THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY
(DR. E.M. SUDARSANA NATCHIAPPAN)
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. 44 FOR ANSWER ON 9TH DECEMBER, 2013 REGARDING “INCENTIVES FOR EXPORTERSâ€
(a) Exports in the year 2012-13 showed a marginal decline compared with exports achieved in the previous
year i.e. 2011-12. This can be attributed to adverse macro economic scenario prevalent globally. The table
below gives details of target fixed and export achieved during the last 3 years and the current year (April to October).
Value in US $ Billion
Year Target fixed Export Figures
2010-11 200 251.1
2011-12 300 306.0
2012-13 350 300.4
2013-14 325 179.4 (April –October 2013) (provisional) (Source: DGCI&S)
(b) The Government continuously monitors the export performance of different sectors and need based corrective
measures to boost export are taken from time to time, keeping in view the financial and overall economic implications.
Government has announced certain export promotion measures as part of Annual Supplement to the Foreign Trade
Policy (2009-14) on 18.4.2013. Government continued the strategy of product diversification and market diversification.
More countries have been added under both Focus Market Scheme (FMS) and Special Focus Market Scheme (Special
FMS). 47 new items have been added to the Market Linked Focus Product Scheme (MLFPS) and 122 new items have
been added to the Focus Product Scheme (FPS). Subsequently, Government has notified 153 high-tech products
on 10.7.2013 under Focus Product Scheme. MLFPS benefit for export of Textile items covered under Chapter 61
and Chapter 62 of ITC(HS) Classification of Export and Import Items to EU and USA has been extended for the year
2013-14. Incremental Export Incentivisation Scheme introduced w.e.f 1.1.2013, has been further extended for the
year 2013-14. Government has also enhanced the rate of interest subvention from 2% to 3% with effect from 01.08.2013.
Further, a second Task Force on Transaction Cost has been constituted by the Government to remove bottlenecks on
exports.
(c) Export Target has been achieved in the year 2010-11 and 2011-12. However, in the year 2012-13 the target was
not achieved. This is attributable to global economic crisis, sovereign debt crisis in Europe and the economic slowdown
in the developed economies which adversely affected demand for our exports. The export target in 2013-14 is US $ 325
billion and in the first 7 months of the current fiscal year, exports to the tune of US $ 179.4 billion have already been
achieved, which is 6.32% more in comparison to the same period last year.
(d) The incentives announced by the Government are for all sectors including MSME. All MSME exporters are
eligible for interest subvention support.
(e) There are no financial claims of exporters pending with DGFT. Drawback claims are handled by Department of
Revenue. Drawback of Rs. 18,060.97 Crore has been disbursed from April, 2013 to October, 2013 as compared to
Rs. 13,410.48 Crore during the corresponding period last year. This is 34.6% higher than previous year. Department
of Revenue has taken a drawback clearance drive this year and reiterated instructions to pay drawback provisionally
in brand rate cases.
