Lok Sabha Question No. 1339 (UNSTARRED), answered on 2022-12-14
Subject: Shrunking of Exports
Ministry: COMMERCE AND INDUSTRY
Asked by: Lavu Sri Krishna Devarayalu, Balashowry Vallabbhaneni

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

## LOK SABHA UNSTARRED QUESTION NO. 1339 TO BE ANSWERED ON 14 th  DECEMBER, 2022

## SHRUNKING OF EXPORTS

## 1339.   SHRI LAVU SRI KRISHNA DEVARAYALU: SHRI BALASHOWRY VALLABHANENI:

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

- (a) whether  India's  exports  shrunk  in  October  2022,  bringing  the  outbound shipments under the $30 billion mark;
- (b) if so, the details thereof and the reasons for the decline in exports in almost all sectors;
- (c) whether India's trade deficit expanded by more than 50% in October 2022 and if so, the details thereof;
- (d) whether it is a fact that India's trade with Russia touched an all-time high of US $18.2 billion between April and August 2022;
- (e) if so, whether it is also true that Russia has now become the largest exporter of oil to India;
- (f) if so, the reasons for decline in exports thereof;
- (g) whether India's exports to Russia reduced by 24% in August 2022; and
- (h) ls thereof including the steps taken to reduce the overall trade deficit?

## ANSWER

okf.kT; ,oa m|ksx ea=ky; esa jkT; ea=h ¼Jherh vuqfiz;k iVsy½

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

(a) to (c): India's  merchandise  exports  in  October  2021  to  USD  31.40  billion  in  October 2022 was USD 31.40 billion. Inspite of global headwinds, India's merchandise exports grew by 12.52%  during  April  -  October  2022-23  vis-à-vis  corresponding  period  of  the  previous  year. Sectors like Electronic Goods (54.2%), Readymade garments (6.7%), Petroleum products (69%), rice (16.4%), etc. have grown in October 2022 vis-à-vis last year.  The reasons for the decline in merchandise  exports  in  some  sectors  include  slowdown  in  some  developed  economies  due  to

COVID,  Russia-Ukraine conflict and the consequential slowdown in demands. India's merchandise trade deficit expanded by 54.06% from USD 17.91 billion in October 2021 to USD 27.59 billion in October 2022.

(d) to (g): India's merchandise trade (export plus import) with Russia was US $16.46 billion during April -August 2022. Russia became the 3 rd largest exporter of crude petroleum to India during this period.

(h): The  Government  has  taken  the  following  measures  to  boost  exports  and  reduce the overall trade deficit:

- (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 textile 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.
- (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.
- (x) Package  announced  in  light  of  the  COVID  pandemic  to  support  domestic  industry through  various  banking  and  financial  sector  relief  measures,  especially  for  MSMEs, which constitute a major share in exports.

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