Lok Sabha Question No. 2589 (UNSTARRED), answered on 2016-03-14
Subject: Growth Rate of Export
Ministry: COMMERCE AND INDUSTRY
Asked by: K. KAMARAAJ

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

## LOK SABHA UNSTARRED QUESTION NO. 2589 TO BE ANSWERED ON 14 TH  MARCH, 2016

## GROWTH RATE OF EXPORT

## 2589. DR. K. KAMARAJ:

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

- (a) whether the annual growth rate of export in the country has been more than the annual growth rate of the production during each of the last two years;
- (b) if so, the details of annual growth rate of the production and exports during the same period and the impact of the higher exports than the growth rate of the production;
- (c) the details of India's position in the global trade during the said period, itemwise, value -wise and quantity -wise;
- (d) the total incentive given to diversify the export sector to ensure the targetted achievements; and
- (e) the details of the value of rupee vis -a -vis dollar and its impact on the net export and import of the country, item -wise?

## ANSWER

## वािणÏ य एवं उɮयोग राÏ य मंत्री ) Įीमती िनमर्ला सीतारमण ( ( èवतंत्र प्रभार ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)

- (a) and (b) the annual growth rates of merchandise exports vis -à -vis growth rate of the GDP, reflecting the production of goods and services in the country, and growth rate of Index of Industrial Production in the country during the last two years are given as under:

| Year   | %Growth- Exports*   | %Growth- Index of Industrial Production**   | %Growth - GDP at constant prices**   |
|--------|---------------------|---------------------------------------------|--------------------------------------|

| 2013-14   | 4.66%     |   (-) 0.1 |   6.6 |
|-----------|-----------|-----------|-------|
| 2014-15   | (-) 1.29% |       2.8 |   7.2 |

Source:* DGCI&S    **CSO (MOSPI)

From the above data it is revealed that exports have by and large been adequately and comfortably supported by domestic production.

## (c )  India's position in global trade during 2013 and 2014 are given as under:

| Trade   |   Rank 2013 |   Rank 2014 |
|---------|-------------|-------------|
| Exports |          18 |          19 |
| Imports |          12 |          12 |

Source: UN Comtrade

India's Position in Global Trade  during 2013 Indian Trade Classification (Harmonised System) Chapter-wise for key sectors :

| IMPORTS   | IMPORTS                                                                                            | IMPORTS       | EXPORTS   | EXPORTS                                                                                           | EXPORTS       |
|-----------|----------------------------------------------------------------------------------------------------|---------------|-----------|---------------------------------------------------------------------------------------------------|---------------|
| Chapter   | Description                                                                                        | RANK of India | Chapter   | Description                                                                                       | RANK of India |
| 27        | Mineral Fuels, Mineral Oils &Products; Bituminous Substances; Mineral Waxes                        | 4             | 27        | Mineral Fuels, Mineral Oils &Products; Bituminous Substances; Mineral Waxes                       | 13            |
| 71        | Pearls, Precious Or Semi- Precious Stones/Metals And Articles Thereof; Imitation Jewellery And Coi | 3             | 71        | Pearls, Precious Or Semi-Precious Stones/Metals And Articles Thereof; Imitation Jewellery And Coi | 6             |
| 84        | Nuclear Reactors, Boilers, Machinery And Mechanical Appliances; Parts Thereof                      | 19            | 87        | Road Vehicles And Parts                                                                           | 22            |
| 85        | Electrical Machinery& Equipment & Parts Thereof; Sound &Tv Recorders &Reproducers &Parts Ther      | 19            | 29        | Organic Chemicals                                                                                 | 12            |

|   29 | Organic Chemicals                                                                                                |   8 |   84 | Nuclear Reactors, Boilers, Machinery And Mechanical Appliances; Parts Thereof                 |   26 |
|------|------------------------------------------------------------------------------------------------------------------|-----|------|-----------------------------------------------------------------------------------------------|------|
|   72 | Iron &Steel                                                                                                      |  11 |   30 | Pharmaceutical Products                                                                       |   12 |
|   39 | Plastics And Articles Thereof                                                                                    |  18 |   10 | Cereals                                                                                       |    2 |
|   15 | Animal Or Vegetable Fats &Oils &Their Cleavage Products; Animal Vegetable Waxes                                  |   2 |   52 | Cotton                                                                                        |    2 |
|   26 | "Ores, Slag And Ash"                                                                                             |   5 |   85 | Electrical Machinery& Equipment & Parts Thereof; Sound &Tv Recorders &Reproducers &Parts Ther |   28 |
|   89 | Ship, Boat &Floating Structure                                                                                   |   1 |   72 | Iron &Steel                                                                                   |   12 |
|   90 | Optical, Measureing , Medical &Similar Instruments &Parts Thereof                                                |  21 |   62 | Articles Of Apparel And Clothing Accessories, Not Knitted Or Crocheted                        |    6 |
|   31 | Fertilizers                                                                                                      |   3 |   73 | Articles Of Iron &Steel                                                                       |   11 |
|   28 | Inorganic Chemicals; Compounds Of Precious Metals, Or Rare-Earth Metals, Of Radio-Active Elements Or Of Isotopes |   7 |   61 | Articles Of Apparel And Clothing Accessories, Knitted Or Crocheted                            |    7 |
|   87 | Road Vehicles And Parts                                                                                          |  47 |   39 | Plastics And Articles Thereof                                                                 |   22 |
|   38 | Miscellaneous Chemical Products                                                                                  |  17 |   03 | Fish And Crustaceans, Molluscs And Other Aquatic Invertebrates                                |    5 |
|   73 | Articles Of Iron &Steel                                                                                          |  28 |   02 | Meat And Edible Meat Offal                                                                    |    8 |
|   40 | Rubber And Articles Thereof                                                                                      |  18 |   63 | Other Made Up Textile Articles; Sets; Worn Textile Articles; Rags                             |    2 |
|   76 | Aluminium &Articles Thereof                                                                                      |  17 |   88 | Aircraft, Spacecraft And Parts Thereof                                                        |   12 |
|   74 | Copper &Articles Thereof                                                                                         |  13 |   23 | Residues And Waste From The Food Industries; Prepared Animal Fodder                           |    6 |

| 44   | Wood &Articles Of Woods ; Wood Charcoal   | 13   | 89   | Ship, Boat &Floating Structure   | 8   |
|------|-------------------------------------------|------|------|----------------------------------|-----|

India's Position in Global Trade  during 2014 Indian Trade Classification (Harmonised System) Chapter-wise for key sectors :

| IMPORTS   | IMPORTS                                                                                   | IMPORTS       | EXPORTS   | EXPORTS                                                                                    | EXPORTS       |
|-----------|-------------------------------------------------------------------------------------------|---------------|-----------|--------------------------------------------------------------------------------------------|---------------|
| Chapter   | Description                                                                               | RANK of India | Chapter   | Description                                                                                | RANK of India |
| 27        | Mineral Fuels, Mineral Oils &Products; Bituminous Substances; Mineral Waxes               | 4             | 27        | Mineral Fuels, Mineral Oils &Products; Bituminous Substances; Mineral Waxes                | 12            |
| 71        | Pearls, Precious Or Semi-Precious Stones/Metals And Articles Thereof; Imitation Jewellery | 4             | 71        | Pearls, Precious Or Semi- Precious Stones/Metals And Articles Thereof; Imitation Jewellery | 7             |
| 85        | Electrical Machinery& Equipment & Parts Thereof; Sound&TV Recorders& Reproducers &Parts   | 19            | 87        | Road Vehicles And Parts                                                                    | 23            |
| 84        | Nuclear Reactors, Boilers, Machinery And Mechanical Appliances; Parts Thereof             | 18            | 84        | Nuclear Reactors, Boilers, Machinery And Mechanical Appliances; Parts Thereof              | 28            |
| 29        | Organic Chemicals                                                                         | 6             | 29        | Organic Chemicals                                                                          | 12            |
| 39        | Plastics And Articles Thereof                                                             | 15            | 30        | Pharmaceutical Products                                                                    | 12            |
| 72        | Iron &Steel                                                                               | 10            | 10        | Cereals                                                                                    | 2             |
| 15        | Animal Or Vegetable Fats &Oils &Their Cleavage Products; Animal Vegetable                 | 1             | 72        | Iron &Steel                                                                                | 16            |

|    | Waxes                                                                                                            |    |    |                                                                                          |    |
|----|------------------------------------------------------------------------------------------------------------------|----|----|------------------------------------------------------------------------------------------|----|
| 26 | "Ores, Slag And Ash"                                                                                             |  5 | 62 | Articles Of Apparel And Clothing Accessories, Not Knitted Or Crocheted                   |  5 |
| 90 | Optical, Measureing , Medical &Similar Instruments &Parts Thereof                                                | 20 | 85 | Electrical Machinery& Equipment & Parts Thereof; Sound &Tv Recorders &Reproducers &Parts | 33 |
| 31 | Fertilizers                                                                                                      |  3 | 52 | Cotton                                                                                   |  2 |
| 28 | Inorganic Chemicals; Compounds Of Precious Metals, Or Rare-Earth Metals, Of Radio-Active Elements Or Of Isotopes |  7 | 73 | Articles Of Iron &Steel                                                                  | 11 |
| 89 | Ship, Boat &Floating Structure                                                                                   |  1 | 61 | Articles Of Apparel And Clothing Accessories, Knitted Or Crocheted                       |  7 |
| 87 | Road Vehicles And Parts                                                                                          | 47 | 88 | Aircraft, Spacecraft And Parts Thereof                                                   |  7 |
| 38 | Miscellaneous Chemical Products                                                                                  | 15 | 39 | Plastics And Articles Thereof                                                            | 25 |
| 73 | Articles Of Iron &Steel                                                                                          | 25 |  3 | Fish And Crustaceans, Molluscs And Other Aquatic Invertebrates                           |  5 |
| 76 | Aluminium &Articles Thereof                                                                                      | 13 |  2 | Meat And Edible Meat Offal                                                               |  8 |
| 40 | Rubber And Articles Thereof                                                                                      | 17 | 63 | Other Made Up Textile Articles; Sets; Worn Textile Articles; Rags                        |  2 |
| 74 | Copper &Articles                                                                                                 | 13 | 89 | Ship, Boat &Floating                                                                     |  7 |

|    | Thereof                                 |    |    | Structure                |    |
|----|-----------------------------------------|----|----|--------------------------|----|
| 44 | Wood &Articles Of Woods ; Wood Charcoal | 13 | 74 | Copper &Articles Thereof | 15 |

## Source: UN Comtrade

## (d) The incentives given to diversify and promote exports are as under:

| Name of Incentive                         | Value of Scrips (Rs. Crore)   | Value of Scrips (Rs. Crore)   |
|-------------------------------------------|-------------------------------|-------------------------------|
| Schemes                                   | 2013-14                       | 2014-15                       |
| Focus Market Scheme                       | 2,724                         | 3,082                         |
| Focus Product Scheme                      | 9,046                         | 10,502                        |
| Vishesh Krishi &Gram Udyog Yojna          | 2,746                         | 3,293                         |
| Served From India Scheme                  | 1,424                         | 1,304                         |
| Status Holder Incentive Scrip             | 2,313                         | 809                           |
| Incremental Export Incentivisation Scheme | 15                            | 82                            |
| Total                                     | 18,268                        | 19,073                        |

Source: NIC, DGFT

## (e )  the details of the value of rupee vis-à-vis dollar is given below:

| Months    | 1 US$= Rs.   |
|-----------|--------------|
| 2014-15   | 2014-15      |
| April     | 60.36        |
| May       | 59.31        |
| June      | 59.73        |
| July      | 60.06        |
| August    | 60.9         |
| September | 60.86        |
| October   | 61.34        |
| November  | 61.7         |
| December  | 62.75        |
| January   | 62.23        |
| February  | 62.04        |
| March     | 62.44        |

Source: RBI

Depreciation of the Rupee tends to make Indian exports more competitive and vice-versa.

*****