Lok Sabha Question No. 140 (UNSTARRED), answered on 2016-07-18
Subject: Decline in Exports
Ministry: COMMERCE AND INDUSTRY
Asked by: P. KUMAR, GOPAL CHINAYYA SHETTY, ADVOCATE NARENDRA KESHAV SAWAIKAR, G. HARI, ANTO  ANTONY, SHIVKUMAR CHANABASAPPA UDASI

## GOVERNMENT OF INDIA

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

## LOK SABHA UNSTARRED QUESTION NO. 140 TO BE ANSWERED ON 18 TH  JULY, 2016

## DECLINE IN EXPORTS

## 140.   SHRI P. KUMAR:

SHRI GOPAL SHETTY:

ADV. NARENDRA KESHAV SAWAIKAR:

SHRI G. HARI:

SHRI ANTO ANTONY:

SHRI SHIVKUMAR UDASI:

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

- (a) the  total  quantity  and  value  of  exports  of  major  commodities  from  the  country during  the  last  three  years  and  the  current  year  along  with  the  revenue  generated therefrom during the said period;
- (b) whether India's export in major sectors have declined sharply during the said period resulting  in  increase  in  trade  deficit  and  if  so,  the  details  thereof,  yearwise  and sector-wise along with the reasons therefor;
- (c) whether the Government has received suggestions from various Export Promotion Boards/Federation  of  Indian  Export  Organization  (FIEO)  to  boost  India's  exports and if so, the details thereof along with the reaction of the Government thereto;
- (d) whether the  FIEO has also  demanded investment linked benefit for  Micro,  Small and Medium Enterprises sector and if so, the response of the Government thereto; and
- (e) the steps taken by the Government to boost exports and reduce the trade deficit?

## ANSWER

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## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)

(a) & (b)   The total value of exports and growth rates by commodity groups  for the last three years and  current  year  are  given  in  Table  1.  As  the  quantities  are  not  additive  due  to  different  units  of measurement of commodities, the total quantity is not compiled. India's trade deficit has decreased from USD (-) 137.68 billion in 2014-15 to USD (-) 118.63 billion in 2015-16. It has improved from

USD (-) 21.73 billion of the first two months of last year (2015-16) to USD (-) 10.59 billion for the same period of the current year (2016-17).

Table 1: India's Merchandise Exports-Commodity Group-wise for last 3 years and current year

Values in US$ Millions

| Commodity Groups                                            | Export    | Export    | Export   | Export    | Export   | Export             | Export              | Export   |
|-------------------------------------------------------------|-----------|-----------|----------|-----------|----------|--------------------|---------------------|----------|
| Commodity Groups                                            | 2013-14   | 2014-15   | % Growth | 2015-16   | % Growth | 2015-16 (Apr- May) | 2016-17 (Apr-May) * | % Growth |
| 1. Plantation                                               | 1,625.05  | 1,502.88  | -7.52    | 1,562.07  | 3.94     | 254.58             | 249.47              | -2.01    |
| 2. Agri &Allied Products                                    | 32,953.57 | 30,147.31 | -8.52    | 24,249.01 | -19.56   | 4,189.54           | 3,904.42            | -6.81    |
| 3. Marine Products                                          | 5,016.46  | 5,510.49  | 9.85     | 4,761.96  | -13.58   | 655.65             | 693.37              | 5.75     |
| 4. Ores &Minerals                                           | 3,583.86  | 2,410.18  | -32.75   | 1,974.65  | -18.07   | 309.89             | 419.61              | 35.41    |
| 5. Leather &Leather Manufactures                            | 5,722.54  | 6,195.21  | 8.26     | 5,553.68  | -10.36   | 916.12             | 842.72              | -8.01    |
| 6. Gems &Jewellery                                          | 41,389.07 | 41,266.07 | -0.3     | 39,441.48 | -4.42    | 6,185.78           | 7,281.67            | 17.72    |
| 7. Sports Goods                                             | 236.45    | 274.5     | 16.09    | 227.3     | -17.2    | 37.14              | 34.12               | -8.15    |
| 8. Chemicals& Related Products                              | 30,793.62 | 31,731.22 | 3.04     | 32,138.49 | 1.28     | 5,425.71           | 5,136.29            | -5.33    |
| 9. Plastic &Rubber Articles                                 | 6,860.02  | 6,615.17  | -3.57    | 6,404.93  | -3.18    | 974.52             | 1,039.16            | 6.63     |
| 10. Articles Of Stone, Plaster, Cement, Asbestos, Mica etc. | 3,600.58  | 4,042.51  | 12.27    | 3,860.01  | -4.51    | 698.19             | 670.5               | -3.97    |
| 11. Paper &Related Products                                 | 2,099.81  | 2,180.66  | 3.85     | 2,402.43  | 10.17    | 422.17             | 431.43              | 2.19     |
| 12. Base Metals                                             | 22,365.63 | 24,742.75 | 10.63    | 18,604.20 | -24.81   | 3,448.12           | 2,505.16            | -27.35   |
| 13. Optical, Medical &Surgical Instruments                  | 1,562.96  | 1,686.34  | 7.89     | 1,631.58  | -3.25    | 260.52             | 281.4               | 8.01     |
| 14. Electronics Items                                       | 7,634.85  | 6,009.07  | -21.29   | 5,694.30  | -5.24    | 888.12             | 931.5               | 4.88     |
| 15. Machinery                                               | 17,569.36 | 19,705.35 | 12.16    | 18,993.52 | -3.61    | 3,108.32           | 3,184.86            | 2.46     |
| 16. Office Equipments                                       | 30.89     | 54.77     | 77.31    | 89.73     | 63.84    | 13.26              | 14.77               | 11.38    |
| 17. Transport Equipments                                    | 22,164.67 | 26,636.37 | 20.17    | 21,286.35 | -20.09   | 4,507.30           | 4,595.18            | 1.95     |
| 18. Project Goods                                           | 47.35     | 36.59     | -22.73   | 24.96     | -31.79   | 4.91               | 13.89               | 182.91   |
| 19. Textiles &Allied Products                               | 36,967.56 | 37,140.74 | 0.47     | 36,254.18 | -2.39    | 6,056.38           | 5,663.85            | -6.48    |
| 20. Petroleum Crude &Products                               | 63,177.46 | 56,794.15 | -10.1    | 30,423.48 | -46.43   | 5,351.19           | 4,113.62            | -23.13   |
| 21. Others                                                  | 9,003.52  | 5,656.13  | -37.18   | 6,425.36  | 13.6     | 913.27             | 917.1               | 0.42     |
| Total                                                       | 314415.7  | 310352    | -1.29    | 262031.2  | -15.57   | 44608.9            | 42924.1             | -3.8     |

Source: DGCI&S    * Provisional

(c)  &  (d)  Government has received various suggestions from FIEO/ Export Promotion Councils to boost exports. These suggestions include those related to aggressive marketing, Interest Equalization for  Merchant  Exporters,  Grant  of  Export  Benefit  at  the  time  of  Exports  without  waiting  for Realization,  withdrawal  of  Landing  Certificate  for  MEIS,  Combined  Applications  for  Different Norms, Grant of TED Refund on Receipt of even Part Payment and Investment linked benefit for

MSMEs.   Suggestions received by Government from time to time are processed for suitable action as found  appropriate.  Government  has  already  done  away  with  lending  certificate  under  the  MEIS scheme, as requested above.

- (e) Details of key steps taken by Government for promoting exports are as follows:
- i. The New Foreign Trade Policy (2015 -20)  was  announced  on  1st  April,  2015  with  a  focus  on supporting both manufacturing and services exports and improving the 'Ease of Doing Business'. The  FTP  introduced  two  new  schemes,  namely,  'Merchandise  Exports  from  India  Scheme' (MEIS) for  incentivizing  export  of  specified  goods  to  specified  markets  and  'Service  Exports from India Scheme'  (SEIS) for promoting export of notified services from India, by consolidating earlier schemes.
- ii. In the light of the major challenges being faced by Indian exporters in the backdrop of the global economic slowdown, the envisaged revenue outgo under MEIS was increased from Rs. 18000 Crore  to  Rs.  21000  Crore  in  October  2015  with  accompanying  enhancement  in  benefits  on certain products and inclusion of certain additional items. On 04.05.2016, the Government has extended  the  market  coverage  to  all  countries  in  respect  of  2787  lines.    Hence  Landing Certificates shall not be required under MEIS w.e.f 04.05.2016. This step has been taken as part of  'Ease  of  Doing  Business'  and  reduction  of  Transaction  Cost  of  the  exporters.  Accordingly, revenue  foregone  under  the  scheme  has  been  revised  from  Rs.21000  Crores  per  annum  to Rs.22,000 Crores per annum.
- iii. The Government is implementing the Niryat Bandhu Scheme with an objective to reach out to the new and potential exporters including exporters from Micro, Small & Medium Enterprises (MSMEs)  and  mentor  them  through  orientation  programmes,  counselling  sessions,  individual facilitation, etc., on various aspects of foreign trade for being able to get into international trade and boost exports from India.
- iv. By way of trade facilitation and enhancing the ease of doing business Government reduced the number  of  mandatory  documents  required  for  exports  and  imports  to  three  each,  which  is comparable with international benchmarks. The trade community can file applications online for various trade related schemes. Online payment of application fees through Credit/Debit cards and electronic funds transfer from 53 Banks has been put in place.
- v. Further, the Government continues to provide the facility of access to duty free raw materials and capital  goods  for  exports  through  schemes  like  Advance  Authorisation,  Duty  Free  Import Authorization  (DFIA),  Export  Promotion  Capital  Goods  (EPCG)  and  drawback  /  refund  of duties.

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