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Towards Sustainable Growth

India's Trade Performance

Exports & Imports (Merchandise)

Merchandise exports touched US$ 276.5 billion and rebounded with a growth of 5.44% in 2016-17 after two years of non-positive growth.

Exports & Imports (Services)

Services exports contributed US$ 160.68 billion and imports remained at US$ 95.47 billion, leaving a surplus of US$ 65.21 billion in 2016-17.

Source: DGCIS (for Merchandise) and RBI (for Services)

Total Exports & Imports (Merchandise & Services)

Total exports reached US$ 437.23 billion in 2016-17

  • Total exports rebounded with a growth of 4.95% in 2016-17, despite a negative growth in services.
  • Total imports registered a positive growth of 2.70% in 2016-17.
  • Total deficit (Merchandise and Services) reduced from US$ 61.17 billion in 2014-15 to US$ 40.98 billion in 2016-17.

Growth in Total Exports & Imports (Merchandise & Services)

Total Deficit (Merchandise & Services)

INDIA’S MAJOR TRADING PARTNERS

India’s top five export markets

USA was India’s top export market in 2016-17 with exports reaching US$ 42.33 billion, a growth of 4.94%. It was followed by UAE (US$ 31.26 billion) and Hong Kong (US$ 14.16 billion).

India’s top five sources of Imports

  • China was India’s largest source country for imports in 2016-17 with imports valued at US$ 61.31 billion. It was followed by USA (US$ 22.1 billion) and UAE (US$ 21.47 billion).

FOREIGN TRADE POLICY

Launch of New Foreign Trade Policy 2015-20

  • The Foreign Trade Policy (FTP) 2015-20 was released on April 1, 2015. The Department also released the FTP.
    statement, handbook of procedures, Appendix and Aayat-Niryat forms
  • A mid-term review of the Foreign Trade Policy is underway.

The Policy introduced two new schemes to replace multiple schemes.
(a) ‘Merchandise Exports from India Scheme’ (MEIS) for export of specified goods to specified markets.

  • Scrips made transferable and issued for Rs 18,117 crore.
  • Tariff lines expanded to 7,914.
  • Rs 23,500 crore provisioned annually.

(b) ‘Services Exports from India Scheme’ (SEIS) for increasing exports of notified services.

  • Rs. 1,500 crores provisioned annually.
  • IES was launched for a period of five years in 2015.
  • Interest equalisation of 3% per annum is available to manufacturer exporters.
  • Allocation of ₹1,100 crore during 2015-16 and ₹1,000 crore during 2016-17 made.
  • IES covers all lines by MSMEs and 416 lines by other manufacturers.
  • During 2016-17 duty free import of raw material worth over ₹ 2 lakh crore was allowed for exports after value addition.
  • During 2016-17 duty free imports of Capital Goods with duty concession of over ₹13,469 crore allowed.

TRADE PROMOTION

  • 4th India-Africa Trade Ministers’ meeting organised on October 23, 2015 at New Delhi.
  • 12th CII-EXIM Bank Conclave on India Africa Project Partnership held in New Delhi during March 9-10, 2017.
  • The conclave drew participation of over 450 delegates from 37 countries. 472 projects worth US$ 70 billion were discussed.
  • India organised the 1st BRICS Trade Fair with participation from 397 exhibitors and 14,612 business representatives.
  • India was Partner Country at Innoprom 2016, the largest Industrial Trade Fair in Russia held annually in Yekaterinburg during July 11-14, 2016. 117 Indian companies participated.
  • The second edition of Advantage Health Care India 2016 (AHCI-2016), an International Summit on Medical Value travel, held on October 3-5, 2016.
  • AHCI-2016 brought together stakeholders from 67 countries.
  • Government approved redevelopment of Pragati Maidan with state-of-the-art Integrated Exhibition-cum-Convention Centre (IECC).
  • Iconic convention centre with capacity of 7,000 pax, including a plenary hall for 3,000 pax planned.
  • Modern international standard exhibition facilities totalling 1.4 lakh sq m. to be provided.
  • Basement parking for 4,800 vehicles envisaged.

Redevelopment to include a comprehensive Traffic Intervention providing an underground tunnel through Pragati Maidan to decongest traffic around IECC.

CREATING TRADE-RELATED INFRASTRUCTURE

  • As per 14th Finance Commission recommendations, tax devolution to states increased from 32% to 42%.
  • Due to the additional devolution to States, as per the 14th Finance Commission Award, the ASIDE Scheme has since been delinked from the support of the Centre.
  • To support the states in the endeavor to create export infrastructure, a new scheme “Trade Infrastructure for Export Scheme “ (TIES) was launched in 2017-18.
  • This will provide financial support for infrastructure projects with overwhelming export linkages.
  • A Scheme for setting up of 13 Common Facility Centers (CFCs) for Gem & Jewellery sector to make state-of-the-art equipment and technological advancement available to SME units to increase their productivity and yield was launched.

TRADE INFRASTRUCTURE IN BORDER AREAS

BORDER HAATS

  • India established two new Border Haats in Tripura across the border with Bangladesh besides the existing two in Meghalaya.
  • Six more Border Haats proposed – two in Tripura & four in Meghalaya.
  • The revised MoU for establishment of Border Haats across India-Bangladesh border signed on April 8, 2017.

 

BORDER TRADE MART

  • Border Trade Mart established at Sherathang, Nathula (Sikkim) with support under ASIDE Scheme.

PARTNERING WITH STATES

  • As announced in FTP 2015-20, a Council for Trade Development & Promotion constituted for States to articulate their perspective on the Trade Policy. Union Commerce Minister Chairs and all State Ministers are members.
  • Board of Trade headed by CIM has been reconstituted to discuss export related issues with Industries.
  • 28 States have appointed Export Commissioners and 16 States have formulated their export strategies.
  • In a new ongoing initiative to partner with States, Team Commerce headed by Commerce Secretary visits States for interaction with Chief Secretary, senior officials, exporters & stakeholders e.g. customs, CONCOR to support promotion of exports from States.
  • States Covered: Madhya Pradesh, Maharashtra, Tamil Nadu, Gujarat, Northeast, Andhra Pradesh, Telangana, Odisha, Rajasthan, Chhattisgarh, Uttar Pradesh, West Bengal and Kerala.
  • States provided access to DGCIS data to facilitate analysis and policy planning.

SPECIAL ECONOMIC ZONES

13%
Increase in exports from SEZs in the last 3 years.
Exports valued at ₹5.23 lakh crore in 2016-17.

 

4.48 lakh
Additional employment in last 3 years.
Employment reached 17.31 lakh in March 2017.

 

₹1.27 lakh crore
Additional investment in the last 3 years.

 

47
New SEZs approved.

 

650
New business units started.

GIFT CITY INTERNATIONAL FINANCIAL SERVICES CENTER

  • International Financial Services Centre (IFSC) in M/s. GIFT SEZ Limited, Gandhinagar, Gujarat developed by the Government of Gujarat along with Infrastructure Leasing & Financial Services Limited (IL&FS) over an area of 886 acres.
  • Banks in GIFT SEZ have achieved transactions of US$ 2.5 billion.
  • GIFT is fast emerging as a preferred international financial services business and legal/accounting services destination.

PROMOTING SERVICES TRADE

GLOBAL EXHIBITION ON SERVICES (GES)

LEVERAGING INDIA’S DEMOGRAPHIC DIVIDEND

  • Spotlight on the international services sector and to increase India’s share in global services exports.
  • The focus sectors in the GES-2017 were information technology and telecom, tourism & hospitality, media and entertainment, healthcare, logistics, environmental services, facility management, exhibition & event services, professional services, education, banking & financial services, skills, etc. 73 countries participated in the event.

3rd GLOBAL EXHIBITION ON SERVICES (GES) APRIL 17- 19, 2017

The third edition of Global Exhibition on Services (GES) was inaugurated by Shri Pranab Mukherjee, President of India at Rashtrapati Bhawan Auditorium on April 17, 2017 at India Expo Centre & Mart, Greater Noida.

  • Coverage increased to 20 sectors
  • 400 foreign buyers and participation from 73 countries
  • Over 5,000 B2B meetings
  • 573 exhibitors & 25,000 visitors

CIM Smt. Nirmala Sitharaman’s speech at 3rd GES

2ND GLOBAL EXHIBITION ON SERVICES (GES) APRIL 21-23, 2016

The Department of Commerce in association with Services Export Promotion Council (SEPC), India Trade Promotion Organization (ITPO) and Confederation of Indian Industry (CII) organised the second edition of the Global Exhibition on Services during April 21-23, 2016 at India Expo Centre and Mart, Greater Noida.

1ST GLOBAL EXHIBITION ON SERVICES (GES) APRIL 23-25, 2015

The 1st Indian Global Exhibition on Services (GES) was held during April 23-25, 2015 at Pragati Maidan, New Delhi. The Prime Minister of India inaugurated the exhibition. The main objective of this Exhibition was to enhance trade in services between India and the rest of the world.

ENGINEERING

  • Engineering sector continues to be the largest contributor to India’s exports with a share of 24.29% in 2016-17.
  • Brand “India Engineering” launched and being promoted to increase engineering exports by building global image of the quality and reliability of Indian Engineering Sector.
  • Technology Initiative for boosting exports of engineering products through development of cutting edge technologies.
  • The flagship International Engineering Sourcing Show (IESS) and Indian Engineering Exhibitions (INDEE) showcasing Indian engineering, organised.

AGRICULTURE & ANIMAL HUSBANDRY

  • Export of Groundnut oil, Sesame oil, Soyabean oil and Maize (corn) oil, in bulk allowed from March 27, 2017. Export of rice bran oil allowed in 2015.
  • Export of potatoes and onions permitted without any minimum export price.
  • Unrestricted exports of all organic agricultural and processed products allowed from April 19, 2017.
  • APEDA, under NPOP, has certified Sikkim as the state with the largest contiguous area under organic certification.
  • Market access issues for rice (in EU & US), mango (in Mauritius and South Korea), meat (Indonesia) and groundnut oil (Vietnam) were successfully resolved.

PLANTATIONS

 Formation of Spice Farmers Producers Companies taken up in Sikkim and Arunachal Pradesh

  • Pilot Revenue Insurance Scheme launched to protect farmers from income loss due to fall in prices as well as decrease in yield.
  • Better prices to small growers.
    • Pan India Auction for tea launched.
    • E-spice bazaar for chilli and turmeric farmers.
    • District Level Price Monitoring Committee for small tea growers.
  • SMS services launched for informing minimum tea leaf prices to small growers.
  • Pradhan Mantri Krishi Sinchai Yojana extended to growers in the plantation sector.
  • India International Coffee Festival 2016 at Mumbai.
  • Stakeholder Seminar on Climate change held at Jorhat.
  • India International Tea Convention 2016 at Ooty.

Launch of Coffee Scented Stamps April 23, 2017

Tea Atlas launched for better soil & water conservation

8 crop specific Spice Parks (common processing facilities for farmers) set up in different states.

CAPACITY BUILDING FOR EXPORT DEVELOPMENT

  • Multi-locational campuses
  • World class curriculum producing quality professionals
  • Strong industry-academic linkages
  • FDDI to be an institute of national importance

REACHING OUT TO EXPORTERS

QUALITY STANDARDS: TO ENHANCE CREDIBILITY OF INDIA’S EXPORTS

  • Quality standards regime to fulfill the vision of Hon’ble Prime Minister for the ‘Make in India’ campaign and ‘Zero defect, Zero effect’.
  • Organised 4th National Standards Conclave on May 1-2, 2017 at New Delhi.
  • 6 Regional Standard Conclaves and 4 National Standard Conclaves held to generate awareness.
  • Hon’ble CIM also launched the India Standards Portal on May 1, 2017.

GOVERNMENT E-MARKET

  • DGs&D created a dedicated Government e-Market (GeM) for goods & services procured/sold by Government/PSUs. GeM was launched by Hon’ble CIM on August 9, 2016.
  • GeM covers the entire procurement process chain, right from vendor registration, item selection by buyer, supply order generation to online payment to vendor.
  • GeM covered 21,036 products in 249 categories including services as of April 30, 2017.
  • During the period of August 9, 2016 to April 30, 2017, total value of purchases made on GeM amounted to ₹454 Crores with total number of transactions reaching 7,890.

DIGITAL EMPOWERMENT

INDIA TRADE PORTAL

  • The website www.indiantradeportal.in helps exporters to utilize FTAs and capture export opportunities.
  • Provision of important data and information on 42 countries such as:
    (i) MFN tariff
    (ii) Preferential tariff
    (iii) Rules of Origin and
    (iv) Non-tariff measures

EXIM DASHBOARD

  • A new and enhanced dashboard on foreign trade data was launched.
  • It provides convenient public access to India’s export, import and balance of trade data in an analytical format.
  • 99.7 percent payments of total expenditure made electronically in 2016-17 to introduce transparency & efficiency.
  • 21 schemes brought under Public Financial Management System. 

E-BRC (Bank Realisation Certificate), electronic evidence of foreign exchange extended to 14 State Governments and 3 Central Government Organisations including GSTN.

About 4,000 tweets handled by DGFT in 2016-17 with average reply time of 4 hours (active Twitter handle @dgftindia).

Business made easier – SEZs made paperless through SEZ Online, connected to Customs ICEGATE System. A mobile app launched to share real time info.

Success Stories

  • MPEDA has enrolled 50,000 farms to ensure traceability of aqua culture products for exports.
  • India has become the largest and second largest exporter of shrimp to the US and EU respectively.
  • SMS-based price enquiry system launched to help aqua farmers know real time prices of fisheries products.
  • Basmati Rice registered as GI by GI Registry, Chennai in 2016.
  • Traceability system for meat products made operational.
  • New standards for organic livestock products, aqua culture and apiculture products notified in 2015.
  • India Diamond Trading Centre – Special Notified Zone (IDTC – SNZ) created at Bharat Diamond Bourse, Mumbai.
  • This facility has given access to rough diamonds of foreign mining companies to over 500 domestic companies (mostly SMEs).
  • 38 viewing sessions (272 days) completed and rough diamonds worth US$ 706.95 million displayed.