Steps To Increase Exports

GOVERNMENT OF INDIA

MINISTRY OF  COMMERCE AND INDUSTRY

UNSTARRED QUESTION NO-2333

ANSWERED ON-14.12.2011

a) whether it is a fact that India''s export growth has slumped;

b) if so, what are the main factors contributing to this situation; and

c) the steps being taken to help increase the exports?

ANSWER

THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY
(SHRI JYOTIRADITYA M. SCINDIA)

(a)to(c)No, Sir. In the current financial year 2011-2012, India’s export has been growing every month as compared to relevant month of the previous year. Diversification of exports is a continuous endeavour and need based measures are taken by the Government from time to time. The Government has recently announced schemes like Special Bonus Benefit Scheme, Special Focus Market Scheme and also included two new markets viz. Cuba and Mexico under the Focus Market Scheme, for further boosting export of Indian products to different markets.

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Increase in Trade Dificit With China

GOVERNMENT OF INDIA

MINISTRY OF  COMMERCE AND INDUSTRY

RAJYA SABHA

STARRED QUESTION NO-203

ANSWERED ON-07.12.2011

a) whether it is fact that trade deficit with China has increased during the last three years;
b) if so, the details thereof and the reasons therefor; and
c) what are the measures before Government for correcting this imbalance?

ANSWER

MINISTER OF COMMERCE AND INDUSTRY
(SHRI ANAND SHARMA)


a) to c): A Statement is laid on the Table of the House.

ANNEXURE

STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (c) OF RAJYA SABHA STARRED QUESTION NO. 203 FOR ANSWER ON 7TH DECEMBER 2011 REGARDING “INCREASE IN TRADE DEFICIT WITH CHINA”

(a)    The trade deficit with China has risen with a dip in the year 2009-10. During the year 2008-09 the trade deficit was US$ 23,144 million. But in the year 2009-10 the trade deficit came down to US$ 19,207 million. The trade deficit during the year 2010-11 was US$ 23,864 million.

(b)    The details of exports to and imports from China during the last three years are given below: -

Bilateral Trade Statistics

(Values in US$ millions)

Year	2008-09	2009-10	2010-11
Exports to China	9,353	11,617	19,615
Imports from China	32,497	30,824	43,479
Trade Deficit	23,144	19,207	23,864

 (Source: DGCI&S)

 Chinese export to India relies strongly on manufactured items meeting the demand of fast expanding sectors like telecom and power in India. Chinese companies supply relevant equipments at most competitive prices. India’s exports are characterized by primary products, raw material and intermediate products. Further there are non-tariff barriers on imports of agricultural products in China as well as limited market access of Indian products.

 (c)    The Government of India has addressed the issue of growing trade deficit at the highest level. At the Ministerial level, we have India-China Joint Group on Economic Relations, Trade, Science and Technology (JEG) where trade related issues are taken up regularly. The Eighth Session of India-China JEG was held on 19th January, 2010 in Beijing. As an outcome of 8th JEG a Memorandum of Understanding on extension of Trade and Economic Cooperation was signed. The MoU recognises that a balanced trade is conducive to long term, sustainable and harmonious development of economic cooperation between the two countries. Indian exporters are encouraged to participate in major trade fairs in China to show-case Indian products in the Chinese market and increase engagement with Chinese companies. Participation of Indian exporters in trade fairs aims to promote Indian products amongst Chinese importers.  With a view to reducing trade deficit, efforts are also being made to diversify the trade basket with emphasis on manufactured goods. We are also pursuing market access issues to tackle non-tariff barriers in the Chinese market at different fora. Business to Business relations are encouraged through schemes such as Market Access Initiative (MAI)/Market Development Assistance (MDA). Apart from these measures the Government of India is alive to the challenges of import surges and various unfair trade practices through available safeguard measures under WTO.


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Criteria For Selective Export Of Rice

MINISTRY OF COMMERCE AND INDUSTRY

 UNSTARRED

QUESTION NO . 1408 

ANSWERED ON 09.03.2011

Will the Minister of COMMERCE AND INDUSTRY be pleased to state :-

(a) what are the criteria applied for identification of rice varieties for selective exports;

(b) what are the varieties of rice that may be allowed for exports;

(c) whether Government is maintaining balance among different regions of the country while selecting the varieties of rice for export;

(d) what is the quantity of rice proposed to be allowed for exports; and

(e) whether this is likely to have any impact on the availability of rice within the country?

ANSWER

THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY
(SHRI JYOTIRADITYA M. SCINDIA)

(a-e) The production of rice is primarily meant for the domestic consumption. However, agricultural products that are in surplus and where their export do not have any adverse impact on the overall food security of the nation are allowed to be exported. India has been a major exporter of Basmati rice and it’s export is allowed subject to a Minimum Export Price(MEP), as decided by Government , from time to time. Currently, the MEP for export of Basmati rice is US $ 900 per Metric Ton. Since April, 2008, export of Non-Basmati rice has been banned. Recently, with sufficient availability of rice in the Central Pool and in view of the demand for some high priced specialty rice by the Indian diaspora, Government has decided to allow export of 1.5 lakh tons of some premium varieties of Non-Basmati rice viz Sona Masuri, Matta and Ponni. Export of high priced Basmati rice and other specialty rice as mentioned above in small quantities do not have any adverse impact on the availability of rice in the country when compared to the total production of rice in the country. 

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Effect Of FTAs With Neighboring Countries

MINISTRY OF COMMERCE AND INDUSTRY

STARRED

QUESTION NO . 30

ANSWERED ON 10.11.2010

Will the Minister of  COMMERCE AND INDUSTRY be pleased to state :- 

(a) the details of Free Trade Agreements (FTAs) entered into with the neighbouring countries and the impact of such agreements on domestic industry;

(b) whether Government has kept any provision for protecting and promoting the domestic industry in FTAs;

(c) if so, the details thereof; and

(d) the mechanism of reviewing FTAs from time to time with the intention of ensuring protection of domestic industry?

ANSWER

MINISTER OF COMMERCE AND INDUSTRY

(SHRI ANAND SHARMA)

a) to d): A Statement is laid on the Table of the House.

S. No	Name of Agreement	Partner Country(s)
1	Asia Pacific Trade Agreement (APTA)	Bangladesh, China, Lao PDR, South Korea, Sri Lanka
2	Global System of Trade Preferences (GSTP)	44 developing countries/least developed countries
3	India-Sri Lanka FTA	Sri Lanka
4	India-Afghanistan PTA	Afghanistan
5	India-Thailand Early Harvest Scheme	Thailand
6	South Asian Free Trade Agreement (SAFTA)	Afghanistan, Bangladesh, Bhutan, Maldives, Nepal, Pakistan, Sri Lanka
7	India-MERCOSUR PTA	Argentina, Brazil, Paraguay, Uruguay
8	India-Singapore Comprehensive Economic Cooperation Agreement	Singapore
9	India-Chile Preferential Trade Agreement	Chile
10	Indi India-Bhutan Agreement on Trade Commerce and Transit	Bhutan
11	India-Nepal Treaty of Trade	N
12	India-Korea Comprehensive Economic Partnership Agreement	South Korea
13	India-ASEAN Free Trade Agreement	Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam

(b) and (c)      Yes. Before deciding on entering into an FTA with any country, a feasibility study is conducted by a Joint Study Group (JSG) comprising of officials from both sides. The JSG examines inter-alia, trade and tariff profiles, issues of complementarities, likely benefits and areas of mutual interests. A considered view on whether to go ahead to an FTA is taken by the Government based on the report of the JSG.

Before commencement of negotiations, extensive studies are undertaken by the Department of Commerce through various academic institutions. Negotiations are done after detailed consultations with industry stakeholders as well as the administrative Ministries and Departments to protect as well as to promote the interests of the Indian industry and agriculture. Representatives from these Ministries and Departments also participate in the negotiations. Protection is provided by way of keeping sensitive items in a negative list on which no tariff concessions are given.

In addition to these measures, all the FTAs have provision for initiating safeguard action. Safeguard measures can be invoked if there is a sudden surge of imports of a particular item from the FTA partner which causes injury to domestic industry. This is done by suspending or withdrawing the tariff concession on that item so that the effect of the preferential treatment is nullified.

(d)       All the FTAs have provision for review after specific periods. During the review process negotiations are held to improve market access as well as to address concerns that may arise in the implementation of the agreement.

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