Lok Sabha Question No. 2462 (UNSTARRED), answered on 2016-05-09
Subject: Export from MSME Sector
Ministry: COMMERCE AND INDUSTRY
Asked by: KAVITHA KALVAKUNTLA, ADVOCATE NARENDRA KESHAV SAWAIKAR

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

## LOK SABHA UNSTARRED QUESTION NO. 2462 TO BE ANSWERED ON 09 TH   MAY, 2016

## EXPORT FROM MSME SECTOR

## 2462. SHRIMATI KAVITHA KALVAKUNTLA:

## ADV. NARENDRA KESHAV SAWAIKAR:

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

- (a) whether the Government proposes to extend or has already extended fiscal benefits to Micro, Small and Medium enterprises (MSME) sector to boost exports from the sector and if so, the details thereof;
- (b) whether the Government proposes to create an Export Development Fund to boost exports from the sector;
- (c) if so, the details thereof along with the contribution of MSME sector to the total exports of the country in the last three years;
- (d) whether the Federation of Indian Export Organisation (fieo) has expressed serious concern about the declining export and has demanded investment linked benefit for MSME sector; and
- (e) if so, the details thereof along with the reaction of the Government thereto?

## ANSWER

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

(SMT. NIRMALA SITHARAMAN)

- (a) The following are some of the measures Government has taken to promote exports:
- i. The  Merchandise  Export  from  India  Scheme  (MEIS)  was  introduced  in  the Foreign  Trade  Policy  (FTP)  2015-2020  on  April  1,  2015.  MEIS  aims  to incentivize merchandise exports, including exports from MSME Sector, which are produced/manufactured in India. The details of the scheme are available on website of DGFT: dgft.gov.in.
- ii. The  MSME  sector  products  with  large  employment  potential  and  products with large number of producers and / or exporters are included under MEIS are as per details given below:
- iii. In addition, the Government continues to provide the facility of access to duty free raw materials and capital goods for exports of goods including those manufactured  by  the  MSME  Sector  through  schemes  like  Advance  Authorisation, Duty  Free  Import  Authorisation  (DFIA),  Export  Promotion  Capital  Goods  (EPCG) and drawback/refund of duties.
- (b)&(c) There is already an Export Development Fund, created under the provisions of the Export -Import Bank of India Act, 1981.

|   Sl.No | Commodity Group                                                                 |   Number of Tariff Lines included under MEIS |
|---------|---------------------------------------------------------------------------------|----------------------------------------------|
|       1 | Auto Components/Parts                                                           |                                           36 |
|       2 | Auto Tyres and Tubes                                                            |                                           26 |
|       3 | Carpet (Excl. Silk) Handmade                                                    |                                           54 |
|       4 | Cereals preparation, Seeds, shellac, Essential Oils                             |                                           57 |
|       5 | Eco Friendly products that add value to waste                                   |                                           37 |
|       6 | Finished Leather, Leather Garments, Goods, Saddlery items, footwear             |                                           81 |
|       7 | Hand Tools, Cutting Tools and Implements made of Metals                         |                                           43 |
|       8 | Handicraft                                                                      |                                          206 |
|       9 | Handloom, Coir, Jute Products and Technical Textiles                            |                                          114 |
|      10 | Industrial Machinery, Engineering items, IC Engine, Machine tools, Parts        |                                          556 |
|      11 | Marine Products                                                                 |                                          130 |
|      12 | Moulded and Extruded goods, Rubber, Ceramic and Glass                           |                                          198 |
|      13 | Processed foods, Cocoa products, beverages                                      |                                           64 |
|      14 | Poultry &Dairy Products                                                         |                                           14 |
|      15 | Sports Goods                                                                    |                                           48 |
|      16 | Tea , Coffee, Spices, Cashew                                                    |                                          192 |
|      17 | Textile and Garments (Ex Handlom, Technical Textiles, Carpets, Handicrafts etc) |                                          433 |
|      18 | Wood, Paper, Stationary                                                         |                                          164 |

As per the Directorate General of Commercial Intelligence and Statistics (DGCI&S) data, the estimated share/contribution of MSME in exports is as under:

|   S.No. | Year    |   %Share of MSMEin India's Total Exports |
|---------|---------|------------------------------------------|
|       1 | 2012-13 |                                     43   |
|       2 | 2013-14 |                                     42.4 |
|       3 | 2014-15 |                                     44.7 |

- (d) & (e). In the Board of Trade  meeting  held on 06.04.2016, FIEO had suggested investment linked tax benefits, particularly to MSME units.