(a) the exports made from labour intensive sectors during the last three years;
(b) whether the labour intensive sectors are lagging behind despite the increase in
exports;
(c) if so, the details thereof and the reasons therefor;
(d) whether the Government proposes to take measures to give impetus to export in labour
intensive sectors; and
(e) if so, the details of the measures taken in this regard?
MINISTER OF COMMERCE AND INDUSTRY(SHRI ANAND SHARMA)
a)to e): A Statement is laid on the Table of the House.
STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) OF LOK SABHA STARRED QUESTION NO. 308 FOR
ANSWER ON 16TH AUGUST 2010 REGARDING “EXPORTS FROM LABOUR INTENSIVE SECTORSâ€
(a) to (c): Figures of merchandise exports in dollar terms for the last three years for
Major Principal Commodities are given in Annexure. Key labour-intensive sectors like
Handicrafts, Textiles(Readymade garments and Cotton textiles), Leather & Leather products,
Engineering, Electronics, Chemicals and Oilmeals have shown decline in exports during 2009-10
in comparison to 2008-09. This can be attributed significantly to shrinkage of demand in
developed countries due to global economic slowdown.
(d) & (e): The Government and RBI have been closely monitoring the economic developments
in the country and internationally on a continuous basis, with special emphasis on monitoring
the performance of labour intensive sectors. In order to give impetus to export sectors,
various measures including need-based incentives have been taken by the Government and RBI in
the form of stimulus packages including the announcements made in the Budget, 2009-10 and
2010-11; in the Foreign Trade Policy (FTP), 2009-14; and thereafter in January/March 2010.
Some of the various measures taken include export incentives under Vishesh Krishi and Gram
Udyog Yojana (VKGUY), Focus Market Scheme (FMS), Focus Product Scheme (FPS), Market Linked
Focus Product Scheme (MLFPS) for market expansion and product diversification, concessional
export credit, interest subvention for specified sectors, import of capital goods under Export
Promotion Capital Goods (EPCG) scheme at concessional duty for technological upgradation and
measures for procedural simplification and rationalization. Government has sought to provide
support / incentives to the different export sectors, in particular, the labour intensive
sectors, which have been adversely affected by the global economic slowdown.