Lok Sabha Question No. 1311 (UNSTARRED), answered on 2016-05-02
Subject: Trade Promotion Activities
Ministry: COMMERCE AND INDUSTRY
Asked by: SRINIVAS KESINENI

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY

## (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 1311 TO BE ANSWERED ON 02 nd  MAY, 2016

## TRADE PROMOTION ACTIVITIES

## 1311. SHRI KESINENI NANI:

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

- (a) the details of trade promotion activities undertaken by the Department of Foreign Trade and Export Promotion during the last three years;
- (b) the details of markets which have been developed for Indian exports by the said Department;
- (c) whether this Department has been successful in showcasing Andhra Pradesh as a trade and investment destination and if so, the details thereof;
- (d) the details of the institutions which have received grants from the Department for Promotion of Indian Exports; and
- (e) the quantum of grants given to these institutions for export promotion and the results from the promotion campaigns of these institutions?

## ANSWER

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

(i) A department by the name of the Department of Foreign Trade and Export Promotion does not exist  in  Government  of  India.  However,  the  following  are  some  of  the  measures taken by Department of Commerce to promote  foreign trade :

i. Earlier  there  were  5  different  schemes  [Focus  Product  Scheme,  Market  Linked  Focus Product Scheme, Focus Market Scheme, Agri. Infrastructure Incentive Scrip, Vishesh Krishi and  Gram  Udyog  Yojana  (VKGUY)  ]  for  rewarding  merchandise  exports  with  different kinds of duty Scrips with varying conditions attached to their use. Now all these schemes have  been  merged  into  a  single  scheme,  namely  Merchandise  Export  from  India  Scheme (MEIS) with simplified conditionality. The MEIS  was  introduced  in   the Foreign Trade Policy  (FTP)  2015-20  on  April  1,  2015.MEIS  aims  to  incentivize  export  of  merchandise whichare 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.

iv. In last three years ,the details of authorizations/ scrips issued under various schemes are as under

Scrip/Authorisation value (Rs. In crore)

|   Sl. No. | Scheme                                             |   2013-14 |   2014-15 |   2015-16 |
|-----------|----------------------------------------------------|-----------|-----------|-----------|
|         1 | Export Promotion Capital Goods (EPCG)              |     14080 |     15150 |     13366 |
|         2 | Advance Authorisation                              |    160620 |    157785 |    166436 |
|         3 | Advance Authorisation for Annual Requirements      |     14283 |     14079 |      6686 |
|         4 | Duty Entitlement Pass Book Scheme (DEPB)           |       225 |        54 |       102 |
|         5 | Duty Free Import Authorisation (DFIA)              |     27915 |     31258 |       388 |
|         6 | Focus Market Scheme                                |      2721 |      3080 |      2369 |
|         7 | Focus Product Scheme                               |      8733 |     10495 |      6380 |
|         8 | Import Licence for restricted list of import items |     33514 |     85892 |     94069 |
|         9 | Incremental Export Incentivisation Scheme          |        14 |        81 |       455 |

(v). The Governm Export

|   10 | Served From India Scheme                     | 1420                       | 1300                       |   1125 |
|------|----------------------------------------------|----------------------------|----------------------------|--------|
|   11 | Status Holder Incentive Scrip                | 2290                       | 783                        |    383 |
|   12 | VisheshKrishi and Gram Udyog Yojana          | 2748                       | 3291                       |   1441 |
|   13 | Merchandise Exports From India Scheme (MEIS) | Scheme started on 1/4/2015 | Scheme started on 1/4/2015 |   4103 |

Promotion Councils (EPCs), Trade Bodies, etc. in their export promotion activities under the Marketing Development Assistance (MDA) Scheme and the Market Access Initiative (MAI) Scheme.  The number of projects/studies approved under the MAI Scheme during the last three years and the current year to promote India's exports is as under:

| Year    |   Number of projects approved |
|---------|-------------------------------|
| 2013-14 |                           170 |
| 2014-15 |                           239 |
| 2015-16 |                           205 |
| 2016-17 |                           200 |

(b) Under MEIS  Markets/countries of the globe  are grouped into 3 categories for grant of incentives under MEIS :-

## Category A : Traditional Markets (34)

Include  European  Union  (28),  European  Free  Trade  Association(EFTA)  (Switzerland, Norway, Iceland and Lichtenstein-4), USA and Canada(2).

Category B : Emerging & Focus Markets (140)

Include Africa (55), Latin America and Mexico (45), CIS countries (12), Turkey and West Asian  countries  (13),  ASEAN  countries  (10),  Japan,  South  Korea,  China,  Hongkong  and Taiwan(5).

Category C : Other Markets (64).

Indian Exports covers large number of markets. The commodity-wise and country-wise data on  quantum  and  value  of  exports  and  imports  of  the  country  for  the  last  three  years  is available in the CDs of DGCI&S publication 'Monthly Statistics of Foreign Trade of India' Vol. 1 (Exports) and Vol.II (Imports) for March 2014, March 2015 and January 2016 (latest available CD). These CDs are also regularly sent to Parliament Library by DGCI&S, Kolkata for  reference.  During  2015-16,India  exported  to  227  countries  and  imported  from  213 countries.

- (a) Government  schemes  and  efforts  are  country  wide  in  nature  and  support  export promotion activities  across States including in Andhra Pradesh. The direction of trade flows and the underlying trade potential across countries and commodities is a dynamic phenomenon.  The  schemes  like  MDA  and  MAI  enable  exporters  to  identify  export opportunities and pursue them.

The Export figure for Andhra Pradesh for last three financial years is as follows:

| YEAR    | VALUE(RS.Cr.)   |
|---------|-----------------|
| 2013-14 | 93860.35        |
| 2014-15 | 97162.41        |
| 2015-16 | 79459.97*       |

[*Note: The data on state of Origin has certain limitations . Prior to the allotment of state code  to  Telengana,  the  entire  exports  were  included  under  Andhra  Pradesh.  In  December 2014, a separate state code was allotted to Telengana].

- (b) &    (e). The details  of  funds  released  to  Andhra  under  State  Component  of    the Assistance  to  States  for  Infrastructure  Development  of  Exports  Scheme  during  the  last three years is as follows:

(Rs. In crore)

|   2012-13 |   2013-14 |   2014-15 |
|-----------|-----------|-----------|
|     36.44 |     39.09 |     20.38 |

The details of Export Promotion Council which received MAI and MDA grants is annexed.

## GRANTS RELEASED TO EXPORT PROMOTION COUNCILS DURING LAST THREE FINANCIAL YEARS                 (2013-14, 2014-15 & 2015-16)

Grant  (In Rs.)

| S.no   | Name of organisation/ Council                                         | 2013-14    | 2013-14     | 2014-15    | 2014-15     |      |
|--------|-----------------------------------------------------------------------|------------|-------------|------------|-------------|------|
|        |                                                                       | MDA        | MAI         | MDA        | MAI         |      |
| 1      | APPAREL EXPORT PROMOTION COUNCIL                                      | 155,00,000 | 1300,38,881 | 58,10,000  | 1288,84,384 | 75,0 |
| 2      | CHEMICALS & ALLIED PRODUCTS EXPORT PROMOTION COUNCIL                  | 246,92,000 | 171,19,558  | 245,00,000 | 60,03,041   | 200, |
| 3      | CARPET EXPORT PROMOTION COUNCIL                                       | 181,60,000 | 1155,57,564 | 180,00,000 | 735,36,243  | 183, |
| 4      | CASHEW EXPORT PROMOTION COUNCIL                                       | 69,90,000  | 60,00,000   | 97,60,000  | 40,50,000   | 18,4 |
| 5      | BASIC CHEMICALS, PHARMACEUTICALS & COSMETICS EXPORT PROMOTION COUNCIL | 540,00,000 | 1057,57,455 | 545,11,000 | 449,82,097  | 546, |
| 6      | COUNCIL FOR LEATHER EXPORTS                                           | 226,50,000 | 689,91,490  | 207,95,000 | 521,06,462  | 240, |
| 7      | ENGINEERING EXPORT PROMOTION COUNCIL                                  | 420,00,000 | 1490,30,686 | 510,00,000 | 2967,02,058 | 500, |
| 8      | EXPORT PROMOTION COUNCIL FOR EOU&SEZ                                  | 30,00,000  | -           | 26,25,000  | -           | -    |
| 9      | EXPORT PROMOTION COUNCIL FOR HANDICRAFTS                              | 475,00,000 | 683,88,796  | 437,25,000 | 797,31,742  | 300, |
| 10     | ELECTRONICS & COMPUTER SOFTWARE EXPORT PROMOTION COUNCIL              | 185,50,000 | 732,82,053  | 210,00,000 | 572,92,169  | 200, |
| 11     | GEM &JEWELLERY EXPORT PROMOTION COUNCIL                               | 312,78,000 | 1470,62,068 | 284,40,000 | 1484,35,649 | -    |
| 12     | HANDLOOM EXPORT PROMOTION COUNCIL                                     | 70,00,000  | 408,98,633  | 80,00,000  | 365,90,432  | 103, |
| 13     | INDIAN OILSEEDS & PRODUCE EXPORTERS ASSOCIATION                       | 60,00,000  | -           | 60,00,000  | -           | 100, |
| 14     | INDIAN SILK EXPORT PROMOTION COUNCIL                                  | 98,14,000  | 86,94,200   | 100,00,000 | 278,09,011  | -    |

| 15   | POWERLOOM DEVELOPMENT EXPORT PROMOTION COUNCIL        | 35,00,000   | 84,33,018    | 40,00,000   | 100,69,671   | -    |
|------|-------------------------------------------------------|-------------|--------------|-------------|--------------|------|
| 16   | PHARMACEUTICALS EXPORT PROMOTION COUNCIL              | 600,00,000  | 1562,21,680  | 625,00,000  | 1479,62,157  | 900, |
| 17   | PLASTIC EXPORT PROMOTION COUNCIL                      | 157,86,000  | 172,25,426   | 200,00,000  | 241,09,267   | 200, |
| 18   | SERVICES EXPORT PROMOTION COUNCIL                     | 17,50,000   | -            | 18,75,000   | -            | -    |
| 19   | SPORTS GOODS EXPORT PROMOTION COUNCIL                 | 49,00,000   | 283,40,000   | 70,10,000   | 215,00,000   | 82,2 |
| 20   | SHELLAC EXPORT PROMOTION COUNCIL                      | 35,00,000   | -            | 15,00,000   | -            | -    |
| 21   | SYNTHETIC & RAYON TEXTILE EXPORT PROMOTION COUNCIL    | 156,30,000  | 169,37,700   | 140,43,000  | 80,00,000    | 182, |
| 22   | TELECOM EQUIPMENT & SERVICES EXPORT PROMOTION COUNCIL | 200,00,000  | 32,00,000    | 220,00,000  | 55,40,075    | 198, |
| 23   | COTTON TEXTILES EXPORT PROMOTION COUNCIL              | 135,00,000  | 753,47,056   | 111,05,000  | 354,02,358   | 200, |
|      | TOTAL                                                 | 4457,00,000 | 12365,26,264 | 4481,99,000 | 12087,06,816 | 422  |