Lok Sabha Question No. 5228 (UNSTARRED), answered on 2019-07-24
Subject: Trade Surplus
Ministry: COMMERCE AND INDUSTRY
Asked by: P.P. Chaudhary

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

## LOK SABHA UNSTARRED QUESTION NO. 5228 (H) TO BE ANSWERED ON  24 th  JULY, 2019

## TRADE SURPLUS

## 5228(H).  SHRI P.P. CHAUDHARY:

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

- (a) the figures of import, export and trade surplus during the last five years;
- (b) whether the Government proposes to enhance trade surplus;
- (c) if so, the outline formulated in this regard; and
- (d) if not, the intention of the Government in this regard?

## ANSWER

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

- (a) to (d): India's overall (merchandise and services) exports, imports and trade deficit during last five years are as  follows:

## (Value in US$ Billions)

| Years    |   Export |   Import | Trade Deficit   |
|----------|----------|----------|-----------------|
| 2014-15  |   468.46 |   529.61 | (-) 61.15       |
| 2015-16  |   416.6  |   465.64 | (-) 49.04       |
| 2016-17  |   440.05 |   480.26 | (-) 40.20       |
| 2017-18  |   498.63 |   583.08 | (-) 84.45       |
| 2018-19* |   538.07 |   640.13 | (-) 102.06      |

Source: DGCI&S & RBI, (*Provisional)

Government has taken the following steps to enhance India's trade surplus:

- i. A new Foreign Trade Policy (FTP) 2015-20 was launched on 1 st April 2015. The FTP 201520 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', 'Skills India', 'Startup India' and 'Ease of doing  business'  initiatives. 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
2. 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  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.
- iii. 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.
- iv. 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.
- v. A new scheme called 'Trade Infrastructure for Export Scheme (TIES)' was launched with effect from 1 st April 2017 to address the export infrastructure gaps in the country.
- vi. 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.
- vii. The  policy  includes  measures  to  nudge  procurement  of  capital  goods  from  indigenous manufacturers  under  the  EPCG  scheme  by  reducing  specific  export  obligation  from  90 percent to 75 percent of the normal export obligation.
- viii. The policy provides issue of Advance Authorisation to allow duty free import of inputs, which is physically incorporated in export product within a specified timeline.
- ix. 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.
- x. Niryat Bandhu  Scheme  has been launched for outreach/ trade awareness amongst new/potential exporters.
- xi. Interest Equalization Scheme on pre and post shipment rupee export credit was introduced with effect 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.
- xii. 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.