Lok Sabha Question No. 181 (UNSTARRED), answered on 2016-04-25
Subject: Boosting Exports
Ministry: COMMERCE AND INDUSTRY
Asked by: RAKSHA NIKHIL KHADSE

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

## LOK SABHA UNSTARRED QUESTION NO.181 TO BE ANSWERED ON 25 th  APRIL, 2016

## BOOSTING EXPORTS

## 181.  SHRIMATI RAKSHATAI KHADSE:

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

- (a) the total number of meetings conducted by the council for Trade Development and Promotion formed last year with the aim to involve States in boosting country's exports;
- (b) whether the said council has taken corrective steps to improve the exports which shows negative zone for the last 12 months and if so, the details thereof;
- (c) whether the Government has deliberated on the relevant infrastructure to promote trade and identify impediments that are affecting exports; and
- (d) if so, the details thereof along with the steps the Government is planning to improve the exports?

## 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  first    meeting  of  the  'Council  for  Trade  Development  and  Promotion' after its constitution was convened on 08.01.2016.
- (b) The  fall  in  exports  has  been  due  to  various    external  factors  including  (i) global slowdown, which has impacted both the Global trade and India's trade adversely (ii) a significant slowdown in the Chinese Economy, (iii) a moderate but uncertain recovery in the US Economy, which is one of our large export markets and (iv) the sharp fall in Crude and Petroleum product prices.

The Council is a platform for interaction with the State Governments primarily with the objective of seeking their views on the trade policy, to apprise them about  international  developments  affecting  India's  trade  potential  and  to exhort them to promote an export enabling environment.

- (c& d)   Yes, the State Governments have been requested to utilize the funds made available  to  them  as  a  result  of  the  increased  devolution  under  the  14 th Finance Commission award, to address the infrastructural gaps and also to

avail  the  various  schemes  of  Government  of  India  to  promote  export infrastructure development.

The Government has also taken the following measures in the recent past 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. 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. Thereafter, 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.
- (ii) The Government has introduced the Interest Equalization 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.
- (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  Authorization,  Duty  Free  Import  Authorization (DFIA), Export Promotion Capital Goods (EPCG) and drawback/refund of duties.
- ……….