Lok Sabha Question No. 2506 (UNSTARRED), answered on 2016-05-09
Subject: Impact of Recession on Exports
Ministry: COMMERCE AND INDUSTRY
Asked by: ALOK SANJAR, JANARDAN SINGH SIGRIWAL

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

LOK SABHA UNSTARRED QUESTION NO. 2506 (H) TO BE ANSWERED ON 09 TH   MAY, 2016

## IMPACT OF RECESSION ON EXPORTS

## 2506 (H). SHRI ALOK SANJAR:

## SHRI JANARDAN SINGH SIGRIWAL:

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

- (a) whether the recessionary trends in Europe, the United States of America and other countries has adversely affected the exports from the country during the last three years and if so, the details thereof, year -wise;
- (b) the details of the schemes/incentives offered and likely to be announced by the Government to promote the exports of various items including cotton and textile exports to counter the effects of the said recession;
- (c) whether the Government has curtailed the export target in view of the recession in the international market and if so, the details thereof;
- (d) whether the Government has announced any incentive package for the exporters of the small and medium industries and if so, the details thereof; and
- (e) the steps taken by the Government to settle the pending financial claims of the exporters at the earliest?

## ANSWER

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## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE)

(SMT. NIRMALA SITHARAMAN)

- (a) In the recent period India's export has been adversely affected by recessionary trends across  the  globe,  including  in  European  Union  and  the  United  States  of  America. India's global exports data in recent years is as follows:

Value in US $ Billion

| Year                  |   Exports |   %Growth |
|-----------------------|-----------|-----------|
| 2013-14               |    314.41 |      4.66 |
| 2014-15               |    310.34 |     -1.29 |
| 2015-16 (Provisional) |    262.01 |    -15.57 |

Source: DGCI&S

- (b)  Details  of  the  schemes/  incentives  offered  by  the  Government  to  promote  exports  of various items including cotton and textile are as follows:-
- (i) The Merchandise Exports from India  Scheme  (MEIS)    introduced  in   the Foreign Trade  Policy  (FTP)  2015-20  on  April  1,  2015  aims  to  incentivize    export  of merchandise    which  are  produced/manufactured  in  India.  As  on  date,  5012  Tariff Lines including important textile and readymade Garments tariff lines are eligible for rewards under MEIS.
- (ii) The  Government  has  introduced  the  Interest  Equalisation  Scheme  on  Pre  &  Post Shipment Rupee Export Credit with effect from 1.4.2015. The scheme is available to all exports under 416 tariff lines [at ITC (HS) code of 4 digit] and exports made by Micro, Small & Medium Enterprises (MSMEs) across all ITC (HS) codes. The rate of interest equalisation is 3% per annum.
- (iii) In addition 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  Authorisation  (DFIA),  Export  Promotion  Capital  Goods  (EPCG) and Drawback/Refund of Duties.
- (c )   Exports target is as given below:

## Value USD Billion

| Year    | Target fixed   |
|---------|----------------|
| 2013-14 | 325            |
| 2014-15 | 340*           |

Source:DoC

*thereafter no target has been set.

- (d) As indicated above, Government of India's export promotion schemes generally apply across  MSMEs  and  larger  producers.  In  particular,  under  the  Interest  Equalization Scheme  all exports of manufacturing MSMEs are covered.
- (e) For expeditious settlement of exporters' claims, Government has set up a system to enable  online  filing  and  processing  of  requests.  Time  lines  for  processing  of  such claims have also been notified.

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