Lok Sabha Question No. 1284 (UNSTARRED), answered on 2016-07-25
Subject: Export from Labour-Intensive Sectors
Ministry: COMMERCE AND INDUSTRY
Asked by: MALLIKARJUN  KHARGE

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

## LOK SABHA UNSTARRED QUESTION NO. 1284 TO BE ANSWERED ON 25 TH  JULY, 2016

## EXPORT FROM LABOUR-INTENSIVE SECTORS

## 1284. SHRI MALLIKARJUN KHARGE:

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

- (a) the total quantity and value of merchandise exports from labour-intensive sectors of the country during the last three years and the current year, item and yearwise;
- (b) whether  the  Government  has  conducted  any  study  to  analyse  and  identify  the  sectors which  are  lagging  behind  in  international  trade  and  if  so,  the  details  and  the  results thereof;
- (c) whether the Government has reviewed the impact of the previous stimulus package for the sectors which are lagging behind in exports particularly the labour-intensive sectors; and
- (d) if  so,  the  details  and  the  outcome  thereof  along  with  the  measures  taken  by  the Government to promote the exports from the labour-intensive sectors?

## ANSWER

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

- (a) The total  value  of  merchandise  exports  from  the  major  labour  intensive sectors  of  the  country  during  the  last  three  years  and  the  current  year, sector and principal commodity group-wise and year-wise is annexed as Annexure-I.
- (b) to (d) The Government monitors the export performance of different sectors and takes need based measures from time to time, keeping in view the global economic environment. Department of Commerce/Directorate General of Foreign  Trade  engages  with  stake  holders  including  Export  Promotion Councils to assess the export sector situation.

Based  on the assessments  and feedback received from exporting community, Government has taken suitable measures to promote exports including by the labour intensive sectors, which include:

- (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	 including	 export	 from	 labour	 intensive sectors,	 which	 are	 produced/manufactured	 in	 India.	 	 The	 details	 of	 the scheme	are	available	on	website	of	DGFT:	www.dgft.gov.in.
- (ii)  The Government has introduced the Interest Equalisation Schemeon 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.  Authorisation  holder  underEPCG  is  not  required  to maintain  average  Export  Obligation  in  respect  of  export  of  goods  from following  sectors viz.  Handicrafts, Handlooms,  Cottage  &  Tiny  sector, Agriculture, Aqua-culture (including Fisheries), Pisciculture, Animal husbandry, Floriculture & Horticulture, Poultry,  Viticulture,  Sericulture,Carpets, Coir, and  Jute.
- (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.

*****

## ANNEXURE-I

## TOTAL VALUE OF MERCHANDISE EXPORTS FROM THE MAJOR LABOUR INTENSIVE SECTORS OF THE COUNTRY DURING THE LAST THREE YEARS AND THE CURRENT YEAR, SECTOR AND PRINCIPAL COMMODITY GROUP-WISE AND YEAR-WISE

Value in US $ Million

|   Sl.No. | SECTOR                                            | PRINCIPAL COMMODITY GROUPS     |   2013-14 |   2014-15 |   2015-16 |   2016-17 (Apr-May) |
|----------|---------------------------------------------------|--------------------------------|-----------|-----------|-----------|---------------------|
|        1 | CARPET                                            | CARPET(EXCL. SILK) HANDMADE    |    1175.8 |    1358.2 |    1437.6 |               233.2 |
|        2 | CARPET                                            | SILK CARPET                    |       2.6 |       2.6 |       2.6 |                 0.2 |
|        3 | COFFEE                                            | COFFEE                         |     798.8 |     814   |     783.8 |               157.9 |
|        4 | COTTON YARN/FABS./MADEUPS, HANDLOOM PRODUCTS ETC. | COTTON FABRICS, MADEUPS ETC.   |    5118.6 |    5516.4 |    5256.1 |               823.4 |
|        5 | COTTON YARN/FABS./MADEUPS, HANDLOOM PRODUCTS ETC. | COTTON YARN                    |    4550.4 |    3937.4 |    3608   |               533.3 |
|        6 | COTTON YARN/FABS./MADEUPS, HANDLOOM PRODUCTS ETC. | HANDLOOM PRODUCTS              |     373   |     369.6 |     368.5 |                61.2 |
|        7 | COTTON YARN/FABS./MADEUPS, HANDLOOM PRODUCTS ETC. | MANMADE STAPLE FIBRE           |     597.8 |     551.6 |     540.1 |                92.4 |
|        8 | COTTON YARN/FABS./MADEUPS, HANDLOOM PRODUCTS ETC. | OTH TXTL YRN, FBRIC MDUP ARTCL |     376   |     399.6 |     331.3 |                56.2 |
|        9 | ENGINEERING GOODS                                 | AC, REFRIGERATION MACHNRY ETC  |    1164.1 |    1168.3 |    1047.8 |               165   |
|       10 | ENGINEERING GOODS                                 | AIRCRAFT, SPACECRAFT AND PARTS |    4585   |    6158.5 |    3707.3 |               535   |
|       11 | ENGINEERING GOODS                                 | ALUMINIUM, PRODUCTS OF ALUMINM |    1943.3 |    2859.4 |    2639.1 |               332.5 |
|       12 | ENGINEERING GOODS                                 | ATM, INJCTNG MLDING MCHNRY ETC |    1244.2 |    1344.4 |    1260.4 |               197   |
|       13 | ENGINEERING GOODS                                 | AUTO COMPONENTS/PARTS          |    3971.8 |    4438.6 |    4216.1 |               669.7 |
|       14 | ENGINEERING GOODS                                 | AUTO TYRES AND TUBES           |    1687.5 |    1648.1 |    1384.3 |               235.3 |
|       15 | ENGINEERING GOODS                                 | BICYCLE AND PARTS              |     348.7 |     354.2 |     297.5 |                48.1 |
|       16 | ENGINEERING GOODS                                 | COPPER AND PRDCTS MADE OF COPR |    2855.1 |    3420.3 |    2539.6 |               308.9 |
|       17 | ENGINEERING GOODS                                 | CRANES, LIFTS AND WINCHES      |     309.7 |     341.8 |     425.7 |                73.3 |
|       18 | ENGINEERING GOODS                                 | ELECTRIC MACHINERY AND EQUIPME |    3683.2 |    3974.1 |    3813.4 |               687.7 |
|       19 | ENGINEERING GOODS                                 | HND TOOL, CTTNG TOOL OF METALS |     711.1 |     755.7 |     639.8 |               119.4 |
|       20 | ENGINEERING GOODS                                 | IC ENGINES AND PARTS           |    1770.4 |    2398   |    2037.3 |               407.2 |
|       21 | ENGINEERING GOODS                                 | INDL. MACHNRY FOR DAIRY ETC    |    4276.3 |    4769.3 |    4635.3 |               696.1 |
|       22 | ENGINEERING GOODS                                 | IRON AND STEEL                 |    9223.7 |    8684.4 |    5553.6 |               838.9 |
|       23 | ENGINEERING GOODS                                 | LEAD AND PRODUCTS MADE OF LED  |     194.7 |     173.2 |     181.5 |                18.1 |
|       24 | ENGINEERING GOODS                                 | MACHINE TOOLS                  |     334.9 |     376.9 |     392   |                62.2 |
|       25 | ENGINEERING GOODS                                 | MEDICAL AND SCIENTIFIC INSTRUM |     966.9 |    1080.3 |     988.7 |               172.2 |
|       26 | ENGINEERING GOODS                                 | MOTOR VEHICLE/CARS             |    6147.9 |    6684   |    6727.3 |              1072.3 |
|       27 | ENGINEERING GOODS                                 | NICKEL, PRODUCT MADE OF NICKEL |     437.3 |     897.6 |     492.9 |                18.8 |

|   28 | ENGINEERING GOODS                  | NUCLER REACTR, INDL BOILR, PRT   |   563.1 |   603.9 |   681.4 |   124.0 |
|------|------------------------------------|----------------------------------|---------|---------|---------|---------|
|   29 | ENGINEERING GOODS                  | OFFICE EQUIPMENTS                |    30.9 |    54.8 |    89.5 |    14.8 |
|   30 | ENGINEERING GOODS                  | OTH NON FEROUS METAL AND PRODC   |   416.1 |   499.3 |   432.7 |    70.9 |
|   31 | ENGINEERING GOODS                  | OTHER CONSTRUCTION MACHINERY     |  1008.7 |  1177.4 |  1073.4 |   189.9 |
|   32 | ENGINEERING GOODS                  | OTHER MISC. ENGINEERING ITEMS    |  1586   |  1751.2 |  1990.6 |   311.8 |
|   33 | ENGINEERING GOODS                  | OTHR RUBBER PRODCT EXCPT FOOTW   |   964.2 |  1071.1 |   919.1 |   143.6 |
|   34 | ENGINEERING GOODS                  | PRIME MICA AND MICA PRODUCTS     |    19.1 |    19.5 |    17.1 |     3.2 |
|   35 | ENGINEERING GOODS                  | PRODUCTS OF IRON AND STEEL       |  6780.4 |  7562.8 |  6122.8 |   886.8 |
|   36 | ENGINEERING GOODS                  | PROJECT GOODS                    |    47.4 |    36.6 |    24.9 |    13.9 |
|   37 | ENGINEERING GOODS                  | PUMPS OF ALL TYPES               |   690.9 |   773.2 |   706.6 |   108.7 |
|   38 | ENGINEERING GOODS                  | RAILWY TRNSPRT EQUIPMNTS, PRTS   |   178.2 |   135.3 |   110   |    27.8 |
|   39 | ENGINEERING GOODS                  | SHIP, BOAT AND FLOATING STRUCT   |  3724.9 |  5352.6 |  3091.6 |  1737   |
|   40 | ENGINEERING GOODS                  | TIN AND PRODUCTS MADE OF TIN     |    80.4 |    37.7 |    57.2 |     0.8 |
|   41 | ENGINEERING GOODS                  | TWOAND THREE WHEELERS            |  1521.5 |  1864.3 |  1777.4 |   270   |
|   42 | ENGINEERING GOODS                  | ZINC AND PRODUCTS MADE OF ZINC   |   435.4 |   608.1 |   527.1 |    29.5 |
|   43 | GEMS AND JEWELLERY                 | GOLD                             |  3086.5 |  2845.1 |  5512.5 |   693.8 |
|   44 | GEMS AND JEWELLERY                 | GOLD AND OTH PRECS METL JWLERY   | 10801.4 | 13242.4 | 11026.8 |  2484   |
|   45 | GEMS AND JEWELLERY                 | OTHER PRECIOUS AND BASE METALS   |   321.5 |   414   |   447.3 |    42.8 |
|   46 | GEMS AND JEWELLERY                 | PEARL, PRECS, SEMIPRECS STONES   | 27160.4 | 24758.8 | 22446.9 |  4059.6 |
|   47 | GEMS AND JEWELLERY                 | SILVER                           |    18.5 |     5.7 |     7.3 |     1.5 |
|   48 | HANDICRAFTS EXCL. HAND MADE CARPET | HANDCRFS(EXCL.HANDMADE CRPTS)    |  1499.3 |  1378   |  1635.4 |   278.9 |
|   49 | JUTE MFG. INCLUDING FLOOR COVERING | FLOOR CVRNG OF JUTE              |    63.6 |    86.3 |    67.5 |    10.5 |
|   50 | JUTE MFG. INCLUDING FLOOR COVERING | JUTE HESSIAN                     |   141.7 |   126   |   125.5 |    22.5 |
|   51 | JUTE MFG. INCLUDING FLOOR COVERING | JUTE YARN                        |    23.5 |    22.6 |    18.3 |     1.1 |
|   52 | JUTE MFG. INCLUDING FLOOR COVERING | OTHER JUTE MANUFACTURES          |   152.8 |   112.5 |   348.5 |    24.2 |
|   53 | LEATHER AND LEATHER MANUFACTURES   | FINISHED LEATHER                 |  1285.1 |  1331.2 |  1049.3 |   169.2 |
|   54 | LEATHER AND LEATHER MANUFACTURES   | FOOTWEAR OF LEATHER              |  2025.7 |  2279   |  2147.8 |   319.6 |
|   55 | LEATHER AND LEATHER MANUFACTURES   | LEATHER FOOTWEAR COMPONENT       |   320   |   361.9 |   285.1 |    47.4 |
|   56 | LEATHER AND LEATHER MANUFACTURES   | LEATHER GARMENTS                 |   591.8 |   604.6 |   554   |    80.6 |
|   57 | LEATHER AND LEATHER MANUFACTURES   | LEATHER GOODS                    |  1350.1 |  1453.2 |  1370.4 |   205.4 |
|   58 | MAN-MADE YARN/FABS./MADEUPS ETC.   | MANMADE YARN,FABRICS,MADEUPS     |  5183.7 |  5275   |  4651.4 |   736.4 |
|   59 | RMGOFALL TEXTILES                  | RMG COTTON INCL ACCESSORIES      |  9106.7 |  9282.8 |  9090   |  1454.3 |

| 60   | RMGOFALL TEXTILES   | RMGMANMADEFIBRES        |   3149.0 |   3997.1 |   4179.6 |   750.1 |
|------|---------------------|-------------------------|----------|----------|----------|---------|
| 61   | RMGOFALL TEXTILES   | RMGOF OTHR TEXTLE MATRL |   2190.8 |   2941.7 |   3183.9 |   550.5 |
| 62   | RMGOFALL TEXTILES   | RMGSILK                 |    236.6 |    304   |    245.2 |    26.7 |
| 63   | RMGOF ALL TEXTILES  | RMGWOOL                 |    307.5 |    307.7 |    264.8 |    28   |
| 64   | TEA                 | TEA                     |    798.8 |    681.8 |    720   |    90.7 |
| 65   | Toys                | Toys                    |     36.9 |     41   |     65.3 |    12.4 |
| 66   | Sports Good         | Sports Good             |    236.5 |    274.5 |    227.5 |    34.1 |
| 67   | Rubber and Articles | Rubber and Articles     |   2679.2 |   2726.3 |   2362.1 |   381.4 |
|      |                     | TOTAL                   | 149663   | 160878   | 144962   | 25053.6 |

Source:	DGCI&S

Note	 1: 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.

Note  2:  As the item-wise data will be huge, these sectors have been bifurcated into principal commodity groups wherever possible.

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