Lok Sabha Question No. 116 (UNSTARRED), answered on 2015-11-30
Subject: Export Targets
Ministry: COMMERCE AND INDUSTRY
Asked by: SHARAD TRIPATHI

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

## LOK SABHA UNSTARRED QUESTION NO. 116 TO BE ANSWERED ON 30 TH  NOVEMBER, 2015

## EXPORT TARGETS

## 116(H). SHRI SHARAD TRIPATHI:

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

- a) whether  the  Government  has  achieved  the  export  targets  during  each  of  the  last three years and the current year;
- b) if so, the details thereof and if not, the reasons therefor along with the steps taken by the Government to achieve the export targets;
- c) the  share  of  cottage  industries  and  small  industries  in  exports  from  the  country during the said period; and
- d) the details of the scheme for providing financial package to the handloom industry and the names of the districts of Uttar Pradesh proposed to be included under the scheme?

## ANSWER

वाणिज् य एवं उद्योग राज् य मंत्री )णीमीी स मलमा नीीारमि((स्वींत्र प्रभार )

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

(SMT. NIRMALA SITHARAMAN)

(a, b& c) The export targets, export and share of cottage industries and small industries (MS&ME)for each of the last three years and current year are shown in the table below.

## Value (US$ Billion)

|                                               | 2012-13                 | 2013-14                 | 2014-15                 | 2014-15 (April- October)   | 2015-16 (April- October)   |
|-----------------------------------------------|-------------------------|-------------------------|-------------------------|----------------------------|----------------------------|
| Export Target                                 | 350                     | 325                     | 340                     | ………                        | ………                        |
| Export                                        | 300.4                   | 314.4                   | 310.3                   | 187.3                      | 154.3                      |
| %share of Micro, Small and Medium Enterprises | 43.0%                   | 42.4%                   | 44.7%                   | ……….                       | ………..                      |
| Trade deficit                                 | 190.3                   | 135.8                   | 137.7                   | 86.3                       | 77.8                       |
| Source: DGCI&S Kolkatta                       | Source: DGCI&S Kolkatta | Source: DGCI&S Kolkatta | Source: DGCI&S Kolkatta | Source: DGCI&S Kolkatta    | Source: DGCI&S Kolkatta    |

The main reasons for the fall in exports are,

(i) The major global slowdown during 2014 and 2015 which  has impacted Global Trade and India's Trade adversely. (ii) World Economic Outlook forecasts for import  has  been revised specially from emerging markets and developing economies from 3.5% to 1.3% for the year 2015.(iii)Moderate but uncertain recovery in the US Economy.(iv) The significant slowdown includes the Chinese Economy (v) Sharp fall in Crude and Petroleum product prices,(Brent crude declining from about USD 98 per barrel last year to USD 47.57 at present).(vi) fall in other commodity prices (Gold prices fell by 7.2 % high grade copper by about 26% in last one year (vii) Currency Fluctuations

## The steps taken by Government to enhance  the export  are :

- (i) New Foreign Trade Policy (2015-20)  launched on 1 st  April, 2015 with a focus on supporting both manufacturing and services exports and improving the 'Ease of Doing Business'.    The policy  has  introduced  two  new  schemes,  namely,  'Merchandise  Exports  from  India Scheme'(MEIS) for incentivising export of specified goods to specified markets and 'Service Exports from India Scheme' (SEIS) for increasing exports of notified services from India.
- (ii) By way of trade facilitation and enhancing the ease of doing business, Government reduced the number of mandatory documents required for exports and imports to three each, which is  comparable  with  international  benchmarks.  The  trade  community  can  file  applications online  for  various  trade  related  schemes.    Online  payment  of  application  fees  through Credit/Debit Cards and electronic fund transfer from 53 Banks has been put in place.
- (iii) The Government has also expanded the coverage of Merchandise Exports from India scheme on 29 th   October, 2015 by adding 110 new items to the original 4914 lines included in the scheme.  The reward rates/country coverage of 2228 items were enhanced.  Consequently the  envisaged  revenue  outgo  under  the  scheme  was  increased  from  Rs.  18,000/-  crore earlier to Rs. 21,000/- crore per annum.
- (iv) Government has infused additional Corpus (Capital) to the tune of Rs. 375/- crore into the National Export Insurance Account (NEIA), raising the corpus to over Rs. 2,100/- crore, and strengthen the capacity to augment Project exports from the country.  The equity capital of ECGC  Ltd.    has  also  been  raised  by  Rs.  50  crore  to  Rs.  1,300  crore  enabling  higher underwriting capacity to support exporters to expand their business and support banks for adequate lending to exporters.
- (v) Recently,  the  government  has  approved  the  proposal  for  implementing  the  Interest Equalization Scheme on Pre & Post shipment Rupee Export Credit w.e.f. 1 st  April, 2015 for 5 years,  incorporating  an  interest  equalization  element of  3%  per  annum.    This  scheme  will facilitated access export credit at competitive rate of interest, given the lower interest rate level prevailing for exporters in other countries.
- (vi) The  State  governments  have  been  requested  to  develop  their  export  strategy,  appoint export  commissioners,  address  infrastructure  constraints  restricting  movement  of  goods, facilitate refund of VAT/Octroi/State level cess, and address other issues relating to various clearances etc. and build capacity of new exporters, in order to promote exports.

Handloom Marketing Assistance is one of the Component  of National Handloom Development programme (NHDP) introduced during the 12th plan period for implementation.  Under  the  scheme,  Export  promotion  is  one  of  the  component  of  the scheme.  The  objective  of  the  handloom  export  promotion  is  to  assist  the  handloom cooperative societies & corporations in developing exportable products and assist handloom  agencies  in  publicity  and  international  marketing  of  their  products  through publicity related activities and participation in international exhibitions, Buyer-seller meets etc.,  and  to  make  available  to  the  exporters  the  latest  international  designs,  colour forecasts,  trends  etc.  Under  this  scheme  assistance  is  provided  to  different  districts  of different State.

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