Lok Sabha Question No. 209 (STARRED), answered on 2016-05-09
Subject: Exports from Labour-Intensive Sectors
Ministry: COMMERCE AND INDUSTRY
Asked by: NITYANAND RAI, S.SELVAKUMARA CHINNAYAN

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

## LOK SABHA STARRED QUESTION NO. 209 (H) TO BE ANSWERED ON 09 TH   MAY, 2016

## EXPORTS FROM LABOUR-INTENSIVE SECTORS

## *209 (H). SHRI NITYANAND RAI: SHRI S. SELVAKUMARA CHINNAYAN:

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

- (a) the total quantity and value of exports from labour-intensive sectors during the last three years and the current year, year and sector-wise;
- (b) whether the exports from the labourintensive sectors have declined during the said period and if so, the details thereof and the reasons therefor, sector-wise;
- (c) whether the Government has formulated any scheme to promote the exports from such sectors and if so, the details thereof; and
- (d) whether the Government has any proposal to include Yam and Banana produced in Bihar under the said scheme and if so, the details thereof?

## ANSWER

okf.kT; ,oa m|ksx jkT; ea=h ¼Jherh fueZyk lhrkje.k½ ¼Lora= izHkkj½

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

- a) to  d):    A Statement is laid on the Table of the House.

*****

## STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (d) OF LOK SABHA STARRED QUESTION NO.209  FOR ANSWER ON 09 TH   MAY, 2016 REGARDING 'EXPORTS FROM LABOUR-INTENSIVE SECTORS'

- (a) The total value of exports from the major labour-intensive sectors during the last three years and the current year, year & sector-wise is:

| EXPORT OF LABOUR INTENSIVE SECTOR(VALUE in US $ Million)   | EXPORT OF LABOUR INTENSIVE SECTOR(VALUE in US $ Million)   | EXPORT OF LABOUR INTENSIVE SECTOR(VALUE in US $ Million)   | EXPORT OF LABOUR INTENSIVE SECTOR(VALUE in US $ Million)   | EXPORT OF LABOUR INTENSIVE SECTOR(VALUE in US $ Million)   | EXPORT OF LABOUR INTENSIVE SECTOR(VALUE in US $ Million)   |
|------------------------------------------------------------|------------------------------------------------------------|------------------------------------------------------------|------------------------------------------------------------|------------------------------------------------------------|------------------------------------------------------------|
| SL.NO                                                      | SECTOR                                                     | 2013 - 14                                                  | 2014 - 15                                                  | 2015 - 16                                                  | Growth%                                                    |
| 1                                                          | LEATHER AND LEATHER MANUFACTURES                           | 5572.8                                                     | 6030.0                                                     | 5406.9                                                     | - 10.33%                                                   |
| 2                                                          | GEMS AND JEWELLERY                                         | 41388.3                                                    | 41266.1                                                    | 39441.5                                                    | - 4.42%                                                    |
| 3                                                          | ENGINEERING GOODS                                          | 63902.7                                                    | 73075.6                                                    | 60661.0                                                    | - 16.99%                                                   |
| 4 COTTON YARN/FABS./MADEUPS, HANDLOOM PRODUCTS ETC.        | 11015.9                                                    | 10774.6                                                    | 10104.6                                                    | - 6.22%                                                    |                                                            |
| 5 MAN - MADE YARN/FABS./MADEUPS ETC.                       | 5183.7                                                     | 5275.0                                                     | 4673.2                                                     | - 11.41%                                                   |                                                            |
| RMG OF ALL TEXTILES                                        | 14990.5                                                    | 16833.3                                                    | 16963.1                                                    | 0.77%                                                      | 6                                                          |
| JUTE MFG. INCLUDING FLOOR COVERING                         | 381.6                                                      | 347.5                                                      | 560.1                                                      | 61.18%                                                     | 7                                                          |
| CARPET                                                     | 1178.3                                                     | 1360.8                                                     | 1441.9                                                     | 5.97%                                                      | 8                                                          |
| HANDICRAFTS EXCL. HAND MADE CARPET                         | 1499.3                                                     | 1378.0                                                     |                                                            | 1637.4 18.82%                                              | 9                                                          |
| 10 TOYS                                                    | 36.9                                                       | 41.0                                                       | 65.2                                                       |                                                            | 59.12%                                                     |
| 11 SPORTS GOODS                                            | 170.0                                                      | 183.3                                                      |                                                            | 158.2                                                      | - 13.66%                                                   |
| 12 RUBBER AND ARTICLES                                     | 2679.2                                                     |                                                            | 2726.3                                                     | 2358.8 -                                                   | 13.48%                                                     |
| 13 COFFEE                                                  | 798.8                                                      |                                                            | 814.0                                                      | 783.4                                                      | - 3.76%                                                    |
| 14 TEA                                                     |                                                            | 798.8                                                      | 681.8                                                      | 720.0                                                      | 5.60%                                                      |
|                                                            | TOTAL                                                      | 149596.8                                                   | 160787.1                                                   | 144975.3                                                   | - 9.83%                                                    |

Source: DGCI&S

Note: Corresponding quantity figures for above sectors are not available as aggregation is not possible due to difficulty in aggregating across different product/commodity types, units of measurement  etc.    The  commodity-wise  and  country-wise  data  on  quantum  and  value  of exports and imports of the country is available in the CDs of DGCI&S publications 'Monthly Statistics  of  Foreign  Trade  of  India',  Vol.I  (Exports)  and  Vol.II  (Imports).  These  CDs  are also regularly sent to Parliament Library by DGCI&S, Kolkata, for reference.

- (b) Few  Labour  Intensive  Sectors  like  Leather  and  leather  Manufacturers,  Engineering Goods, Man-Made Yarn/Fabrics /Made-Ups, Sports Goods, Rubber and Articles etc. have  shown  decline  in  exports  during  2015-16  in  comparison  to  2014-15,  while sectors  like  Jute  Manufacturing  including  floor  covering,  Handicrafts  excluding Hand-made Carpets, Toys, etc. have shown increase in exports during this period. The decline in certain sectors can be attributed significantly to shrinkage of demand due to the global economic slowdown, fluctuation in currency markets, instability in Middle East and high domestic price of some commodities.
- (c) Government has taken various measures to promote exports, including by the labour intensive  sectors  through  export  promotion  schemes.  Details  of  the  major  export promotion schemes are as under:
- (i) The Merchandise Exports from India Scheme (MEIS) was introduced in the Foreign Trade Policy (FTP) 2015-20  on April 1,  2015.MEIS  aims  to incentivize export of merchandise produced/manufactured in India. At the time of introduction of MEIS on April 1, 2015, the scheme covered 4914 tariff lines at  8  digit  level.  Countries  of  the  globe  have  been  grouped  into  3  market categories (Country Group A, Country Group B & Country Group C) for grant of incentives under MEIS. Slight changes in lines covered etc. were made on 14.07.2015 and 15.7.2015. Thereafter on 29.10.2015, 110 new Tariff Lines at 8 digit level were added under the scheme. The rates/country coverage for 2228 lines at 8 digit level were enhanced. As on date, 5012 Tariff Lines at 8 digit level  are  eligible  for  rewards  under  MEIS.  The  annual  resource  allocation under MEIS was enhanced from Rs. 18000 crore to Rs. 21000 crore in October 2015.
- (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 manufacturers for all exports under 416 specified tariff lines [at ITC (HS)  Codes  at  4  digit  level]  and  to  exports  made  by  manufacturers  in  Micro, Small and Medium Enterprises across all ITC (HS) Codes. The rate of interest equalisation is 3% per annum.
- (iii) Duty  Exemption/Remission  Schemes viz  Advance  Authorisation  (AA),  Duty Free  Import  Authorisation  (DFIA)  and  Duty  Drawback  (DBK)  Scheme  enable duty free import of inputs for export production, including replenishment of input or  duty  remission.  Schemes  to  promote  exports  of  Gem  &  Jewellery  include Advance Procurement/Replenishment of Precious Metals from Nominated Agencies,  Replenishment  Authorisation  for  Gems,  Replenishment  Authorisation for Consumables and Advance Authorisation for precious metals. Export Promotion Capital Goods (EPCG) Scheme facilitates import of capital goods at zero  duty  for  producing  quality  goods  and  services  to  enhance  India's  export competitiveness.
- (iv) Market  Access  Initiative  (MAI)  Scheme is  an  Export  Promotion  Scheme envisaged to act as a catalyst to promote India's exports on a sustained basis. The scheme provides assistance to Export Promotion Organizations/Trade Promotion Organizations/National Level Institutions/ Research Institutions/Universities/Laboratories, Exporters etc., for enhancement of exports through  accessing  new  markets  or  through  increasing  the  share  in  the  existing markets.
- (v) Market Development Assistance (MDA) Scheme is under operation through the Department  of  Commerce  to  assist  exporters  for  export  promotion  activities

abroad,  assist Export Promotion Councils(EPCs) to undertake export promotion activities for their product(s) and commodities and assist approved organizations/trade  bodies  in  undertaking  exclusive  non-recurring  innovative activities connected with export promotion efforts for their members.

- (d) Exports  of  Yam  [ITC  (HS)  Code  07143000]  and  Banana[ITC  (HS)  Code 08039010&  08039090]  are  incentivized  under  the  MEIS  Scheme.  The  rate  of incentives for Yam and Banana are @ 3% and @ 5% of Free on Board value of exports, respectively.

******