Lok Sabha Question No. 1014 (UNSTARRED), answered on 2016-04-29
Subject: Revenue Earned Through Export
Ministry: FINANCE
Asked by: AJAY (TENI) MISRA

## GOVERNMENT OF INDIA

## MINISTRY OF FINANCE

## DEPARTMENT OF REVENUE *****

## LOK SABHA

## UNSTARRED QUESTION NO.1014

## TO BE ANSWERED ON FRIDAY THE 29 TH   APRIL, 2016

VAISAKHA 9 , 1938 (SAKA)

## REVENUE EARNED THROUGH EXPORT

## 1014. SHRI AJAY MISRA TENI:

Will the Minister of FINANCE be pleased to state:

- (a) the sector-wise revenue earned through export during each of the last three years and the reasons for reduction, if any;
- (b)  whether the Gross Domestic Product (GDP), Foreign Exchange Reserves and Current Account Deficit are affected by export, if so, the details thereof; and
- (c) the steps taken or proposed to be taken to stabilise the economy of the country?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI JAYANT SINHA)

(a):  As  per  data  available  ,the  revenue from exports of commodities  like Iron Ore & Concentrate,  Chromium  Ore  &  Concentrate,  Mica,  Coir,  Animal  Feed,  Leather  and other  items    during  F.Y  2013-14,  2014-15  and  2015-16  was  Rs.  2821.29  Crore,  Rs. 607.65 Crore and Rs. 901.93 Crore (provisional figure) respectively. The revenue from exports  in  a  financial  year  mainly  depends  upon  factors  such  as, inter  alia ,  export duty structure, value of dutiable exports and the regulatory framework in respect of these sectors.

- (b):  Yes,  Sir.  There  are  several  factors  that  impact  the  GDP,  Foreign  Exchange Reserve  and  Current  Account  Deficit  of  an  economy,  exports  being  one  of  them. Exports  represent  the  external  demand  for  Indian  output  and  hence  can  have  an impact on GDP as, by definition, they are a part of GDP. Current account balance is affected  by  exports  and  imports  of  goods  and  services,  transfers, compensation  of employees and investment income. As a result of low international commodity prices, particularly crude oil prices, exports and imports of goods registered negative growth rates  in  2014-15  and  2015-16  which  resulted  in  lower  trade  and  current  account deficits.

As India has historically  had  large  trade  deficit  and  generally  runs  current  account deficit, foreign exchange reserves have not been based on surpluses on either trade or  current  accounts  of  balance  of  payments  (BoP).  The  level  of  foreign  exchange reserves particularly foreign currency assets is largely the outcome of Reserve Bank of India's intervention in the foreign exchange market to stabilise the rupee value.

(c): The Government of India has taken various steps to stabilize the economy and to boost the growth.  The General Budget  2016-17 reaffirms the  commitment  of Government  to  continue  fiscal  consolidation.  Accordingly,  fiscal  deficit  has  been projected  at  3.5  per  cent  of  GDP  in  2016-17,  as  against  3.9  per  cent  in  2015-16 (Revised Estimates).

The  steps  to  boost  growth, inter  alia ,  include:  measures  to  accelerate  growth  in manufacturing; 'Make  in India' initiative along with the attendant facilitatory measures intended to create a more conducive environment for investment; and, Skill India  initiative.  Start-up  India initiative,  Micro  Units  Development  and  Refinance Agency  Ltd  and 'Stand  Up  India'  schemes  have  also  been  launched  to  promote entrepreneurship. The Budget 2016-17 continued the Government's growth promoting agenda  with  many  measures  which,  among  others,  include:  continued  push  to domestic  demand;  measures  to  improve  agricultural  growth  and  infrastructure, particularly,  rural  infrastructure;  and,  time-bound  plans  for  rural  electrification  and connectivity;  boost  to  manufacturing  with  rationalization  of  customs  and  excise duties; liberalized FDI policy in various sectors; and improved ease of doing business for start-ups.

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The  steps  to  boost  growth, inter  alia ,  include:  measures  to  accelerate  growth  in manufacturing; 'Make  in India' initiative along with the attendant facilitatory measures intended to create a more conducive environment for investment; and, Skill India  initiative.  Start-up  India initiative,  Micro  Units  Development  and  Refinance Agency  Ltd  and 'Stand  Up  India'  schemes  have  also  been  launched  to  promote entrepreneurship. The Budget 2016-17 continued the Government's growth promoting agenda  with  many  measures  which,  among  others,  include:  continued  push  to domestic  demand;  measures  to  improve  agricultural  growth  and  infrastructure, particularly,  rural  infrastructure;  and,  time-bound  plans  for  rural  electrification  and connectivity;  boost  to  manufacturing  with  rationalization  of  customs  and  excise duties; liberalized FDI policy in various sectors; and improved ease of doing business for start-ups.

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