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GOVERNMENT OF INDIA
MINISTRY OF COMMERCE & INDUSTRY
(DEPARTMENT OF COMMERCE)
RAJYA SABHA
STARRED QUESTION NO. 215
TO BE ANSWERED ON 18TH MARCH, 2015
EXPANSION IN IMPORT BASKET vis-a-vis
INCREASE IN EXPORTS
215. DR. K.V.P. RAMACHANDRA RAO:
Will the Minister of COMMERCE AND INDUSTRY be pleased to state:
a) whether it is a fact that while import basket of India has expanded but there
is no corresponding increase in exports;
b) if so, what are the reasons that exports have not increased; and
c) what are the sectors that have fared badly in exports?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY
(INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)
a) t o c): A Statement is laid on the Table of the House.
***********************
STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (c) OF RAJYA SABHA
STARRED QUESTION NO. 215 FOR ANSWER ON 18TH MARCH 2015 REGARDING
“EXPANSION IN IMPORT BASKET vis-à-vis INCREASE IN EXPORTS”
(a) During current year, there has been a marginal increase in India’s exports (0.88%) and imports
(0.70%) during 2014-15 (Apr-Feb), as compared to 2013-14 (Apr-Feb), as detailed below. The
sector/commodity wise details of Exports and Imports (as per Quick Estimates) for the current
year 2014-15 (April-Feb) are at Annex- 1 and Annex- 2 respectively.
(US$ Billion)
Total Merchandise Exports
2013-14
(April-Feb.)
284.07
2014-15
(April-Feb.) (QE)
286.58
Percentage
Change
0.88
Total Merchandise Imports
408.92
411.80
0.70
Source: DGCI&S
(b)
(QE): As per Quick Estimates
The main reasons for decline in Exports are as under:
(i) There is a fall in global demand due to slowing down of World Trade. World Trade
Organization (WTO) in its Press Release dated, 26th September, 2014, has reduced the
forecast for World Trade growth in 2014 to 3.1% (down from 4.7% in April, 2014) and in
2015 (down from 5.3% to 4.0%).
(ii) EU Countries that account for nearly 16% of India's exports, are facing problems of
stagnation and deflation. The appreciation of the rupee against the euro has adversely
impacted India's exports to EU countries.
(iii) The demand in certain other important markets like ASEAN, China and Japan has also
fallen.
(iv) As a consequence of fall in prices of crude oil, the exports of Petroleum Crude and
Products, that contribute around 19 percent of India's exports, have also gone down, even
though the quantity of exports of these items has increased approximately by 7.33%.
(v) As a result of muted global demand, the value of exports of Agricultural commodities,
accounting for about 9.6 % of India's exports, has also decreased.
(c)
The main commodities/sectors that have registered a decline in exports during 2014-15
(April-Feb.) as compared to corresponding period last year, are - Petroleum Products, Gems
and Jewellery, cotton yarn/fabrics/made-ups and handloom products, Electronic goods,
Plastic and linoleum, Spices, Fruits and Vegetables, handicrafts excluding handmade
carpets, Oil meals, Other cereals, Iron Ore, Tobacco, Tea , Iron Ore , Jute Mfg including
Floor Covering.
*******************
QUICK ESTIMATES FOR SELECTED MAJOR COMMODITIES
Annex 1
TRADE: EXPORT
Sl.
No.
1
2
3
4
5
6
Commodities
7
8
9
10
11
12
13
Engineering Goods
Petroleum Products
Gems & Jewellery
RMG of all Textiles
Drugs & Pharmaceuticals
Organic & Inorganic Chemicals
Cotton Yarn/Fabs./made-ups, Handloom
Products etc.
Rice
Electronic Goods
Leather & leather products
Plastic & Linoleum
Marine Products
Meat, dairy & poultry products
14
Man-made Yarn/Fabs./made-ups etc.
(Values in Million USD)
Apr'13-Feb'14
57648.37
57335.97
37619.49
13463.50
13462.72
11098.35
Apr'14- Feb 15
66934.87
53739.04
37430.64
15260.90
13886.07
11621.17
10064.97
7076.37
7170.57
5078.84
5572.06
4592.42
4773.01
9822.56
7205.40
5843.07
5661.16
5340.79
5135.78
4942.06
4689.88
4838.97
% change
Apr'14- Feb 15
16.11
-6.27
-0.50
13.35
3.14
4.71
-2.41
1.82
-18.51
11.47
-4.15
11.83
3.54
3.18
0.63
15
16
17
18
19
20
21
22
Mica, Coal & Other Ores, Minerals including
processed minerals
Spices
Fruits & Vegetables
Oil seeds
Ceramic products & glassware
Carpet
23
24
25
26
27
28
29
Handicrafts excl. hand made carpet
Oil Meals
Cereal preparations & miscellaneous
processed items
Other cereals
Tobacco
Cashew
Coffee
Tea
Iron Ore
30
31
32
Jute Mfg. including Floor Covering
Sub-Total
GRAND TOTAL
Note: The figures for Feb'15 and Apr'14 to Feb'15 are
provisional and subject to change
3567.77
2261.93
1958.23
1166.42
1165.20
1077.32
3590.29
2230.71
1820.70
1657.06
1502.12
1303.92
1317.90
2560.04
1271.01
1211.79
1040.84
1094.13
899.18
770.68
693.53
736.42
1392.32
1148.88
845.24
842.63
835.24
697.43
619.91
502.96
348.40
261696.83
284074.69
313.42
268055.79
286582.71
-1.38
-7.02
42.06
28.92
21.03
-3.56
-52.67
10.38
-22.75
-6.29
8.38
0.56
-15.82
-63.88
-10.04
2.43
0.88
QUICK ESTIMATES FOR SELECTED MAJOR COMMODITIES
Annex -2
TRADE: Import
Sl.
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(Values in Million USD)
% change
Commodities
Cotton Raw & Waste
Vegetable Oil
Pulses
Fruits & vegetables
Pulp and Waste paper
Textile yarn Fabric, made-up articles
Fertilisers, Crude & manufactured
Sulphur & Unroasted Iron Pyrts
Metaliferrous ores & other minerals
Coal, Coke & Briquettes, etc.
Petroleum, Crude & products
Wood & Wood products
Leather & leather products
Organic & Inorganic Chemicals
Dyeing/tanning/colouring mtrls.
Artificial resins, plastic materials, etc.
Chemical material & products
Newsprint
Pearls, precious & Semi-precious stones
Iron & Steel
Non-ferrous metals
Machine tools
Machinery, electrical & non-electrical
Transport equipment
Project goods
Professional instrument, Optical goods,
etc.
Electronic goods
Medcnl. & Pharmaceutical products
Gold
Silver
Sub-Total
GRAND TOTAL
Apr'13-Feb'14
370.19
6592.22
1713.72
1266.78
702.65
1396.02
6088.34
159.84
7878.80
14828.17
149103.21
4654.94
755.52
16000.53
2198.90
9522.75
4469.95
824.43
21837.42
11623.85
8120.22
2814.75
24884.87
17500.92
4157.77
Apr'14- Feb 15
484.27
8937.45
2419.17
1505.63
868.50
1559.52
6806.06
262.34
8541.45
15967.66
130848.36
5084.75
929.90
17314.48
2275.45
11176.80
5010.18
776.82
20614.28
14905.78
9900.98
2893.63
25900.47
15118.69
3346.88
3236.06
29611.05
4783.28
26133.97
4348.88
3368.54
34091.67
4980.94
29341.90
3962.09
3.93
13.14
3.97
10.93
-9.76
408919.22
411803.65
0.70
Note: The figures for Feb'15 and Apr'14 to Feb'15 are
provisional and subject to change
*********
Apr'14- Feb 15
23.56
26.24
29.16
15.86
19.10
10.48
10.55
39.07
7.76
7.14
-13.95
8.45
18.75
7.59
3.36
14.80
10.78
-6.13
-5.93
22.02
17.99
2.73
3.92
-15.76
-24.23
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE & INDUSTRY
(DEPARTMENT OF COMMERCE)
RAJYA SABHA
UNSTARRED QUESTION NO. 2241
TO BE ANSWERED ON 18TH MARCH, 2015
UNUSED LAND ACQUIRED FOR SEZs
2241. SHRI KIRANMAY NANDA:
Will the Minister of COMMERCE AND INDUSTRY be pleased to state:
a) whether it is a fact that for Special Economic Zones (SEZs) a total of 39,245 hectares of
land was acquired, whereas only 5,402 hectares of land is being used so far by various
States under SEZ programme;
b) if so, the State-wise list of land used and unused;
c) the steps Government wishes to take for unused land under SEZs; and
d) whether Government has any plans to return the unused land under SEZs to respective
farmers?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY
(INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)
(a) to (d): Land is a State subject. Land for Special Economic Zones (SEZs) is made available by
the State Governments as per their respective policy and procedures. State Governments have
been advised that in case of land acquisition for SEZs, first priority should be for acquisition of
waste and barren land and if necessary single crop agricultural land could be acquired for the
SEZs. If perforce a portion of double cropped agricultural land has to be acquired to meet the
minimum area requirements, especially for multi-product SEZs, the same should not exceed 10%
of the total land required for the SEZ. The Board of Approval for SEZs only considers those
proposals, which have been duly recommended by the State Government. Further, the State
Governments have been informed on 15th June, 2007 that the Board of Approval will not
approve any SEZs where the State Governments have carried out or propose to carry out
compulsory acquisition of land for such SEZs after 5th April, 2007. A Statement showing the
State/UT-wise, total notified land area, area utilized and lying vacant in Processing Area of 365
notified SEZs is at Annexure.
The SEZ developers are encouraged to operationalize their respective SEZs at the
earliest. Any denotification of a SEZ is carried out only after the concerned State Government
has given its ‘No Objection’ for the same.
*****
Annexure
States/UT-wise area of notified Special Economic Zones (In hectares)
Sl.
No.
States/UT
Total Area
Notified
Total Area
Utilized
(Upto 13.03.2015)
Area lying
Vacant in
Processing Area
11187.06
4493.96
2213.45
1
Andhra Pradesh
2
Chandigarh
58.46
23.62
34.84
3
Chhattisgarh
101.28
22.04
79.24
4
Goa
249.48
0
249.48
5
Gujarat
12382.83
6818.58
4795.29
6
Haryana
415.49
36.57
293.69
7
Jharkhand
16.42
0
16.42
8
Karnataka
2302.74
841.83
1039.12
9
Kerala
971.99
390.38
455.99
10
Madhya Pradesh
1551.13
209.93
726.96
11
Maharashtra
6579.70
1754.51
3123.52
12
Manipur
10.85
0
10.85
13
Nagaland
340
0
340
14
Odisha
491.08
300.06
191.01
15
Punjab
46.12
8.39
30.92
16
Rajasthan
773.30
136.78
636.51
17
Tamil Nadu
5266.00
2222.85
2795.01
18
Telangana
2048.96
1957.22
469.51
19
Uttar Pradesh
753.92
219.20
476.77
20
West Bengal
235.84
190.71
45.13
45782.64
19626.63
18023.71
TOTAL
**************
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE & INDUSTRY
(DEPARTMENT OF COMMERCE)
RAJYA SABHA
UNSTARRED QUESTION NO. 2246
TO BE ANSWERED ON 18TH MARCH, 2015
CANCELLATION OF LICENCES OF SEZs
2246. SHRI D. RAJA:
SHRI M.P. ACHUTHAN:
Will the Minister of COMMERCE AND INDUSTRY be pleased to state:
a) whether it is a fact that the licences of a number of Special Economic Zones (SEZs) have
been cancelled;
b) if so, the total number of licences approved so far, out of which how many are in
operation and how many are cancelled, since when and owned by whom; and
c) what are the reasons for cancelling the licences and what will happen to the land acquired
for setting up SEZs in each case?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY
(INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)
(a) to (c):
In addition to Seven Central Government Special Economic Zones (SEZs) and 11
State/Private Sector SEZs set-up prior to the enactment of the SEZs Act, 2005, approval has been
accorded to 436 proposals for setting up of SEZs, out of which 347 SEZs have been notified as
on date. Presently, a total of 199 SEZs are exporting.
As on 28th February, 2015, 37 SEZs have been de-notified. Reasons given by developers
for seeking de-notification include economic meltdown, poor market response, non-availability
of skilled labour force, lack of demand for space, changes in fiscal concessions regime for
Special Economic Zones (SEZs) etc.
*****
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE & INDUSTRY
(DEPARTMENT OF COMMERCE)
RAJYA SABHA
UNSTARRED QUESTION NO. 2249
TO BE ANSWERED ON 18TH MARCH, 2015
BIASED IMPORT POLICY OF SOME COUNTRIES TOWARDS
INDIAN EXPORTERS
2249. SHRIMATI JAYA BACHCHAN:
Will the Minister of COMMERCE AND INDUSTRY be pleased to state:
a) whether Government has taken note of the biased import policy of other countries
towards Indian exporters;
b) if so, the details of such countries;
c) whether Government has approached the World Trade Organisation (WTO) or any other
forum against these countries, if so, the details thereof; and
d) whether Government has taken any unilateral action against imports from these countries,
if so, the details thereof?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY
(INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)
(a) to (d)
Government monitors the measures/actions being taken by countries including the
WTO member countries which Government considers as inconsistent with the existing
agreement or otherwise, and take up the matter in the appropriate forum in case the measure
impacts India’s exports. India has taken up such issues either at the bilateral level or multilateral
level (under WTO Committee meetings or the WTO Dispute Settlement System). In the recent
past, India had taken up such matters with the importing countries and had been successful in
such matters to a large extent. A few of them are:(i) Successful negotiation leading to replacement of the inconsistent EU Regulation 1383/2003
by EU Regulation 608/2013 on the issue related to seizure of Indian drugs in transit.
(ii) Result oriented outcome in trade remedial actions such as the withdrawal of safeguard duty
by Turkey on cotton yarn, safeguard duty by Egypt on cotton fabric and cotton yarn etc.
Amongst the major success in recent times, one of them of significant interest is the WTO ruling
in India’s favour is related to a WTO Dispute filed by India against the exorbitant inconsistent
Countervailing Duty (CVD) measures imposed by the United States on certain steel products.
The Government has also initiated and taken measures under Trade remedies discipline on
account of unfair trade, if any, by the exporting country, within the ambit of WTO agreement.
*********
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE & INDUSTRY
(DEPARTMENT OF COMMERCE)
RAJYA SABHA
UNSTARRED QUESTION NO. 2250
TO BE ANSWERED ON 18TH MARCH, 2015
BENEFIT TO RURAL AND AGRO INDUSTRIES FROM SEZs
2250. SHRI P. BHATTACHARYA:
Will the Minister of COMMERCE AND INDUSTRY be pleased to state:
a) whether Government has ascertained the number of rural and agro industries being
benefited from Special Economic Zones (SEZs);
b) if so, the details and the outcome thereof;
c) whether such industries in the SEZs have been able to generate adequate amount of
revenue for Government; and
d) if so, the details thereof indicating the percentage of total revenue generated by the SEZs
from such industries?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY
(INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)
(a) & (b):
Since Special Economic Zones (SEZs) Act, 2005 and Rules, 2006 were notified
in June, 2005 and February, 2006 respectively, formal approvals have been granted for setting
up of 9 SEZs for Agro and Food Processing sector, out of which, 8 SEZs have been notified.
Presently 4 SEZs are exporting.
(c) & (d):
The physical exports from Agro and Food Processing SEZs as on 31st December,
2014 i.e. in the first three quarters of the current financial year 2014-15 have been to the tune of
Rs.676.75 crore having the share of 0.19% to the total physical exports from SEZs.
*****
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE & INDUSTRY
(DEPARTMENT OF COMMERCE)
RAJYA SABHA
UNSTARRED QUESTION NO. 2254
TO BE ANSWERED ON 18TH MARCH, 2015
INCENTIVES FOR PROMOTION OF EXPORTS
2254. SHRI PARIMAL NATHWANI:
Will the Minister of COMMERCE AND INDUSTRY be pleased to state:
the incentives by Government for promotion of exports;
whether there are any tax rebate and/or concessions for increasing exports by the firms;
if so, the details thereof;
the value of rebate provided during the last three years along with the role of the said
rebate in increasing the exports; and
e) the details of the monitoring system in place to ensure proper utilization of the said rebate?
a)
b)
c)
d)
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY
(INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)
(a), (b)&(c):
(i) Exports are supported through various schemes, under Foreign
Trade Policy (FTP), e.g. Vishesh Krishi and Gram Udyog Yojana, Focus
Market Scheme, Market Linked Focus Product Scheme, Focus Product
Scheme, Served from India Scheme. Exporters can also avail duty
free import of capital goods under Export Promotion Capital Goods (EPCG)
scheme and raw materials under Advance Authorisation Scheme.
(ii) As per the Special Economic Zone (SEZ) Act and the rules made
thereunder, SEZ Units and developers are eligible for customs, central
excise and service tax exemption in procuring or importing goods and
services for carrying out authorised operations.
(iii) Under Export Oriented Units Scheme also, the units are eligible for
customs, central excise and service tax exemption on procurement of raw
materials for manufacture of finished goods meant for exports, as also dutyfree procurement of capital goods.
(iv) Duty Drawback is provided to exporters to rebate the duties and taxes
suffered on input/input services used in manufacture of exported goods. The
duty and taxes rebated are Customs Duty, Central Excise Duty and Service
Tax. Duty Drawback is provided either on the basis of All Industry Rate
(AIR) which is an average rate or on the basis of Brand Rate (BR) based on
actual incidence of duty.
(d)
(i)
The details of incentive scrips issued under Foreign Trade Policy are as under:
S. Financial
No.
Year
Incentive scrips issued under Foreign Trade Policy
Vishesh
Krishi
and Gram
Udyog
Yojana
(Duty
Credit
Scrips
issued in
Rs. Crore)
Focus
Product
Scheme
including
Market
Linked
Focus
Product
Scheme
(Duty Credit
Scrips issued
in Rs. Crore)
Focus
Market
Scheme
(Duty
Credit
Scrips
issued in
Rs. Crore)
Served
from India
Scheme
(Duty
Credit
Scrips
issued in
Rs. Crore)
Total
(in Rs.
Crore)
Total
1.
2011-12
2486
3817
1064
1243
8610
2.
2012-13
2849
5319
1693
2004
11865
3.
2013-14
2748
8742
2723
1424
15637
(ii) The details of tax foregone (customs duty and central excise duty, including
rebate) under SEZ scheme are as under:
S. No.
1.
2.
3.
Financial Year
2011-12
2012-13
2013-14
Duty foregone under SEZ scheme(in Rs. Crore)
Customs
Excise
Total
4560
3593
8153
4490
4873
9363
6198
4242
10440
(iii) The details of Duty Drawback (AIR and Brand Rate) disbursed in last 3 years are
as under:
S. No.
Financial Year
Duty Drawback Disbursed (in Rs. Crore)
1.
2011-12
12331
2.
2012-13
17422
3.
2013-14
21799
The benefits provided under various schemes have facilitated the exports from
India and made them more competitive. The export performance during last three years
is as under:
Financial Year
Exports(value in US$ Billions)
2011-12
306.0
2012-13
300.4
2013-14
314.4
(e)
The details of monitoring system in place to ensure proper utilization of the said
rebate/incentive are as under:(i)
(ii)
(iii)
(iv)
Drawback and scrips under FTP are subject to realization of export proceeds,
which is monitored.
Drawback under Brand Rate is fixed after detailed verification of actual duty
incidence.
More than 95% of duty under All Industry Rate is disbursed through electronic
mode. Indian Customs EDI Systems (ICES) has adequate checks and balances in
place to ensure proper disbursal of Drawback claims. Shipping bills, on basis of
which drawback is sanctioned, are subjected to Risk Management System (RMS).
AIR Schedule also prescribes the drawback cap to prevent misutilization by over
valuation.
*****************
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE & INDUSTRY
(DEPARTMENT OF COMMERCE)
RAJYA SABHA
UNSTARRED QUESTION NO. 2256
TO BE ANSWERED ON 18TH MARCH, 2015
DIRECT EXPORT OF RICE BY FARMERS
2256. SHRI BHUPINDER SINGH:
Will the Minister of COMMERCE AND INDUSTRY be pleased to state:
a) whether the Ministry would allow export of rice by farmers directly without any
middleman in between;
b) if so, by when and if not, the reasons therefor; and
c) whether any policy exists on inter-State sale of paddy and rice by the farmers directly and
whether there is any uniform policy for sale of paddy and rice by the farmers anywhere in
the country?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY
(INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)
(a&b) As per foreign trade policy, export of all varieties of rice is free out of privately
held stocks, through custom EDI enabled ports. Export of basmati rice is allowed
subject to registration of contracts with APEDA.
(c)
No uniform policy exists on inter-state sale of paddy/rice, as agricultural
marketing is a state subject.
********
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE & INDUSTRY
(DEPARTMENT OF COMMERCE)
RAJYA SABHA
UNSTARRED QUESTION NO. 2259
TO BE ANSWERED ON 18TH MARCH, 2015
LOWER ELASTICITY OF TRADE TO REAL GDP RATIO
2259. SHRI TIRUCHI SIVA:
Will the Minister of COMMERCE AND INDUSTRY be pleased to state:
a) whether it is a fact that India's elasticity of trade to real GDP has been significantly lower
compared to the world trade over the period 2002-2014 and that it was only India's higher
growth of GDP which caused its share in world trade to grow in the pre-crisis period;
b) the reasons for India's lower elasticity of trade to real GDP ratio; and
c) the details of the suitable interventions by Government, if any, that could be made to
improve this ratio?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY
(INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)
a) & b) The ratio of India’s merchandise trade growth to India’s GDP growth is found to be
higher than the corresponding ratio for the world. As per the data from DGCI&S, CSO, IMF and
WTO for the period 2002 to 2014, India’s average merchandise (export + import) trade growth
rate during 2002-03 to 2013-14 was 21.8% and GDP growth was 7.5%. The average rate of
growth of world trade for the period 2002 to 2013 was 10.3% and average global GDP growth
rate was 4%.
India’s average merchandise (export + import) trade growth rate during 2002-03 to 2007-08 (pre
crisis period) was 24.3 % and GDP growth rate 7.9%. For post crisis period 2008-09 to 2013-14,
average merchandise trade growth has been estimated at 19.3% and GDP growth at 7.2%.
The share of India’s merchandise trade (Export + Import) as percentage of India’s GDP has
increased from 23.57% in 2002-03 to 36.43% in 2007-08, this share further increased to 44.11%
by the year 2013-14.
WTO data shows that India’s share in world merchandise trade increased to 1.58% in 2008 from
0.80% in 2002 (pre crisis period). In the post crisis period, India’s share in world merchandise
trade increased from 1.67% in 2009 to 2.07 % in 2013.
c) The improved trade to GDP ratio can be attributed to an aggressive export promotion strategy
adopted by the Government especially for high value items that have a strong manufacturing
base. The core of present export strategy adopted by the government is to retain presence and
market share in traditional markets, move up value chain in providing export products in
developed countries’ markets; and open up new vistas, both in terms of markets and products in
these new markets. Strengthening efforts to build a brand image for important Indian exports,
and promote a thrust for quality up-gradation.
The Government continuously monitors export performance of different sectors and takes need
based measures, keeping in view the financial and overall economic implications.
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GOVERNMENT OF INDIA
MINISTRY OF COMMERCE & INDUSTRY
(DEPARTMENT OF COMMERCE)
RAJYA SABHA
UNSTARRED QUESTION NO. 2260
TO BE ANSWERED ON 18TH MARCH, 2015
IMPACT OF GOLD IMPORTS ON TRADE DEFICIT
2260. DR. K.V.P. RAMACHANDRA RAO:
Will the Minister of COMMERCE AND INDUSTRY be pleased to state:
a) whether soaring gold imports have pushed up the trade deficit and have offset the cushion
provided by drop in oil prices;
b) if so, how does Government proposes to deal with the situation;
c) whether the yellow metal trade has witnessed a spurt in smuggling as well; and
d) if so, whether it was on account of demand-supply mismatch or new duty on gold
imports?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY
(INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)
(a) & (b) India’s gold imports reached all time high levels of US$ 56.5 billion and
US$ 53.8 billion respectively during 2011-12 and 2012-13, which led to higher trade
deficit of US$ 183.4 billion and US$ 190.3 billion in 2011-12 and 2012-13
respectively. The rise in imports of gold was one of the factors contributing to India's
high trade and current account deficit in 2011-12 and 2012-13. However, as a result
of the various measures taken by the Government and Reserve Bank of India, trade
deficit declined from US$ 190.3 billion in 2012-13 to US$ 135.8 billion in 2013-14.
The Government has also taken a number of initiatives to boost exports and reduce
imports, so as to reduce trade deficit and current account deficit. The Government
gradually increased customs duty on gold from 2 per cent in January 2012 to 10 per
cent in August 2013. The Reserve Bank also put in place the 80:20 scheme for
nominated banks/agencies/entities to rationalize the import of gold in any
form/purity, including import of gold coins/dore into the country. During 2014-15
(April-January), trade deficit increased only marginally by US$ 1.8 billion to
US$ 118.4 billion as against US$ 116.5 billion for the corresponding period of
previous Year. The 80:20 scheme was withdrawn in November 2014. These measures
have helped in reducing trade deficit and CAD in 2013-14 and subsequent quarters of
2014-15.
As regards the oil prices, the monthly average crude oil prices (Indian basket) was
trading at more than US$ 100 per bbl between April 2011 to August 2014. However,
crude oil prices fell sharply from September 2014 and reached US$ 46.6 per bbl in
January 2015. Owing to the fall in crude oil prices the oil import bill also came down,
which has led to lower levels of trade deficit in the current year.
(c ) & (d) Smuggling of Gold or any other commodity/item depends on the demand and
supply mismatch as well as dynamic of the price differential in domestic and
international price.
There are no figures available regarding estimates of smuggled gold, however,
the details of Gold seized by customs, including Directorate of Revenue
Intelligence, during the last three years are as under:
Year
Number of cases
2011-12
2012-13
2013-14
2014-15(Till Jan 15)
503
900
2450
3412
Value of Gold Seized
(Rs. Crores)
43.87
104.62
686.99
931.55
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