10 | West Bengal       | 2018-19 |                                0 | 2.56*                            |
|      10 | West Bengal       | 2019-20 |                                0 | 0                                |
|      10 | West Bengal       | Total   |                                1 | 6.83                             |
|      11 | Delhi             | 2017-18 |                                0 | 0                                |
|      11 | Delhi             | 2018-19 |                                1 | 8                                |
|      11 | Delhi             | 2019-20 |                                0 | 0                                |
|      11 | Delhi             | Total   |                                1 | 8                                |
|      12 | Rajasthan         | 2017-18 |                                0 | 0                                |

|             |                                                                                                                    | 2018-19                                                                                                            | 2                                                                                                                  | 3.06                                                                                                               |
|-------------|--------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------|
|             |                                                                                                                    | 2019-20                                                                                                            | 0                                                                                                                  | 0                                                                                                                  |
|             |                                                                                                                    | Total                                                                                                              | 2                                                                                                                  | 3.06                                                                                                               |
| 13          | Chandigarh                                                                                                         | 2017-18                                                                                                            | 0                                                                                                                  | 0                                                                                                                  |
|             |                                                                                                                    | 2018-19                                                                                                            | 1                                                                                                                  | 2.81                                                                                                               |
|             |                                                                                                                    | 2019-20                                                                                                            | 0                                                                                                                  | 0                                                                                                                  |
|             |                                                                                                                    | Total                                                                                                              | 1                                                                                                                  | 2.81                                                                                                               |
| 14          | Assam                                                                                                              | 2017-18                                                                                                            | 0                                                                                                                  | 0                                                                                                                  |
|             |                                                                                                                    | 2018-19                                                                                                            | 0                                                                                                                  | 0                                                                                                                  |
|             |                                                                                                                    | 2019-20                                                                                                            | 1                                                                                                                  | 3.95**                                                                                                             |
|             |                                                                                                                    | Total                                                                                                              | 1                                                                                                                  | 3.95**                                                                                                             |
| GRAND TOTAL | GRAND TOTAL                                                                                                        | GRAND TOTAL                                                                                                        | 28                                                                                                                 | 165.77                                                                                                             |
|             | * Includes disbursement of subsequent installments for a previously sanctioned project **Funds yet to be disbursed | * Includes disbursement of subsequent installments for a previously sanctioned project **Funds yet to be disbursed | * Includes disbursement of subsequent installments for a previously sanctioned project **Funds yet to be disbursed | * Includes disbursement of subsequent installments for a previously sanctioned project **Funds yet to be disbursed |

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