Exports from India

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%. India’s export sector faced many challenges 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. The sector-wise values of exports for 2018-19 and percentage change over the previous year 2017-18 are given at Annexure. The Foreign Trade Policy (2015-20), launched on 1st April 2015, provides a framework for increasing exports of goods and services as well as generation of employment and increasing value addition in the country, in line with the ‘Make in India’, ‘Digital India’, ‘Skill India’, ‘Startup India’ and ‘Ease of Doing Business’ initiatives.

Representations/suggestions are received from trade organizations/export promotion councils from time to time for promotion of exports which are taken into consideration as part of the regular ongoing process of review and reform of trade policies. To promote export, Government has taken following remedial measures including changes in the export policy:

i.     The Foreign Trade Policy (2015-20), 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.    A Mid-term Review of the FTP 2015-20 was undertaken in December, 2017 under which incentives for labour intensive / MSME sectors were increased by 2% under MEIS.

iii.   A new Logistics Division was created in the Department of Commerce for integrated development of the logistics sector. India’s rank in World Bank’s Logistics Performance Index was 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 01.04.2015 providing interest equalisation at 3% for labour intensive / MSME sectors. The rate was increased to 5% for MSME sectors with effect from 02.11.2018 and merchant exporters were covered under the Scheme with effect from 02.01.2019.

v.    Measures to increase procurement of capital goods from indigenous manufacturers under the Export Promotion Capital Goods (EPCG) scheme by reducing specific export obligation from 90 percent to 75 percent of the normal export obligation.

vi.    Issue of Advance Authorisation to allow duty free import of inputs for export product within a specified timeline.

vii.   For improving ease of doing business, online issuance of Importer Exporter Codes (IEC) has been started. India’s rank in World Bank ‘Ease of Doing Business’ ranking was improved from 142 in 2014 to 63 in 2019 with the rank in ‘trading across borders’ moving up from 122 to 80.

viii. 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.

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.

x.     A comprehensive “Agriculture Export Policy” was launched on 6th December, 2018 with an aim to double farmers’ income by 2022 and provide an impetus to agricultural exports.

xi.   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.

xii.  Government has introduced a new Scheme for Remission of Duties and Taxes on Exported Products (RoDTEP) on 13-03-2020 for re-imbursement of taxes/ duties/ levies, which are currently not being refunded under any other mechanism, at the central, state and local level.

Annexure

India’s Merchandise Export, sector-wise for 2017-18 and 2018-19

Source: DGCI&S

(Value in US$ Million)

S. No

QE Groups

2017-18

2018-19

% Change

 

1

Engineering Goods

78696

83622

6.26

 

2

Petroleum Products

37465

46554

24.26

 

3

Gems And Jewellery

41544

40251

-3.11

 

4

Organic & Inorganic Chemical

18508

22379

20.91

 

5

Drugs And Pharmaceuticals

17283

19147

10.78

 

6

Rmg Of All Textiles

16707

16138

-3.40

 

7

Electronic Goods

6393

8829

38.11

 

8

Cotton Yarn/Fabs./Madeups, Handloom Products Etc.

10260

11215

9.31

 

9

Plastic And Linoleum

6851

8607

25.64

 

10

Marine Products

7389

6803

-7.94

 

11

Rice

7806

7751

-0.71

 

12

Man-Made Yarn/Fabs./Madeups Etc.

4826

4981

3.19

 

13

Leather And Leather Manufactures

5289

5141

-2.80

 

14

Mica, Coal And Other Ores, Minerals Including Process

3777

4255

12.65

 

15

Meat, Dairy And Poultry Products

4610

4364

-5.34

 

16

Spices

3115

3322

6.65

 

17

Ceramic Products And Glassware

2132

2649

24.27

 

18

Iron Ore

1471

1317

-10.45

 

19

Fruits And Vegetables

2513

2541

1.10

 

20

Handicrafts Excl. Hand Made Carpet

1823

1838

0.81

 

21

Cereal Preparations And Miscellaneous Processed Item

1417

1555

9.80

 

22

Carpet

1430

1482

3.64

 

23

Oilseeds

1174

1157

-1.50

 

24

Tobacco

934

981

5.04

 

25

Tea

837

831

-0.77

 

26

Oil Meals

1093

1509

38.01

 

27

Coffee

969

822

-15.10

 

28

Cashew

922

654

-29.05

 

29

Jute Mfg. Including Floor Covering

335

325

-3.03

 

30

Other Cereals

249

349

40.38

 

31

Others

15705

18709

19.13

 

Total Export

303526

330078

8.75

 

This information was given by the Minister of Commerce and Industry, Piyush Goyal, in a written reply in the Lok Sabha on18 March 2020.