Lok Sabha Question No. 3605 (UNSTARRED), answered on 2016-08-08
Subject: Trade with China through Nathu La Pass
Ministry: COMMERCE AND INDUSTRY
Asked by: MUTHAMSETTI SRINIVASA RAO (AVNTHI), NAGARAJAN P., PREM DAS RAI

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

## LOK SABHA UNSTARRED QUESTION NO. 3605 TO BE ANSWERED ON 08 TH  AUGUST, 2016

## TRADE WITH CHINA THROUGH NATHU LA PASS

## 3605.   SHRI MUTHAMSETTI SRINIVASA RAO (AVANTHI):

## SHRI P. NAGARAJAN: SHRI PREM DAS RAI:

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

- (a) the total value of imports and exports with China made through Nathu La Pass during the last three years;
- (b) whether the Chinese Authorities have requested the Indian Government to include more items  in  the  list  of  traded  commodities  with  them  through  the  Nathu  La  Pass  from  the present limit for export of 29 items and import of 15 items;
- (c) if so, the details thereof along with the action taken by the Government on this request; and
- (d) the steps taken by the Government to provide incentives to domestic manufacturers in order to mitigate the cost of competitiveness to Chinese products?

## ANSWER

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THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY

## (INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)

- (a): Value  of  imports  and  exports  with  China  through  Nathu  La  Pass  during  last  three years is given  below:-

## (Value in Indian Rupees)

| Year    | Import         | Export         | Total Trade      |
|---------|----------------|----------------|------------------|
| 2013-14 | 1,16,70,489/-  | 7,75,26,935/-  | 8,91,97,424/-    |
| 2014-15 | 12,36,20,000/- | 16,04,43,830/- | 28,40,63,830/-   |
| 2015-16 | 11,04,86,636/- | 60,25,69,967/- | 71,30,56,603/-   |
| Total   | 24,57,77,125/- | 84,05,40,732/- | 1,08,63,17,857/- |

(Source: DoR/CBEC)

(b) & (c): The list of commodities through the India- China border, was expanded and notified by  Directorate General of Foreign Trade on 7 May 2012, consists of 20 items for import  from  China  and  36  items  for  export  to  China.  DGFT  in  May  2015,  notified  the increase in  the Cost Insurance and Freight (CIF) value per consignment from Rs.1,00,000/to Rs.2,00,000/-, for border trade between India and China  through Nathu La,

According to the  information received from Embassy of India, Beijing, In April 2015, India requested China to add the 4 items for import in India (Salt-Tea, Pulses, Canned Food and Woolen & Cotton Clothes) and 7 items for export to China (Sugar, Artificial Jewelry, Pulses, Carton  boxes  with  trays,  Fodder,  Local  Grains,  Brass  Products).    China  in  May  2015 suggested addition of 13 items for import in India (Garments, Bed-sheets, Tibetan Furniture, Porcelain,  Electric  Appliances,  Food  products,  Cigarettes,  Agricultural  Products, Meat and Dairy Products, Silk and Fabric, Copper products, Jewellery,  Featured Products) and  11  items  for  export  to  China  (Garments, Bed-sheets,  Kitchenware,  Food  Products, Copper  Products,  Civilian  Products  for  Buddhist  use,  Local  Spices,  Cigarettes  and  Wine, Agricultural Products, Jewellery, Featured Fabrics). However, no formal request from China has been received to include these items in the list of traded commodities through the Nathu La Pass.

(d): The Government has taken various measures to extend support to exporters including exports to China which are indicated below:- i. The New Foreign Trade Policy (2015 -20) was announced on 1 st 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 incentivising 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.

iii.  By  way  of  trade  facilitation  and  enhancing  the  ease  of  doing  business  Government has reduced  the  number  of  mandatory  documents  required  for  exports  and  imports.  The  trade community can file applications online for various trade related schemes.

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