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Statement of Activities 2018-19

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Statement of Activities 2018-19 - 2 - - 3 - - 4 - - 5 - - 6 - OVERVIEW April-March 2008-09 to April-March 2017- 18. Introduction A number of concerted steps/measures have I. Global Economic Outlook been taken up for promoting exports. These World Economic Outlook, October 2018, relate to measures for improved trade global growth is projected at 3.7 percent for facilitation and support, including focus on the years 2018 and 2019, 0.2 percentage logistics, trade facilitation, increased points lower for both the years than the April digitization to increase transparency and Forecast. Trade wars between global giants reduce human interface, implementation of have escalated tension such that the forecast GST, skilling, promoting Ease of Dong for 2019 has been revised down due to Business Measures etc. Merchandise exports recently announced trade measures, including have exhibited a rising trend in the post 2015- the tariffs imposed on $200 billion of US 16 period, with merchandise export growth in imports from China. dollar terms of 5.17% and 10.03% in 2016-17 Thus, as per WTO forecasts, World and 2017-18 respectively, despite an adverse merchandise trade volume is expected to global scenario. grow by 3.9% in 2018, accompanied by In spite of a possibility of fresh global global GDP growth of 3.1% at market economic slowdown, Indian exports are on a exchange rates. Trade volume growth is positive growth trajectory with merchandise further projected to slow down to 3.7% in exports likely to breach USD 314 billion 2019 as global GDP growth dips to 2.9%. mark in 2018-19, which were India’s highest II. India’s Trade and Economic merchandise exports recorded in 2013-14. Situation Indian trade scenario for the year2017-18 Merchandise Trade: April-December, exhibits a positive growth scenario. India’s 2018 overall exports (Merchandise and Services Cumulative value of merchandise combined) in 2017-18 were USD 498.61 exports for the period April-December Billion, exhibiting a positive growth of 13.31 2018-19 (QE) was US $ 245.44 Billion per cent over the same period last year. as against US $ 222.77 Billion during Overall exports recorded a Compound Annual the period April-December 2017-18, Growth Rate (CAGR) of 6.16 percent from registering a positive growth of 10.18 7 per cent. Service Trade This growth was mainly on account of India’s service exports reached a level of commodities like Petroleum products US$ 195.10 billion during April-March (42.02%), Electronic Goods (35.84%), 2017-18, registering a positive growth of Plastic & Linoleum (32.05%) and 18.81 percent over previous year. Organic & Inorganic Chemicals Service exports recorded a Compound (25.73%). Annual Growth Rate (CAGR) of 7.02 Cumulative value of merchandise percent from April-March 2008-09 to imports for the period April-December April-March 2017-18. 2018-19(QE) was US $ 386.65 Billion, Net of Services was financing 47.86% as against US $ 343.34 Billion during of the merchandise trade deficit in 2017- the period April-December 2017-18, 18. registering a positive growth of 12.61 In commercial services, India was the per cent in Dollar terms. 9th largest exporter in the world with a This growth was mainly on account of share of 3.4% and the 10th largest commodities like Petroleum, Crude & importer with a share of 3% in 2017. products (42.85%), Machinery, India’s service exports as a percentage electrical & non-electrical (19.81%), of GDP were 8.28 per cent in April- Coal, Coke & Briquettes, etc. (21.56%) March 2017-18(P). and Organic & Inorganic Chemicals Cumulative value of service exports for (21.03%). the period April-Nov 2018-19 (P) was India’s merchandise exports as a US $ 134.56 Billion. percentage of GDP are 12.89 per cent in Cumulative value of service imports for April-March 2017-18(P). the period April-Nov 2018-19 (P) was As per WTO database, in merchandise US $ 82.78 Billion. trade, India was the 20th largest exporter Cumulative value of service Trade in the world with a share of 1.70% and it Surplus for the period Apr-Nov 2018-19 was the 11th largest importer with a (P) is US $ 51.78 billion. share of 2.50% in 2017. 8 Source: DGCI&S Source: RBI 9 Source: DGCI&S Source: DGCI&S Source: DGCI&S 10 The vision of the Agriculture Export Source: DGCI&S Policy is to harness the export potential of Indian agriculture III. Key Initiatives taken by through suitable policy instruments Department of Commerce to and to make India a global power in Improve Export Performance agriculture and raise farmers’ 1. Trade Promotion income. Foreign Trade Policy 2015-20, The recommendations in the Mid-term review notified in Agriculture Export Policy are in two December 2017 categories – Strategic and o Encouraging Exports by Operational: MSMEs and Labour o Strategic include focus on Intensive Industries: FTP policy measures, was aligned with GST. infrastructure and logistics 2. Promoting agricultural exports support and greater Commerce Ministry has formulated involvement of state India’s first ever Agricultural governments in agri exports Export Policy with a focused plan to o Operational aspects will boost India’s agricultural exports to include a focus on clusters, USD 60 billion by 2022 thereby promoting value added assisting the Agriculture Ministry in produce, marketing of “Brand achieving its target of USD 100 of India” etc. billion. 11 3. Enhancing the ease of doing Authorization for import and business for exporters export of restricted items. The Director General of Foreign Trade interface with other agencies (DGFT) has taken several measures (Customs and RBI) is also to strengthen the technology through this EDI system. platform and enhance the ease of o An online view of Shipping Bill doing business for exporters: data, electronically received form o DGFT has upgraded the existing Customs, has been created for all technology hardware across the Shipping Bills issued since board this year. 1.4.2016 for regional offices. o An online grievance redressal Now, the exporters will not service, Contact@DGFT, was require to file physical copy of launched on DGFT website. It is shipping bill for redemption of the single point contact for all EODC. DGFT regional Offices foreign trade related issues of the can use electronically transmitted exporters and importers. In the SB data from Customs for last year, over 60,000 grievances various other purposes also. have been received on this o Exporters can self-generate platform, of which 97% have Importer Exporter Code (IEC) on been addressed. online platform. o DGFT’s EDI system provides o Online auto approval of MEIS facility for online application by benefit has been introduced since exporters-importers for most of September 2018 for 97% of the trade promotion schemes and product lines under MEIS. Now, authorisations – IEC, Advance MEIS applications are system Authorization Scheme, Annual approved and scrips are released Advance Authorization Scheme, within 3 days of the approval. DFIA, EPCG Scheme, Annual o Call centre has been strengthened EPCG Scheme, MEIS, SEIS, a and now all telephone calls FPS, FMS, MLFPS, VKGUY, received on the help desk are SFIS, SHIS, Incremental Export closely monitored. An IVRS Incentivisation Scheme, system has also been deployed. 12 4. Further championing the services to operate under the umbrella sector scheme, that is, the Champion The services sector got a big Services Sector Scheme (CSSS). push when the Union The Screening Committee has Cabinet approved Department of recommended funding proposals for Commerce’s Champion Services sectoral schemes of various nodal Sectors initiative on 28th February, Ministries/Departments under CSSS 2018 to give focused attention to and has earmarked additional funds 12 identified Champion Services for some others. Sectors, namely, IT & ITeS, 5. Revamping the Special Economic Tourism and Hospitality Services, Zone (SEZ) Policy Medical Value Travel, Transport The Baba Kalyani led committee and Logistics Services, Accounting constituted by the Ministry has and Finance Services, Audio studied the existing SEZ policy of Visual Services, Legal Services, India. Communication Services, The objectives of the committee Construction and Related were to evaluate the SEZ policy and Engineering Services, make it WTO compatible, suggest Environmental Services, Financial measures for maximizing utilisation Services and Education services. of vacant land in SEZs, suggest Nodal Ministries/Departments have changes in the SEZ policy based on been identified to prepare sectoral international experience and merge action plans and sectoral schemes the SEZ policy with other for their respective service sectors Government schemes like coastal in consultation with stakeholders economic zones, Delhi-Mumbai and the Department of Commerce industrial corridor, national industrial (DoC). The Cabinet has also manufacturing zones and food and approved a dedicated fund of Rs textiles parks. 5000 Crore to support sectoral The Group submitted it s Report to initiatives of the identified sectors. Hon’ble Minister for Commerce and The sectoral schemes of the nodal Industry on 19.11.2018. An inter- Ministries/Departments is envisaged ministerial consultation was held on 13 26.12.2018 to consult the various The ranking in ‘Trading across stakeholder ministries. The report Borders’ has shown a substantive has been placed in the public domain improvement from 146 in 2017 to 80 till 31.01.2019 for public in 2018. This positive jump is due to consultation. a series of reforms undertaken in the 6. Development of the state-of-the-art past one year. India International Convention and Logistics activities like warehousing, Expo Centre cold chain and MMLP’s have been The Ministry is developing India granted infrastructure status. International Convention and Expo Centre for Logistics & Trade Centre as a world class facility over Facilitation has been created in IIFT an area of 221.37 acres in Sector 25 as a centre for excellence to conduct Dwarka, New Delhi at an estimated research on logistics cost of Rs.
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