Lok Sabha Question No. 1120 (UNSTARRED), answered on 2023-02-08
Subject: Trade Deficit
Ministry: COMMERCE AND INDUSTRY
Asked by: Sougata Ray

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

## LOK SABHA UNSTARRED QUESTION NO. 1120 TO BE ANSWERED ON 08 th  FEBRUARY, 2023

## TRADE DEFICIT

## 1120.   PROF. SOUGATA RAY:

Will the Minister of COMMERCE & INDUSTRY ( वाणिज्य  एवं  उद्योग  मंत्री ) be pleased to state:

- (a) the details of trade deficit during the last three years;
- (b) the reasons for the trade deficit;
- (c) the steps taken to maintain the balance among export and import;
- (d) whether the export is gradually slowing down; and
- (e) if so, the details thereof and the steps taken by the Government to enhance the export?

## ANSWER

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## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SMT. ANUPRIYA PATEL)

- (a) and (b): India's overall (merchandise plus services) trade deficit during the last three years are as follows:

| Trade Deficit (in USD Billion)   |   Trade Deficit (in USD Billion) |
|----------------------------------|----------------------------------|
| 2019-20                          |                            -76.4 |
| 2020-21                          |                            -13.2 |
| 2021-22                          |                            -83.5 |

Source: RBI and DGCI&S

Trade  deficit  depends  upon  relative  fluctuations  in  the  import  and  export  of  different commodities and services due to global and domestic factors such as demand and supply gap in domestic and international markets, currency fluctuations, international prices, etc.

- (c) to (e): India's overall export (merchandise plus services) increased from US$ 489.7 billion in 2021-22 (April-December) to US$ 576.1 billion in 2022-23 (April-December), registering a positive growth of  17.64%. The Government keeps a watch on the overall deficit and takes measures  periodically  to  address  it.  Specifically,  the  Government  has  taken  the  following measures to enhance the export:

- (i) Foreign Trade Policy (2015-20) extended upto 31-03-2023.
- (ii) Interest Equalization Scheme on pre and post shipment rupee export credit has also been extended upto 31-03-2024.
- (iii) Assistance  provided  through  several  schemes  to  promote  exports,  namely,  Trade Infrastructure  for  Export  Scheme  (TIES)  and  Market  Access  Initiatives  (MAI) Scheme.
- (iv) Rebate of State and Central Levies and Taxes (RoSCTL) Scheme to promote  labour oriented sector export has been implemented since 07.03.2019.
- (v) Remission of Duties and Taxes on Exported Products (RoDTEP) scheme has been implemented since 01.01.2021. With effect from 15.12.2022, uncovered sectors like pharmaceuticals, organic and inorganic chemicals and article of iron and steel has been covered under RoDTEP. Similarly, anomalies in 432 tariff lines have been addressed  and  the  corrected  rates  have  been  implemented  with  effect  from 16.01.2023.
- (vi) Common Digital Platform for Certificate of Origin has been launched to facilitate trade and increase Free Trade Agreement (FTA) utilization by exporters.
- (vii) 12 Champion Services Sectors have been identified for promoting and diversifying services exports by pursuing specific action plans.
- (viii) Districts  as  Export  Hubs  has  been  launched  by  identifying  products  with  export potential in each district, addressing bottlenecks for exporting these products and supporting local exporters/manufacturers to generate employment in the district.
- (ix) Active  role  of  Indian  missions  abroad  towards  promoting  India's  trade,  tourism, technology and investment goals has been enhanced.

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