Question : Decline in Export Trade

(a) the details of the country’s Export and Export Sector debt during the last one year within the country;
(b) whether both have dipped/declined during the last one year across the country;
(c) if so, the details thereof, State/UTwise, including Tamil Nadu and the reasons therefor along with the action taken/being taken by the Government in this regard;
(d) whether the Government is also planning to introduce new Export Policy within the country or has received any proposal from any State in this regard; and
(e) if so, the details thereof including the time by which it is likely to be implemented and if not, the reasons therefor?

Answer given by the minister

THE MINISTER OF COMMERCE AND INDUSTRY
(SHRI PIYUSH GOYAL)

(a) to (c) : India’s merchandise exports has increased from 303.53 US$ billion in 2017-18 to 330. 07 US$ billion in 2018-19, registering a positive growth of 8.75% as compared to the previous year. The State/UT-wise exports including Tamil Nadu in 2017-18 and 2018-19 and growth are at Annexure-I. India’s export sector faced many challenges in the post 2013-14 period due to accentuation of the global economic / financial crisis. However, exports have been growing on a secular basis since 2016-17 for almost three years and total exports reached a new peak of more than half a trillion dollars, for the first time in 2018-19.

Government has taken following steps to increase exports:

i A new Foreign Trade Policy (FTP) 2015-20 was launched on 1st April 2015. The policy, inter alia, rationalised the earlier export promotion schemes and introduced two new schemes, namely Merchandise Exports from India Scheme (MEIS) for improving export of goods and ‘Services Exports from India Scheme (SEIS)’ for increasing exports of services. Duty credit scrips issued under these schemes were made fully transferable.
ii The Mid-term Review of the FTP 2015-20 was undertaken on 5th December, 2017. Incentive rates for labour intensive / MSME sectors were increased by 2% with a financial implication of Rs 8,450 cr per year.
iii A new Logistics Division was created in the Department of Commerce to coordinate integrated development of the logistics sector. India’s rank in World Bank’s Logistics Performance Index moved up from 54 in 2014 to 44 in 2018.
iv Interest Equalization Scheme on pre and post shipment rupee export credit was introduced from 1.4.2015 providing interest equalisation at 3% for labour intensive / MSME sectors. The rate was increased to 5% for MSME sectors with effect from 2.11.2018 and merchant exporters were covered under the scheme with effect from 2.1.2019.
v Various measures for improving ease of doing business were taken. India’s rank in World Bank ‘Ease of doing business’ ranking improved from 142 in 2014 to 63 in 2019 with the rank in ‘trading across borders’ moving up from 122 to 80.
vi A new scheme called “Trade Infrastructure for Export Scheme (TIES)” was launched with effect from 1st April 2017 to address the export infrastructure gaps in the country.
vii A comprehensive “Agriculture Export Policy” was launched on 6th December, 2018 with an aim to double farmers’ income by 2022 and provides an impetus to agricultural exports.
viii A new scheme called “Transport and Marketing Assistance” (TMA) has been launched for mitigating disadvantage of higher cost of transportation for export of specified agriculture products.
ix A new scheme called Scheme for Rebate of State and Central Taxes and Levies (RoSCTL) covering export of garments and made-ups was notified on 7.3.2019 providing refund of duties/taxes at higher rates.

(d) to ( e): The export policy is dynamic and is reviewed from time to time depending on the inputs/recommendations received from concerned line Ministries/Departments/States. A new Foreign Trade Policy will replace the current Foreign Trade Policy (2015-2020), before its expiring on 31st March 2020.
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ANNEXURE-I
Statement referred to in reply of part (a) to (c) of Lok Sabha Unstarred question no. 678 for answer on 20th November 2019
State/UT-wise export during 2017-18 and 2018-19
(value in US$ Million)
S No: States/UTs 2017-18 2018-19 % Change in 2018-19 over 2017-18
1 Maharashtra 69731.48 72809.28 4.41
2 Gujarat 66818.03 67412.15 0.89
3 Tamil Nadu 29754.22 30525.91 2.59
4 Karnataka 18052.34 17341.29 -3.94
5 Uttar Pradesh 13803.90 16289.17 18.00
6 Andhra Pradesh 13019.53 14085.63 8.19
7 Haryana 13263.41 13833.25 4.30
8 West Bengal 9148.22 10057.13 9.94
9 Kerala 7308.07 9834.25 34.57
10 Delhi 8713.88 9464.60 8.62
11 Telangana 6568.71 7168.26 9.13
12 Rajasthan 6952.05 7061.61 1.58
13 Madhya Pradesh 5249.96 6382.37 21.57
14 Odisha 7585.01 6303.36 -16.90
15 Punjab 5788.25 6038.07 4.32
16 Uttaranchal 1455.46 2351.18 61.54
17 Dadra & Nagar Haveli 2051.25 2143.38 4.49
18 Goa 2103.17 2063.64 -1.88
19 Bihar 1345.31 1640.91 21.97
20 Himachal Pradesh 1221.67 1323.43 8.33
21 Jharkhand 1116.53 1252.79 12.20
22 Chattisgarh 1522.70 1244.10 -18.30
23 Daman & Diu 956.98 1053.39 10.07
24 Pondicherry 415.05 392.79 -5.36
25 Assam 382.35 369.90 -3.26
26 Jammu & Kashmir 148.31 196.43 32.45
27 Chandigarh 69.93 71.89 2.81
28 Meghalaya 85.13 53.86 -36.73
29 Sikkim 13.96 7.94 -43.15
30 Andaman & Nicobar 31.46 4.01 -87.26
31 Nagaland 3.92 2.78 -28.92
32 Manipur 1.33 2.66 99.48
33 Arunachal Pradesh 5.32 2.31 -56.63
34 Tripura 2.36 1.72 -27.13
35 Mizoram 1.07 1.41 31.67
36 Lakshadweep 0.64 0.41 -35.90
Unspecified 8835.22 21290.81 145.14
India''s Export 303526.16 330078.09 8.75
Source: DGCI&S, Kolkata *********

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