Lok Sabha Question No. 12 (UNSTARRED), answered on 2016-04-25
Subject: Exports from the Country
Ministry: COMMERCE AND INDUSTRY
Asked by: RAKESH SINGH

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

## LOK SABHA UNSTARRED QUESTION NO.12 (H)

## TO BE ANSWERED ON 25 th  APRIL, 2016

## EXPORTS FROM THE COUNTRY

## 12 (H). SHRI RAKESH SINGH:

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

- (a) whether the Government has taken measures to augment the export from the country;
- (b) if so, whether the export sector has been benefited from these measures;
- (c) if so, the details thereof;
- (d) whether Indian goods are comparatively expensive in the international market; and
- (e) if so, the details thereof along with the measures taken by the Government to deal with this situation?

## 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) The following are some of the measures Government has taken recently to promote exports :
- (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 which are produced/manufactured in India. At the time of introduction of MEIS on April 1, 2015, the scheme covered 4914 tariff lines at 8 digit level. Countries of the globe  were  grouped  into  3  market  categories  (Country  Group  A,  Country Group  B  &  Country  Group  C)  for  grant  of  incentives  under  MEIS.  Slight changes  in  lines  covered  etc.  were  made  on  14.07.2015  and  15.7.2015. Thereafter  on  29.10.2015,  110  new  Tariff  Lines  at  8  digit  level  were  added under the scheme. The rates/country coverage for 2228 lines at 8 digit level were enhanced. As on date, 5012 Tariff Lines at 8 digit level are eligible for rewards  under  MEIS.  The  annual  resource  allocation  under  MEIS  was enhanced from Rs. 18000 crore to Rs. 21000 crore in October 2015.

(ii) The Government has introduced the Interest Equalisation Scheme on Pre  &  Post  Shipment  Rupee  Export  Credit  with  effect  from  1.4.2015.  The scheme is available to all exports under 416 tariff lines [at ITC (HS) code of 4 digit]  and  exports  made  by  Micro,  Small  &  Medium  Enterprises  (MSMEs) across all ITC (HS) codes. The rate of interest equalisation is 3% per annum. (iii) In addition the Government continues to provide the facility of access to duty free raw materials and capital goods for exports through schemes like Advance  Authorisation,  Duty  Free  Import  Authorisation  (DFIA),  Export Promotion Capital Goods (EPCG) and drawback/refund of duties. (b) & (c) While India's exports during April 2015 - February 2016 over the April 2014  -  February  2015  declined  by  16.7%,  the  decline  for  the  products covered under MEIS for the same period was only 8.95%. (d) & (e) International Trade is governed on the basis of various factors including

- demand and supply, global economic situation and competitive pricing. The government  takes  steps  to  improve  the  competitiveness  of  Indian  goods through steps like improvement in infrastructure and ease of doing business.

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