Statement of Activities 2018-19

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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

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.

Source: DGCI&S

Source: RBI

Source: DGCI&S

 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.

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.

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

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. 25,703 crore.  The work on the National Integrated  The foundation stone for the Project Logistics Action Plan is progressing. was laid by the Prime Minister of Interventions have been identified India on 20th September 2018. for several commodities like coal, Phase-I will be completed by cement, iron ore, steel, food grains, December 2019 and the Phase-II will containers, apples, tomatoes, etc. be completed by December 2024. Once implemented, the logistics 7. Logistics costs for these are likely to reduce by  The Government has recognised that over Rs.20, 000 crore per annum. efficient logistics is an important 8. Infusing transparency in lever to improve competitiveness. procurement through the Government e- Logistics division was set up in Marketplace Department of Commerce in July  Government eMarketplace (GeM) 2018 for integrated development of was set up as the National Public the logistics sector. Procurement Portal in August 2016  India has improved it ranking in for facilitating completely online and World Bank’s Ease of Doing transparent system for procurement Business, 2018, from 100 in 2017 to of goods and services by 77 in 2018. Government organizations.

 In about two years of its formation, leaders acknowledged substantial GeM is already Government’s progress in the negotiations. biggest e-marketplace. Procurement o During the RCEP Ministerial worth more than Rs. 17000 Crores Round meeting on 12-13 has been done through this portal. November 2018, 3 more  More than 31,000 Organization in chapters were concluded, Central Government, State taking the total chapters Government and Public Sector are successfully concluded so far using GeM for their Procurement. to 7 out of 16.  More than 1.75 Lakhs Vendors are  Three think-tanks are being engaged offering over 7 Lakh products and for undertaking comprehensive study services in GeM. on India’s approach to RCEP.  Within a short span of time, GeM ICRIER, CRT and IIM (Bangalore) has transformed the public and CWTOS have been selected for procurement in the country with the purpose. speed, efficiency and transparency 10. Promoting high end research through the paperless, contact less under Indian Institute of Foreign Trade and cash less platform offering end- (IIFT) to end solution.  Centre for WTO Studies: Over the 9. Reforms for strengthening and years, the Centre has conducted a modernising the WTO robust research programme with a  India is engaged in the discussions in series of papers in all spheres of the WTO on the issue of reforms so interest at the WTO. It has also as to make it a more effective body. created a specialized e-repository of With a view to strengthening of important WTO documents, Dispute Settlement Mechanism, especially related to India, in its which is vital to implementation of Trade Resource Centre. the WTO rules, India has co-  Centre for Regional Trade (CRT): It sponsored a proposal with the EU. undertakes research in economics  Second RCEP leaders’ summit was with a focus on trade and investment held on 14th November 2018, where related issues relevant to international cooperation of India

with specific regions and countries, about WTO-compatible Dos including Latin America, Africa, & DO’NTs in this regard, South Asia, ASEAN, China, EU, avoiding poorly defined Japan, Korea and USA. regulations. Efforts are on  The Centre for Trade and anvil to match up to the Investment Law (CTIL): The Centre international best practices aims to create a dedicated pool of with regard to preparation legal experts that who could provide adoption and application of technical inputs for enhancing India's TRs. participation in international trade  Support and Outreach Program for and investment negotiations and MSME Sector launched by Hon’ble dispute settlement. The Centre also Prime Minister aims to be a thought leader in the o MSME Support & Outreach various domains of international Program was launched by economic law such as WTO law, Hon’ble Prime Minister on international investment law and 02.11.2018. Under this legal issues relating to economic program the officers of integration. various central and state 11. Standards and technical government agencies regulations participate and address the  Notifying Technical Regulations financial and other issues of (TRs) to address regulatory gaps MSMEs in the country. o In pursuance of the From Quality Framework Committee of Secretaries point of view, the program (CoS) decision on notifying promotes registration of technical regulations (TRs) to Quality Certificates like ISO- address regulatory gap in 9000 in MSME clusters. The India, and follow up through progress of implementation core group reviews, the pace monitored on the dashboard of notifying TRS has been (www.msmesupport.gov.in) greatly accelerated. on weekly basis. Regulators are informed

o To give further fillip to the  As part of this process, opportunities Quality agenda, Department arising from the reciprocal tariffs of Commerce is organizing imposed mutually by US and China, National and Regional have been focused on in particular. Standards Conclaves in Detailed tariff line wise analysis has coming 100 days. A Special been undertaken for both markets National Standards Conclave and shared with the line Ministries in Mumbai and Regional and the EPCs / big exporters of these Standards Conclave in Uttar products and regular reviews Pradesh, Orissa and undertaken with them. Facilitation Telangana are proposed. through our Missions abroad and 12. Monitoring Trend in Exports visits of businesses as well as inter-  In order to sustain and enhance the ministerial delegations have been existing trend of increase in exports arranged in the relevant sectors. both Merchandise and Services, in Measures have also been initiated for addition to the ongoing facilitation obtaining market access in these and incentivization measures, an markets (especially China), where extensive consultation process has such access to India is at present not been undertaken with exporters, available. The protocol of non- export promotion councils and basmati rice has been finalised and administrative ministries / the first consignment of 100 tonnes departments to finalise the specific was shipped to China on 28.9.2018. action points in each sector to Initiatives have also been taken in address bottlenecks and pursue respect of export of soyabean / export opportunities. Higher priority rapeseed meals, sugar, has been given to action points pharmaceuticals, grapes, milk and which will result in immediate milk products, bovine meat, increase in exports in the next 3-4 pomegranate, corn, maize and months, within this fiscal year. sorghum to China. Progress in quantitative terms is to 13. Trade Infrastructure for Export be regularly tracked in each Scheme (TIES) commodity group.

 The TIES scheme is being of Trade Remedies (DGTR) on May implemented for a period of 3 years 17, 2018 consequent upon w.e.f. F.Y. 2017-18. The objective of amendment carried out by this scheme is to enhance export Government of India (Allocation competitiveness by bridging gaps in of Business) Rules, 1961 on May 7, export infrastructure, creating 2018. The DGTR has been created focused export infrastructure, first by restructuring and re-designating mile and last mile connectivity for DGAD into DGTR by incorporating export-oriented projects and all the trade remedial functions i.e. addressing quality and certification Anti-Dumping &Allied Duties, measures. The main focus is to Safeguards Duty and Safeguards create appropriate infrastructure for Measures (QRs) from DGAD, DG development and growth of exports Safeguards and DGFT respectively, through engagement of Central/State under single window framework. Agencies by extending assistance to The DGTR is a professionally them. The Central Government integrated organization with multi- assistance for infrastructure creation spectrum skill sets emanating from is in the form of grant in-aid, officers drawn from different normally not more than the equity services and specializations. being put in by the implementing  It is the single National authority for agency or 50% of the total equity in administering all trade remedial the project. (In case of projects measures including Anti-Dumping, located in North Eastern States and Countervailing Duties and Safeguard Himalayan States including J&K, Measures. DGTR provides a level this grant can be upto 80% of the playing field to the domestic industry total equity). against the adverse impact of the 14. Directorate General of Trade unfair trade practices like dumping Remedies (DGTR) and actionable subsidies from any  The Directorate General of Anti- exporting country, by using Trade dumping and Allied duties (DGAD) Remedial methods under relevant which was formed in 1997 has been framework of WTO arrangements, restructured as Directorate General Customs Tariff Act & Rules and

other relevant laws and International  Joint meetings with State agreements, in a transparent and time Governments and exporters bound manner. o Under the initiative, 15. Increased Engagement of States Commerce Secretary leads a for Export Promotion team of officials from Dept  Council for Trade Development of Commerce, DGFT, and Promotion Customs, CONCOR and o A Council for Trade concerned ministries to Development and Promotion sensitize the states on the was notified under the need to promote trade related chairpersonship of the Union infrastructure and other Commerce and Industry issues. The meeting with the Minister, in which the Trade State Government officials, & Industry Ministers of all jointly chaired by the the states are members along Commerce Secretary and the with the Secretaries of the Chief Secretary of the State, Central deliberates on the DGCIS Ministries/Departments data on exports from the dealing with infrastructure state, the issues related to and finance and the apex local taxation/levies, power industry associations. The availability, road/rail 1st and 2nd meeting of the connectivity etc as aired by Council was convened on the the local exporters/CHAs. 8.1.16 and 5.1.17 o The initiative by the Ministry respectively. The 3rd meeting of Commerce, Government of the Council was held on of lndia provides the 10th January, 2019 with the exporters with an interactive participation of all platform to articulate the States/UTs. current problems being faced by them with the various regulatory agencies both at the centre and state level.

o As part of this, Commerce in the identified 416 four-digit tariff Secretary has convened such lines and all MSME exporters across joint meetings in Telangana, all their merchandise exports. Thus, Goa, Tamil Nadu, Assam and banks provide loans to eligible Meghalaya during 2018-19. exporters by way of pre and post Other States viz. Madhya Shipment Rupee Export Credit, and Pradesh, Maharashtra, Tamil in respect of exporters covered under Nadu, Gujarat, Rajasthan, the IES, the rate of interest is combined meeting of all the reduced by 3% per annum. This North Eastern States, Andhra helps the identified export sectors to Pradesh, Telangana, be internationally competitive and Karnataka, Chhattisgarh, helps them in achieving a higher Odisha, Uttar Pradesh, West level of export performance. Bengal, Kerala, Himachal  Keeping in view the poor Pradesh, Punjab and Haryana performance of exports from were visited in previous MSMEs and the difficulties faced by financial years. them in accessing loan at 16. Interest Equalization Scheme on competitive rates, as a part of the Pre & Post Shipment Rupee Export MSME package, it has been decided Credit that the MSME exporters would be  The Interest Equalization Scheme given extra push by way of (IES) for pre and post Shipment enhancing interest equalisation rate Rupee Export Credit is being from 3% to 5%, Accordingly, CCEA implemented by the DGFT through in its meeting held on 1.11.2018 has RBI on behalf of the Government. given its approval on increasing the The scheme came into effect from interest equalization rate from 3% to 1.4.2015 and is for a period of 5 5% for exports being made by years. Under the scheme, interest MSME sector under the ongoing equalization @ 3% per annum has Interest Equalization Scheme(IES) been made available to eligible on Pre and post Shipment Rupee exporters which include Export Credit manufacturing exporters for exports

 Further in view of consistent demand rate of 3% on such credit for export by the exporting community to of products covered under 416 tariff include merchant exporters also in lines identified under the scheme. the ongoing scheme, merchant

exporters have also been included

under the Interest Equalisation

Scheme (IES) for Pre and Post Shipment Rupee Export Credit by allowing them interest equalisation

Chapter 1: Organizational Structure and The Department is headed by a Secretary Functions who is assisted by one Special Secretary, one Special Secretary & Financial Adviser, Vision and Mission four Additional Secretaries, Twelve Joint The long-term vision of the Department is to Secretaries and Joint Secretary level officers make India a major player in the world trade and a number of other senior officers. The and assume a role of leadership in the Department is functionally organized into international trade organizations the following 10 Divisions: commensurate with India’s growing  International Trade Policy importance. Division  Foreign Trade Territorial The policy tools being adopted involve Division Strategy focusing on the targeted  Export Products Division  Export Industries Division commodity and country in the medium term  Export Services Division and the Foreign Trade Policy in the long  Economic Division run.  Administration & General Service Division  Finance Division Functions  Supply Division  Logistics Division The Department formulates, implements and monitors the Foreign Trade Policy (FTP) The various offices / organizations under the which provides the basic framework and administrative control of the Department strategy to be followed. The Trade Policy is are: (A) two Attached Offices, (B) ten periodically reviewed to incorporate changes Subordinate Offices, (C) ten Autonomous necessary to take care of emerging economic Bodies, (D) five Public Sector Undertakings, scenarios both domestic and international. (E) one Advisory Body, (F) fourteen Export Besides, the Department is also entrusted Promotion Councils and (G) six Other with responsibilities relating to multilateral Organizations. The broad organizational set and bilateral commercial relations, Special up and major role and functions of the Economic Zones, state trading, export offices / organizations under the promotion and trade facilitation, and administrative control of the Department are development and regulation of certain discussed below: export oriented industries and commodities.

(A) Attached Offices procurement of goods & services required

by Central & State Government (i) Directorate General of Foreign Trade (DGFT) organizations. In view of setting up of GeM

SPV, the Cabinet also approved closure of Directorate General of Foreign Trade DGS&D by 31.10.2017. The process of (DGFT) is an attached office of the Ministry winding up was initiated and all Regional of Commerce and Industry and is headed by Offices/Directorates of DGS&D across India the Director General of Foreign Trade. Right were closed. The closure of DGS&D was from its inception till 1991, when effected on 31.10.2017. liberalization in the economic policies of the

Government took place, this organization (iii) Directorate General of Trade has been essentially involved in the Remedies(DGTR) regulation and promotion of Foreign Trade. The Directorate General of Trade Remedies Keeping in line with liberalization and (DGTR) (earlier known as Directorate globalization and the overall objective of General of Anti-Dumping & Allied Duties) increasing of exports, the DGFT has since is an attached office of the Department of been assigned the role of a "Facilitator". The Commerce, Ministry of Commerce & shift was from prohibition and control of Industry. The Directorate General of Anti- imports/exports to promotion and facilitation Dumping & Allied Duties(DGAD) which of exports/imports, keeping in view the was formed in 1997 has been restructured as interests of the country. DGTR in May 2018 by restructuring and re-

designating DGAD into DGTR by (ii) Directorate General of Supplies and incorporating all the trade remedial Disposals (DGS&D) functions i.e. Anti-Dumping Duty(ADD), Government e-Marketplace- Special Countervailing Duty (CVD), Safeguards Purpose Vehicle (GeM-SPV) Duty(SGD), Safeguards Measures(QRs) The Union Cabinet chaired by the Hon’ble under single window framework. Thus the Prime Minister on 12th April 2017 gave its DGTR has been formed by merging of approval for setting up of a Special Purpose functions of DGAD, D/o Commerce, Vehicle to be called Government e- Directorate General of Safeguards, D/o Marketplace (GeM-SPV) as the National Revenue and Safeguards (QR) functions of Public Procurement Portal under Section 8 DGFT into its fold. The DGTR is a of the Companies Act, 2013, for providing professionally integrated organization with

24 multi-spectrum skill sets emanating from foreign sources, creation of employment officers drawn from different services and opportunities along with the development of specializations. infrastructure facilities. All laws of India are (B) Subordinate Offices applicable in SEZs unless specifically

exempted as per the SEZ Act/Rules. Each (i) Directorate General of Commercial Intelligence and Statistics (DGCI&S) Zone is headed by a Development

Commissioner and is administered as per the The Directorate General of Commercial SEZ Act, 2005 and SEZ Rules, 2006. Units Intelligence & Statistics (DGCIS) is the may be set up in the SEZ for manufacturing, premier organization of Government of trading or for service activity. The units in India for collection, compilation and the SEZ have to be net foreign exchange dissemination of India’s trade statistics and earners but they are not subjected to any commercial information. This Directorate, predetermined value addition except (Gems with its office located at Kolkata, is headed & Jewellery Units) or minimum export by a Director General. It is entrusted with performance requirements. Sales in the the work of collecting, compiling and Domestic Tariff Area from the SEZ units are publishing/disseminating trade statistics and treated as if the goods are being imported various types of commercial information and are subject to payment of applicable required by the policy makers, researchers, customs duties. importers, exporters, traders as well as overseas buyers. It is the first large scale (iii) Pay and Accounts Office (Supply) data processing organization in the country The payment and accounting of the Supply with ISO certification for Compilation and Division, including that of the DGS&D is Dissemination of India’s foreign trade performed by the office of the Chief statistics, which has been upgraded to ISO Controller of Accounts (Supply Division) 9001:2015 in 2017. under the Departmentalized Accounting

(ii) Office of Development Commissioner System, through its Regional Pay and of Special Economic Zones (SEZs) Accounts offices at New Delhi, Kolkata,

The main objectives of the SEZ Scheme is Mumbai and Chennai. Consequent upon the generation of additional economic activity, Union Cabinet’s Decision to close the promotion of exports of goods and services, DGS&D w.e.f. 31.10.2017, the office of the promotion of investment from domestic and CCA(supply) has been discontinued and

25 residual works are now being handled by the preparation of disclosure statements as CCA(Commerce) with the skeletal staff and required under the FRBM Act, Annual 02 PAOs in New Delhi and Kolkata. The Finance Accounts, Estimation & flow of work of the RPAO (Supply), Mumbai and Non-tax Revenue Receipts etc. All the RPAO (Supply), Chennai have been operationalization of the PFMS (EIS, EAT, overtaken by the RPAO(Commerce), Pension, GPF, CDDO Package, NTRP, Mumbai and the RPAO (Commerce), LOA etc.) are being monitored by the CCA Chennai respectively. Office. There is an internal Audit Wing (iv) Pay and Accounts Office (Commerce under the control of the CCA to study the & Textiles) accounting and implementation of

The Pay & Accounts Office, DOC & MOT prescribed procedure with a view to ensure are responsible for the payment of claims, that they are correct & adequate. Pension accounting transactions, consolidation of and GPF Module of PFMS has become accounts and other related matters like operationalized in the Ministry. finalization & payment of pension, revision Supply Division – Two PAOs of Supply of pension with the help of DDO & payment division each at Kolkata and Delhi still in of final GPF cases, loan & advance, Grant in existence to complete the residual works of Aid, maintenance of GPF/CPF, NPS, LSC & vigilance, court cases and revision of PC, etc. through the four Departmental Pension etc. PAOs in Delhi, two each in Kolkata, (C) Autonomous Bodies Mumbai & Chennai. The CCA office coordinates with various entities to facilitate (i) Coffee Board implementation of the PFMS (EAT/DBT). (ii) Rubber Board

These Departmental PAOs are controlled by (iii) Tea Board

Principal Account office at New Delhi with (iv) Tobacco Board the CCA as the head of the Department of (v) Spices Board Accounts Wing. The CCA extends all assistance to the FA in budgeting, (vi) The Marine Products Export Development Authority (MPEDA) monitoring & control of expenditure, in rendering Professional expertise in matters (vii) Agricultural and Processed Food Products Export Development Authority related to Financial Management System, (APEDA)

TRADING CORPORATION LIMITED (viii) Export Inspection Council of India with effect from August 1987 in order to (EIC) widen its marketing base from Cardamom to (ix) Indian Institute of Foreign Trade other range of spices. (IIFT) (ii) MMTC Limited (x) Indian Institute of Packaging (IIP) The MMTC Limited was incorporated in (D) Public Sector Undertakings (PSUs) 1963 as an independent entity primarily to

(i) State Trading Corporation of India deal in exports of minerals and ores and Limited (STC) imports of non-ferrous metals. Over the

The STC was set up on 18th May 1956 years, the MMTC diversified its business primarily with a view to undertake trade portfolio keeping in view national with the East European countries and to requirements and new business opportunities supplement the efforts of private trade and including import and export of various industry in developing exports from the items. Commodities like fertilizers, steel, country. Since then, the STC has played an diamonds, coal & hydrocarbon, bullion, agro important role in country’s economy. It has etc. were progressively added to the arranged imports of essential items of mass portfolio of the company. consumption (such as wheat, pulses, sugar, Subsidiary Company edible oils, etc.) and industrial raw materials The MMTC Transnational Pte. Ltd., into India and also contributed significantly Singapore (MTPL) is a wholly owned in developing exports of a large number of subsidiary company of MMTC and was items from India. incorporated in October 1994 under the laws STCL LIMITED: of Singapore with a share Capital of USD 1

The STCL was originally incorporated in million. Since inception, the company has October 1982 in the name and style as been engaged in commodity trading and has “CARDAMOM TRADING CORPORATION established itself as a credible and reputable LIMITED” as a PRIVATE LIMITED trading company in Singapore. COMPANY under the Companies Act, 1956. (iii) PEC Limited

Consequent to the change of name, the The PEC Limited was incorporated as Company obtained a fresh certificate of subsidiary company of the State Trading incorporation under the name of SPICES Corporation in 1971 as “The Projects and

Equipment Corporation of India Limited”. National Export Insurance Account The name of the Company was changed to (NEIA) PEC Limited on 25th November, 1997. The The National Export Insurance Account main functions of the PEC Limited include (NEIA) is a vital policy instrument that export of projects, engineering equipment enables the Govt. of India to support project and defence equipments, import of bullion exports in the national interest thereby and trading in industrial raw material and enabling creation of sustenance of visible agro commodities. impact on India’s capacity in executing projects abroad. (iv) ECGC Ltd (Formerly Export Credit The NEIA through its cover for project Guarantee Corporation of India Ltd.) exports helps to make Indian project The ECGC is a premier Export Credit exporters more competitive and to gain a Agency (ECA) of the Government of India stronger foothold in regions of national set up in 1957 under the Companies Act strategic interest. 1956, to provide Export Credit Insurance The Government of India established the Services to the Exporters and Banks on a NEIA Trust in 2006 to promote project self- sustainable basis. The covers and exports from India that are of strategic and compensations to beneficiaries- both national importance. exporters and bankers, have provided crucial backing to the overall export achievements (v) India Trade Promotion Organization (ITPO) of the country. The ECGC provides credit insurance covers (popularly known as The India Trade Promotion Organisation ‘Policies’) to exporters to protect them (ITPO) was formed in the year 1992, after against losses due to non- payment of export re-naming of the Trade Fair Authority of dues by overseas buyer due to political India(TFAI) and merging of Trade and/or commercial risks. It also offers Development Authority of India (TDA) with covers (known as Export Credit Insurance the TFAI. The ITPO is a Schedule “B” for Banks- ECIB) to banks to augment/ Miniratna Category-I CPSE under the ensure flow of adequate bank credit to administrative control of the Department of exporters at pre shipment and post shipment Commerce with 100% shareholding by the stages. Government of India. Its Registered and

Corporate Office is at Pragati Bhawan,

Pragati Maidan, New Delhi. The Regional  To advise Government on Policy measures for preparation and Offices of ITPO are located in Mumbai, implementation of both short and Kolkata, Chennai resulting in representative long term plans for increasing exports in the light of emerging participation of trade and industry from national and international different regions of the country in its events economic scenarios; in India and abroad.  To review export performance of various sectors, identify constraints and to suggest (E) Export Promotion Councils (EPCs) industry specific measures to optimize export earnings; At present, there are fourteen Export  To examine existing institutional Promotion Councils (EPCs). The EPCs are framework for imports and exports and to suggest practical registered as non-profit organizations under measures for further streamlining the Companies Act/Societies Registration to achieve desired objectives;  To review policy instruments and Act and perform, both, advisory and procedure for imports and exports executive functions. Roles and functions of and to suggest steps to rationalize those for optimum use; and these Councils are guided by the Foreign  To examine issues which are Trade Policy 2015-20 which also recognizes considered relevant for promotion them as registering authorities for exporters. of India’s trade and for strengthening international competitiveness of Indian goods (F) Advisory Bodies and services.

(i) Board of Trade (BOT) The second meeting of the reconstituted

The Board of Trade (BOT) was Board of Trade was held on 20.06.2017. The reconstituted vide Trade Notice No.21 dated Commerce & Industry Minister during the 23.03.2016 as per mandate given under Para meeting outlined that the export scenario has 300 of Foreign Trade Policy Statement made a turnaround and has shown positive 2015-2020. The objective of the BOT is to growth during the last 8 months as a result have continuous discussion and consultation of several initiatives taken by the with trade and industry. The Board of Trade Department of Commerce; the productive would, inter-alia, advise the Government on outcome of the Trade Facilitation policy measures related to Foreign Trade Agreement where India has been able to Policy in order to achieve the objective of smoothen out several trade barriers affecting boosting India’s trade. The following are the exports; the Department of Commerce has terms of references of Board of Trade: been in continuous interaction with the

Department of Revenue in sorting out the field of Diamond, Gems & Jewellery. several issues of exporters relating to the The IDI is sponsored by the Ministry of GST. Commerce & Industry, Government of India The issues raised by the exporters and & is a project of the Gem & Jewellery organizations during the meeting were Export Promotion Council. The IDI discussed. Record of Discussion (ROD) was conducts vocational educational level circulated to concerned Ministries programmes in the areas of diamond /Departments /Organizations for necessary manufacturing, diamond grading, jewellery action. designing & jewellery manufacturing, gemmology thereby covering entire (G) Other Organizations spectrum of Gems & Jewellery education

(i) Federation of Indian Export under one roof. The Institute, as a Organizations (FIEO) knowledge provider to the re-skilling

The Federation of Indian Export programmes launched by the Organisations (FIEO), set up in 1965 and GJEPC, upgrade/impart the skill to registered as an Export Promotion Council 315 small/medium diamond/jewellers under the Societies Registration Act XXI of manufacturers in interior parts of Gujarat. 1860, is the apex body for export promotion. The IDI is also recognized as an Anchor The organisation is headquartered in Delhi Institute-Gems & Jewellery by Industries and has its Regional Offices in Delhi, Commissionerate, Government of Gujarat. Mumbai, Chennai and Kolkata. The (iii) Footwear Design & Development managing committee of the FIEO consists of Institute (FDDI) representatives of the EPCs and the The Footwear Design and Development Commodity Boards, the APEDA, the Institute (FDDI) was set-up by the Ministry MPEDA etc. of Commerce and Industry, Government of (Details are given in Chapter 5) India in the year 1986 for development and (ii) Indian Diamond Institute (IDI) promotion of footwear and allied product The Indian Diamond Institute (IDI) was industries. established in 1978 under the Society The FDDI, a premier Institute having the Registration Act, 1860 and also under the status of ‘Institution of National Importance’ Bombay Public Trust Act, 1950, with a as per FDDI Act, 2017, serves as a ‘One focus to provide a vocational education in

30 stop solutions provider’ in footwear, leather Commerce and the NABARD to implement and allied industry. the Price Stabilization Fund Scheme and operate the Corpus Fund. As per the (iv) National Centre for Trade provisions of the scheme, interest earned on Information (NCTI) the Corpus was utilized for implementing The National Centre for Trade Information the scheme, keeping the Corpus Fund (NCTI) is under process of winding up and undisturbed. The scheme was closed on don’t have any activities during the year 30.9.2013. 2018-19.

(v) Price Stabilization Fund Trust (PSFT) (vi) India Brand Equity Foundation (IBEF)

The Department of Commerce launched a The India Brand Equity Foundation (IBEF) Price Stabilization Fund (PSF) Scheme in is a trust established by the Department of April 2003 for a period of 10 years to Commerce, Ministry of Commerce and compensate small growers of Rubber, Tea, Industry, Government of India. The IBEF’s Coffee and Tobacco all over the country for primary objective is to promote and to create losses caused by price fluctuations. With international awareness of Brand India in the approval of CCEA, a Corpus Fund was overseas markets and to facilitate set up in the year 2003 with Government of dissemination of knowledge about Indian India’s contribution of Rs. 432.88 crores and products and services. Towards this growers’ contribution of Rs. 2.67 crores objective, the IBEF works closely with (Total Rs. 435.55 crores) to implement the stakeholders across government and scheme. Price Stabilization Fund Trust industry. (PSFT) was set up in September, 2003 for a period of ten years by the Department of

Chapter 2: Emerging Global Economic but subpar in some emerging market and Realities and India developing economies, especially for per Global Economy: capita growth, including in commodity As per World Economic Outlook, IMF exporters that continue to face substantial (October 2018), global growth is projected fiscal consolidation needs or are mired in at 3.7 percent for the years 2018 and 2019 war and conflict. (0.2 percentage point lower for both years In the first half of 2018, aggregate growth in than forecast in April). According to IMF, the emerging market and developing global growth for 2018–19 is projected to economy group stabilized. Emerging Asia remain steady at its 2017 level, but its pace continued to record robust growth, is less vigorous than projected in April and it reinforced by a domestic demand-led pickup has become less balanced. Downside risks to in the Indian economy from a four-year-low global growth have risen in the past six pace of expansion in 2017, even as activity months and the potential for upside surprises in China moderated in the second quarter in has receded. The downward revision reflects response to regulatory tightening of the surprises that suppressed activity in early property sector and nonbank financial 2018 in some major advanced economies, intermediation (IMF, 2018). Higher oil the negative effects of the trade measures prices lifted growth among fuel-exporting implemented or approved between April and economies in sub-Saharan Africa and the mid-September, as well as a weaker outlook Middle East. The recovery in Latin America for some key emerging market and continued, though at a more subdued pace developing economies arising from country- than anticipated as tighter financial specific factors, tighter financial conditions, conditions and a drought weighed on growth geopolitical tensions, and higher oil import in Argentina and a nationwide truckers’ bills. Beyond the next couple of years, as strike disrupted production in Brazil. output gaps close and monetary policy settings begin to normalize, growth in most Global financial markets have been driven advanced economies is expected to decline mainly by rising policy rates in the US, to potential rates well below the averages volatile crude oil prices and expectations of reached before the global financial crisis of a slowdown compared with earlier a decade ago. Medium-term prospects projections (RBI, 2018). As mentioned by th remain generally strong in emerging Asia RBI in its 5 bimonthly Monetary policy

33 statement, the equity markets in the US As per the current rankings, India is the 20th witnessed a selloff on the weakening largest exporter (with a share of 1.7%) and outlook for corporate earnings caused by 11th largest importer (with a share of 2.5%) rising borrowing costs, while the European of merchandise trade in the world. China is stock markets got affected by political the top ranked exporter and United States of uncertainties. The Japanese stock market America (USA) is the first largest importer also shed gains on global cues and the of merchandise trade in the world. In gradual strengthening of the yen. The Commercial Services India is the 9th largest economic situation in euro area was affected exporter (with a share of 3.4%) and 10th by concerns regarding Brexit and economic largest importer (with a share of 3.0%). situation in Italy. USA is the top exporter as well as the top importer of commercial services trade in the Global Trade Situation: world. As per World Trade Organization (WTO), world merchandise trade volume is forecast India’s Economic and Trade Situation: to grow 3.9% in 2018, accompanied by As per first Advance estimates by CSO, the global GDP growth of 3.1% at market growth in GDP during 2018-19 is estimated exchange rates. Trade volume growth is at 7.2 percent as compared to the growth further projected to slow down to 3.7% in rate of 6.7 per cent in 2017- 18. As per IMF, 2019 as global GDP growth dips to 2.9%. Indian economy is projected to grow at the Rising trade tensions pose the biggest risk to rate of 7.3% and 7.4% in 2018 and 2019 the forecast, but monetary policy tightening respectively. and associated financial volatility could also The sectors which registered growth rate of destabilize trade and output. Trade-related over 7.0 percent are, ‘Electricity, Gas, Water indicators show a loss of momentum, Supply and Other Utility Services’, including global export orders and economic ‘Construction’, ‘Manufacturing’, 'Public policy uncertainty. North America had the Administration, Defence and Other fastest export growth and Asia had the Services’. The growth in the ‘Trade, Hotels, strongest import growth in the first half of Transport, Communication and Services 2018 while resource-based economies still related to Broadcasting’, 'Financial, Real struggled. Estate and Professional Services', ‘Agriculture, Forestry and Fishing’ and

‘Mining and Quarrying’, is estimated to be better performance in the six indicators — 6.9 per cent, 6.8 per cent, 3.8percent and 0.8 starting a business, construction permits, percent respectively. getting electricity, getting credit, trade across borders, enforcing contracts — out of India’s Merchandise Trade: Cumulative ten indicators that are used to define the value of exports for the period April- ranking in the Doing Business Report. December 2018-19 was US $ 245.44 Billion According to World Bank’s assessment, as against US $ 222.77 Billion during the India is among the top ten economies whose period April-December 2017-18, registering improvement in the ranking of ease of a positive growth of 10.18 per cent in Dollar starting and doing business has been stable terms. Cumulative value of imports for the of late. period April-December 2018-19 was US $ 386.65 Billion, as against US $ 343.34 As per Doing Business 2019, some Billion during the period April-December initiatives towards India has focused on 2017-18, registering a positive growth of streamlining business processes. There are 12.61 per cent in Dollar terms. Cumulative several initiatives under National Trade value of Trade deficit for the period Apr- Facilitation Action Plan 2017-2020 that Dec 2018-19 (P) is US $ 141.20 billion as improved the efficiency of cross-border against US $ 120.57 billion during Apr-Dec trade, reducing border and documentary 2017-18. compliance time for both exports and imports. India also invested in port Recent Global Economic Issues and India equipment, strengthened management and A) Ease of Doing Business: improved electronic document flow. By As per the Doing Business 2019, World implementing the Single Window Clearance Bank, India ranks at 77th (an improvement System in Delhi and the Online Building of 23 places from 100th in 2017) among the Permit Approval System in Mumbai during 190 countries in the year 2018. For the same the second half of 2017, India also continued year, New Zealand tops the list of 190 to streamline and centralize its construction countries in ease of doing business, followed permitting process. Regarding getting by Singapore, Denmark, and Hong Kong. electricity, newly-adopted regulations from The United States ranks 8th and China is at the Delhi Electricity Regulatory 46th, and Pakistan is placed at 136. India’s Commission require that electrical improvement in the ranking is due to the connections be completed within 15 days of 35 the application’s acceptance. To comply reflects higher supplies and easing of with this regulation, Tata Power Delhi geopolitical tensions. The decline in crude Distribution deployed more personnel as oil prices is expected to boost India’s growth well as tracking tools and key performance prospects by improving corporate earnings indicators to monitor each commercial and raising private consumption through connection. higher disposable incomes. The Monetary Policy Committee (MPC) noted that the B) Oil Price Scenario: benign outlook for headline inflation is Among emerging market and developing driven mainly by the unexpected softening economies, the growth prospects of many of food inflation and collapse in oil prices in energy exporters have been lifted by higher a relatively short period of time. The MPC oil prices, but growth was revised down for also noted that even as escalating trade Argentina, Brazil, Iran, and Turkey, among tensions, tightening of global financial others, reflecting country-specific factors, conditions and slowing down of global tighter financial conditions, geopolitical demand pose some downside risks to the tensions, and higher oil import bills (WEO, domestic economy, the decline in oil prices October,2018). in recent weeks, if sustained, will provide International crude oil prices have declined tailwinds (Fifth Bi-monthly MPC, 5th Dec, sharply since the last policy; the price of 2018 RBI). Indian crude basket collapsed to below US$

60 a barrel by end-November, 2018 after touching US$ 85 a barrel in early October, 2018. The sharp decline in crude oil prices

Chapter 3: Trends in India’s Foreign got impacted, India’s Merchandise exports fell Trade in 2014-15 and 2015-16 to 1.29% and 15.48%, respectively. However, through India’s Trade Performance concerted efforts related to facilitation and

India’s merchandise exports reached a level of support, including improved logistics, US$ 303.53 billion during April-March 2017- digitization, skilling etc., the government 18, registering a positive growth of 10.03 was able to arrest the downturn affecting percent over previous year. Despite the India, and merchandise exports saw a setback faced by India’s export sector due to rising trend in the post 2015- 16 period, global slowdown, merchandise exports which saw merchandise export growth of recorded a Compound Annual Growth Rate 5.17% and 10.03% in 2016-17 and 2017-18, (CAGR) of 5.64 percent from April-March respectively in the face of an adverse global 2008-09 to April-March 2017-18. scenario. In the period April to December After 2013-14 the global slowdown (QE) 2018-19 exports continue to grow, and accentuated and even economies like China increased by 10.18%.

Data Source: DGCIS, Kolkata and 7.4 percent in 2019. The world output World Trade Scenario growth is projected at 3.7 per cent for both In latest forecast made by IMF, in its World 2017 and 2018. While the advanced Economic Outlook (WEO) Update, October, economies are expected to grow at 2.4 2018, India’s growth is expected to increase percent and 2.1 per cent in 2018 and 2019 to 7.3 percent in 2018 respectively, growth of emerging and 38 developing economies is projected at 4.7 per valued at US $ 52.58 billion in the cent for both 2018 and 2019. corresponding period of previous year. Non- The growth in world trade volume has oil imports were valued at US $ 268.79 increased in 2017 to 5.2 per cent from 2.2 billion during Apr-Nov 2018-19 (P) which per cent in 2016; it is expected to decrease was 8.07 per cent higher than non-oil import to 4.2 per cent in 2018 and to 4.0 per cent in of US $ 248.73 billion in previous year. 2019. Trade Balance As per the April 2018 Press Release of WTO April 2018, in merchandise trade, The Trade deficit in April-March 2017-18 is India is the 20th largest exporter in the world estimated at US $ 162.06 billion which was with a share of 1.70 per cent and the 11th higher than the deficit of US $ 108.51 largest importer with a share of 2.50 per cent billion during April-March 2016-17. in 2017. Cumulative value of trade deficit for the period April-December 2018-19 (QE) was Exports US $ 141.20 billion as against US $ 120.57 billion during April-December 2017-18.

Cumulative value of exports for the period

April-December 2018-19 (QE) was US $ 245.44 billion as against US $ 222.77 billion, registering a positive growth of 10.18 per cent over the same period last year.

Import

Cumulative value of imports for the year April-March 2017-18 is US $ 465.58 billion as against US $ 384.36 billion during the corresponding period of the previous year registering a positive growth of 21.13 per cent. Cumulative value of imports for the period April-December 2018-19(QE) was

US $ 386.65 billion as against US $ 343.34 billion over the same period last year, registering a positive growth of 12.61 percent.

Oil imports were valued at US $ 80.00 billion during Apr-Nov 2018-19 (P) which was 52.15 per cent higher than oil import

Table A: Trade Data for period 2008-09 to 2018-19 (P) (Values in Rs Crore) S. No Year Exports %Growth Imports %Growth Trade Balance 1 2008-2009 840,755 28.19 1,374,436 35.77 -533,680 2 2009-2010 845,534 0.57 1,363,736 -0.78 -518,202 3 2010-2011 1,136,964 34.47 1,683,467 23.45 -546,503 4 2011-2012 1,465,959 28.94 2,345,463 39.32 -879,504 5 2012-2013 1,634,318 11.48 2,669,162 13.8 -1,034,844 6 2013-2014 1,905,011 16.56 2,715,434 1.73 -810,423 7 2014-2015 1,896,348 -0.45 2,737,087 0.8 -840,738 8 2015-2016 1,716,384 -9.49 2,490,306 -9.02 -773,921 9 2016-2017 1,849,434 7.75 2,577,675 3.51 -728,242 10 2017-2018 1,956,515 5.79 3,001,033 16.42 -1,044,519 April-December 2017-18 1,436,614 2,214,371 -777,757

April-December 2018-19 (QE) 1,711,906 19.16 2,697,307 21.81 -985,401

Source: DGCI&S

Table B: Trade Data for period 2008-09 to 2018-19 (P) (Values in USD Million)

S.No Year Exports %Growth Imports %Growth Trade Balance 1 2008-2009 185295 13.59 303696 20.68 -118401 2 2009-2010 178751 -3.53 288373 -5.05 -109621 3 2010-2011 249816 39.76 369769 28.23 -119954 4 2011-2012 305964 22.48 489319 32.33 -183356 5 2012-2013 300401 -1.82 490737 0.29 -190336 6 2013-2014 314405 4.66 450200 -8.26 -135794 7 2014-2015 310338 -1.29 448033 -0.48 -137695 8 2015-2016 262291 -15.48 381008 -14.96 -118717 9 2016-2017 275852 5.17 384357 0.88 -108505 10 2017-2018 303526 10.03 465581 21.13 -162055 April-December 2017-18 222,767 343,339 -120,572

April-December 2018-19 (QE) 245,444 10.18 386,648 12.61 -141,203

Source: DGCI&S

Data Source: DGCIS, Kolkata

Exports by Principal Commodities:

Exports of the top 10 commodities during the period Apr-Nov 2018-19 (P) have a share of 47.76 per cent and the detailed contributions given in the pie chart below.

Data Source: DGCIS, Kolkata

The export performance (in terms of growth) of top 10 commodities during Apr-Nov 2018-19 (P) vis-a- vis the corresponding period of the previous year is shown below

Data Source: DGCIS, Kolkata Imports of Principal commodities Imports of the top 10 Principal commodities during the period Apr-Nov 2018(P) have share of 58.94% mainly due to significant imports of Petroleum Crude, Gold, Petroleum Products. Pearl, Precious, Semi- precious Stones and Coal, Coke and Briquettes etc. The share of top 10 Principal commodities in India’s total imports during Apr-Nov 2018(P) is given in the pie chart below.

Data Source: DGCIS, Kolkata

The import performance by growth of top 10 principal commodities during 2017-18 (April-Nov) Vis-à- vis the corresponding period of the previous year is shown below.

Data Source: DGCIS, Kolkata

Direction of India’s Foreign Trade Share of major destinations of India’s Export and sources of Import during Apr-Nov 2018-19 (P) are given in the pie charts below

Data Source: DGCIS, Kolkata

In the context of exports, during the period Apr-November 2018 (P), USA (15.94%) has been the most important country of export destination followed by UAE (9.30%), China P RP (5.12%), Hong Kong (4.03%) and Singapore (3.31%). In the context of imports, during the period Apr-November 2018 (P), share of China P RP stood highest at (16.49%) followed by USA (5.62%), UAE (4.86%), Saudi Arabia (4.64%), and Switzerland (4.38%).

Data Source: DGCIS, Kolkata

Chapter 4: Foreign Trade Policy and through its various schemes serves the EXIM Trade objective of neutralization of duty incidence, encourage technological up gradation and

provides promotional measures to boost I. Introduction India’s exports with the objective to offset infrastructural inefficiencies and associated The Five-year Foreign Trade Policy (FTP) costs involved in order to provide exporters 2015-20 released on 01.04.2015 provides a a level playing field. framework for increasing exports of goods and services. With the release of the Foreign The FTP has been suitably modified to Trade Policy (FTP) 2015-20, FTP. incorporate the relevant GST provisions. Statement, Handbook of procedures, II. Foreign Trade Policy 2015-20 Appendix and Aayat-Niryat forms were also released on 01.04.2015. Handbook of Foreign Trade Policy Statement procedures notifies the procedure to be The Foreign Trade Policy Statement followed by an exporter or importer or by explains the vision, goals and objectives the licensing/Regional Authority or by any underpinning the Foreign Trade Policy for authority for purpose of implementing the the period 2015-2020. It describes the provisions of Foreign Trade (Development market and product strategy envisaged and and Regulation) Act, Rules and Orders the measures required not just for export issued under the provisions of Foreign Trade promotion but also for the enhancement of Policy. The procedure contains the the entire trade ecosystem. following documents: - It is the first comprehensive statement on the (a) Hand Book of Procedures. government priorities in the Foreign Trade (b) Appendices & Aayat Niryat Sector. For improving foreign trade Forms and performance it is necessary to develop a (c) Standard Input Output Norms broader frame work that provided the scope (SION) for coordinating with a number of administrative ministries. Through the FTP The FTP for 2015-2020 seeks to provide a statement the overall thinking on external stable and sustainable policy environment sector have been articulated, first its spells for foreign trade in merchandise and out the government strategy for addressing services; link rules, procedures and some of the structural and institutional incentives for exports and imports with other institutes which are the relevance for initiatives such as “Make in India”, “Digital improving the performance of Foreign Trade India”, “Skills India” and “ease of doing Sector. Secondly, it states the ways in business” to promote the diversification of which the government would make trade India’s export basket by helping various and economic integration agreement with sectors of the Indian economy to gain global trade partners and would work better for competitiveness. The Foreign Trade Policy Indian enterprises. Foreign Trade Policy has

taken ‘whole of government’s approach’. intervention under a system Through FTP the government has taken a authenticated mechanism for most major ‘path breaking’ initiative that the HS Codes of the MEIS schedule was department has taken to main stream States, launched and has been running Union Territories and various departments successfully since Sept 2018. of government of India in the process of Further, a facility has been international trade. incorporated in the module, so that the authorization can be tracked by The FTP introduces two new schemes, the exporter. namely “Merchandise Exports from India  A new Risk Management System has Scheme (MEIS)” for export of specified been developed to scrutinize cases goods to specified markets and “Service under MEIS based on HS Codes Exports from India Scheme (SEIS)” for rather than random selection and is increasing exports of notified services. under implementation by the field offices of DGFT. Merchandise Exports from India Scheme  MEIS benefits to some agricultural (MEIS) products such as Bengal Gram, Milk The Merchandise Exports from India and Milk Products, Soya de-oiled Scheme (MEIS) has been introduced in the cake and Non-Basmati rice have Foreign Trade Policy (FTP) 2015-20 on been provided for a limited period in April 1, 2015 with the objective to offset year 2018-19 to boost the agriculture infrastructural inefficiencies and associated sector. costs involved in exporting goods/ products which are produced/ manufactured in India. Services Exports from India Scheme The Scheme incentivizes exporters in terms (SEIS) of Duty Credit Scrips at the rate 2, 3, 4, 5 Under the SEIS, there are rewards on Net and 7, 10 and 20% of FOB value of exports foreign exchange earnings, to service realized. These scrips are transferable and providers of notified services who are can be used to pay certain Central providing service from India to the rest of Duties/taxes including customs duties. The the World, in the form of Duty Credit scrips Scheme covers exports of 8057 tariff lines. which are transferable and can be used to The total annual financial envelope available pay certain Central Duties/taxes including for MEIS for Financial Year 2018-19 is Rs customs duties. In the Mid-term review of 30,819.91 cr. The total amount of benefits the FTP, the rates for all these services have granted in 2018-19 (upto 26.11.2018) was been further increased by 2% for exports about Rs 24,901 cr. from 01.11.2017, leading to additional annual incentive of Rs 1,140 crore. The total Initiatives taken for "Ease of Doing financial envelope for SEIS is Rs 2,640 Business" under MEIS Cr in 2017-18.  The online e com module to grant MEIS benefit without any manual

A new application form for exporters to to upload all documents required under the apply under SEIS scheme was notified vide ANF 3B. Public Notice 15 dated 28.06.2018, which The following table shows the details of does away with unnecessary fields. The issuance of scrips under MEIS and SEIS online module for SEIS based on the new along with value of scrips and FOB value of form has also been launched, with a facility exports during 2017-18 and Apr-Nov 2018:

Export Promotion Schemes 2017-18 Apr-Nov 2018

Number of Scrips 2,18,402 1,98,344 Merchandise Value of Scrips (Rs. Crore) Exports from India 25,994.22 25,350.90 Scheme (MEIS) FOB value of Exports (Rs. Crore) 9,78,286.29 8,22,056.99

Number of Scrips 5,569 3,799 Service Exports Value of Scrips (Rs. Crore) from India Scheme 3,475.05 2,338.52 (SEIS) FOB value of Exports (Rs. Crore) 15,87,378.86 5,76,145.31

III. Other Export Promotion Schemes (iv) Incremental Export Incentive Scheme, under earlier Foreign Trade Policies (v) Served From India Scheme and (vi) Status Holder Incentive Scrip (SHIS). The details of issuance of scrips under various Scrips are also issued under various schemes export promotion schemes along with value viz. (i) Focus Product Scheme (FPS), (ii) of scrips and FOB value of exports during Focus Market Scheme (FMS), (iii) Vishesh 2017-18 and Apr-Nov 2018 is given in the Krishi and Gram Udyog Yojna (VKGUY), following table:

Export Promotion Schemes 2017-18 Apr-Nov 2018

Number of Scrips 2,044 654

Focus Market Scheme Value of Scrips (Rs. Crore) 163.92 59.95 (FMS) FOB value of Exports (Rs. 1,786.70 Crore) 4,951.61

Number of Scrips 6,142 2,230 Focus Product Scheme Value of Scrips (Rs. Crore) 293.00 (FPS) 371.79 FOB value of Exports (Rs. 15,985.10 14,565.38

Crore)

Number of Scrips 484 85 Vishesh Krishi & Value of Scrips (Rs. Crore) 3.23 Gram Udyog Yojna 15.33 (VKGUY) FOB value of Exports (Rs. 73.13 Crore) 331.04

Served From India Number of Scrips 751 234 Scheme (SFIS) Value of Scrips (Rs. Crore) 308.54 95.17

Status Holder Number of Scrips 61 9 Incentive Scrip (SHIS) Value of Scrips (Rs. Crore) 36.84 6.02

Incremental Export Number of Scrips 519 137 Incentivisation Scheme (IEIS) Value of Scrips (Rs. Crore) 114.00 52.16

Figure 4.1 depicts the number of scrips issued under various export promotion schemes during 2017-18 and Apr-Nov 2018.

Figure 4.2 depicts the value of scrips issued under various export promotion schemes during 2017-18 and Apr-Nov 2018.

Figure 4.3 depicts the FOB value of export under various export promotion schemes during 2017-18 and Apr-Nov 2018.

IV. DUTY REMISSION SCHEMES replenishment either for the inputs used or the duty component on inputs used. Brief of Duty neutralization / remission schemes are these schemes are given below: based on the principle and the commitment of the Government that “Goods and Services Advance Authorization Scheme are to be exported and not the Taxes and Levies”. Purpose is to allow duty free import Advance Authorization Scheme allows duty / procurement of inputs or to allow free import of inputs, along with fuel, oil,

and catalyst etc., required for manufacturing Advance Authorizations issued prior to the export product. Inputs are allowed either 5.6.2012 under foreign trade Policy 2009- as per Standard Input Output Norms (SION) 14. Request for extension of Export or on adhoc Norms basis under Actual User obligation period was required to be filed in condition. Norms are fixed by Technical respective RAs, on or before 31.3.2018. Committee i.e. Norms Committee. This facility is available for physical exports (also In compliance of Self Ratification including supplies to SEZ units & SEZ Scheme provided in Para 4.07A of FTP Developers) and deemed exports including 2015-20, a detailed procedure for availing intermediate supplies. Minimum value the Scheme has been added in HBP 2015- addition prescribed is 15% except for certain 2018 as Para 4.07A Ratification Scheme. items. Exporter has to fulfill the export Advance Authorization for Annual obligation over a specified time period, both Requirement can also be issued where Ad quantity and value wise. The facilities to hoc norms exist for the resultant product. club authorizations were simplified and One time relaxation in conditions of powers decentralized to RAs. Certain items Appendix -30A and Appendix-4J for which are prohibited for export have been regularization and issue of EODC for allowed for export under advance exports made prior to imports where authorization scheme, subject to stipulated Advance Authorisation issued for import of conditions. Natural Rubber and Silk has been granted.

In FTP 2015-2020, (i) a longer Duty Free Import Authorization (DFIA) export obligation (EO) period of 24 months has been provided for export items falling in Under DFIA Scheme operational from the category of defense, military store, 01.05.2006, Duty Free Import Authorization aerospace and nuclear energy instead of the shall be issued on post export basis for normal 18 months under the advance products for which Standard Input Output authorization scheme. A list of military Norms (SION) have been notified, once stores requiring NOC of Department of export is completed. One of the objectives of Defence Production has been separately the scheme is to facilitate transfer of the notified. (ii) Imports against Advance authorization or the inputs imported as per Authorisation shall also be eligible for SION, after exports are completed. exemption from Transitional product Provisions of DFIA Scheme are similar to Specific Safeguard Duty. One time Advance Authorization scheme. A minimum relaxation is provided for Clubbing of value addition of 20% is required under the advance Authorizations issued during scheme. For items where higher value foreign trade policy 2002-07 and foreign addition has been prescribed under Advance trade policy 2004-09. One time relaxation is Authorization in Appendix, the same value also provided for extension of export addition shall be applicable for DFIA also. obligation period of Advance authorizations Pre-export DFIA has been discontinued in issued under Foreign Trade Policy 2002-07, FTP 2015-2020. Foreign Trade Policy 2004-2009 and

Export of white sugar under DFIA  Replenishment Authorisation for has been allowed under SION-E 52 till Gems 30.09.2018 and DFIA in such cases shall  Replenishment Authorisation for be issued only on or after 01.10.2019. Such Consumables DFIAs shall be valid for imports till  Advance Authorisation for Precious 30.09.2021. metals

Schemes for Gems & Jewellery Sector In view of demand raised by the industry, Gems & Jewellery exports constitute a the Findings like posts, push backs, locks major portion of our total merchandise which help in collating the jewellery pieces exports. It is an employment oriented sector. together, containing gold of 3 carats and Exports from this sector suffered above up to a maximum limit of 22 carats significantly on account of the global have also been allowed under duty economic slowdown. exemption scheme.

Duty free import / procurement of precious Issuance of Authorization under Duty metal (Gold / Silver / Platinum) from the Remission Schemes nominated agencies is allowed either in advance or as replenishment. Duty Free Authorizations are issued under the various Import Authorisation Scheme shall not be schemes, viz., Advance Authorization, Duty available for Gems and Jewellery Sector. Free Import Authorization (DFIA) and The Schemes for Gems and Jewellery Sector Replenishment License (Gems & Jewellery). are as follows: Details of number of authorizations issued,  Advance Procurement/replenishment CIF value of imports and FOB value of of Precious Metals from Nominated exports under various schemes during 2017- Agencies 18 and April-Nov 2018 are given in the following table:

Duty Remission Schemes 2017-18 April-Nov 2018

Number of Authorization 21,505 15,241 Advance CIF Value of Imports (Rs.Crore) 1,29,269.06 Authorization 1,79,242.63 FOB Value of Exports (Rs.Crore) 3,00,914.89 2,55,052.64 Number of Authorization 870 Duty Free Import 815 Authorization CIF Value of Imports (Rs.Crore) 2,246.90 2,551.22 (DFIA) FOB Value of Exports (Rs.Crore) 3,047.40 4,247.98

Replenishment Number of Authorization 63 78

License (Gem & CIF Value of Imports (Rs.Crore) 59.22 58.15 Jewellery) FOB Value of Exports (Rs.Crore) 667.68 960.02

Figure 4.4 depicts the number of authorizations issued under various export promotion schemes during 2017-18 and Apr-Nov 2018.

Figure 4.5 depicts the CIF value of import under various export promotion schemes during 2017-18 and Apr-Nov 2018.

Figure 4.6 depicts the FOB value of export under various export promotion schemes during 2017-18 and Apr-Nov 2017.

Figure 4.7 depicts the percentage share of various schemes in issuance of total number of scrips during Apr-Nov 2018. It shows that the highest share of 96.52% scrips was issued under MEIS during Apr-Nov 2018.

V.Export Promotion of Capital Goods (d) Second hand capital goods are not (EPCG) Scheme permitted to be imported under EPCG Scheme. The objective of the EPCG Scheme is to facilitate import of capital goods for (e) List of capital goods not permitted/ producing quality goods and services to permitted for import, subject to enhance India’s export competitiveness. specific conditions, under the EPCG The EPCG Scheme allows import under of Scheme has been notified vide Public capital goods at Zero customs duty subject Notice No.47/2015-20 dated to an export obligation equivalent to 6 times 06.12.2018. of duties, taxes and cess saved on capital (f) The scheme also requires maintenance goods, to be fulfilled in 6 years reckoned of average level of exports achieved by from date of issue of Authorization: the exporter in the preceding three (a)EPCG Scheme allows import of capital licensing years for the same and goods for pre-production, similar products within the overall production and post-production at export obligation period including zero customs duty. Capital goods extended period, except for certain imported under EPCG specified sectors/ products as listed Authorization for physical exports under para 5.13 of Handbook of are also exempt from IGST and Procedures. Compensation Cessupto31.3.2019 (g) The scope of the EPCG scheme is also only, leviable there on under the extended to a service provider who is subsection(7)and subsection(9) designated / certified as a Common respectively, of section Service Provider (CSP) by the DGFT, 3oftheCustoms TariffAct,1975 (51of Department of Commerce or State 1975),as provided in the Industrial Infrastructural Corporation notification issued by Department in a Town of Export Excellence of Revenue. Alternatively, the subject to provisions of Foreign Trade Authorization holder may also Policy/Handbook of Procedures with procure Capital Goods from the following conditions:- indigenous sources in accordance with provisions of paragraph (i) Export by users of the 5.07ofFTP common service, to be counted towards fulfilment of (b) Import of capital goods for Project EO of the CSP shall contain Imports notified by Central Board of the EPCG authorisation Excise and Customs is also permitted details of the CSP in the under EPCG Scheme. respective Shipping bills and (c) Authorisation is valid for import for concerned RA must be 24 months from the date of issue of informed about the details of Authorisation. Revalidation of EPCG the Users prior to such Authorisation shall not be permitted. export;

(ii) Such export will not count completion of import, to the towards fulfilment of specific concerned RA, a certificate from export obligations in respect the jurisdictional Customs authority of other EPCG or an independent Chartered authorisations (of the Engineer, at the option of the CSP/User); and authorisation holder, confirming (iii) Authorisation holder shall be installation of capital goods at required to submit Bank factory/premises of authorization Guarantee (BG) which shall holder or his supporting be equivalent to the duty manufacturer(s). The RA may allow saved. BG can be given by one time extension of the said period CSP or by any one of the for producing the certificate by a users or a combination maximum period of 12 months with a thereof, at the option of the composition fee of Rs.5000/-. Where CSP the authorisation holder opts for (iv) Guidelines for designating independent Chartered Engineer's /certifying a Common Service certificate, he shall send a copy of the Provider (CSP) by DGFT, certificate to the jurisdictional Department of commerce or Customs Authority for State Industrial Infrastructure intimation/record. The authorization Corporation in a town of holder shall be permitted to shift Export Excellence under capital goods during the entire export Para 5.02 (b) FTP 2015- obligation period to other units 2020. mentioned in the IEC and RCMC of (h) A person holding an EPCG the authorization holder subject to authorisation may source capital production of fresh installation goods from a domestic certificate to the RA concerned within manufacturer. Such domestic six months of the shifting." manufacturer shall be eligible for (j) In the case of import of spares, the deemed export benefit under installation certificate shall be paragraph 7.03 of FTP and as may be submitted by the Authorization holder provided under GST Rules under within a period of three years from the the category of Deemed Exports. date of import. Such domestic sourcing shall also be permitted from EOUs and these (k) EPCG Authorisation is issued with a supplies shall be counted for single port of registration as per purpose of fulfillment of positive paragraph 4.37 of HBP, for imports. NFE by said EOU as provided in However, exports can be made from Para 6. 09 (a) of FTP. any port specified in paragraph 4.37 of HBP. (i) Authorization holder shall produce, within six months from date of

(l) Specific EO in respect of export of filing an application in ANF5A with the RA Green Technology Products is 75% of concerned by selecting the option for this the normal EO as mentioned in the Scheme. All applicable duties shall be paid Para 5.10 of FTP. The list of Green in cash by the exporter at the time of Technology products is given in Para import of Capital Goods. RA shall issue an 5.29 of HBP 2015-20. Authorization specifying (m) For units located in J&K, North (i) “Not for imports” on the body of the Eastern Region including Sikkim, Authorization specific EO shall be 25% of the EO as (ii) Average EO, if any stipulated in Para 5.01 of FTP. (iii) Specific EO @85%of the applicable (n) Import of Capital Goods is subject to specific EO, computed as if the Actual User Condition till EO is imports were to take the benefit of duty completed. exemption and

(iv) EOP, which shall commence from the Post Export EPCG Duty Credit Scrip(s): Authorisation issue date Exporters can exercise this option by

Details of EPCG authorizations are given in the table as follows:

Issuance under Export Promotion Capital Goods Scheme

EPCG Scheme 2017-18 Apr-Nov 2018

Number of Authorization 15,406 8,662

Duty saved Amount (Rs. Crore) 11,839.18 10,677.65

FOB value of Export (Rs. Crore) 73,051.20 65,248.47

Figure 4.8 depicts the number of authorizations issued under various export promotion schemes along with duty saved amount and FOB value of export during 2017-18 and Apr- Nov 2018.

internationally competitive and helps them in achieving a higher level of export VI. Interest Equalization Scheme on Pre performance. During 2017-18, a sum of Rs & Post Shipment Rupee Export Credit 2752 crore was disbursed for providing The Interest Equalization Scheme (IES) for interest subvention under the scheme. pre and post Shipment Rupee Export Credit is being implemented by the DGFT through VII. Status Holders Recognition RBI on behalf of the government. The scheme came into effect from 1.4.2015 and All exporters of goods, services and is for a period of 5 years. Under the scheme, technology having an importer-exporter interest equalization @ 3% per annum has code (IEC) number are eligible for been made available to eligible exporters recognition as a Status Holder, which which include manufacturing exporters for depends upon export performance in the exports in the identified 416 four digit tariff current year plus last three years (except for lines and all MSME exporters across all Gems and Jewellery Sector. The current their merchandise exports. Thus, banks threshold to cross for getting One Star provide loans to eligible exporters by way of Export House status is USD 3 Million in pre and post Shipment Rupee Export Credit, current plus last three years. The Foreign and in respect of exporters covered under Trade Policy 2015-20 provides for certain the Interest Equalization Scheme, the rate of privileges and preferential treatment and interest is reduced by 3% per annum. This priority in handling of consignments of helps the identified export sectors to be Status holders by the concerned agencies.

Also, a shortened time line of one day for 4 persons have participated in programmes and 5 star status holders and 2 days for 1, 2 conducted under C1 (New IEC holders), C2 and 3 star status holders has been stipulated (Town of excellence/Industrial clusters)C3 for regional authorities to issue advance (Seminars at Business Schools/Universities) authorizations to status holders and for its of Niryat Bandhu Scheme. subsequent amendments, if any. IX. New Initiatives in DGFT Manufacturers who are also Status Holders 1. DGFT EDI system facilitates the have been enabled to self-certify their export and import community in its various manufactured goods as originating from interfaces with the department. DGFT has India with a view to qualify for preferential set up a secured EDI & IT system for treatment under different Preferential applying for IEC, various Foreign Trade Trading Agreements [PTAs], Free Trade Policy Schemes, specific import and export Agreements [FTAs], Comprehensive authorizations etc. It has established data Economic Cooperation Agreements exchange mechanisms with other [CECAs] and Comprehensive Economic administrative departments, namely, Partnerships Agreements [CEPAs], which Customs, Banks, CBDT and EPCs. are in operation. There are 1507 IEC Holders who have been given a Status 2. DGFT has implemented the Holder Certificate, One Star and following activities during the current above during 2017-18. financial year:- (i) Implementation of automated VIII. Niryat Bandhu Scheme issuance of IEC. The Government of India had (ii) Implementation of a ticketing and conceptualized the Niryat Bandhu Scheme management system for ,as part of its Foreign Policy (FTP) on 13th complaints/queries/suggestions October, 2011 which was incorporated in ‘Contact@DGFT’ . the FTP 2009-2014 as a novel scheme for (iii) Implementation of eMPS for mentoring the first generation entrepreneurs. electronic fee payments. The objective of the Scheme is to reach out (iv) Launch of CMF based revamped to the new and potential exporters and DGFT Portal. mentor (hand holding) them through (v) Automated issuance of MEIS scrips. orientation programs, counseling sessions (vi) Implementation of SEIS module for and individual facilitation so that they may 2017-18. get into international trade and boost exports (vii) Centralized issuance of SCOMET from India through timely and appropriate Licences from DGFT(HQ) to reduce guidance of DGFT officers. delays. (viii) Development of Android and iOS Total allocation of funds for the year 2018- based Mobile App for DGFT. 19 was 100 lakhs and out of which 50.47 (ix) Risk Management System for lakhs has been allocated to various Regional automatic issuance of IEC & MEIS. Authorities till 19.12.2018. So far, 3843

(x) Shipping Bill view feature for held on 05.12.2017 and has been notified Shipping received from ICEGATE. accordingly. The appendices and Aayat (xi) Centralized view for Norms Niryat Forms have also been updated and Committees status for exporters. notified vide Public Notice no. 36/2015-20 (xii) Centralized report for issuance and and Public Notice 37/2015-20 both dated pendency. 04.09.2018.

3. Further, the procedure pertaining to refund of CST/TED/DBK has been simplified during the review of FTP 2015-20

Chapter 5: Export Promotion Mechanism including J&K, this grant can be upto 80% of the total equity). Infrastructure Support Total Scheme outlay is Rs. 600 Cr. with STATES CELL: annual outlay of Rs. 200 cr. An outlay of Rs. The State Cell deals with creation of export 80 Cr has been provided under this scheme infrastructure through the “Trade during the financial year 2018-19. Out of Infrastructure for Export Scheme (TIES)” Rs. 80 Cr, a sum of Rs. 19.977 Cr. has been and engagement with states in promotion of sanctioned/allocated for 5 projects (as on exports. 30.11.2018). During, FY 2017-18, RE of Rs. 80 cr. under was allocated for 15 export “Trade Infrastructure for Export Scheme (TIES)” infrastructure projects. Mapping of assets created under The TIES scheme is being implemented for erstwhile ASIDE Scheme: a period of 3 years w.e.f. F.Y. 2017-18. The Under TIES, Price waterhouse Coopers objective of this scheme is to enhance export Private Limited (PwC) has been engaged as competitiveness by bridging gaps in export the Project Monitoring Agency (PMA). As infrastructure, creating focused export per Terms of Reference, PMA is carrying infrastructure, first mile and last mile out the mapping of assets created under connectivity for export-oriented projects and erstwhile ASIDE Scheme. So far, mapping addressing quality and certification of approx.. 139 projects has been completed measures. The main focus is to create by PMA. appropriate infrastructure for development and growth of exports through engagement Mapping of Infrastructure gaps related to of Central/State Agencies by extending exports in States: assistance to them. The Central Government One of the Terms of Reference of PwC was assistance for infrastructure creation is in the to map the infrastructure gaps related to form of grant in-aid, normally not more than exports in States. As part of this, PMA is the equity being put in by the implementing carrying out the the assessment of export agency or 50% of the total equity in the infrastructure gaps of 6 States viz. Gujarat, project. (In case of projects located in North Andhra Pradesh, Telangana, Uttar Eastern States and Himalayan States Pradesh, Tamil Nadu and Assam in the Phase – I.

STEPS FOR INCREASED concerned ministries to sensitize the states ENGAGEMENT OF STATES FOR on the need to promote trade related EXPORT PROMOTION infrastructure and other issues. The meeting 1. COUNCIL FOR TRADE with the State Government officials, jointly DEVELOPMENT AND PROMOTION: chaired by the Commerce Secretary and the Chief Secretary of the State, deliberates on A Council for Trade Development and the DGCIS data on exports from the state, Promotion was notified under the the issues related to local taxation/levies, chairpersonship of the Union Commerce and power availability, road/rail connectivity etc Industry Minister, in which the Trade & as aired by the local exporters/CHAs. The Industry Ministers of all the states are possible implications of the various members along with the Secretaries of the international agreements on the export Central Ministries/Departments dealing with basket of the State are also discussed so that infrastructure and finance and the apex the States can plan the development of the industry associations. The 1st and 2nd industry. During the interaction the state meeting of the Council was convened on the responds on their plan of action to tackle the 8.1.16 and 5.1.17 respectively. the 3rd various bottlenecks. meeting of the Council is being held on 10th January, 2019 with the participation of all This meeting with state government is States/UTs. usually followed or preceded by a meeting with the exporters/freight-forwarders/CHAs The issues raised by the State Govts during from the state. The open house session the 1st/2nd and 3rd meeting were taken up focuses on bottlenecks being faced by with the concerned and attempts made to exporters including logistics bottlenecks. resolve them. The Council provides the This provides a forum for a large section of states with a platform to articulate their the exporting fraternity to interact directly views on the Trade Policy. with the Commerce Secretary and the heads 2. JOINT MEETINGS WITH of the local regulatory departments to plan STATE GOVERNMENTS AND their expansions. The initiative by the EXPORTERS: Ministry of Commerce, Government of lndia Under the initiative, Commerce Secretary provides the exporters with an interactive leads a team of officials from Dept of platform to articulate the current problems Commerce, DGFT, Customs, CONCOR and being faced by them with the various

regulatory agencies both at the centre and So far, Export Strategy for seventeen state level. The interactive sessions are States namely Chhattisgarh, Tamil Nadu, having a huge participation as the exporters J&K, Assam, Tripura, Gujarat, Haryana, of the state have this exclusive platform to Manipur, Puducherry, Uttar Pradesh, discuss specific issues. Madhya Pradesh, Jharkhand, Mizoram, Nagaland, Meghalaya, Chandigarh, Odisha As part of this, Commerce Secretary has has been prepared. Export Strategy of 8 convened such joint meetings in Telangana, more States viz. Andhra Pradesh, Karnataka, Goa, Tamil Nadu, Assam and Meghalaya Delhi, Goa, Uttarakhand, Bihar, Arunachal during 2018-19. Other States viz. Madhya Pradesh, and Telangana is being prepared by Pradesh, Maharashtra, Tamil Nadu, Gujarat, FIEO under MAI Scheme of this Rajasthan, combined meeting of all the Department. Rajasthan is preparing its North Eastern States, Andhra Pradesh, Export Strategy on its own. Some of the Telangana, Karnataka, Chhattisgarh, Odisha, remaining states have engaged organizations Uttar Pradesh, West Bengal, Kerala, like IIFT etc for preparing export strategy. Himachal Pradesh, Punjab and Haryana were visited in previous financial years. Export Promotion Councils (EPCs)

3. STATE SPECIFIC EXPORT At present, there are fourteen Export STRATEGIES: Promotion Councils (EPCs), as mentioned

State Governments are being encouraged to below, under the Department of Commerce. formulate state specific export strategies to The EPCs are registered as non-profit develop and identify items with export organizations under the Companies potential and promotion thereof. The States Act/Societies Registration Act and perform have also been requested to include both advisory and executive functions. Roles promotion of organic cultivation, promotion and functions of these Councils are guided of standards & certification, promotion of by the Foreign Trade Policy 2015-20 which services exports and improvement in export also recognizes them as registering infrastructure & logistics as an integral part authorities for exporters. of their export strategy. Federation of Indian Export Organisations (FIEO) Status of Development of Export Strategy by the State Governments :

The Federation of Indian Export barriers to trade (TBT) measures of 87 Organisations (FIEO), set up in 1965 and countries. The FIEO also has a monthly registered as an Export Promotion Council bulletin ‘FIEO News’ and a weekly e- under the Societies Registration Act XXI of bulletin ‘INTRADE Update’ which keeps 1860, is the apex body for export promotion. exporters posted with weekly global The Organisation is headquartered in Delhi developments affecting International Trade. and has its Regional Offices in Delhi, The FIEO provides e-platform to Mumbai, Chennai and Kolkata. The buyers/sellers through large network of Managing Committee of FIEO consists of members and non-members, and also representatives of EPCs and Commodity organises Trade Fairs and Exhibitions across Boards, APEDA, MPEDA etc. the globe.

The FIEO serves as a platform for The FIEO has signed over 95 Memoranda of interaction amongst more than 26,000 Understanding (MOU) with leading member exporters and policy makers and is chambers across the globe to provide instrumental in the promotion of exports. commercial information and marketing The key objective of FIEO is to provide an support to its members. integrated package of services to various Market Access Initiative (MAI) Scheme organizations connected with export The Market Access Initiative (MAI) Scheme promotion. In the Foreign Trade Policy, the is an export promotion scheme, formulated FIEO is designated as Registering Authority to act as a catalyst to promote India’s for status holder exporting firms and exports on a sustained basis. Under the exporters dealing in multiple products. It scheme assistance is provided to the Export also issues Certificate of Origin (Non- Promotion Councils, Commodity Boards Preferential) which is required by many and Apex Trade Bodies. There are also countries as proof of origin of goods. provisions for supporting individual The FIEO is maintaining and updating the exporters (for product registration and Indian Trade portal testing charges for engineering/ (www.indiantradeportal.in). The trade pharmaceuticals/ chemicals/ agro-chemicals portal now covers Most Favoured Nation products etc. abroad). The scheme was last (MFN) rates, preferential tariff and Sanitary revised in February, 2018. The broad and Phytosanitary (SPS) and technical objectives of funding under MAI are:

 To display and promotion of India’s Assistance under MAI Scheme is capabilities as provider of world granted through Export Promotion Councils class goods and services. and Apex Trade Organization for various  To project India as an attractive sourcing destination. activities covered under the Scheme. The  To create a strong Brand Image for approval process of proposals involve India. scrutiny through the Committee empowered  To facilitate exporters /Industry Bodies to participate in major events under the Scheme. abroad in identified markets to create During the year 2018-19, 277 projects an impact of Indian Goods and have been approved for receiving assistance Services.  To facilitate exporters to get under the scheme. exposure to new/ potential markets and access information on global trade. Year-wise status of MAI allocation/release for last 10 years is as under: -

Year wise Status of MAI Allocation/Releases (₹ in Crore) Year Outlay Expenditure 2014-15 199.99 199.99 2015-16 224.99 224.99 2016-17 220.51 200.51 2017-18 213.25 213.25 2018-19 249.99 178.23 (as on 07.12.2018)

Major Events supported under MAI support during 2018-19

S. No. Region Council Date 1 Global Exhibition on Services (GES) CII / SEPC May, 2018 International Pharma & Healthcare Exhibition 2 Pharmexcil May, 2018 (IPHEX 2018) 3 Advantage Healthcare India FICCI/SEPC December, 2018 4 India Engineering Sourcing Show EEPC March, 2018 5 Indus Food TPCI January, 2019 6 ASEAN- India Expo and Summit FICCI February, 2019

7 India International Jewellery Show (IIJS) G&J EPC August, 2018 8 INDEE COLUMBIA 2018 EEPC September, 2018 Hong Kong Jewellery & Gem Fair, Hong 9 G&J EPC September, 2018 Kong 10 India Carpet Expo Carpet EPC October, 2018 11 Domotex, Germany Carpet EPC January, 2019 12 Arabplast, UAE Plastic EPC January, 2019

Gems & Jewellery  Vicenza Oro 2018 held in Italy from The Gem & Jewellery Export Promotion 19th-24th January 2018 Council (GJEPC), the apex trade body of the  Jewellery & Watch Birmingham Indian gems and jewellery industry has 2018 held in Birmingham from 4th - completed 52 glorious tears of its existence 8th February 2018 this year. It has approximately 6790  Inhorgenta 2018 in Munich from 16th members as on 30th November 2018. The - 19th February 2018 gems and jewellery manufacturing sector is  Hong Kong International Diamond, India’s leading foreign exchange earning gem & Pearl Show 2018 in Hong sector. Exports of gems and jewellery from Kong from 27th February – 3rd March India during the fiscal year April- October 2018 2018-19 registered a performance of US$  Hong Kong International Jewellery 24259.51 million registering a marginal Show 2018 in Hong Kong from 1st- decline of 1.63%. This sector contributes to 5th March 2018 about 12.73% of the country’s total  Basel World 2018 in Basel, merchandise exports. It consists of large Switzerland from 22nd – 27th March number of SME units, employing skilled 2018 and semi-skilled labour, almost entirely in  Carats + 2018 in Antwerp, Belgium the unorganized sector. from 6th -8th May 2018  JCK Las Vegas Show 2018 in Las During the year 2018-19 (till November), st th the Gem and Jewellery Export Promotion Vegas, USA from 1 - 4 June 2018 Council (GJEPC) participated in the  Hong Kong Jewellery & Gem Fair following exhibitions in India and abroad: from 21st -24th June 2018

 Singapore International Jewellery  Banking Summit on 11th May 2018 Expo in Singapore from 26th – 29th in Mumbai July 2018  1st India Australia Jewellery Buyer  September Hong Kong Jewellery & Seller Meet from 7th -9th August Gem Fair from 12th- 16th September 2018 in Mumbai 2018  35th edition of India International  Vicenza Oro Fall 2018 in Italy from Jewellery Show from 9th -13th 22nd- 26th September 2018 August, 2018 in Mumbai  VOD Dubai International Jewellery  India Diamond Week (Loose Show in Dubai from 14th – 17th Diamonds) from 20th -23rd August November 2018 2018 in New York, USA  Jewellery Arabia 2018 in Behrain  1st edition of India Silver Buyer from 20th – 24th November 2018 Seller Meet from 3rd-5th October 2018 in New Delhi In addition to the above, GJEPC  India International Diamond week organised the following activities in 2018- (Loose Diamonds) from 23rd -25th 19: October 2018 in Mumbai  1st India Rough Gemstone Show  2nd edition of India Gold and from 8th-10th January 2018 in Jaipur Jewellery Summit from 23rd-24th  IIJS Signature and IGJME from 10th- November 2018 in New Delhi 13th February 2018 in Mumbai Common Facility Centre (CFC):  Seminar on Design Inspiration from Inaugurated the 3rd Common Facility Center 13th -14th February 2018 in Mumbai at Amreli, 11th March 2018. The work for th  India Gemstone Week from 15 - th the 4 CFC at Junagadh in Gujarat has been 17th April, 2018 in Jaipur completed and will be inaugurated soon.  3rd edition of Diamond Detection Special Notified Zone for consignment Expo and Symposium from 23rd-25th import of rough diamonds April, 2018 in Mumbai  3rd edition of India SAARC Middle The SNZ is starting its 4th year of operations East Buyer Seller Meet from 29th and has been conducting operations very April 1st May 2018 in Hyderabad successfully over the last 3 years. All the major mining companies of the world are

regularly conducting their viewings. It has Council for Leather Exports received a very good response from the About Leather Industry Indian diamond industry and has been  The Leather Industry holds a especially beneficial to the MSME’s with prominent place in the Indian average no. of visitors per viewing at 202 economy. This sector is known for and average no. of companies per viewing at its consistency in high export 80. Since its inauguration in December earnings and it is among the top ten 2015, more 577 days have been utilized for foreign exchange earners for the viewings at IDTC-SNZ with an average country. The export of leather and occupancy of more than 55% which is huge leather products reached a value of if we compare it to similar setups around the US$ 5.74 billion during 2017-18. world. The SNZ has received bookings from  The Leather industry is bestowed mining companies till December 2019 with an affluence of raw materials as which shows their commitment to the India is endowed with 20% of world project. More than 16,000 visitors have cattle & buffalo and 11% of world crossed the doors of the SNZ till date. By goat & sheep population. Added to volume almost 9 million carats of rough this are the strengths of skilled diamonds of a total value of whopping USD manpower, innovative technology, 1.5 billion dollars has been displayed in increasing industry compliance to IDTC - SNZ since its inception. Foreign international environmental Mining Companies viz. ALROSA - Russia, standards, and the dedicated support De Beers - UK, Rio Tinto - Australia, of the allied industries. Dominion Diamonds Corp - Canada and  The leather industry is an Okavango Diamond Company (ODC) - employment intensive sector, Botswana who totally accounts for 85% of providing job to about 4.42 million total production of rough diamonds people, mostly from the weaker worldwide have offered their diamonds for sections of the society. Women viewings and 737 unique Indian diamond employment is predominant in manufacturing/trading companies from leather products sector with about across India have participated in the viewing 30% share. sessions.

Export Performance footwear with retail sale price upto Export of leather and leather products from Rs.500/-. India showed a positive growth of 1.65% during 2017-18, after registering a negative growth of -9.84% and -3.23% during 2015- Footwear Design and Development 16 and 2016-17 respectively. Institute Footwear Design and Development GOODS AND SERVICES TAX Institute (FDDI) was set-up by the

- As per decisions taken in the 28th Ministry of Commerce and Industry, GST Council meeting held on July Government of India in the year 21, 2018, the following measures 1986 for the development and were announced. promotion of Footwear and Allied - GST reduction on Slide Fasteners Product Industries. and Parts of Slide Fasteners (used as FDDI, a premier Institute having the inputs) from 18% to 12% w.e.f. 27th status of ‘Institution of National July 2018. Importance’ as per FDDI Act, 2017, - Extension of GST exemption for serves as a ‘One stop solutions Services by way of transportation of provider’ in footwear, leather and goods by an aircraft from Customs allied industry. Station of clearance in India to a FDDI has been playing a pivotal role place outside India and Services by in facilitating Indian industry by way of transportation of goods by a bridging skill gaps in the areas of vessel from Customs Station of footwear, leather, fashion, retail and clearance in India to a place outside management. FDDI has been India from Sept. 30, 2018 to Sept. functioning as an interface between 30, 2019. the untapped talent and industry and - 5% concessional GST extended to its global counterparts, by fulfilling footwear having a retail sale price up the demand of skilled manpower to Rs. 1000 per pair w.e.f. 27th July with its specific curriculum, state of 2018. Prior to this extension, the 5% the art laboratories, world class concessional duty was available for infrastructure and experienced faculty.

FDDI provides skill-based education located at Noida, Fursatganj, and trainings by conducting long- Chennai, Kolkata, Rohtak, term programmes (UG & PG) and Chhindwara, Guna, Jodhpur, short term (Certificate) Ankleshwar, Banur, Patna and programmesthrough its campuses Hyderabad.

Sr. No. Bachelor Degree Programmes Master Degree Programmes (M. (Duration 4 Years) Des.) (Duration 2 Years) 1. B. Des. (Footwear Design & Production) M. Des. (Footwear Design & Production) 2. B. Des. (Leather Goods and Accessory MBA (Retail & Fashion Design) Merchandise) 3. Bachelor in Retail & Fashion Merchandise M. Des. (CAD)

4. B. Des. (Fashion Design)

The Institute has remarkable global Major activities/ events undertaken recognition in the area of Training & during the year: Consultancy due to its relevance to 1. FDDI, Hyderabad campus inaugurated the dynamic workplace environment, by Mr. Suresh Prabhu, Hon’ble Minister unique & innovative content and of Commerce & Industry, Government of delivery mechanism and high India acceptance in the industry / academia The newly constructed building of the worldwide. It has crossed national Hyderabad campus of FDDI which has been boundaries and created a niche for established by the Department of itself in the area of training and Commerce, Government of India was consultancy in Asian countries like inaugurated on 5th July 2018 by Hon’ble Bangladesh, Sri Lanka and many Minister of Commerce & Industry, African countries like Ethiopia, Government of India, Mr. Suresh Prabhu in Botswana, Nigeria, South Africa, etc. the august presence of Mr. Boora NarsaiahGoud, Member of Parliament.

Hon'ble C&IM, Mr. Suresh Prabhu cutting the ribbon and inaugurating the FDDI Hyderabad Campus

The state-of-the-art campus has a capacity to Paramilitary Forces;anti-riot shoes train 700-750 students and ensures with PU-rubber sole for Paramilitary international standards of training and high Forces (RAF);shoes derby black with end support services to the Industry in the PU-rubber sole for State Police domain of Footwear & Leather Products Department;full rubber knee/ankle Design Technology, Retail Management and boots for Paramilitary Forces;& light Fashion Merchandise. weight, anti-skid, anti 2. UP-GRADATION & penetrationcombat boots for Indian DEVELOPMENT OF Army have been carriedout by the STANDARDS UNDER THE Footwear Sectional Committee ‘MAKE IN INDIA – 2.0’ (MII) (CHD-19): Panel-1 of Bureau of PROGRAMME: Indian Standards (BIS). Further, a New Standard (IS- FDDI, under the ‘Make in India – 2.0’ 17012:2018) - "High Ankle Tactical (MII) Programme, works for up- Boots with PU-Rubber Sole" has been gradation & development of published by BIS in September, 2018 standards. up-gradation/development under MII-2.0. of standards for tactical boots (high ankle) with PU-rubber sole for

3. STUDENTS PLACEMENT: The Basic Chemicals, Cosmetics & Dyes The placement of 2017-2018 saw a lot of Export Promotion Council, popularly known multinationals and corporates vying to pick as CHEMEXCIL, was set up by the Ministry up talent from FDDI. A centralized drive for of Commerce & Industry, Government of placements was held at Noida campus from India in the year 1963 in Mumbai with the March, 2018 for inductions. objective of promoting export of Dyes and For the first time, International companies Dye Intermediate, Basic Inorganic, Organic like Uniqlo (Japan), Victorinox (Germany), Chemicals including Agro Chemicals, PUCA Shoes (Dubai), Apparel Group Cosmetics, Soaps, Detergents, Toiletries & (Kuwait), Zomato, D’Lords, Blackberry, Essential Oils and Castor Oil from India to Dixcy Textilesand the world’s second largest various countries abroad. As on 31st March, clothing brand H&M came to FDDI for 2018, the total membership strength of the campus recruitments. Companies like Council stood at 3310. Superhouse, Versatile enterprises, Campus CHEMEXCIL is headquartered at Mumbai Shoes, Arvind Footwear, Indo-Euro and has four regional offices at Ahmedabad, footwear, Cosmique Group, House of Bengaluru, Kolkata and New Delhi.: Raisons, Tack Exim, Shantanu & Nikhil, Harpreet Narula have selected students from The main roles of CHEMEXCIL are as FDDI. follows:

 Maintains liaison with Government 4. COMPUTER NETWORKING authorities to convey the CENTRE (CNC) AND UPGRADATION requirements of chemical industry/ OF PILOT PLANT OF FDDI: exporters and ensure suitable Foreign

Trade Policy framework and For CNC and upgradation of pilot plant of budgetary support for boosting FDDI, a grant of Rs.48.99 Crores has been exports. given, out of which expenditure of Rs.41.29  Overcoming Export Constraints and Crores has been incurred. operational bottlenecks.

 Undertake direct export promotional Basic Chemicals, Cosmetics & Dyes activities such as undertaking trade Export promotion Council delegation to various countries (CHEMEXCIL)

abroad as well as participating in  Issues visa recommendations, international exhibitions. Certificate of Origin, letters for  Organizes Reverse Buyer - Seller renewal of Central Excise Bond etc. meets & Hosting foreign delegations. to the member exporters.  Provides market information and Export Performance: statistical support.  Represents issues of member- The Export performance of the Council exporters related to Directorate during the year April 2017 to March, 2018 General of Foreign Trade, was US$ 15914.61 million. The export Customs/Central Excise, Duty performance of CHEMEXCIL for the period Drawback, Banking, ECGC, etc. April-December, 2018 was US$ 14231.59  Assists the exporters in million which shows a growth of 28.50% as understanding the changes in export compared to the export performance for the policies and procedures. period April-December, 2017.  As a Capacity Building Export Promotional Activities: Initiative, conducts Given below are the details of Export seminars/workshops to keep Promotional activities/events where exporters abreast of latest CHEMEXCIL had participated/organized developments in Export Credit Risk from April 2018 to October 2018:- management, Policy/procedures matters, Government schemes, etc. Events abroad: - 1 18th China Interdye Exhibition 2018 held at Shanghai World Expo Exhibition & Convention Centre (SWEECC), Shanghai, CHINA from 11th -13th April 2018.

2 23rd Beauty World Middle East Exhibition held in Dubai, UAE from 8th to 10th May 2018

3 Color Vietnam 2018/SpeChem Vietnam 2018 Exhibition from 13th-15th June, 2018 at Saigon Exhibition & Convention Center (SECC) Ho Chi Minh City, Vietnam.

4 Chemspec Europe-2018 exhibition organized by MACK BROOKS EXHIBITIONS LIMITED UK, on 20th& 21st June, 2018 at Cologne, Germany..

5 Dyechem Brazil 2018 Exhibition from 28th -30th August-2018 at Sao Paulo, Brazil.

The Plastics Export Promotion Council to felicitate top exporters of plastics (PLEXCONCIL) products for the year 2016-17 and 2017-18. The Plastics Export Promotion Council,  Organized a training program on popularly known as PLEXCONCIL, was Export in post GST scenario, present established by the Ministry of Commerce & refund mechanism and interactive Industry, Department of Commerce, session in July 2018 at Mumbai. Government of India in 1955, with the  Briefed the members regarding the review of India’s eligibility to the objective of augmenting exports of all types US-GSP program and explained the of plastics products from India. process for filing submissions / PLEXCONCIL maintains its head office in comments under Docket ID: USTR2018-0006 at Mumbai and three regional offices in www.regulations.gov. Northern (New Delhi), Southern (Chennai)  Co-organized an interactive session and Eastern (Kolkata) regions of the on issues related to Kolkata country. Port/GST/FTP in Kolkata, West Bengal. Export performance: Chemical & Allied Products Export The export value of products under the Promotion Council (CAPEXIL) purview of the council increased by 17.1% CAPEXIL, a premier Export Promotion from US$ 7,558 million in 2016-17 to US$ Council, an ISO 9001:2008 certified 8,850 million in 2017-18. During the above organization, was set up in 1958 by the period, India’s plastics exports were Ministry of Commerce& Industry, particularly strong to Latin America & Government of India to facilitate the export Caribbean, North East Asia, and European of chemical-based and allied products. As Union. Exports of value-added plastics on 31st March, 2018, the total membership strength of the council stood at 3,862. products clocked a positive growth of 12.4% during 2017-18 on account of higher CAPEXIL's Registered Office & Head shipment of plastic sheets / films / plates; Office is located at Kolkata. It has four Regional Offices located at Mumbai, woven sacks / FIBC; optical items; Chennai, Kolkata and New Delhi. stationery for office and school; and photo films. Export Performance The export performance of PLEXCONCIL  The export performance of the for the period April-December, 2018 was Council during the year April 2017 US$ 6,190 Million which registered a to March, 2018 was US$ 18,143.96 growth of 28.19% as compared to the million. Chemical Based Allied exports for the period April-December, Products were exported to more than 2017. 200 countries during April- December 2018. The cumulative Events within India: - value of exports for the period April- December 2018 was US$ 15,729.53  Held its export award function in million, registering a positive growth July 2018 at Mumbai, Maharashtra

of 20.8% per cent over the same the Government of India was the period last year. Chief Guest & other Senior Officials attended the Conclave. Export Promotion Measures For the Financial Year 2018-19 i.e. till date, Shellac and Forest Products Export CAPEXIL has organized/participated in the Promotion Council (SHEFEXIL) following events abroad as well as within India as a measure of export promotion as SHEFEXIL was formerly known as the under: Shellac Export Promotion Council, which Events Abroad: had been working in partnership with the industry since 1957 as the catalysing agency  London Book Fair, U.K. (Self- for the longterm development and export Finance Basis / No MDA/MAI) 10th promotion of shellac and lac-based products. April -12th April 2018 The objective of the council is to realize the  Abu Dhabi International Book Fair, full potential of India’s Non-timber Forest Abu Dhabi, UAE during 25th Produces (NTFP) exports through collective April,2018 to 1st May 2018 action, create a global brand for Indian  Beijing Intl. Book Fair, Beijing, NTFP, etc. Shellac Export Promotion China during 22nd August – 26th Council is the Nodal EPC for Non-Timber August, 2018 Forest Produce. Major products Groups  Sharjah International Book Fair, under SHEFEXIL are Shellac & lac based 2018, during 31st October – 10th products, Vegetable Saps & Extracts of November, 2018 at Sharjah, UAE Herbs, Guar Gum, Fixed vegetable, Oil Cake and Multi products belonging to the Events within India: North Eastern Region.  CAPEXIL conducted Workshop and Training Programme on SHEFEXIL’s registered office is located at International Marketing at Kolkata Kolkata and it has no branch or regional on 24th April, 2018. office.  CAPEXIL Southern Region, Export Performance: conducted “Interactive Session- Cum-Training Programme” for The export performance of the Council Animal By Products Panel on 17th during the year April 2017 to March, 2018 April, 2018 was US$ 1917.21 Million. The export  CAPEXIL Southern Region Office performance of SHEFEXIL for the period has conducted “Interaction on GST April-December, 2018 was US$ 1516.51 & its implication” on 25th July, million, which shows a growth of 10.86% as 2018 at Chennai. compared to the exports for the period  CAPEXIL in association with Afro April-December, 2017. Asian Book Council (AABC) The Council’s membership is characterized organized a Seminar namely Afro- by unorganized, small and medium sized Asian Book Conclave (Opportunities players. This brings its own set of challenges and Challenges) at New Delhi on to the market place, from being lower down 31.08.2018. The Programme was the product value chain to quality issues and attended by around 100 participants. lack of traceability. Most of the products are Shri Santosh Kumar Gangwar, currently exported in raw form or after Hon’bleMinister of State with limited processing; therefore enhancing independent charge in the Ministry of Labour and Employment in

value-addition is a key priority for the sectors in India that has shown growth rates Council. continuously, in spite of economic slump Export Promotion Measures globally. Over 55% of pharma exports are to Promotional activities undertaken by the the highly regulated global markets. India Council accounts for about 37% of Drug Master Events Abroad: Files (DMF) filed with US FDA (3980 FY 2017-18:  8th China International Dye Industry DMFs and 4325 ANDAs), which is the Pigments &Textile Chemicals highest number for any country outside the Exhibition 2017 at Shanghai, China, 12th– 14thApril,2017. USA. India has been accredited with  InterdyeAsiaExhibition2017, at approximately 1,597 Certificate of Bandung, Indonesia held on1st- rd Suitability (CEPs), more than 1300 TGA 3 November2017.  FY 2018-19: approvals and has around 700 sites approved  China Inter dye Exhibition 2018, by the USFDA. Shanghai, China held on 11 – 13 April, 2018. Salient features of export trends:  Beauty World Middle East, Dubai, UAE, 8th – 10th May, 2018 India Produces 65% of WHO demand for Events in India: DPT & BCG and 90% of Measles vaccines  Meeting with Department Related Parliamentary Standing 8 out of top 20 global generic companies are Committee on Commerce held on 2nd July 2017 at Shilong and 4th July, from India. 2017 at Kolkata.  Interactive meet with Shri Suresh Over 55% of India’s exports are to highly P.Prabhu, Hon’ble Union Minister of regulated markets like North America, Commerce & Industry & Civil Aviation on 4th Feb.,2018. Europe. USA is the largest exporting  CAP(INDIA) 2018, held on 22nd– destination for India. India contributes 50% 24th March, 2018, Mumbai. of Africa’s generic market of US$ 6000 mn.

Pharmaceuticals Export Promotion Huge market opportunity is emerging for Councils (PHARMEXCIL) Indian manufacturers. Further, the prospects Indian Pharma, a highly knowledge based of India as outsourcing destination for industry, is growing steadily and playing a Contract Research and Manufacturing major role in the Indian economy. During Services (CRAMS), Clinical research, 2017-18, Indian Pharma exports biotechnology, bio-informatics etc., is contribution was to the extent of USD 17.27 billion. Indian Pharma is one of the few

emerging stronger due to skill, cost and promotion activities in Arab Health held at delivery advantages. Dubai, apart from other major events like CPhI WW, CPhI Japan. Branding activities Current Exports Trend in Arab Health have created positive impact During April to September 2018-19, the and helped the participants in these events in pharmaceuticals exports grew by 12.37% getting good response. over the corresponding period of 2017-18. Reducing dependency on import of APIs: There has been positive growth in exports to North America, EU & African Countries Continuing the efforts to reduce dependency that cater to 67.44% of our total exports, on import of APIs and to make Indian API where the growth rates recorded are 11.91%, industry self-reliant, the Department of 16.23% and 5.27% respectively. All the Commerce held a series of consultations categories of pharmaceuticals exports viz with the stakeholders to formulate policies / Ayush (9.31%), Bulk Drugs & Drug road map. Pharmexcil also organized intermediates (11.53%), Drug formulations several consultative meetings among CSIR & Biologicals (13.66), Herbal Products Labs, industry, academia on this subject. (8.79), and Surgicals (6.93), Vaccines (0.17) Department of Commerce has provided its witnessed positive growth rates so far during comments on Draft National Policy 2017 to April-September, 2018. In the month of the Department of Pharmaceuticals to October, 2018, the Pharmaceutical exports include establishment of exclusive clusters stood at USD 1.514 billion recording a for manufacturers of APIs, Intermediates growth of 12.83% over the corresponding and key starting material and the policy is month of the previous year. under finalisation.

Initiatives taken by DOC/Pharmexcil for Track & Trace system for exports: promotion of Pharma exports Track & Trace System for Pharma exports is Brand India Pharma Project: being implemented successfully. Considering the genuine concerns of Small Brand India Pharma Project, launched in Scale Exporters, exemption from 2012 is continued in 2017-18 also to maintenance of parent-child relation and promote Indian Pharma products in the uploading the data on DAVA portal was international markets. Pharmexcil, with the given to SMEs up to 1.7.2019. Seminars/ support of IBEF, has undertaken brand workshops are being organized by NIC, GS1

and Pharmexcil periodically to clarify the organizing meeting with CFDA queries of exporters and to ensure smooth officials. functioning of the system.  Create awareness on Regulatory requirement in China besides Non-Tariff Trade Barriers: exploring the mechanism of fast DoC/Pharmexcil put efforts to remove the track approvals. non-tariff trade barriers that are brought to Efforts for Recognition of Indian its notice by Members. Iraq was giving Pharmacopeia (I.P): preferential treatment to some countries while registering the products. With lot of With the support of Department of persuasion, India was included in the list and Commerce, Pharmexcil has initiated considered at par with those countries. measures for promoting/ recognition of Indian Pharmacopoeia by other developing Penetration into Emerging Markets: countries with special efforts for SAARC DoC/Pharmexcil is taking up initiatives to and African countries, to begin with. improve India’s share in some key markets Pharmexcil initiated with Ghana FDA for like China and Japan. Subsequent to the recognition of IP by them. A high level recent announcement of duty reduction on delegation from Ghana had visited and 28 products by China, Council has taken the interacted with senior officials of following steps to help the members to Department of Health, Commerce and improve their exports to China: Pharmaceuticals and the matter is being  Circulation of the list of exempted 28 pursued with Ghana. During the visit of CS tariff items and the list of anti-cancer led delegation to Afghanistan on 25-26 drug covered under these lines. October, 2018, it was proposed to National  Creating awareness among Indian Medicines and Health Products Regulatory companies on the opportunities and Authority (NMHRA), Afghanistan to guiding them to go for the product recognise Indian Pharmacopeia. registrations with CFDA enabling Online issue of COOs larger exports to China.  Organizing a B2B meet during 20-22 As per the advice of DoC and Committee of Aug.2018 at Shanghai, China and Administration, Council started issuing Certificate of Origins (COO) for non-

preferential countries. The initiative of Delegates participated, and there were Council is well appreciated by the members 10000 visitors. and many members from different cities CPhI China: started using the facility. Pharmexcil organized an India Pavilion in Validity of CoPPs this event during 21-23rd June 2018 with 21 Industry has been requesting for issue of Indian companies. CoPPs (Certificate of Pharmaceutical MoU signed between Pharmexcil and Products) with validity of 3 years, instead of CCCMHPIE, China two years presently being issued, conforming to the international practice. MoU on cooperation in the pharmaceutical Based on representation from Pharmexcil sector was signed between Pharmexcil and and persuasion of DoC, DCGI issued a CCCMHPIE, China in August 2018. Help notification extending the validity of CoPPs Desk set up in China and India to help to 3 years with effect from 8.5.2018. Pharma companies from both sides find partners for their business ventures and Arab Health understand the regulatory practices. For the 12th consecutive time, Pharmexcil Maghreb Pharma Expo: organized India Pavilion at Arab Health in Dubai in Jan 2018. 56 Indian companies, Maghreb Pharma Expo is one of the major nd dealing in pharmaceuticals, nutraceuticals, Pharma events in Algeria, which is the 2 surgical products etc., participated in the largest market in Africa region. Considering pavilion. opportunities available for Indian Pharma exporters, particularly for APIs, IPHEX 2018 nutraceuticals, Pharma machinery exporters, IPHEX-2018 was inaugurated by CIM- the Pharmexcil participated in this event during sixth edition of the biggest networking event 17-19th September 2018. 17 Indian for Indian Pharma sector was organised exporters participated in the pavilion. from 08-10th May, 2018 at New Delhi with Iran Pharma: an aim to bring Pharma and healthcare sector under one umbrella. 500 Indian Iran Pharmaceutical Syndicate organizes a Exhibitors, 120 countries, 670 Foreign Pharma event ever year viz., Iran Pharma. Iran has a good number of finished

formulations manufacturing units. In view A strategy for enhancement of India’s of good exporting opportunities available for Pharma exports. APIs exporters and also contract A strategy has been prepared in consultation manufacturing opportunities available for with stakeholders to reinvigorate and fortify Indian Pharma manufacturers, Pharmexcil India’s Pharma exports, including organized Pavilion in this event during 24- identification of issues territory wise, the 27th Sep 2018, where 19 Indian companies resolution of which can lead to enhancement participated in the pavilion. of exports- this strategy is being pursued Business Delegation to LAC: with various departments and is being constantly revised and improved based on As part of Pharmexcil’s continuous efforts the feedback of stakeholders. to promote Indian Pharma exports to Latin American countries, Business Delegation to PEC Ltd. Brazil, Guatemala, Honduras was organized PEC Ltd. was formed on 21st April, 1971 as th during 3-14 September 2018. 21 Indian a wholly owned subsidiary of STC. PEC companies participated in the delegation. Limited became an independent Company under the Department of Commerce w.e.f. CPhI Worldwide 2018 27th March, 1991. CPhI Worldwide is one of the International Pharma events. Pharmexcil with the support ACTIVITIES of DoC has been participating in this event  PEC is primarily engaged in export since 2005. This year the event took place at of projects, engineering equipment Madrid, Spain during 9-11 October 2018 and manufactured goods, defence and Council organized India pavilion, where equipment & stores and import of 55 companies participated. In association industrial raw materials, bullion and with UK MHRA, Council organized a agro commodities. seminar on India-UK & EU Pharma summit,  Consolidation of existing lines of where representatives of industry, UK business and simultaneously MHRA made presentations on challenges, developing new products and new opportunities for Pharma business between markets. India and UK & EU.  Diversification in export of non- engineering items e.g. coal & coke, iron ore, edible oils, steel scraps, etc.

 Counter trade/special trading  To trade in commodities such as agricultural products, industrial raw arrangements for further exports. materials, chemicals and bullion. VISION:-  To continuously strive for Being a leading and reliable international enhancement of the corporate image trading company adding sustainable value to of a reliable, long term and professionally competent stakeholders. organization.

MISSION:-  To continuously strive for  Provide integrated trade solutions to improvement in productivity and competitiveness. customers to ensure sustainable profits.  To serve as an effective instrument of public policy and social  Focus on being the leading merchant responsibility. exporter in engineering goods and projects. Sports Goods Export Promotion Council  Being among top three trading (SGEPC) companies across segments Overview

including Industrial Raw Material India is an important supplier of quality and Commodities. sports goods and toys to the global markets.  Serve as an effective and Indian sports goods and Toys are being accountable instrument of public exported to most of the countries of the policy and be socially responsible. world due to the value for money products

OBJECTIVES being manufactured. The industry is rapidly evolving and embracing new technology,  To be a profit oriented international trading organization. entering into new product categories

keeping in line with the fast changing global  To provide adequate return to the stakeholder, commensurate with the trends. When we look at the market demand market expectations. and the potential our country has in terms of

 To seek new opportunities in the raw material availability, manpower and global and domestic market. other resources, the outlook is very positive.

 To focus on export of engineering Organizational Structure and Functions projects and equipment especially The SGEPC is company registered under from small and medium enterprises. section 25 of the Companies Act, since

January 22, 1958, sponsored by Ministry of the Industry’s suggestion, the SGEPC Commerce and Industry, Government of organized BSMs in emerging markets which India, for the promotion of exports of sports seem to be paying off. United Kingdom still goods and toys. The aim and objectives of remains on the top position as before but the company are promotion of the sector in registered a slight decrease of 2.77 % in line with the Foreign Trade Policy of India. value terms. The top ten destinations The SGEPC is managed by the Chairman, contribute to 78% of the value of the total the Vice-Chairman and the Regional export of the sector from India. Director and Committee of Administration Export Promotion Mechanism Centers of (CoA), which consists of elected Export Production-SEZs & EOUs representatives from the Indian industry and In line with the Indian Foreign Trade Policy includes Government representatives. the SGEPC conducts activities to promote

SGEPC’s range of activities include both exports of Sports Goods and Toys. that spur the industry’s performance and SGEPC is a common platform for those which help to promote its presence companies from all over the country, with internationally. common interests, where they can meet to

Vision & Mission exchange views, decide on common strategies for promotion and also wherefrom To promote exports of sports goods and toys they can voice their concerns at both from India. national and international levels. Trends in India’s Foreign Trade The SGEPC organizes trade promotion Indian Sports Goods and Toys are now activities like Indian participation in being exported to 150 countries. The top ten International Trade fairs, visits of business destinations for export of sports Goods and delegations, promotional campaigns in Toys are UK, USA, Australia, Germany, international markets etc. South Africa, France, New Zealand, Ireland, The SGEPC provides important information Spain and Canada. The top ten destination to the members on market intelligence, list has Ireland and Spain as new entrants standards & specifications, quality & design, with total exports of Rs. 38.03 Crore with a and on any other issue which may directly or growth of 43% and 97% respectively, over indirectly affect the industry. the last year. It may be well noted that as per

The SGEPC acts as a link between the Specialized Agencies Industry and the Indian Government The Sports Goods and Toy manufacturing providing feedback on industry’s does not involve a lot of specialized requirements to the Indian Government and Agencies except for procurement or sale of informs Government directives to the certain natural materials like wood of select industry. species. The SGEPC collects export data from its members, maintains a statistical record of Transparency, Public Facilitation and exports of sports goods and toys and Allied Activities: evaluates its performance on an annual The entire working of the Council is basis. transparent and the decisions are taken with

The SGEPC recognizes the achievements of the approval of the members. All members exporters and awards the top performers are free to access the public information or annually. any other information related to the Council.

Top 5 Sports products exported from India are:-

Sr. Products % to total Export No. 1 Inflatable Balls & Accessories 24.69% 2 Cricket bat and protective equipment 11.93% 3 Nets 8.66% 4 Athletic Goods 7.92% 5 Boxing Equipment 4.87%

Top 5 importing Countries of Sports goods from India are:-

Sr. Country Name % share in Total Export No. 1 United Kingdom 26.40% 2 USA 17.74% 3 Australia 13.86% 4 Germany 5.21% 5 South Africa 4.48%

Engineering of total exports has grown from 19.3% in EEPC India 2011-12 to 25.2% in 2017-18.

EEPC India is the Council set up under the In 2018-19, cumulative engineering exports aegis of Department of Commerce for during the period April-November 2018 promoting exports in the Engineering weree USD 52.22 billion with a growth of sector. It is a company set up under Section 7.35% over USD 48.65 billion achieved in 25 of the Companies Act 1956 (company the corresponding period in 2017-18. not for profit), keeping in view the special Out of 33 engineering panels, 28 panels requirement of the Indian Engineering comprising of almost 85% of the products, Sector for export promotion. EEPC India is recorded growth in exports during April- the nodal agency for issue of Registration- November 2018, over the same period in cum-Membership Certificate for 2017-18, while the remaining 5 panels engineering exports throughout the country showed decline in exports. The panels under the provisions of the Foreign Trade which registered significant growth rate of Policy. The company has its headquarters at exports during April-November 2018 vis-a- Kolkata with regional offices in Mumbai, vis April- November 2017 were Air Chennai, Kolkata and Delhi and Sub- condition and Refrigerators (82.23%), Regional Offices in Ahmedabad, Nickel and products (55.18 %), Bengaluru, Hyderabad (Secunderabad) and Accumulators and Batteries (49.97%), Jalandhar for providing services to Cranes, Lifts & Winches (38.86%), exporters of engineering products. Electrical machinery (38.75%), Office Engineering Exports Scenario equipments (36.29%), Aluminium and products (31.16 %), Railway Transport Engineering exports account for 25% of the (27.80%), Other Construction Machinery country's total merchandise exports and (24.36%), Industrial machinery like boilers, over 3% of GDP. Engineering exports parts etc. (24.57%), Prime Mica & Mica achieved a Compound Annual Growth Rate Products (22.04%), Electrodes and (CAGR) of 4.4% from 2011-12 to 2017-18 Accumulators (20.88%), and Bicycle and with a record performance of USD 76 Parts (20.81%). billion in 2017-18 with 16.81% growth over the previous fiscal 2016-17. The country’s Region wise, South Asia registered highest share of engineering exports as percentage growth (19.45%) during the period April –

November 2018, vis-à-vis the same period The Brand ‘India Engineering’ campaign is last year, followed by Africa (15.87 %), gaining momentum from the omnipresence North America (15.32%), CIS (9.87%), of EEPC India in major Internationally European Union (8.38%), Middle East and acclaimed engineering events, viz., West Asia (4.35%), Latin America (1.27%), Automechanika Dubai 2018 - world’s and ASEAN+2 (0.41%). largest international automotive aftermarket trade show in the Middle East, Indian

subcontinent and Africa; The Big 5 2018 - Brand India Engineering largest construction exhibition in the To accelerate exports by enhancing brand Middle East; Subcon 2018 - UK’s leading image of ‘Made in India’ engineering subcontracting trade show in Industrial quality and capabilities of Indian Machinery and equipment; INDEE engineering products and services, EEPC Philippines 2018 - the largest metalworking India, under the aegis of Department of exposition in Philippines; and also INDEE Commerce, is undertaking Brand “India Colombia 2018, the most specialized Engineering” campaign since 2014. The industrial event in Latin America and initiative is implemented with the support several specialized international of India Brand Equity Foundation, a Trust engineering events. under Department of Commerce. Initiative for Technology Upgradation As part of export promotion of engineering for boosting Engineering Exports products, Brand “India Engineering” In the last couple of years, Department of campaign has been strategized and e- Commerce in partnership with EEPC India, catalogue of exporters based on certain is attempting to devise ways to move into global standards prepared in respect of four higher technology- space. One of the key identified product groups, viz., Pumps & initiatives is to enable upgradation of Valves, Medical Devices, Electrical technology for boosting engineering Equipment, Machinery and Components & exports. This is being attempted through Textile Machinery. A new comprehensive bridging the gap between leading R&D and innovative strategy for implementing Labs and industry for the development of Brand “India Engineering” is also under cutting edge export-oriented technologies. preparation. For this purpose, technology meets / industry-academia interactions are

organised in specific industrial clusters to and is live on EEPC India website identify the products and processes for (https://www.eepcindia.org/). R&D support. The initiative aims to Export Promotion Activities sensitize the industry about various Government schemes available for Department of Commerce undertakes technology upgradation, and implementing various export promotion activities through the technology development initiatives in EEPC India. These activities include consultation with the industry requirements organizing International Engineering in a cluster based approach. Department of Sourcing Show - IESS exhibition Commerce, Office of Principal Scientific coinciding with a Buyer - Seller meet in Advisor and EEPC India are jointly India and product - specific working together in this endeavour. Seminars/Conferences, Export Awareness For addressing the challenges and to create Programmes etc. in India, organizing an ecosystem congenial for MSME in the exclusive India Engineering Exhibitions engineering sector to graduate to producers (INDEEs) outside India, organizing and exporters of high end technology product - specific delegations to selected products, Department of commerce has also countries, participation in various product - funded EEPC India's Technology Centre in specific international exhibitions, etc. to Bangalore (fully operational) and Kolkata demonstrate the capabilities of Indian (likely to be operational by January, 2019). engineering industry and to provide the The Centre of Excellence shall provide a overseas buyers with true value as single window platform for all technology propagated by Brand Indian Engineering. solutions for the engineering industry. International Engineering Sourcing Show

Apart from above, digitization of (IESS): It is the flagship event of the technology resources for value addition Department in the engineering sector, and is services to the members of the Council is considered to be the largest sourcing show also under progress. In this regard, an e- organised within India for the engineering Compendium on Schemes by Government products, particularly for MSMEs. The VII of India for technology upgradation and a edition of the event was held in Chennai in Directory of available technologies by March 2018 with participation of over 300 Academia R&D labs is already completed exhibitors and 450 overseas buyers from SAARC, ASEAN, Africa, EU, CIS and

North and South America. The VIII edition sector. Medical Devices are included in the of the Show is being held in Chennai on 14- Brand India Engineering campaign by 16 March, 2019. EEPC India, being carried out in consultation with India Brand Equity Indian Engineering Exhibition (INDEE): Foundation. EEPC India organizes Indian Engineering Exhibition (INDEE) which are fully India is emerging as reliable supplier of focused on Indian engineering sector with Medical Device Equipment and Pharma the objective of increasing awareness on Machinery. Medical Device is the sunrise rapid progress in Indian engineering across industry in India, registering a CAGR of the globe. INDEE was launched in 1977 15%. Medical tourism is another niche and so far 40 editions of the event have segment in the Medical Device sector been organized across the world. INDEE which is putting India in front on the global has emerged as the flagship event abroad of map. Against this backdrop, EEPC India EEPC and a platform for small and medium organised Reverse Buyer Seller Meet enterprises to show case their strengths in (RBSM) with overseas sponsored buyers the existing/new markets. and potential domestic exporters in the medical devices sector, in the recently The 39th edition of INDEE was organized concluded Advantage Healthcare exhibition in Philippines on 22-25 August, 2018, in organized by FICCI, in December, 2018, in which more than 100 Indian engineering Bengaluru. companies participated. The 40th edition of the event was organized on 24-26 Extending its regular agenda, EEPC India September, 2018, in Columbia alongwith also published several reports/studies to the Feria Internacional de Bogota 2018, make the members aware about the which is the largest Engineering exhibition international trends and opportunities in in Columbia. India was awarded the order to enhance their global footprints. ‘Partner Country’ status in the exhibition THE CASHEW EXPORT and over 75 Indian engineering companies PROMOTION COUNCIL OF INDIA participated in this edition of INDEE. (CEPCI)

Apart from above, the Department of The Cashew Export Promotion Council of Commerce has also been at the forefront for India was established by the Government of promoting growth of Medical Devices

India in the year 1955, with the active co- The export earnings from cashew and allied operation of the cashew processing industry products during the year 2017-2018 were with the object of promoting exports of Rs.5,904 crores (US$ 916 Million). Out of cashew kernels, cashew nut shell liquid and the total quantity of cashew kernels exported allied products from India. By its very set- during 2017-2018, 17.16% were to the up, the Council provides the necessary American Zone, 0.50% to African Zone, institutional frame work for performing 27.49% to European Zone, 0.32% to different functions that serve to intensify Oceanic Zone, 16.21% to South East & Far and promote exports of cashew kernels, East Asian Zone and 38% to West Asian cashew nut shell liquid and allied products. Zone, respectively. The total export of cashew kernels from The Council undertakes detailed studies and India during 2017-18 was 84,352 Metric collects trade information and other Tonnes valued at Rs.5,870.97 crores (US$ particulars relating to the market potential 911 Millions) registering a increase of 2.5% of cashews and disseminate the same to the in quantity terms and 14% in terms of exporters. It also deals with the trade Rupees as compared to the export of 82,302 enquiries received from various sources and Metric Tonnes cashew kernels valued at Rs. passes them on to its members. The global 5168.78 crores (US$ 771 Million) during trade information on cashew and cashew 2016-17. The export of Cashew Nut Shell products is updated on a continuous basis. Liquid (CSNL)/Cardanol from India during The Council sponsors Trade Delegations 2017-18 was 8,325 Metric Tonnes valued at and Study teams from time to time for on- Rs.33.00 crores (US$ 5 Million). There was the spot study of various markets abroad. a decrease of 27% in quantity terms and These teams submit their reports on their 26% in rupees term compared to the export return, on the markets visited its potential of 11,422 Metric Tonnes of Cashew Nut and trends which serve as reference Shell Liquid valued at Rs.44 crores (US$ 7 material and also provide the basis for Million) during 2016-17. necessary follow-up action. The market Domestic production and Import of Raw information collected by these teams / Cashew nut delegations is disseminated to the trade / India continued to be the largest producers of industry. raw Cashew nuts in the world. The

Export Performance of Cashew Kernels: production of raw Cashew nuts in India

during 2017-18 was 8,17,045 Metric Tonnes The Council places higher emphasis on as against the estimated production of development of oilseeds, edible oils, 7,79,335 Metric Tonnes during 2016-2017. oilcakes and other products under its The total raw Cashew nut imported into India purview. The Council works towards during 2017-18 was 6,49,050 Metric Tonnes improvement of yield and quality of oilseeds valued at Rs. 8,850.03 crores compared to being produced in India so as to match the the import of 7,70,446 Metric Tonnes valued requirement in global markets. at Rs.8,839.42 crores during 2016-17. The The Council also organizes workshops for unit import price for raw Cashew nut was Rs. promotion of Good Agricultural Practices 136.35 per kg during 2017-18 as against Rs. (GAP) amongst Indian farmers and training 114.73 per kg during the previous year sessions for processing units for adoption of (2016-17). HACCP and Good Manufacturing Practices The Council has also initiated research (GMP). studies in India and abroad to bring out the health and nutritional benefits of consuming Regional Meetings at various parts in India cashew. are also organized so as to strengthen supply-chain and create awareness regarding Indian Oilseeds And Produce Export the quality issues amongst stakeholders in Promotion Council (IOPEPC) the trade and industry such as exporters, IOPEPC is mandated for the development processors, traders, brokers and service and promotion of exports of oilseeds, oils providers in oilseeds and oils sector. and oilcakes, Indian Oilseeds and Produce Participation in international trade fairs Export Promotion Council (IOPEPC), and conferences: erstwhile known as IOPEA, has been catering to the needs of exporters since last Sesame Seed Conference, China (I): six decades. Besides focusing on exports, Groundnut and Sesame Seed Conference, the Council also works towards Qingdao, China: strengthening of domestic supply chain by encouraging farmers, shellers, processors, The Groundnut and Sesame Seed surveyors and exporters to enhance the Conference was organised by China quality of oilseeds in India. The council is Chamber of Commerce for Import and headed by a Chairman. Export of Foodstuffs, Native Produce and Animal By-products (CFNA) during 12th –

14th September 2018 in Qingdao, China. On overall view of markets, production, demand behalf of IOPEPC, Chairman, Shri Sanjay and supply and price forecast of groundnut Shah, participated in the event and held a and sesame seed. Presentations by eminent series of discussions with the participants Indian experts were made on “Family with an objective to enhance the image of Business - Survival and tips for the India as a quality supplier of Sesame seeds generation next” and “Export Credit Risk in world market. There were presentations Management.” IOPEPC officials also on Sesame seeds by several eminent presented very informative view on Global personalities. Shri Sanjay Shah gave a and Indian groundnut scenario along with presentations on “Indian Sesame seed Indian sesame seed scenario. outlook for 2018/19” and “Indian Groundnut International Conference on oilseeds, outlook for 2018/19”. Sudan Annual Trade Meet at Mahabalipuram, The Council participated in the 4th Tamil Nadu: International Conference on Oilseeds The Annual Trade Meet of IOPEPC was held organized by Sudan Chamber of Commerce during 26th – 28th October, 2018 at at Khartoum, Sudan on 18th November, Mahabalipuram, Tamil Nadu which was 2018. Shri Sanjay Shah, Chairman, IOPEPC attended by over 250 participants from participated in the event and made industry and trade. presentation on Indian sesame seed.

The Annual Trade Meet provided an Conference on Pulses, Oilseeds and excellent platform to all the stakeholders to Spices, Ethiopia: Council has been invited discuss, address and seek institutionalized by Ethiopian Pulses, Oilseeds and Spices guidance on various issues in addition to Processors exporters association providing the fora for networking amongst (EPOSPEA) to be a distinguished speaker members of the trade, industry, regulators, during 8th International Conference on scientists and government bodies. Pulses, Oil seeds and Spices” to be held during 23-24th November, 2018 at Addis Shri D K Sekar, Zonal Additional DGFT, Ababa, Ethiopia. Shri Khushwant Jain, Vice Chennai was the Chief Guest. Chairman, IOPEPC represented the Council Experts in oilseed trade and industry from and made an excellent presentation aimed at China, UAE, Ethiopia, Sudan UK, gave an

promoting exports of Sesame seeds from A Cabinet Note has been sent to Cabinet India. Secretariat on 6th August 2018 for repealing the existing Multi Modal Transportation of Logistics Goods Act 1993 and replacing it with a MMTG Bill, 2018. The draft MMTG Bill In accordance with the decision taken in the has been approved by M/o Law & Justice. CoS meeting on Logistics held at Cabinet As per directions of PMO, the draft Bill has th Secretariat on 18 Oct 2017, an Inter- now been referred to a Group of Ministers. Ministerial Standing Committee on A draft Cabinet Note containing the Logistics with JS level officers from National Logistics Policy, 2018 has been MoRTH, M/o Railways, M/o Shipping, circulated on 27th July 2018 for Inter- MoCA, CBIC, D/o Posts, PGAs (Plant & Ministerial discussion. Animal Quarantine, Drug Controller, WCCB, FSSAI, Textile Committee etc) was Draft Multi Modal Logistics Park (MMLP) set up. IMSCL has so far held 5 meetings to Policy has been circulated to M/o Railways, discuss the important issues pertaining to MoRTH, M/o Shipping, D/o Revenue, Logistics, both for EXIM goods as well as MoCA and State Governments for seeking important domestic commodities such as their inputs. Thereafter, DCN on MMLP Steel & Cement. The decisions taken in Policy shall be circulated. these IMSCL meetings have led to reform of MoU was signed with CII on 16th Jan 2018 number of EXIM processes, thereby for setting-up an institutional mechanism to reducing Port dwell time as well as obtain inputs from the industry on issues improvement of infrastructure at Ports. pertaining to Logistics, carry out Proof of Concept (PoC) on Integrated collaborative activities such as capacity Logistics e-marketplace has been developed building programs etc. by Logistics division and was presentation MoU signed with IIFT for setting up a to a CoS on 25th July 2018 and was well Centre for Trade facilitation & Logistics appreciated. A DPR on the Integrated (CTFL) at Delhi and Kolkata campuses of Logistics portal has been prepared and a IIFT, on 30th July 2018. CTFL shall act as a RFP shall be issued by 15th Dec 2018 for think-tank for Logistics, develop & maintain selecting an IT partner who shall develop a data-bank on Logistics, conduct research the full-fledged version of the portal. on issues pertaining to Trade Facilitation &

Logistics and also run professional courses coastal shipping and promote trans- on both. The work on CTFL centre in IIFT shipment. Delhi campus is nearing completion and it is  Shipping Lines now have to likely to be inaugurated by 15 Dec 2018. mandatorily display their charges and relevant breakdown on their A Proof of Concept on a GIS based National website with links on IPA/MoS Logistics Analytical Tool has been prepared. website A RFP shall be issued by 15 Jan 2019 for  Export Dwell Time at JNPT has gone developing a full-fledged version of this tool down from 80.28 Hrs to 77.8 Hours for use by policy makers. on an average between 2016-17 and This division has started work on developing 2017-18 Logistics Ease across Different States  Customs Release Time for Imports at (LEADS-2018) report. JNPT has gone down from 35.35 Hrs Logistics logo designed by NID Ahmedabad to 33.21 Hours on an average has been released by CIM on 30th July 2018. between 2016-17 and 2017-18  Share of RMS Facilitated Bills of As a result of interventions by the Entry at JNPT has gone up from Logistics division, the following policy 55% to 60% and from 46% to 52% at initiatives have been rolled-out by various ICD TKD on an average between stakeholder Ministries:- 2016-17 and 2017-18  Logistics activities like warehousing,  Partner Government Agencies such cold chain and MMLP’s have been as Plant Quarantine, Wildlife Crime granted infrastructure status by DEA, Control, FSSAI, DCGI, etc have now MoF to allow for easier lending been integrated with SWIFT to terms for financing. streamline EXIM Trade  Relaxation of Cabotage has been  Importers can now import allowed by Shipping Ministry, which perishables and packaged goods will now allow Foreign Flag Vessels under bond with FSSAI. Subject to to carry domestic cargo between visual inspection and sampling w.e.f Indian ports. This will significantly st 1 May ’1 reduce the transportation cost via  Now no NOC is required for export of consignment by a manufacturer

who holds a valid license under the  GITEX Technology Week 2018, 14- Drugs and Cosmetic Acts and Rules 18 October 2018, Dubai, UAE w.e.f 21st Mar ‘18. EVENTS TO BE ORGANISED:

 For Import of Drugs of dual use and  India Telecom 2019 during February declared by importer for non- 2019 in New Delhi. medicinal purposes need not be further referred to customs PROJECT EXPORTS PROMOTION authorities for further NOC w.e.f 20th COUNCIL OF INDIA (PEPC) April ‘18. Project Exports Promotion Council of India (PEPC), an export promotion council set up Telecom Equipment and Services by the Government is an apex coordinating Export Promotion Council (TEPC) agency to facilitate project exports Telecom Equipment and Services Export comprising of overseas projects contracted Promotion Council (TEPC) has been set up in the following modules: by the Ministry of Commerce & Industry  CIVIL CONSTRUCTION and Ministry of Communications & IT, PROJECTS; Government of India to promote and  TURNKEY PROJECTS including develop of Export of Telecom Equipment’s engineering, procurement and and Services. The council undertakes several construction (from concept to activities aimed at export promotion such as commissioning) and essentially Commissioning of Studies to find potential includes civil work/ construction and markets, holding of National/International all supplies specific to these turnkey Seminars and facilitating participation of projects; exporters in various overseas exhibitions.  PROCESS AND ENGINEERING PARTICIPATION IN GLOBAL EXPOSITIONS: CONSULTANCY SERVICES; and

 ConnecTechAsia 2018, Singapore  PROJECT CONSTRUCTION from 26th June – 28th June 2018 ITEMS (excluding steel and  Indo Africa ICT Expo 2018, Lagos, cement): Nigeria, 22-23 May 2018 - Construction Engineering  India ASEAN ICT Expo 2018, 27-28 Products (Fittings & September 2018, Hanoi, Vietnam Fixtures/Materials)

- Construction Equipment’s &  ESC facilitates business interface Accessories between Indian and foreign - Other Project Goods companies through Buyers-Seller PEPC acts as an apex co-ordinating agency Meets, and locates new business for the Indian project exporters to secure and partners for Indian electronics, execute projects overseas within the computer software and IT framework of the Foreign Trade Policy of companies. Government of India and in line with the  For facilitating foreign trade, ESC guidelines prescribed by the Reserve Bank provides on-line facility for Data of India for undertaking overseas projects as Search. detailed in their Memorandum PEM (Project PARTICIPATION IN GLOBAL Exports Manual). EXPOSITIONS: ESC organized Electronics and Computer Software participation of Indian Electronics and IT Export Promotion Council (ESC) companies in the following Global Trade Electronics and Computer Software Export Fairs: Promotion Council (ESC) is mandated to  ICT Expo, 13-16 April 2018, Hong promote India’s exports of Electronics, Kong Telecom, Computer Software and IT  Indo-CIS ICT Expo, 24-27 April Enabled Services. ESC offers a varied set of 2018, Russia services to its members for accelerating  CeBIT, 11-15 June 2018, Hannover, exports. The ESC is an Autonomous Germany Society under control of Ministry of  Mobile World Congress, 12-14 Electronics and Information Technology September 2018, USA (MeitY).  Gitex-Dubai, 14-18 October 2018, Some of the services of ESC are as Dubai, UAE follows:  Japan IT Week, 24-26 October 2018,

 Facilitates participation in Global Tokyo, Japan Trade Shows/ Expositions and  Electronica, 13-16 November 2018, Conferences. Munich, Germany  Undertakes Market Research/ EVENTS TO BE ORGANISED: Studies and publicity Campaigns in  India Electronics & Software Expo overseas markets. 2019 (INDIASOFT, India

Electronics Expo and (vi) ESC organised “Punjab Start-Up GLOBALSOFT) 4-5 February 2019, Summit: Nurturing Talent Hyderabad Harnessing Innovation” on 31st  Cloud Expo, 12-13 March 2019, UK August, 2018 in Chandigarh. The DOMESTIC ACTIVITIES: idea of Start-Up Summit was to (i) Hon'ble Commerce and Industry develop the entire eco-system for the Minister Shri Suresh Prabhu released growth of the Start Ups in the State. ESC's Strategy Paper and Business (vii) Stakeholders’ Consultation Meeting Plan for augmenting India's was held in ESC House on 26th Electronics and software exports September, 2018 in New Delhi to during May 2018 in New Delhi. discuss Draft Personal Data (ii) Organised participation of members Protection Bill 2018. in Indo-Korea ICT Networking Meet (viii) Assembly of Caldas (Colombia) IT on 10th July, 2018 in New Delhi. Delegation visited ESC House on (iii) ESC gave a presentation on Export 05th September, 2018 in New Delhi Opportunities and Government to discuss Business Opportunities for Schemes in association with Goa Indian IT companies in Caldas and Tech Association on 20th July, 2018 Opportunities for institutional in Goa. cooperation. (iv) ESC organized a Seminar on IT (ix) In association with Goa Technology Opportunities in Emerging Markets Association and Goa Chamber of on 24th August, 2018 in Commerce and Industry, ESC Bhubaneswar. organised a Presentation on Export (v) Submitted a Paper on "Electronics Opportunities for ICT Industry on Industry in India and Need of the 09th October, 2018 in Goa. Hour" to Department of Commerce (x) ESC coordinated meetings of Bolivar on 07th August, 2018. The Paper Group from Colombia with ESC included WTO compliant incentive members in Mumbai, Bengaluru and schemes for the electronics industry. New Delhi during October 2018.

Chapter 6: Commercial Relation, Trade  India and Singapore have jointly Agreements and International Trade concluded the 2nd Review of India – Organization Singapore CECA which was officially announced by both sides on I. Trade with Asia 01.06.2018 during Hon’ble PM visit 1. ASEAN REGION to Singapore. India and Singapore India announced its ‘Look East Policy’ in have agreed to: i) expand the 1991 with a view to seeking greater coverage of tariff concessions; ii) engagement with East Asian countries. In liberalize the Rules of Origin; iii) order to address the economic content of the include a de minimis provision; and ‘Look East Policy’, a continuous dialogue is iv) new Product Specific Rules. maintained with ASEAN (Association of These improvements will provide South East Asian Nations) countries viz. more flexibility for our traders, and Brunei Darussalam, Cambodia, Indonesia, is expected to boost bilateral trade. Lao PDR, Malaysia, Myanmar, Philippines, Both countries agreed to take the Singapore, Thailand and Vietnam. Summit issues requiring further engagement level engagements, Ministerial meetings and to the next Review. official level discussions are held in order to  On the sidelines of the 15th fulfill the Look East Policy agenda. AEM –India Consultations, India  Singapore: We have established a and Singapore launched the Joint Working Group on Trade and Third Review of the India- Investment with Singapore in Singapore Comprehensive Economic pursuance of Joint Statement on the Cooperation Agreement (CECA) on Strategic Partnership between India 1.9.2018. The third review aims to and Singapore released during visit enhance the CECA to the mutual of Hon’ble Prime Minister to benefit of both countries. The Singapore in November, 2015. Three comprehensive review of the CECA JWG meetings have taken placed on will ensure that it remains an up-to- 10 May, 2016; 10th August, 2016 date agreement that strengthens the and 24 October 2016. economic relations between India and Singapore.

 Signing of MRA: The Indian 2. SOUTH ASIA Nursing Council and the Singapore South Asia comprises of Afghanistan, Nursing Board also signed a Mutual Bangladesh, Bhutan, India, Maldives, Nepal, Recognition Agreement on Nursing Pakistan and Sri Lanka. India is the biggest to facilitate movement of Nursing trading partner for Nepal and Bhutan while professionals and for better for India, Bangladesh is the largest trading understanding of each other’s partner in South Asia, followed by Nepal, standards in regulating the training Sri Lanka, Pakistan, Afghanistan, Bhutan and practice of nursing. and Maldives. A key feature of India’s trade Singapore recognized seven Indian in South Asia is that it enjoys a substantial Nursing under the MRA, paving way trade surplus with all South Asian countries. for Indian nurses to access Singapore Afghanistan Healthcare Sector. It will also pave Under Strategic Partnership Agreement way for India to push similar between Afghanistan & India, a Joint arrangements with other countries in Working Group (JWG) on Trade, ASEAN. Commerce and Investment functions  Myanmar: Second Edition of between the Ministries of Commerce and Myanmar –India Business Conclave Industries of the two countries, at the level and Round table took place on 22nd of Commerce Secretary, to discuss the March 2018 at Yangon, Myanmar. issues related to trade and economic co- Attended by Shri C R Chaudhary, operation between the two countries. The Minister of State of Commerce & third meeting of the JWG was held on 25th Industry and Dr Than Myint, Union October, 2018 at Kabul, wherein several Minister for Commerce, Government bilateral trade and connectivity related of Myanmar. issues such as land based transit to each  Brunei: The first Joint Trade other’s territory, connectivity through Committee Meeting between India Chabahar port, Air-freight corridor, market and Brunei was held on 5th access for pharmaceutical products and September 2018 at Bandar Seri procurement of rough gemstones etc were Begawan, Brunei. discussed.

Bangladesh The Bilateral Trade Agreement between Bhutan India and Bangladesh provides for The trade between India and Bhutan is expansion of trade and economic governed by Agreement on Trade, cooperation but does not prescribe any Commerce and Transit which prescribes free preferential tariffs for the imports of trade between the two countries. No Basic products into the other country. India has Customs Duty is levied on import of any provided zero duty access to Least product from Bhutan or export to Bhutan. Developed Countries (LDC) members of Further, the trade is carried out in Indian SAFTA for all tariff lines, except for 25 Rupees and Bhutanese currency lines related to liquor and tobacco. (Ngultrums). The Agreement also provides Bangladesh being a LDC enjoys preferential transit facilities to landlocked Bhutan to access to Indian market under SAFTA. facilitate its trade with third countries and Minister of Commerce and Industry made a movement of goods from one part of Bhutan highly successful visit to Dhaka on 25-27 to another through Indian Territory. September 2018. In the meeting with Commerce Minister of Bangladesh, both A meeting on trade and transit related issues countries discussed a variety of trade, between India and Bhutan at the level of investment and connectivity related issues of Commerce Secretary was held on 17-18, mutual interest, including, inter-alia, May, 2018 at Thimphu, Bhutan, wherein a undertaking a joint study on the prospects of large number of trade and transit related entering into a bilateral Comprehensive issues such as opening of entry point with Economic Partnership Agreement (CEPA) Nepal for Bhutan’s transit trade through covering goods, services and investment, railways, additional points of entry for expediting the constitution of a India- import of plant products, problems being Bangladesh CEO Forum for providing faced by Indian businessmen, etc were policy level inputs relating to trade and discussed. investment issues, enhancing border trade On Bhutan’s request and for facilitation of infrastructure development between the two bilateral trade, new Land Customs Stations countries, capacity building of officials of (LCSs) have been notified. Efforts are being Bangladesh etc. made to facilitate export of food commodities and plant and plant products

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from Bhutan by identifying and resolving of each other. India has provided duty-free infrastructural and procedural issues at the access to almost all the lines, except a few border crossing points. lines on which 25% duty concessions are Efforts have been made to analyze and provided and on 417 products on which no resolve the issues affecting bilateral and concessions are given. Tariff rate quotas transit trade on account of the introduction have been prescribed by India on import of of GST, as identified by Bhutan. apparel, tea, pepper, desiccated coconut and Nepal Vanaspati, bakery shortening and margarine The bilateral trade between India and Nepal from Sri Lanka. Under ISLFTA, Sri Lanka is governed by the India-Nepal Treaty of has provided duty-free access for almost all Trade, which was last renewed on 27th the products except 1220 products, on which October 2016 for a further period of seven no tariff concessions have been provided years. Under the Treaty, India has provided under ISLFTA. duty free access to almost all the products Iran imported from Nepal, except few products Currently there is no bilateral Trade relating to tobacco, perfumes and cosmetics Agreement with Iran. A Joint Working and alcohol. Some tariff rate quotas are Group (JWG) between the Ministry of applicable on the import of four products- Commerce and Industry in India and the Vegetable fats, Acrylic yarn, Copper Ministry of Industry, Mine & Trade in the products and Zinc Oxide from Nepal. Both Islamic Republic of Iran is functioning at the countries have agreed to undertake a level of Commerce Secretary to discuss the comprehensive review of the Treaty of issues related to bilateral trade between the Trade. The first meeting for the review was two countries. In the last meeting of the held in August 2018 and the basic issues JWG, both sides agreed to commence text pertaining to the review were identified. based negotiations for the Preferential Trade Sri Lanka Agreement (PTA). The India-Sri Lanka Free Trade Agreement Efforts are also being made to address the (ISFTA) has been in operation since 1st emerging challenges affecting India-Iran March, 2000. Under this Agreement, both bilateral trade as a consequence of countries agreed to phase out trade tariffs international developments. from each other within a fixed time frame except for those items in the Negative List

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Pakistan negotiations for upgradation of CEPA in There is no bilateral agreement between 2016. The negotiations are still underway India and Pakistan. The bilateral trade with 6thround of negotiations held on 20- mainly takes place under the Agreement of 21June 2018 in New Delhi. South Asian Free Trade Area (SAFTA). No India-Japan CEPA bilateral meeting on trade related issues has A Comprehensive Economic Partnership taken place in recent past. However, issues Agreement (CEPA) between India and identified by the industry, adversely Japan was signed on 16th February 2011 affecting bilateral trade are being raised with which came into force from 1st August 2011. Pakistan through diplomatic channels. Under the institutional mechanism of CEPA, Maldives 4thJoint Committee meeting at Secretary The bilateral trade between India and level was held on 4th August 2017 in Tokyo Maldives is facilitated by a Trade and the 5th Joint Committee meeting is Agreement between the two countries. The scheduled to be held in December 2018 in agreement does not prescribe any New Delhi. preferential tariffs for the imports of Recent Trade Related Activities products into the other country, and is only a President of the Republic of Korea (ROK) facilitative mechanism for enhancement of Moon Jae-in paid a State Visit to India from bilateral trade. Under the provisions of the July 8-11, 2018. On the sidelines of the visit, Agreement, India facilitates provision of Mr. Suresh Prabhu, Commerce and Industry essential commodities to Maldives. The Minister of India and Korean Minister for relevant Notifications for this purpose were Trade, Industry & Energy signed two MoUs processed and issued in June 2018. on 9th July 2018 - MoU on Trade Remedy Cooperation and MoU on Future Strategy 3. NORTH EAST ASIA Group. The MoU on Trade Remedy Trade Agreements Cooperation will promote cooperation India-Korea CEPA between the two countries in the area of A Comprehensive Economic Partnership trade remedies viz. anti-dumping, subsidy Agreement (CEPA) between India and and countervailing and safeguard measures, Republic of Korea was signed on 7th August which will enhance the bilateral trade 2009 which came into force from 1st January relations. The purpose of MoU for 2010. The two sides commenced establishing an India-Korea Future Strategy

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Group is to promote bilateral cooperation in Import Exposition (CIIE) during 4-6 the fields of applied science and industrial November 2018. It was succeeded by a technologies for the purposes of promoting meeting of Indian delegation with Vice sustainable development and enhanced Minister, MOFCOM, China on 6th quality of life. November, 2018 on market access issues for Prime Minister Narendra Modi visited Japan agricultural products. on October 28-29, 2018 for India-Japan Annual Summit with Japanese Prime 4. ECONOMIC AND SOCIAL Minister Shinzo Abe. COMMISSION FOR ASIA & THE Prime Minister Narendra Modi visited PACIFIC (ESCAP) China to hold first Informal Summit with India is one of the founding members of Chinese President Mr. Xi Jinping in Wuhan ESCAP, the regional development arm of on April 27-28, 2018, to exchange views on the United Nations, which serve as the main overarching issues of bilateral and global economic and social development centre for importance, and to elaborate their respective the United Nations in Asia and Pacific. With visions and priorities for national a membership of 62 Governments, 58 of development in the context of the current which are in the region, and a geographical and future international situation. The two scope that stretches from Turkey in the west leaders agreed to push forward bilateral to the Pacific island nation of Kiribati in the trade and investment in a balanced and east, and from the Russian Federation in the sustainable manner by taking advantage of north to New Zealand in the south, ESCAP complementarities between their two is the most comprehensive of the United economies. Nations five regional commissions. It is also Prime Minister Modi again visited China the largest United Nations body serving the from 9-10 June, 2018 to participate in 18th Asia-Pacific region. SCO Summit. During the visit, a protocol Established in 1947 with its headquarters in on phytosanitary requirements for exporting Bangkok, Thailand, ESCAP seeks to rice from India to China was also signed overcome some of the region’s greatest between the two sides. challenges. It carries out work in the An Indian delegation led by Commerce & following areas: Industry Minister visited Shanghai, China  Macroeconomic Policy and for participating in China International Development

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 Statistics Dialogue' are merged to form 'Strategic and  Sub regional activities for Commercial Dialogue (S&CD)' and 1st development India-US S&CD was held in September,  Trade and Investment 2015 at Washington D.0 and 2nd India-US  Transport S&CD was held in August, 2016 at New  Environment and sustainable Delhi. India-US Chief Executive Officers development (CEOs) Forum forms an organic link  Information and Communications guiding the agenda for the Commercial Technology and Disaster Risk Dialogue. To facilitate better focus on trade Reduction and commercial relations, the Commercial  Social Development Dialogue has now been delinked from S&CD and restructured to avoid duplication

and overlap of subjects dealt under Trade Annual Session of ESCAP rd Policy Forum and Commercial Dialogue. The 73 Session of ESCAP comprise of the Senior Officials segment and the Ministerial The first session of Commercial Dialogue was held in October, 2017 at Washington segment was held in Bangkok, Thailand from 11th to 16th May 2018. D.C India-US Trade Policy Forum: India-US Trade Policy Forum (TPF), announced in NAFTA July, 2005, is designed to expand bilateral USA There are primarily two institutional trade and investment relations between India mechanisms for promotion of Trade and and the United States. This Forum has been Investment between India and USA. instrumental in creating an institutional India-US Commercial Dialogue: The India mechanism to resolve a host of trade issues, — USA Commercial Dialogue (CD) was amicably, between the two nations. It has signed on March 23, 2000 as an institutional provided a good platform for interaction on arrangement between USA Department of market access to each other's commodities, Commerce (US DoC) and Department of sort out procedural bottlenecks, discuss Commerce (DoC) facilitating trade and investment opportunities and pursue maximizing investment opportunities across collaboration in the areas of Intellectual th a broad range of economic sectors. In 2015 Property Rights (IPRs). The 11 TPF meeting was held in October, 2017 at the 'Commercial Dialogue' and 'Strategic

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Washington D.C. with its working groups on 13th Nov, 2017 at New Delhi. The Indian Trade and Market Access and Intellectual Delegation was led by Shri. Suresh Prabhu, Property. To bring in sharpness of focus and Minister for Commerce and Industry while avoid duplicity with Commercial Dialogue, the Canadian side was headed by Mr. appropriate restructuring was done focusing Francois-Philippe Champagne, Minister for on issues with clear deliverables. Indian side International Trade. was led by Minister for Commerce and Canada is an important partner of India in Industry, Mr. Suresh Prabhu and from the the NAFTA region with a mutual trade of $ U.S. side Mr. Robert E. Lighthizer, USTR 7.2 billion which is much below the led the delegation. potential between the two robust economies, CANADA despite huge potential. To realize the full India-Canada Trade Policy potential of bilateral trade and investment, Consultations: Annual Trade Policy both the nations agreed to renew efforts to Consultations (TPCs) were formalized in expand and diversify bilateral economic and October 2003 providing an effective commercial relations during the visit of platform to deal with trade barriers and Canadian Prime Minister Right Honourable explore new areas of economic cooperation. Justin Trudeau in February, 2018. There was The 7th Meeting of the India-Canada Trade significant progress on some of the Policy Consultations was held in October, important issues such as Canadian concerns 2010 in New Delhi at the level of the on derogation of pulses and systems Commerce Secretary (India) and Deputy approach as alternative to fumigation and Minister of International trade (Canada). No India's pending request for organic Meetings has been held thereafter. equivalence, during the current financial India-Canada Annual Ministerial year. Dialogue: During the visit of Prime Minister India-Canada Comprehensive Economic to Canada in June, 2010 it was agreed for an Policy Agreement (CEPA): The launch of annual ministerial dialogue (AMD) on Trade India-Canada CEPA negotiations announced and Investment between Canada's Minister by PMs of both the countries in Seoul and of International Trade and India's Minister formally launched in November 2010 at of Commerce and Industry and the first New Delhi, following the release of the AMD was held at Ottawa in September, Canada-India Joint Study Report, in 2010. 4th India-Canada AMD was held on September 2010. Agreement covers Trade in

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Goods, Trade in Services, Rules of Origin, (which till recently, largely limited to trade Sanitary and Phytosanitary Measures, with United States and Latin American Technical Barriers to Trade and other trade countries). Appropriate measures initiated areas and economic cooperation. So far, Ten including promotion of Export Promotion Rounds of Negotiations have been held till Councils for aggressive penetration by way date and the modalities on goods side have participating in the trade shows. been agreed at tariff lines stage. MEXICO III. Trade with Europe India Mexico BHLG: A Memorandum of EUROPEAN UNION (EU) Understanding (MOU) was signed between The EU as a bloc of 28 countries is an India and Mexico on 21st May, 2007 at New important trading partner of India. From Delhi by the then Minister of Commerce and having a trade deficit with EU earlier, India Industry and Minister of Economy, Mexico now has a trade surplus (US$ 53.7 bn for the establishment of a Bilateral High exports vs. US$ 47.5 bn of imports for 2017- Level Group (BHLG) on Trade, Investment 18). (Source: DGCI&S) and Economic Cooperation. The BHLG Important issues in India's trade with the EU mainly include promoting bilateral are sanitary and phyto-sanitary standards, cooperation, maintaining liaison in the technical barriers, complex system of economic, commercial, technical and other quota/tariff, anti-dumping/anti-subsidy related fields and information exchange. The measures against Indian products, etc. These BHLG helped in engaging with Mexico on issues have a bearing on market access for many issues concerning trade and India's exports to the EU. These issues are possibilities for partnerships in promoting regularly taken up in the Joint Working investment in sectors like telecom, IT, Groups and the Sub-Commission on Trade. Pharmaceutical, Tourism, etc. Issues affecting trade with individual India's exports to Mexico in recent years European countries are also taken up at the have grown significantly from US $ 2.2 bilateral fora in the form of Joint billion in 2013-14 to US $ 3.8 billion in the Commissions. year 2017-18. Mexico is going to be a India-EU bilateral relations are periodically promising destination to enhance Indian reviewed at the highest level by the India-EU exports in the changed global trade scenario Joint Commission. The 24th Session of India- and changing trading pattern of Mexico EU Joint Commission Meeting was held on

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14th July, 2017 at Brussels. Further, there are General (Trade) of EU meeting was held on three Sub-Commissions on Trade, 15th November, 2018 in Brussels and way Economic Cooperation and forward was discussed for India-EU BTIA. Development Cooperation and seven The meeting brought out the necessity to Joint Working Groups on agriculture and take stock of unfulfilled ambitions on both marine products, textiles, steel, food sides and balance the sensitivities that exist. processing industries, pharmaceuticals & INDIA – EFTA TEPA NEGOTIATIONS biotechnology, Customs Cooperation and EFTA Trade bloc consists of Switzerland, technical barriers to trade (TBT)/Sanitary and Norway, Iceland and Liechtenstein. India Phyto-sanitary (SPS) issues are functioning. and EFTA had initiated a dialogue on Trade The last meeting of India-EU Sub Commission and Economic Partnership Agreement on Trade was held on 61h June, 2018 at New (TEPA) in October, 2008. Negotiations are Delhi. held in 14 tracks/chapters viz. Government INDIA-EU BTIA NEGOTIATIONS Procurement, Dispute Settlement, In September, 2005, the 6th India-EU Competition, Trade Facilitation, Investment Summit held in New Delhi decided to Sustainable Development, Sanitary and establish a High-Level Trade Group Phyto-sanitary Measures, Technical Barriers (HLTG) to explore ways and means to to Trade, Trade Remedies, Trade in Goods, broaden the economic relationship and Trade in Service, Rules of Origin, Legal and explore possibility of a trade and investment Horizontal Provision and Intellectual agreement, viz., Broad-based bilateral Property Rights which both sides committed Trade and Investment Agreement to resolve in a time-bound manner. So far, (BTIA).16 rounds of negotiations took 17 rounds of negotiations have been held. place from 2007 till 2013. The negotiations The last round was held from 18th to 21st remained suspended for a couple of years. September, 2017. India is committed to a Efforts to revise negotiations have started balanced agreement with EFTA. since January, 2016 and 8 meetings have Institutional Mechanism happened between the Chief Negotiators. India has established Institutional The last meeting between the Chief mechanism with several European Negotiators was held on 7th June, 2018 in countries viz. UK, France, Spain, Italy, New Delhi. Portugal, Belgium-Luxembourg, Recently, Commerce Secretary-Director Switzerland, Czech Republic, Slovak

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Republic, Serbia, Croatia, Slovenia, status of bilateral trade along with global Austria„ Bulgaria, Bosnia & scenario and market access issues were Herzegovina, Cyprus, Finland, Greece, discussed. Romania and Turkey as well as the EU. The Mid- term review of 15th Session of the  India-EU summit is held (at the PM Joint Economic Commission meeting between level) annually alternatively at India India and Belgium Luxembourg Economic and the EU. The 14th India-EU Union (BLEU) was held through DVC on 3rd Summit was held on 6th October, May, 2018. 2017 in New Delhi. 16th session of India-Switzerland Joint  India-EU JCM is held annually, Economic Commission (JEC) was rd alternatively in India and Belgium. convened in New Delhi on 23 February, The last JCM (24th session) was held 2018. The meeting was co-chaired by Ms. in Brussels on 14th July, 2017. The Anita Praveen, Joint Secretary, Department three Sub Commissions on Trade of Commerce and Ms. Livia Leu, (India lead D/o Commerce; held on Ambassador and Head of Bilateral 06.06.2018), Economic Cooperation Relations, State Secretariat for Economic (India lead D/o Commerce; held on Affairs of the Swiss Confederation. In the 11.04.2018) and Development said session, with a view to enhancing Cooperation (India lead DEA; held bilateral trade and investment, the JEC on 3.6.2014) feed into the India and reviewed the global and domestic economic EU JCM. situation, bilateral trade & investment and Joint Commission Meetings participation by the private sectors’ The 17th Session of the Indo French Joint companies at international fairs and Committee Meeting (JCM) was held on 24th exhibitions. The JEC also discussed October, 2017 in Paris. The Indian delegation cooperation in various sectors, viz. was led by Shri C.R Chaudhary, Hon’ble Investment, Heavy Industry, MSME, Minister of State for Commerce and Industry Chemical and Petro-chemicals, Ayurveda and the French delegation was led by Mr. and Traditional Medicine, Pharmaceuticals, Jean-Baptiste Lemoyne, Minister of State for Tourism etc. and the problems faced by the Europe and Foreign Affairs. A wide range of private sector companies of both the issues including current economic situation countries. and future prospects of both the countries,

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18th Session of India-Bulgaria Joint Commission. The two sides updated each Commission for Economic, Scientific and other about global developments, Technical Cooperation (JCESTC) was held particularly in trade, and also developments in New Delhi on 6th March, 2018. The in their respective economies. Discussions technical session was led by Ms. Anita were held on the following broad topics: Praveen, Joint Secretary, Department of Trade and Investment, Engineering and Commerce from the Indian side and by Ms. Industrial Machinery, Energy including AdelinaKioseva, Ministry of Economy from nuclear and renewable energy, Mineral the Bulgarian side. The protocol was signed Resources and Mining Industry, Defence by Ms. Rita Teaotia, Secretary, Department Industry, Information Communication of Commerce from the India side and by Mr. Technology (ICT), Pharmaceuticals, Alexander Manolev, Deputy Minister of Medical Equipment and Chemicals, Economy from the Bulgarian side. In the AYUSH, Infrastructure Development, said session, with a view to enhancing Agricultural Products, Environmental and bilateral trade and investment the JCESTC Agricultural Technologies, Scientific and reviewed the global and domestic economic Technical Cooperation, India EU BTIA situation and bilateral trade & investment. Negotiations, Agreement on Protection and The JCESTC inter alia discussed Promotion of Investment, WTO collaboration in the field of Innovation and Modernisation, Visa Issues, Tourism, Startups, and cooperation in various sectors, Standardization and Metrology. viz. Agriculture, Animal Husbandry, Bilateral Meetings Transport, MSME, Energy, Steel, Forestry, Hon’ble Prime Minister had bilateral Information and Communication meeting with: Technology (ICT) and Tourism.  H.E. Mr. Doris Leuthard, 11th India-Czech Republic Joint President of Switzerland in Commission on Economic Cooperation Davos, Switzerland on 23-26 (JCEC) meeting was held in Prague on 22- January, 2018 on the sidelines of 23 October, 2018, co-chaired by Shri C. R. Annual Meeting of World Chaudhary, MoS(C&I) and Czech Minister Economic Forum, 2018. of Industry and Trade, Ms. Marta Novakova. Hon’ble Commerce and Industry Minister India and Czech Republic held constructive had bilateral meetings with:- discussion during the meeting of the Joint

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 Swiss Federal Councilor Johann The 5th Session of India-Azerbaijan Schneider Ammann on 23-26 Intergovernmental Commission on Trade, January, 2018. Economic, Scientific and Technological  Czech Minister of Industry and Cooperation was held during October 11-12, Trade H.E. Mr. Thomas Huner 2018 in New Delhi under the Co-chairs of on 5th March, 2018 in New Hon’ble Minister of Commerce and Industry Delhi. of the Republic of India Shri Suresh P.  Estonian Minister of Prabhu and H.E. Mr. Mukhtar Babayev, Entrepreneurship and IT, H.E. Minister of Ecology and Natural Resources, Ms. Urve Palo accompanied by on behalf of the Government of the Republic the Estonian Ambassador in of Azerbaijan. th New Delhi, H.E Mr. The 11 Session of Uzbekistan-India RihoKruuvon 9th March, 2018 in Intergovernmental Commission on Trade, New Delhi. Economic, Scientific and Technological  Icelandic Foreign Minister H.E. Cooperation was held during August 16-18, Mr. Gunnar BargiSveinsson on 2018 in Tashkent under the Co-chairs of 5th April, 2018 in New Delhi. Deputy Prime-Minister of the Republic of  Minister for Foreign Trade and Uzbekistan, Chairman of the State Development of Finland H.E. Committee of the Republic of Uzbekistan Anne-Mari Virolainen on 30th for Investment, H.E. Mr. S.R. Kholmuradov November, 2018 in New Delhi. and Hon’ble Minister of Commerce and Hon'ble Minister of State (Commerce & Industry of the Republic of India Shri Industry) Shri C.R. Chaudhary had Suresh P. Prabhu. th bilateral meetings with:- The 6 Session of India-Kazakhstan Joint  Mr. Jean-Yves Le Drian , Working Group on Trade and Economic th Minister of Europe and Foreign Cooperation meeting was held on 12 July, Affairs, France 2018 in Astana, Kazakhstan under the  Mr. Benjamin Grigeaux, Chairmanship of Shri Bidyut Behari Swain, Minister of State for Economy, Additional Secretary, Department of France Commerce, Government of India and H.E. Mr. Kairat Torebayev, Director of the IV. Commonwealth of Independent States Department for International Cooperation,

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Ministry of National Economy of the The Chilean offer to India included Republic of Kazakhstan. tariff preferences on 296 tariff lines at The 23rd Session of India-Russia Joint the 8- digit level ranging from 10% to Working Group on Trade and Economic 100%. Cooperation meeting was held on 22nd May,  Major products on which India has 2018 in Moscow, Russia under the Co-chair offered tariff concessions included of Ms. Rita Teaotia, Commerce Secretary, wood and plywood articles, chemicals, Government of India and H.E. Mr. Alexey some industrial products etc. whereas Gruzdev, Deputy Minister of Economic the Chilean offer included tariff Development of the Russian Federation. concessions on chemicals and FTA between India-Eurasian Economic pharmaceuticals, textiles & clothing, Union (EaEU): The extent and scope of rubber & miscellaneous, dyes and trade agreement with EaEU is being resins, footwear etc. decided. Joint Feasibility Study to explore  Due to the limited coverage, the PTA, the possibility of FTA with Georgia has signed by India with Chile on March been completed and a Joint Protocol to 8, 2006, has been expanded and the commence negotiations for Free Trade expanded PTA was implemented with th Agreement has been signed on 11 January, effect from 16.5.2017. 2019. Joint Action Strategy is being  In the expanded PTA, India has prepared by the IIFT, New Delhi and All increased its tariff lines from 178 to Russian Trade Academy to boost the 1031 at HS Code 2012 offering bilateral trade between India and Russia. concessions to Chile ranging from V.Latin American & Caribbean (LAC) 10% to 100%. The major sectors India-Chile PTA and its expansion where concession have been offered  As a follow up to the Framework by India are animal & vegetable Agreement with Chile, India-Chile products, animal & vegetable fats, PTA was signed in March, 2006 which prepared food stuffs, mineral products, came into force with effect from chemical products, plastic & rubber, August, 2007. In the PTA, Indian offer hides & skins, wood & pulp products, to Chile included fixed tariff textiles, articles of stones, plaster, preferences ranging from 10% to 50% cement, pearls, base metal, machinery, on 178 tariff lines at the 8-digit level.

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transportation equipment, Optical, ranging from 10%-100%, where the misc. latter had offered MoP on 452 tariff  On the other hand, Chile has lines to India ranging from 10%- expanded its tariff lines from 296 to 100% at 8-digit level. 1784 at HS code 2012 and has  In order to deepen and widen the offered concessions ranging from scope of the existing PTA, the PTA 30% to 100%. The major product is being expanded. For expansion of sectors wherein concessions have the existing PTA, both sides been offered to India are animal & exchanged their initial offer of 434 its products, vegetable products, tariff lines at 8-digit level on animal & vegetable fats, prepared 14.9.2017. As the process of food stuffs, mineral products, expansion was not moving forward chemical products, plastic & rubber, after the initial offers exchanged by hides & skins, wood & pulp both sides on 14.9.2017, a meeting products, textiles, footwear, articles with Ambassadors of Mercosur of stone, pearls, base metal, countries was convened by JS(SM) machinery, vehicle, measuring on 9.5.2018 for expediting the instruments and misc. products. process of expansion of the PTA. India-MERCOSUR PTA & its Expansion Following this meeting, a letter has  As a follow up of the Framework also been sent from Hon’ble CIM to Agreement signed on 17th June, his counterparts in MERCOSUR 2003 at Asuncion, Paraguay, India- countries 23.5.2018 so as to MERCOSUR (a trading bloc in expedite the process of expansion of South America region the PTA. originally comprising of Brazil, India-Peru Trade Agreement Argentina, Paraguay and Uruguay)  A Joint Study Group (JSG) between PTA was signed in New Delhi on India and Peru was constituted on January 25, 2004 which came into 15th January, 2015 to explore the effect from 1st June, 2009. possibility for entering into FTA  Under the existing PTA, India had with Peru. The JSG finalized and offered margin of preference (MoP) signed the report on 20th October, to MERCOSUR on 450 tariff lines 2016. The Cabinet in its meeting

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held on 18th January, 2017  As a follow up of first meeting of the approved holding negotiations for Joint Economic and Trade Trade Agreement with Peru Committee (JETCO) co-chaired by covering trade in goods, services Commerce Secretary held in and investment. The Terms of Ecuador on 17th May, 2017, both Reference (ToRs) for negotiations sides agreed to explore the for trade agreement were finalized possibility for entering into a on 8th March, 2017 during the visit Preferential Trade Agreement. The of Mr. Edgar Vasquez, Vice process for Joint Study to explore Minister of Peru in New Delhi. the possibility of a trade agreement  The negotiations for a Trade is under way. Agreement with Peru have been Trade Agreement with Colombia started. As of now, three rounds of  During the 3rd meeting of India- negotiations have been held. The Colombia Joint Committee on last (3rd round) was held in New Business Development Cooperation Delhi, India during 4-8 December, held in Bogota, Colombia on 19th 2018. May, 2017, both sides decided to  Both sides exchanged their explore the potential framework to respective Wish Lists on 28.3.2018 be adopted for a trade agreement. before the 2nd round. Indian Wish Discussions with Colombia are List exchanged with Peru contains underway for undertaking a joint 3396 tariff lines at 10-digit level as study. per Peruvian Tariff Nomenclature VI. Trade with Oceania Region whereas the Peruvian Wish List The FT (Oceania) Division deals with contains 5000 tariff lines at 8-digit India’s bilateral trade relations with level as per Indian Tariff Australia, New Zealand and 12 Pacific Nomenclature. Small Islands Developing States (PSIDS)  The next round of negotiations is viz Fiji, Papua New Guinea, Kiribati, scheduled to be held in March 2019 Micronesia, Marshall Islands, Nauru, Palau, in Lima, Peru. Samoa, Solomon Islands, Tonga, Tuvalu and Trade Agreement with Ecuador Vanuatu.

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India’s major trade activities in the which has culminated in signing of a MoU Oceania region are: between them on 22.11.2018 to facilitate (I) Australia bilateral investment flows. (a) India-Australia CECA negotiations (II) New Zealand India is negotiating Comprehensive India-New Zealand CECA negotiations: Economic Cooperation Agreement (CECA) India is negotiating Comprehensive covering trade in goods, services, Economic Cooperation Agreement (CECA) investment and related issues. Nine rounds covering trade in goods, services, of negotiations have been held so far. The 1st investment and related issues. Ten rounds of round was held in July, 2011 and the latest negotiations have been held so far. The 1st round i.e. 9th Round was held during 21-23 round was held in April, 2010 and the latest September, 2015 in New Delhi. round i.e. 10th round was held on 17-18 (b) India Australia Joint Ministerial February, 2015 in New Delhi. Commission (JMC) Meeting VII Trade with West Asia and North The Last 15th India-Australia Joint Africa (WANA) Ministerial Commission (JMC) Meeting was The West Asia and North Africa (WANA) held at Canberra, Australia on 25th June, region comprises of 19 countries. These are: 2018. The Agenda for the meeting, inter- (i) Six Gulf Cooperation Council (GCC) alia, included presentation on the India countries (Bahrain, Kuwait, Oman, Economic Strategy; ways to enhance two- Qatar, Saudi Arabia and United Arab way trade and investment between the two Emirates), countries and issues mutual market access (ii) Six West Asian countries (Iraq, Israel, issues in certain products of interest to both Jordan, Lebanon, Yemen and Syria) countries. One of the important outcome of and the meeting was decision to have greater (iii) Seven North African countries collaboration between Austrade (the (Algeria, Egypt, Libya, Morocco, Australian Trade and Investment Sudan, Tunisia and South Sudan). Commission, or Austrade, is the Australian Government's trade, investment and The United Arab Emirates (UAE) ranks first education promotion agency) and Invest- among the destinations for India’s exports in India (which is the National Investment the WANA region and among the GCC Promotion and Facilitation Agency of India) countries. The other major destinations in

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the WANA region include Saudi Arabia, 5thround of the India Mauritius CECPA Israel, Egypt and Oman. negotiations held on 9-11 July, 2018 in Mauritius. VIII Trade with Africa The 6th round of India-Mauritius CECPA Eighth Session of the India-Kenya Joint negotiations was held in New Delhi from 26-28 Trade Committee September, 2018. 7th round of India-Mauritius CECPA Eighth Session of the India-Kenya Joint Trade negotiations was held in Mauritius during 19-23 Committee was held in Nairobi, Kenya on 23rd- November, 2018. During these rounds, 24th August, 2018. The Indian delegation was negotiations were held cutting across trade in led by, Minister for Commerce & Industry and Goods, trade in Services and General Economic Civil Aviation, Government of the Republic of Cooperation. India. The Kenyan delegation was led by H.E CII-EXIM Bank Regional Conclave Mr. Peter Munya, Cabinet Secretary (Minister) CII-EXIM Bank Regional Conclave on India for Ministry of Industry, Trade and and West Africa Project Partnership was held Cooperatives, Government of the Republic of from 8-9 October, 2018 in Nigeria. Indian Kenya. delegation led by the Hon’ble MoS visited During the meeting, discussions were held on Mauritius to inaugurate the Regional Conclave. various areas such as cooperation in the field of Trade Cooperation Framework between MSME, Agriculture, ICT, Tourism, India and Rwanda. Administration of Standards, Development of Trade Cooperation Framework between the Human Resources in Higher Education, Science Government of the Republic of India and & Technology, Investment Promotion and Government of Republic of Rwanda was signed Protection, Air Services, Energy, Plastics, on 23rd July, 2018 during Hon’ble PM’s visit to Textile, Pharmaceuticals, Oil & Gas, Health, Rwanda. Immigration, Automobile and other engineering products, IX International Trade Organizations India-Mauritius CECPA negotiations: World Trade Organization 4thround of the India Mauritius CECPA 1. Eleventh Ministerial Conference of negotiations held on 17-19 April, 2018 in New the WTO (MC11) was held in Buenos Aires, Delhi Argentina from 10 to 13 December 2017. In the run-up to MC11, decisions were

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expected on a permanent solution on food moratorium on TRIPS non-violation security, other agriculture issues and complaints, which, inter alia, prevents fisheries subsidies. Some of the Members ‘ever-greening’ of patents in were also pushing for outcomes in the area the pharmaceuticals sector, thereby ensuring of e-commerce and domestic regulations in accessibility and affordability of generic the services negotiations, investment medicines. facilitation and Micro, Small & Medium 4. Ministerial Decisions on new issues Enterprises (MSMEs). like Investment Facilitation, MSMEs 2. As there were wide differences (Micro, Small and Medium Enterprises), among members, with a few members not gender and trade, which lacked a mandate or supporting acknowledgment and reiteration consensus, were not taken forward. While of key underlying principles guiding the there was no movement on the Doha WTO and various agreed mandates, Development issues, which are very Ministers could not arrive at an agreed important for the developing countries, some Ministerial Declaration and no substantial of the proponents have issued Joint Ministerial Decision could be taken. There Statements for further work on MSMEs, E- was, however, wide support for the commerce, Domestic Regulations multilateral trading system and the disciplines in Services Negotiations and commitment to move forward on various Investment Facilitation, which they will areas of work in the WTO. need to first establish linkages with trade 3. During the Conference, Ministerial and further, negotiations on such issues can decisions were taken on a Work Programme be launched only if all WTO Members agree on disciplines on Fisheries Subsidies with a to do so. view to arriving at a decision by the Twelfth 5. At MC11, India stood firm on its Ministerial Conference (in June 2020). It stand on the fundamental principles of the was also decided to continue with the non- WTO including multilateralism, rule-based negotiating mandate of the existing Work consensual decision-making, an independent Programme on E-commerce. As was done and credible dispute resolution and appellate in the last Ministerial conferences, an process, the centrality of development and existing moratorium on imposing customs special and differential treatment for all duties on electronic transmission was developing countries. India is committed to extended for two years along with another preserving and promoting the WTO and the

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multilateral trading system with a view to the cycle of recent unilateral trade measures taking the agreed agenda of the WTO and proposed counter-measures. forward. Informal Ministerial Gathering, Paris Informal Ministerial Gathering New 8. Political engagement continued with Delhi India participating in the Informal Gathering 6. In order to continue political of WTO Ministers and other meetings in engagement on the multilateral trade issues Paris on 31 May 2018 in the sidelines of the in the aftermath of MC11, India hosted a annual meetings of the Organisation for two-day Informal WTO Ministerial Meeting Economic Cooperation and Development in New Delhi on 19-20 March 2018. (OECD). 29 member countries of the World Ministers and officials from 52 member Trade Organization (WTO) and the Director countries of the World Trade Organisation General of the WTO attended the meeting (WTO) and the Director General of the and to discuss the way forward in the WTO. WTO attended the meeting. Discussions 9. There was strong criticism of the were held with the aim of providing political unilateral trade measures and counter guidance for further work in the WTO and measures by members and also stand being the way forward on development. taken by some of the members and need to 7. Participants stressed on the need to follow the WTO commitments was preserve and enhance the functioning and reiterated by members. India stressed the credibility of the rules-based multilateral importance of political engagement in the trading system as embodied in the WTO. process and called for strengthening of the Majority of the participants sought multilateral trading system and inclusive expeditious and immediate resolution of the institutional structure of the WTO. India impasse in the appointment of Appellate emphasised on the need to fill up the Body members - an issue that was viewed to Appellate Body vacancies and expressed be adversely affecting the credibility and concern at the trade measures and counter functioning of the WTO. In many measures by some of the members. interventions deep concern was expressed at WTO Reforms the serious threat posed to the credibility of 10. Recent developments, which include the WTO rules and some of its cardinal increasing unilateral measures and counter principles, such as non-discrimination, by measures, undermine the very basis of the multilateral trading system embodied in the

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WTO. Non-cooperation in the WTO by automobiles, instruments, sports goods and some of the members in negotiations as well toys. as on institutional issues has further eroded 12. On tariffs, the negotiations take place the trust of membership in multilateralism. on the bound tariff which are the bindings This opportunity is being used by some of taken during the negotiations at the WTO. the members, to propose amendment in the The bound tariffs are the upper limit of working of the WTO and its procedures. tariffs actually applied by the Customs India, as a strong votary of the multilateral authorities on imports into any country. trading system is of the opinion that there is Some of the key methods through which a need to strengthen the system and we are tariff reductions were being sought were the working positively to contribute in the application of a non-linear Swiss formula as process and collaborating with members to well as sectoral initiatives for reduction or ensure that the concerns of developing elimination of tariffs in specific sectors. countries in the WTO negotiations and Developing countries including LDCs were reform process are addressed. India believes negotiating on appropriate special and that flexibilities to the developing countries differential treatment. On non-tariff and least developing countries to better measures, the discussions were being driven integrate in the global trading system must by both horizontal and sector specific textual be preserved in the WTO negotiations. proposals. Non-Agriculture Market Access (NAMA) 13. The Nairobi Ministerial Declaration 11. Non Agricultural Market Access included NAMA as one of the ‘remaining (NAMA) relates to trade negotiations on Doha issues’, where Ministers expressed non-agricultural or industrial products. In strong commitment to advance negotiations. these negotiations, WTO Members discuss However, in the 11th WTO Ministerial the terms or modalities for reducing or Meeting in December, 2017 at Buenos eliminating customs tariff and non-tariff Aires, there was no traction in NAMA on barriers on trade in industrial products. The account of lack of convergence on any issue. product coverage under NAMA includes India has been taking the stand that during marine products, chemicals, rubber negotiations, the principle of less than full products, wood products, textiles and reciprocity (LTFR) in reduction clothing, leather, ceramics, glassware, commitments must be applied. We have engineering products, electronics, generally not been supportive of sectorals as

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these are usually more burdensome for a consolidated list containing IT products developing countries which have to reduce (combining products of interest of all their duties more than the developed proponents of ITA-2); on which tariff countries. Indian Industry is generally reductions are being sought and it has been apprehensive of sectorals, given the adverse circulated amongst WTO members. Same effect on the domestic industry and large was discussed intensely in WTO meetings trade deficit. during the last year, however, the final Information Technology Agreement agreement has not yet been reached. (ITA) 16. The general perception among 14. India is a signatory to the stakeholders about ITA-1 is that it has Information Technology Agreement (ITA) adversely affected our hardware (now also known as ITA-1), a plurilateral manufacturing sector. Therefore, there is agreement of WTO. As on date, there are apprehensions on any further expansion. altogether 75 member signatories, including Moreover, there is a view that lower duties 27 EU member countries, accounting for on IT products may also impinge on the about 97 percent of the world trade in domestic manufacturing initiatives of the Information Technology (IT) products. India government. The level of sacrifice made by joined the ITA on 25th March 1997. countries in the ITA has also been different 15. During the last few years, some of with those with large markets and higher the developed country members of the ITA - average customs duties making larger USA, European Union and Japan- have commitments that the others. The commerce again proposed in the ITA Committee secretary had also written to the Japanese meetings to broaden the scope and coverage vice-minister at the Ministry of Economy, of the ITA (it is being referred as ITA-2). Trade and Industry, Japan, suggesting These proposals basically relate to technical engagement of officials from both increasing the coverage of IT products on countries to understand each other’s position which customs duty would be bound at zero; on issues related to ITA-1. addressing non-tariff measures; and expanding the number of signatory countries MSMEs and WTO to include new signatories such as 17. The WTO in the last decade has Argentina, Brazil and South Africa. initiated many discussions on Micro, Small Proponents of ITA expansion have prepared and Medium Enterprises (MSMEs), in

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recognition of their important role in Government of India expanded the product national economies and their crucial linkage coverage of the DFTP Scheme from 1st in the creation of regional and global value April 2014, and also simplified the chains. At the MC-11, 59 countries procedures related to Rules of Origin in (including China, Russia, EU and Brazil) March, 2015. As per Customs Tariff announced the creation of an informal Notification No. 8/2014 dated 1st April, working group on MSMEs at the WTO to 2014, India provides duty free/ preferential strive for a multilateral outcome aimed at market access on 98.2% of India’s total establishing a formal work programme for 5205 tariff lines (at HS 6-digit level of MSMEs at the next Ministerial Conference. classification). In fact, only 97 lines are in India is not a part of the initiative as it India’s Exclusion list while 114 lines on believes that the discussion on MSMEs, as margin of preference On the rest of the lines WTO disciplines and flexibilities are not duty free exports is allowed into India’s amenable to being used to target sub- market. Moreover, certain procedural national entities exclusively, such as modifications to the Rules of Origin of the MSMEs. DFTP Scheme were made vide customs Duty Free Tariff Preference (DFTP) non-tariff notification 29/2015-Cus(NT), Scheme for Least Developed Countries1 dated10th March, 2015 further simplifying 18. India became the first developing the process. country to extend Duty Free Quota Free 19. In 2017, with the notifications of (DFQF) access to the Least Developed Niger and Guinea as beneficiaries to the Countries (LDCs) in the year 2008, thereby DFTP Scheme2, the total number of fulfilling a key element of the WTO Hong beneficiaries rose to 34. The beneficiary Kong Ministerial Declaration of December, LDCs are, Afghanistan, Bangladesh, Benin, 2005. India’s DFQF scheme is called Duty Burkina Faso, Burundi, Cambodia, Central Free Tariff Preferences (DFTP) scheme. In African Republic, Chad, the Comoros, order to ensure effective utilisation of the Eritrea, Ethiopia, the Gambia, Guinea, Scheme and to provide optimum access to Guinea Bissau, Haiti, the Lao People’s LDCs’ exports to India’s market, the Democratic Republic, Lesotho, Liberia, Madagascar, Malawi, Mali, Mozambique, 1Relevant information regarding India’s DFTP Scheme can be accessed at the link: http://commerce.gov.in/writereaddata/Uploade dFile/MOC_636434269763910839_international 2 Vide customs notification no. 68/2017-dated 27th _tpp_DFTP.pdf July, 2017 120

Myanmar, Niger, Rwanda, Senegal, 21. The Protocol of Amendment was Somalia, the Sudan, Timor-Leste, Togo, adopted in November, 2014 to insert the Uganda, the United Republic of Tanzania, TFA in the WTO Agreements The adoption Yemen and Zambia. Fourteen least of the TFA was contingent on the developed countries are yet to become ratification by 2/3rd of the WTO Members. beneficiaries under the scheme. These are, India ratified the TFA on 22.4.2016. Angola, Bhutan, the Democratic Republic of Subsequently, the TFA was ratified on the Congo, Djibouti, Equatorial Guinea, 22.2.2017 with the 110th Member ratifying Kiribati, Mauritania, Nepal, Sao Tome and it. 139 Members ratified (as of 19 October, Principe, Sierra Leone, Solomon Islands, 2018) with Zimbabwe being the latest. South Sudan, Tuvalu and Vanuatu. 22. The TFA is divided into three parts – Trade Facilitation Agreement (TFA) of Section-I (Substantive TF disciplines); WTO Section-II (Special & Differential Treatment 20. Trade Facilitation was discussed in provisions for developing countries and the Singapore WTO Ministerial Conference Least Developed Country Members); and in December 1996 (and hence is one of the Section III (Institutional Arrangements and Singapore Issues) and Members formally Final Provisions).Section-I contains agreed to launch negotiations on trade provisions on simplification of border facilitation in July 2004. The mandate for clearance procedures and adoption of new negotiations was to clarify and improve transparency measures. It consists of 12 Articles V (Freedom of Transit), Article Articles. There are a total of 239 sub- VIII (Fees and Formalities connected with provisions in Section 1 of TFA wherein Importation and Exportation) and Article X Members have to take on commitments. (Publication and Administration of Trade India has notified 175 Sub provisions have Regulations) of GATT, 1994. The final text been notified under Category of the Agreement on Trade Facilitation “A”(implemented or capable of (TFA) was agreed upon in the 9th implementing) and 64 have been put under Ministerial Conference (or MC 9) of World Category “B”(require transition time of 5 Trade Organization (WTO) held at Bali, years. Moreover, 110 Countries have Indonesia in December 2013. The designated category “A” commitments while Preparatory Committee on TF was 59 Countries (counting EU as one) have established to implement the TFA. designated category B commitments and46

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countries have designated category C term (6-18 months) and long term (18-36 commitments. months). Most of the activities are TFA 23. India has also constituted the plus. Even with the TFA activities which National Committee on Trade Facilitation have been notified under Category B in (NCTF) for the implementation of the TFA WTO by India, with implementation period which is chaired by Cabinet Secretary bi- of 5 years from the date of entry into force annually with Secretaries from line i.e. February, 2018, we have voluntary kept ministries. Apex industry chambers like CII, the target date for completion 36 months in FICCI, FIEO are also involved. In the 2nd the NTFAP. tier, there is a steering group, a subset of the 25. The Trade Facilitation Agreement committee with a core group of public and contains provisions for expediting the private institutions which will meet movement, release and clearance of goods, quarterly; establish working groups and including goods in transit. It also sets out work program. In the 3rd tier there are measures for effective co-operation between Adhoc Working groups created for special customs and other appropriate authorities on purpose and would be dissolved once the trade facilitation and customs compliance task is completed. issues. These objectives are in consonance 24. In order to optimize the gains of with India’s “Ease of Doing Business” trade facilitation, National Trade Facilitation initiative. Action Plan (NTFAP) for 2017-2020 Other issues containing specific activities to further ease Standards and technical regulations out the bottlenecks to trade has been 26. Globally, tariffs have been going prepared. The action points in the Plan is down, the overall global average import mapped to the WTO Trade Facilitation weighted tariff on industrial goods has gone Agreement (TFA) Articles and aligned to down to just around 4 per cent. With FTAs our policy objectives on improving the Ease being negotiated among a large number of of Doing Business. It includes 76 trade countries, average global tariff rates will go facilitation activities with definite timelines down further, reducing the role of tariffs in for their implementation. Each activity is market access. Even though there appears associated with a principal agency some upsurge in tariff walls in some corners responsible for its implementation in strict of the world, the use of technical regulations timelines short term (upto 6 months, mid- (mandatory standards) and a variety of

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conformity assessment procedures has been of the domestic market with unsafe imports, out-growing tariffs. which adversely affect consumers as well as 27. In the globalised marketplace, a key domestic industry. challenge facing developing countries is the Notifying Technical Regulations (TRs) to lack of domestic capacity to overcome address regulatory gaps technical barriers to trade and to comply 29. In pursuance of the Committee of with the requirements of agreements on Secretaries (CoS) decision on notifying sanitary and phytosanitary conditions, which technical regulations (TRs) to address are now basic prerequisites for market regulatory gap in India, and follow up access, embedded in the global trading through core group reviews, the pace of system. The WTO Agreement on Technical notifying TRS has been greatly accelerated. Barriers to Trade (TBT) and the Agreement Regulators are informed about WTO- on Sanitary and Phytosanitary Measures compatible Dos & DO’NTs in this regard, (SPS) are two important agreements in this avoiding poorly defined regulations. Efforts area. are on anvil to match up to the international 28. There is synergetic relation of best practices with regard to preparation standards and technical regulations with adoption and application of TRs. trade. Standards and technical regulations Identification of various items for are trade enhancing because standards reducing import dependence reduce information asymmetries, signal 30. A Task Force was created under quality to consumers and create a common chairmanship of DIPP Secretary for language for potential trading partners, thus preparing an Action Plan for reducing reducing overall transactions costs. import dependence. A template prepared by However, at the same time the concerns over DoC and approved by the Cabinet the impact of standards and technical Secretariat was circulated to all regulations as non-tariff barriers (NTBs) in Ministries/Departments that are members of global trade are also well-documented. Task Force, requesting them to provide Mandating standards on products and action plans to enable deliberations to putting in place a proper eco-system related formulate strategies for reducing import to technical regulations, standards, dependence. metrology, conformity assessment and accreditation would help to prevent flooding

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Support and Outreach Program for recommendations on pursuing opportunities, MSME Sector launched by Hon’ble addressing challenges and findings a way Prime Minister forward amidst emergent issues in the 31. MSME Support & Outreach Program contemporary global trade scenario. was launched by Hon’ble Prime Minister on Eminent persons in the field of economics, 02.11.2018. Under this program the officers trade, fund managements, and foreign of various central and state government relations are members of this HLAG. The agencies participate and address the committee will shortly give its findings financial and other issues of MSMEs in the along with recommendations to the country. From Quality Framework point of Department of Commerce. view, the program promotes registration of Standards Conclave& Indian National Quality Certificates like ISO-9000 in Strategy for Standards (INSS) document MSME clusters. The progress of 34. The Department of Commerce, implementation monitored on the dashboard Government of India in collaboration with (www.msmesupport.gov.in) on weekly Confederation of Indian Industry (CII), basis. Bureau of Indian Standards (BIS) and 32. To give further fillip to the Quality National Accreditation Board for agenda, Department of Commerce is Certification Bodies (NABCB) and other organizing National and Regional Standards knowledge partners organized the 5th Conclaves in coming 100 days. A Special National Standards Conclave on June 18-19, National Standards Conclave in Mumbai (8- 2018 in New Delhi where the Indian 9th Feb 2019) and Regional Standards National Strategy for Standards (INSS) Conclave in Uttar Pradesh (Lucknow, 04 document was released. The objective of the Jan. 2019), Orissa (Bhubaneshwar, 18th Jan two-day Conclave was to discuss the 2019) and Telangana (Hyderabad, before implementation strategy of Indian National March, 2019 are proposed. Strategy (INSS) was also discussed in the High Level Advisory Group (HLAG) conclave. 33. The 12 members High Level 35. This INSS is the result of a broad Advisory Group (HLAG) has been consensus arrived over consultations held constituted by the DOC under the Chair of over a four-year period from 2014 to 2017 Dr. Surjit S Bhalla, Director, Oxus Research through national and regional standards & Investment, New Delhi to make conclaves that attracted wide participation of

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experts and stakeholders from union and trillion economy by 2025 with about 60% of state governments, industry, regulatory the USD 5 trillion, that is, USD 3 trillion bodies, national and overseas standards and being accounted for by the services sector. conformity assessment bodies, academics, and international fora. The INSS addresses While the services sector provides four broad pillars of the Quality Ecosystem opportunities, it is also facing challenges viz- (I.) Standards Development (II.) that need to be addressed. Service sector Conformity Assessment and Accreditation; growth, since the financial crisis, has been (III.) Technical Regulations and SPS lack-lustre. India’s services exports are Measures; and (IV.) Awareness and characterized by over dependence on IT & Education. It determines the critical role for ITeS (about 40 % of India’s services each pillar and sets goals thereunder. The exports). For sustained growth of the sector, draft INSS implementation report will be there is urgent need for diversification to discussed in the Special National Standards new sectors and upgrading our IT model to Conclave, proposed on 8-9 February, 2019 cover new areas like artificial intelligence, in Mumbai. the internet of things and Industry 4.0. It is Champion Services Sector Initiative important to address both sectoral and cross Service sector contributes significantly to cutting issues in order to unleash the India’s GDP (about 50%), FDI inflow potential of the various services sectors in (about 50%), exports and job creation. the country. Services growth has been aiding India’s overall growth, especially in last two At the inaugural edition of Global decades. During 2004-05 to 2010-11, India Exhibition on Services 2015, the Hon. PM achieved overall growth of 8.8. %, largely highlighted India’s potential to be the on account of over 10% growth in services services hub of the world. The year 2022 sector. In 2016-17, overall growth was marks 75 years of Indian independence. 6.6%, while Services grew at 7.7%. Services DoC’s intensive efforts are aimed at trade surplus has been financing more than realizing the PM’s vision. The share of 50% of India’s merchandise trade deficit. India’s services sector in global services Services trade surplus including remittances exports was 3.47% in 2017 compared to finances about 110% of India’s merchandise 3.1% in 2014. DoC aims to achieve the trade deficit. India is expected to be a USD 5

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target of 4.2 % share in global services Action Plans. DoC shall provide exports by 2022. Secretariat support for the CoS.  Creation of a dedicated fund of

Rs.5000 Crore to support initiatives The Department of Commerce’s Cabinet for sectoral Action Plans of the Note on the ‘Action Plan for Champion Champion Sectors Sectors in Services’ was accorded approval Indicative sectoral reform approaches / plans by the Cabinet Note on 28th February, 2018. have been included by the Department of Approval has been received on the Commerce in the Cabinet Note for the above following: sectors, which can be inputs towards finalization of the Action Plans by the identified nodal Ministries/Departments  Inclusion of 12 services sectors, concerned. Following are envisaged to be namely, IT &ITeS, Tourism and important elements of the Action Plans: Hospitality Services, Medical Value Travel, Transport and Logistics (i) Apart from the sectoral issues, address cross-cutting including Services, Accounting and Finance reform of the regulatory Services, Audio Visual Services, framework, development of Legal Services, Communication services standards regime, skill Services, Construction and Related development including foreign language capability, visa reforms Engineering Services, Environmental etc. Services, Financial Services and (ii) Include substantive content under Education services under the CSSS. the five pillars enunciated in the  Directions to the nodal ministries / Cabinet note, namely, ‘new departments concerned for processes’ for improving ease of formulation of action plans for cross- doing business, ‘new cutting issues and sectoral action infrastructure’ for strengthening plans, in consultation with physical and digital connectivity, stakeholders and the DoC. These ‘new sector’ based on identifying would, inter-alia, include targets and sectors with untapped potential timelines for implementation. for value addition, employment  Constituting a Committee of generation and technology Secretaries (CoS) chaired by Cabinet upgradation, ‘new mind-set’ Secretary, including Secretaries aimed at changing the official concerned for the Champion mind-set from issuing/approval Services sectors, for timely and authority' to 'partnering business' regular monitoring of Sectoral

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and ‘new standards’ to develop a ASEAN (Brunei, Cambodia, Indonesia, services standards regime. Lao, Malaysia, Myanmar, Philippines, (iii) focus on new initiatives to Singapore, Thailand and Vietnam) and promote value addition in their 6 FTA partners (also known as AFP’s services sectors. or ASEAN FTA Partners) namely (iv) focus on new initiatives to Australia, China, India, Japan, Korea and enhance exports of services New Zealand. Two RCEP Leaders’ including attracting foreigners to Summit meetings, Six Ministerial come to India for consumption Meetings, seven inter-sessional Ministerial of services. meetings and Twenty- four RCEP

Negotiating Rounds at the Experts level Hon. President of India launched the 12 have been held as of November, Champion Services Sectors on 15th May, 2018. Institutionally, the RCEP constitutes 2018, at the Global Exhibition on Services of the Trade Negotiating Committee (TNC) held in Mumbai. This involved unveiling of at the apex level with 9 working groups the Champion Services Sector Portal (goods, services, investment, intellectual (www.indiaservices.in) and the logo for Champion Services Sector initiative. The property, legal & institutional issues, sectoral schemes of the nodal competition, economic & technical Ministries/Departments related to the 12 cooperation, government procurement and Champion Services Sectors is envisaged to e-commerce) and 7 sub working groups operate under the umbrella scheme, that is, (rules of origin, customs procedures & the Champion Services Sector Scheme trade facilitation, SPS, STRACAP, trade (CSSS). Nodal Ministries/Departments are remedies, financial services and telecom finalising sectoral action plans and sectoral services) schemes for their respective service sectors in consultation with stakeholders and DoC. The 2nd RCEP Leaders’ Summit held on 14 So far, the Screening Committee has November, 2018 in Singapore provided an recommended funding proposals for opportunity for Leaders to reiterate their sectoral schemes of various nodal political commitment to the RCEP process Ministries/Departments under CSSS and with a view to signal the importance they has earmarked additional funds for some attach to free trade at a time when the others. world trade remains sluggish due to protectionism in the backdrop of trade X Negotiations tensions. The 2nd RCEP Summit RCEP Negotiations: Declaration welcomed the ‘substantial Regional Comprehensive Economic progress’ made in RCEP negotiations in Partnership (RCEP) is a proposed Free 2018 and expressed determination to Trade Agreement (FTA) between sixteen conclude a modern, comprehensive, high countries namely the 10 countries of quality, and mutually beneficial RCEP in

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2019. The Leaders also welcomed the the first four were grouped as "BRIC" conclusion of 7 (out of 16) Chapters of before the induction of South Africa in which 5 were concluded this year. They 2010. BRICS Presidency is held highlighted the need to accelerate the rotationally by the Member States on an momentum in the negotiations to bring all yearly basis. South Africa has been the remaining Chapters and Annexes to BRICS President for the year 2018. The conclusion. Department of Commerce handles the economic and trade issues under BRICS At the technical level, there has been that are discussed under the institutional substantial progress both in the key areas of mechanism known as the Contact Group on market access in goods, services and Trade and Economic Issues (CGETI). investment as well as rules. The offers on Under the current presidency of South goods and services as well as investment Africa, 3 meetings of CGETI (17th, 18th& reservation lists are being incrementally 19th) were held in March, May and 3-4 improved through ‘requests and offers’. July, 2018. The 8th BRICS Trade The work is also progressing on the rules Ministers’ meeting was held on 5th July, area specifically on the texts. 2018. The 10th BRICS Leaders’ Summit was held in Johannesburg from 25-27 July, Implementation of the tariff concessions 2018. The key areas of discussion under under Fourth Round of the Asia Pacific BRICS CGETI are non tariff measures, Trade Agreement services, intellectual property, e-commerce, The results of 4th Round of negotiations multilateral trading system, etc. During under the Asia Pacific Trade Agreement South Africa’s Presidency, the BRICS (APTA) among six countries, namely, CGETI negotiations finalised the following Bangladesh, China, India, Lao PDR, documents, which were adopted at the 8th Republic of Korea, and Sri Lanka, have BRICS Trade Ministers’ held on 5th July, been implemented with effect from 1st July, 2018:- 2018. India has, on its part, exchanged tariff concessions on 3142 tariff lines with i) Working Mechanism on Technical all member countries and special Regulations, Standards, Metrology, concessions on 48 tariff lines for LDCs, Conformity Assessment Procedures viz. Bangladesh and Lao PDR. for Cooperation to Facilitate Trade ii) Terms of Reference for review of the BRICS Joint Trade Study BRICS (Brazil, Russia, India, China, iii) BRICS IPRCM Implementation South Africa) Framework BRICS is an association of five iv) BRICS IPR Action Plan major emerging economies: Brazil, Russia, v) Outline for the Guidebook on IPR in India, China and South Africa. Originally BRICS countries

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vi) BRICS Cooperation Framework on Senior Officials meeting) and; (ii) Ministers inclusive E-commerce Development of the Shanghai Cooperation Organization vii) Terms of Reference to Strengthen Member States responsible for foreign Institutional Arrangements on MSME economic and foreign trade activities. Cooperation During 2018, two meetings of SCO Senior viii) BRICS Statement of support for an Officials meetings were held in May and inclusive multilateral trading system September, 2018. The meeting of the ix) CGETI Monitoring Mechanism Ministers of the Shanghai Cooperation x) Trade in Services Statistics Organization was held in September, 2018 in Dushanbe, Tajikistan. Some of the areas that have been discussed under SCO are Shanghai Cooperation multilateral trade and economic cooperation Organization (SCO) (MTEC), services, e-commerce, trade The Shanghai Cooperation Organization facilitation, etc. The Ministers/Heads of (SCO) is a Eurasian political, economic, delegations exchanged opinions on the and security alliance, The creation of SCO current state and prospects for further was announced on 15 June 2001 development of multilateral trade, economic in Shanghai, China by the leaders of China, and investment cooperation in the SCO Kazakhstan, Kyrgyzstan, Russia, Tajikistan, region. The Ministers/Heads of delegations and Uzbekistan. The SCO Charter, formally inter-alia approved the Regulations on the establishing the organisation, was signed in Special Working Group of the SCO Member June 2002 and entered into force on 19 States on Customs Cooperation. September 2003. Initially India and Pakistan G-20 and India became the Observers of the SCO. They became the full members of the SCO on 9 The G20 was established in 1999, as a June 2017 at a summit in Astana, forum of Finance Ministers and Central Kazakhstan. The Council of Heads of Bank Governors of the 19 nations Government (Prime Ministers) is the (Argentina, Australia, Brazil, Canada, supreme decision-making body in the SCO. China, France, Germany, India, Indonesia, It meets once a year and adopts decisions Italy, Japan, Republic of Korea, Mexico, and guidelines on all important matters of Russia, Saudi Arabia, South Africa, Turkey, the organisation. United Kingdom, and United States) and the European Union, in the wake of the The Department of Commerce participates Asian Financial Crisis. However, G20 rose in two meetings of SCO namely; (i) meeting to prominence in 2008 when it was elevated of the Commission of Senior Officials of the from a forum of Finance Ministers and Ministries and Agencies of the SCO Central Bank Governors to that of Heads of Member States Responsible for Foreign State/Government in order to effectively Economic and Foreign Trade Activity (SCO respond to the global financial crisis of

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2008. G20 replaced the G8 in 2009 as The United Nations Conference on Trade premier global forum for international and Development (UNCTAD) aims at economic cooperation. G20 members integration of developing countries into the represent around 85 per cent of global gross world economy. UNCTAD serves as the domestic product, over 75 per cent of global focal point within United Nation for the trade, and two-thirds of the world’s integrated treatment of trade and population. development and the interrelated issues in the areas of finance, technology, investment Argentina took over the Presidency of the and sustainable development. Three pillars G-20 in 2018. Commerce and Industry of UNCTAD’s existing mandate are: a) Minister led the Indian delegation for the independent policy analysis; b) consensus G20 Trade Ministers’ Meeting held on building; and c) technical assistance. 14th September 2018 in Mar del Plata,

Argentina. The Ministers issued a statement The Ministerial Conference, which meets at the end of the meeting that recognized the every four years, is UNCTAD’s highest growing importance of Agro-food Global decision making body and sets priorities and Value Chains (GVCs) for enhancing global guidelines for the organization and provides food security, on the New Industrial an opportunity to debate and evolve policy Revolution (NIR), the Ministers consensus on key economic and acknowledged the central role of digital development issues. The XIV Ministerial technologies in the global trade as reflected Conference of the United Nations in the Ministerial statement. Conference on Trade and Development was Ministers unanimously agreed on the need held on 17 to 22 July 2016 at Nairobi, for revitalising WTO. CIM reiterated India’s Kenya. sincere commitment to the rules-based Global System of Trade Preferences multilateral trading system and called for (GSTP) collective action for strengthening WTO The Agreement establishing the Global without undermining its core principles of System of Trade Preferences (GSTP) was special & differential treatment, consensus signed on April 13, 1988 at Belgrade. The building and transparency. current round of GSTP negotiations, also The G 20 Leader’s Summit was held from known as “São Paulo Round” was launched 30 November 2018 -1 December 2018 in in 2004 with 22 participating countries, on Argentina. the occasion of the UNCTAD XI Quadrennial Conference in Sao Paulo in Japan would take over the Presidency of the Brazil. G-20 in 2019. A Ministerial Meeting of the GSTP United Nations Conference on Trade and Negotiating Committee was held on 15 Development (UNCTAD) December, 2010 in Foz do Iguacu, Brazil for

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signing of the “Final Act Embodying the Bay of Bengal Initiative on Multi-Sectoral Results of the Sao Paulo Round” and the Technical and Economic Cooperation “Sao Paulo Round Protocol on the (BIMSTEC) Agreement on GSTP”. So far, 8 out of 44 member countries, including India, have The Bay of Bengal Initiative for Multi- signed the protocol. Of these 8 countries, Sectoral Technical and Economic three countries, viz. India, Malaysia and Cooperation (BIMSTEC) is a regional Cuba have ratified it. The Cabinet organization, comprising seven member Committee on Economic Affairs (CCEA) in states-Bangladesh, Bhutan, India, Myanmar, its meeting on 23 August, 2012 had Nepal, Sri Lanka and Thailand, came into th approved implementation of India’s being on 6 June, 1997. The initiative is Schedule of Concessions under the Third aimed at furthering economic cooperation Round of negotiations. India’s offer is as per on economic cooperation on sub regional the agreed modalities of the GSTP offer basis involving contiguous countries of namely 70% of the dutiable tariff lines with South East and South Asia grouped around a 20% margin of preference (MOP). In the Bay of Bengal. addition, India has unilaterally offered 77% BIMSTEC has identified 14 priority areas of dutiable lines at an MOP of 25% to Least cooperation where a member country takes Developed Countries (LDCs). lead. India is a lead country for Counter The schedules of concessions under the Terrorism and Transnational Crime, Third Round of negotiations will be Environment and Disaster Management, implemented thirty days after a minimum of Tourism and Transport and Communication. four participants ratify their schedules and inform the GSTP Secretariat. The tariff BIMSTEC members have agreed to concessions will be implemented amongst establish BIMSTEC Free Trade Area such four participants and other participants Agreement in 2004 covering Trade in will avail of the concessions after they ratify Goods, Services, Investment and Customs their schedules. Cooperation. So far, 21 rounds of Trade Negotiating Committee (NC) took place. Till recently, only 3 member countries – The 21st meeting of BIMSTEC TNC and India, Malaysia and Cuba had ratified their Working Group meetings of Rules of GSTP schedules. In May 2018, Uruguay has Origin, Services, Investment, Customs ratified its GSTP schedules of the Sao Paulo Cooperation, Trade Facilitation and Legal Round Protocol. India's schedule of Experts were held in Dhaka on 18-19 concessions may now be implemented since November, 2018. It was decided that inter- four participants have since ratified their sessional meetings/video conferencing be schedules. held to expedite implementation of the BIMSTEC agreement.

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India is one of the founding members of XI. KIMBERLEY PROCESS KPCS. KPCS currently has 54 participants, CERTIFICATION SCHEME representing 81 countries with the European The Kimberley Process (KP is a joint Union and its Member States counting as government, industry and civil society single participant. All major diamond initiative to stem the flow of conflict producing, trading and polishing centres are diamonds (rough diamonds used by rebel members of KP. Civil Society and industry movements to finance wars against groups also actively participate in the KP. legitimate government). Kimberley Process Chairmanship of KP is rotated on annual Certification Scheme (KPCS) is an UN basis. The Vice Chair is selected at the mandated (UNGA Resolution 55/56 of 2000 annual “Plenary” meeting and becomes and UNSC Resolution 1459(2003)) Chair automatically the following year. The international certification scheme. It KPCS Chair oversees the implementation of requires each participant to impose internal the KPCS, the operations of the Working control over production and trade of rough Groups and Committees, and General diamonds. Trading in rough diamonds with Administration. EU is the Chair for the year a non-participant is not allowed. All exports 2018 and India will be become the Chair in of rough diamonds have to be accompanies 2019. by a valid KP Certificate stating that diamonds are conflict free.

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Chapter 7: Special Economic Zones & (Uttar Pradesh) have been converted into Export Oriented Units Special Economic Zones.

In terms of the SEZ Act, 2005 a SEZ SPECIAL ECONOMIC ZONES (SEZs) may be set up either jointly or severally by

the Central Government, State Govt. or any India was one of the first in Asia to person for manufacture of goods or recognize the effectiveness of the Export rendering services or for both or as a free Processing Zone (EPZ) model in promoting trade warehousing zone. Such proposals exports, with Asia’s first EPZ set up in duly recommended by the concerned State Kandla in 1965. Seven more zones were set Government are considered by the Board of up thereafter. However, the zones were not Approval for SEZs. SEZ being set up under able to emerge as effective instruments for the SEZ Act, 2005 are primarily private export promotion on account of the investment driven. multiplicity of controls and clearances, the absence of world-class infrastructure, and an Steps taken to speed up implementation of unstable fiscal regime. While correcting the SEZ Projects shortcomings of the EPZ model, some new features were incorporated in the Special The SEZ Act 2005 provides for Economic Zones (SEZs) Policy announced setting up of a Single Window Clearance in April 2000. This policy intended to make Mechanism for speedy implementation of SEZs an engine for economic growth SEZ Projects. Accordingly, the State supported by quality infrastructure Governments are also requested regularly to complemented by an attractive fiscal enact their SEZ Act to provide a friendly package, both at the Centre and the State environment to investors. SEZ rules and level, with a user-friendly regulatory procedures are reviewed from time to time to framework. All the 8 pre-existing Export facilitate the speedy implementation of SEZ Processing Zones (EPZs) located at Kandla projects. Comprehensive guidelines have and Surat (Gujarat), Santa Cruz been issued regarding energy conservation in (Maharashtra), Cochin (Kerala), Chennai SEZs. These guidelines provide for (Tamil Nadu), Visakhapatnam (Andhra optimization of energy use, water efficiency, Pradesh), Falta (West Bengal) and Noida

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waste management, site preservation and 10.07.2014. However, Revenue Secretary restoration etc. vide his letter dated 11.08.2014 has declined the request of this Department. Withdrawal of MAT and DDT exemption for SEZs: Slowdown in the SEZ Sector:

The Finance Ministry has withdrawn While the achievements in the SEZ the exemption from Minimum Alternate Tax sector over the last 6 years are in no way (MAT) in the case of SEZ Developers and insignificant, an analytical assessment Units as also the exemption on Dividend reveals a distinct slowdown in the SEZ Distribution Tax (DDT) for SEZ Developers sector, especially after FY 2010-11. The under the Income Tax Act. MAT is slowdown in the SEZ sector is evident from applicable at the rate of 18.5% of the book the following facts: profit in addition to education cess and surcharge on book profit after 1.4.2012 and a) Number of Applications for new the DDT is leviable w.e.f 1.6.2011 on SEZs: At the end of FY 2009-10 364 dividends distributed by SEZ developers @ SEZs had been approved by the 16.22% (now 16.995%) (15% plus 10% department based on applications surcharge plus 3% cess). The announcement received. There has been a very of Hon’ble Finance Minister in the budget modest increment of 16, 9, 5, 3, 6, 9, proposals of February, 2011 has had an 35, 4 and 2 to this number in 2010- adverse impact on the growth of SEZs. 11, 2011-12, 2012-13, 2013-14, Former Commerce Minister had taken up 2014-15, 2015-16, 2016-17, 2017-18 the matter with the Hon’ble Finance and 2018-19 (as on 30.11.2018) Minister to reconsider the decision to respectively. withdraw exemptions from MAT and DDT b) Number of SEZs operationalised: for SEZ entities in view of the sharp At the end of FY 2009-10 110 SEZs slowdown in the SEZ sector attributable to a had become operational in terms of large extent to the uncertainty in the fiscal having exporting units. Since then 23 regime. However, Finance Minister has not in 2010-11, 20 in 2011-12, 17 in agreed. The matter has again raised vide 2012-13, 15 in 2013-14, 17 in 2014- Commerce Secretary’s D.O. letter dated 15, 2 in 2015-16, 14 in 2016-17, 5 in

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2017-18 and 7 in 2018-19 (as on 0.77% in 2015-16, 12.05%in 2016- 30.09.2018) there has been 17, 11% in 2017-18 and 25.07% in operationalised. 2018-19 {Exports growth of the

c) Number of Units in SEZs: At the corresponding period of FY 2017-18 end of FY 2009-10, there were 2850 (as on 30.09.2018)}. units in SEZs. There has been a modest increment of 440, 110, 189, SEZ Policy and Operational Framework 210, 260, 107, 290, 690 and -122 Reform Initiative: units to this number in 2010-11, 2011-12, 2012-13, 2013-14, 2014- A comprehensive analytical 15, 2015-16, 2016-17, 2017-18 and assessment of the performance of the sector 2018-19 (as on 30.09.2018) has been carried out which has highlighted respectively. the need that certain aspects of the SEZ Policy and Operational framework perhaps d) Increased number of applications require a re-look with a view to possible for de-notification of approved SEZs: The number of applications reform in order to ensure that the laid down for de-notification of SEZs has objectives of the SEZ Policy are better shown a significant increase in the achieved. last four years with 56 of the total 86 de-notifications of SEZs having been In this regard a draft discussion paper to approved in FY 2008-09, 2009-10, facilitate stakeholder consultation on 2010-11, 2011-12, 2012-13, 2013- ‘Potential reform of the SEZ Policy and 14, 2014-15, 2015-16, 2016-17, Operating Framework’ had been prepared and was hosted on the department’s website 2017-18 and 2018-19 (as on 30.11.2018). www. sezindia.nic.in. After wide consultations with stakeholders – SEZ e) Growth in exports from SEZs: The developers, Units, Trade Associations, State growth of SEZ exports is showing a Governments, Central Govt. departments sharp slowdown from over 121% in including Revenue, Environment, Urban 2009-10, 43.11% in 2010-11, Development etc a detailed proposal - ‘SEZ 15.39% in 2011-12, 31% in 2012-13, Policy and Operational Framework Reform 4% in 2013-14, -6.13% in 2014-15, Initiative’ has been formulated and

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accordingly, the then Commerce & Industry for each contiguous 50 hectare Minister announced the following measures parcel of land. This will also bring to revive investors’ interest in SEZs on 18th about more efficient use of the April, 2013, which were notified by infrastructure facilities created in amending the SEZ Rules, 2006 vide G.S.R. such an SEZ. No. 540(E) issued on 12th August, 2013. Highlights of measures are as under:- (iii) Further flexibility to set up additional units in a sector specific 1.1 A package of measures has been SEZ is being provided by formulated to revive investors‟ interest introducing Sectoral broad- in SEZs and to boost exports. The banding to encompass similar / salient features of the package are:- related areas under the same sector.

(i) In view of the acute difficulties in (iv) On the issues relating to Vacancy aggregating large tracts of of Land, while the existing policy uncultivable land for setting up allows for parcels of land with pre- SEZs, while ensuring vacancy and existing structures not in contiguity, we have decided to commercial use to be considered reduce the Minimum Land Area as vacant land for the purpose of Requirement by half. For Multi- notifying an SEZ, it has now been product SEZ from 1000 hectares to decided that additions to such pre- 500 hectares and for Sector- existing structures and activities specific SEZ from existing 100 being undertaken after notification hectares to 50 hectares. would be eligible for duty benefits similar to any other activity in the (ii) To provide greater flexibility in SEZ. utilizing land tracts falling between 50-450 hectares, it has (v) In order to encourage agro-based been decided to introduce a industries in SEZ, a new sector Graded Scale for Minimum specific SEZ named ‘agro-based Land Criteria which would food processing’ sector with a permit a SEZ an additional sector

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minimum land area requirement of (NCR), Chennai, Hyderabad, 10Ha. has been introduced. Bangalore, Pune and Kolkata. For the other Category B cities 50,000 1.2 IT Exports constitute a very significant square meters and for remaining part of India’s exports and IT SEZs have cities only 25,000 square meters a major contribution in it. Exports from built up area norm will be applicable. IT SEZs during financial year 2013-14 have exceeded Rs. 1.84 lakh crore 1.3 EXIT Policy: Prior to 12.8.2013, registering a growth of over 31.21% the SEZ Framework did not have an Exit over the previous year’s exports. We Policy for the units and feedback was that have specifically addressed issues to this was perceived as a great disadvantage. boost growth of this very important Vide SEZ Rule (Amendment), 2013 (Gazette sector and also to give a fillip to notification dated 12.8.2013), it has been employment and growth in Tier-II and decided to permit transfer of ownership of Tier-III cities. SEZ units, including sale with certain stipulated conditions. (i) The present requirement of 10 hectares of minimum land area has Initiatives for ensuring Ease of Doing been done away with. Now there Business in SEZs would be no minimum land requirement for setting up an 1. Mapping of activities related to IT/ITES SEZ. Only the minimum Developers and Units in SEZs were built up area criteria would be identified and timelines for completion required to be met by the SEZ of the said activities were prescribed and developers. implemented. This was launched on 14.08.2014 in all Zones. (ii) The minimum built up area requirement has also been 2. Digitization and online processing of considerably relaxed with the various activities relating to SEZ requirement of one lakh square Developers and Units has been meters to be applicable for the 7 introduced in all Zones from 01.11.2014. major cities viz: Mumbai, Delhi

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Second phase of Digitization has been International Financial Services Centre launched in all Zones from 01.07.2015. (IFSC) in SEZs.

3. Dual use of infrastructure in Non- 6. Power Guidelines in respect of SEZ Processing Area (NPA): In order to Power Plants had been issued from time creation Social & Commercial to time. In order to bring clarity on the infrastructure and other facilities in NPA issue, fresh guidelines consolidating all of SEZ, Government vide notification earlier guidelines were issued on G.S.R. 5(E) dated 02.01.2015 has 16.2.2016. allowed dual use of facilities in NPA 7. Offences contained in the relevant both by SEZ and non-SEZ entities. Sections of The Customs Act, 1962; The Central Excise Act, 1944 and The 4. Integration of Customs ICEGATE Finance Act, 1994 and investigating system to SEZs: In order to facilitate agencies authorized to investigate into paperless transaction for movement of such offences in SEZs notified under the goods for imports and exports from Special Economic Zones Act, 2005 vide SEZs to Ports, it has been decided to notification dated 05.8.2016. integrate the Customs ICEGATE system 8. Provision for Refund, Demand, to SEZ Online system. A pilot project Adjudication, Review and Appeal has been launched in Madras SEZ on relating to authorized operations under 19.01.2015. The progress of the pilot is Special Economic Zones Act, 2005, being monitor by nodal officers of notified on 05.8.2016. In the absence of Department of Commerce and specific provisions for Refund, Demand, Department of Revenue. This has now Adjudication, Review and Appeal, the been rolled out in all the other SEZs and claims being made by the SEZ the project is running satisfactorily. Developers/Units could not be

entertained. With this notification, these 5. The Central Government vide S.O. issues can be settled by the appropriate 968(E) dated 08.04.2015 have notified authorities. the Rules of operations framed by RBI, SEBI and IRDA for the Units in an 9. Instruction No. 85 issued allowing of authorized employees of IT/ITES units

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in SEZ to Work from Home or place of SEZ Rules, 2006 for streamlining the outside the SEZ unit. gems & Jewellery Units in SEZs.

10. Instruction No. 86 issued for amending 17. Guidelines has been issued regarding instruction No. 9 regarding procedure for Policy on units carrying on recycling of reimbursement of Duty (RoD) in lieu of plastic scrap or waste in SEZs stating drawback for supply of goods to SEZ that all such units would be required to Developers against Indian Rupees. export not less than 35% of the total annual turnover in addition to meeting 11. Mobile Application for SEZ Developers their NFE obligation. and Units has been launched by this Department on 6th January, 2017. 18. Guidelines has been issued regarding Policy to regulate functioning of 12. Notification of amending time limit for Worn/Used Clothing Units in SEZs filing of Annual Performance Reports by stating that all such units would be SEZ units has been issued. required to export not less than 66.67% 13. Notification has been issued for i.e. 2/3rd of the total annual turnover in amending Rule 5A related to power addition to meeting their NFE supply in SEZs. obligation. Further, physical export 14. Notification has been issued for obligation (by volume) of 50% shall also removing the restriction of Legal and apply.

Accounting Services in SEZs vide 19. Amendment corresponding to GST law amending the rule 76 of SEZ Rules, has been made in SEZ Rules, 2006 vide 2006. Notification no. GSR 909(E) dated 15. Instruction No. 88 issued on 16.08.2017 19.09.2018

for restriction of Gold content up to 20. Sub-contracting period for studded gold maximum limit of 22 Carats for export Jewellery, silver Jewellery and imitation of Gold Jewellery, including partly Jewellery, the finished goods requiring processed Jewellery, whether plain or further processing or semi-finished studded and articles. goods has been increased from 28 days 16. Notification has been issued on to 45 days. 12.06.2017amending Rule 41, 42 & 50

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21. In June 2018, Government had the concerned Development Commissioner constituted a Group of eminent persons of Special Economic Zone i.e., under the under the chairmanship of Shri Baba Department of Commerce, Government of Kalyani, Chairman, M/s Bharat Forge to India. study the SEZ Policy of India. The The EOUs are governed by the provisions of Group submitted its report to Hon’ble Chapter 6 of the Foreign Trade Policy (FTP) Minister for Commerce and Industry on and its procedures, as contained in the 1911.2018. An inter-ministerial Handbook of Procedures (HBH). Provisions consultation was held on 26.12.2018 to of the said Chapter 6 and its procedures have consult the various stakeholder also been made applicable to the Electronics ministries. The report has been placed in Hardware Technology Parks (EHTPs), the public domain for public Software Technology Parks (STPs) and consultation. Biotechnology Parks (BTPs), Hence the scheme is for EOU/STP/EHTP/BTP and is Export Oriented Units (EOUs) referred in common parlance as EOU The Export Oriented Units (EOUs) scheme scheme. was introduced in early 1981, primarily to As on September 30.09.2018, 1712 units are boost exports by creating additional in operation under the EOU Scheme as production capacity. It was introduced as a compared to 1832 EOUs in 2017-18. State- complementary scheme to the Free Trade wise distribution of EOUs is given in table Zones/Export Processing Zone (EPZ) below: Scheme introduced in the sixties, which had State-wise distribution of functional not attracted many units due to location EOUs restrictions. It adopts the same production States/UTs Functional EOUs as on 30.09.2018 regime as SEZs (erstwhile EPZs) but offers Andhra Pradesh 76 a wide option in locations. Units undertaking to export their entire Telangana 115 production of goods and services, except West Bengal 35 permissible sales in the DTA, as per the Jharkhand 02 Orissa 01 Export-Import Policy are referred to as Meghalaya 01 export oriented units (EOUs). The EOUs Gujarat 180 function under the administrative control of Kerala 85 Karnataka 406

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Tamil Nadu 377 Punjab 08 Pondicherry 12 Himachal Pradesh 04 Maharashtra 227 Jammu & Kashmir 02 Goa, Daman & Diu 36 Chandigarh 02 Dadar & Nagar Haveli 15 Madhya Pradesh 08 Delhi 09 Haryana 55 TOTAL 1712 Uttar Pradesh 56

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Chapter 8: Specialized Agencies year the highest ever exports of 256.57 m kg Plantation was achieved.

TEA BOARD The estimated production till October 2018

is 848.98 million kg and the exports till Overview In India, tea is cultivated in 15 states of October 2018 stood at 108.58 million kgs which the major tea growing States are with a value of Rs. 2249.58 Crs. The Assam, West Bengal, Tamil Nadu and estimated production for the F.Y. 2018-19 is Kerala. There are around 1472 big growers 1285 million kgs and exports approximately in the organized sector and an estimated 2 265 million kgs. lakh small growers with a total area of 599 COFFEE BOARD Th. Ha under tea cultivation. Manufacturing is done in 935 estate factories and 646 Overview bought leaf tea factories. Primary sale of tea World Coffee Scenario: Coffee is one of is made in 7 auction centers located at the largest traded commodities in the world Kolkata, Guwahati, Siliguri, Cochin, and hence aptly described as ‘Brown Gold’. Coonoor (CTTA), Coimbatore and Tea It is grown in about 80 countries across the Serve (Coonoor). globe, of which over 50 are considered to be the major producers of coffee. The major The most significant feature of the industry coffee producing countries in the world are is its ability to provide direct employment to Brazil, Vietnam, Columbia, Indonesia, more than a million workers, of which more Honduras, Ethiopia and India. World than 50% are women. The total number of produced around 163.51 million bags of workers engaged in tea plantations in India coffee (approx. 98.10 lakh metric tonnes) is about 1.13 million. during 2017-18 (ICO Market Report The tea industry consists of the organized November, 2018). India is one of the major sector and the small tea growers. At present producing countries with 7th ranking in the nearly 50% of the production is contributed world. With only about 2% share in the by the small tea growers. The total global coffee area, India contributes to about production was the highest ever in the year 3.5% of the world production and about 5% 2017-18 at 1325.05 m kg and in the same of global coffee exports.

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Coffee in India (Area): In India, coffee is to prevailing low rubber prices. Production of cultivated in about 4.34 lakh hectares and is NR was 694,000 tonnes during 2017-18, a mainly confined to southern states of marginal increase of 0.4 % from 691,000 Karnataka (55%), Kerala (19.7%) and Tamil tonnes a year ago. NR production during 2018- Nadu (8.2%), which form the traditional 19, up to September 2018, is provisionally coffee tracts. To a lesser extent, coffee is estimated at 272,000 tonnes, a sharp decline of also grown in Non-Traditional Areas like 15% from the same period a year ago. The Andhra Pradesh & Odisha as well as in unprecedented heavy rains and floods in Kerala North Eastern States (18.1%), with the main and Karnataka States had adversely affected objective of improving the livelihood of rubber plantations in terms of loss of tapping local tribals by providing them with days, plant/tree damage and widespread sustainable income generation from coffee incidence of abnormal leaf fall (ALF) disease. and intercrops and reforestation in the barren The economic value of production loss in hills affected by shifting cultivation. rubber plantation sector in 2018-19 would be 1830 Crore. RUBBER BOARD Overview Rubber products manufacturing Natural rubber (NR) is a strategic industrial industry in the country consumed 11.12 lakh raw material with an end-product range of tonnes of NR during 2017-18, a growth of 6.5 more than 50,000 items which are widely used % from 10.44 lakh tonnes a year ago. NR and indispensable for modern world. NR is consumption provisionally estimated for April commercially produced in plantations from the to September 2018, is 614,040 tonnes, an tree species, Hevea brasiliensis. India currently increase of 16 % from the same period a year occupies the sixth position in the global ago. ranking in terms of production of NR by contributing 5.3% of the global output. In SPICES BOARD Overview terms of consumption of NR, India stands second by accounting for 8.2% of the global Spices Board is the flagship organization for demand. the development and worldwide promotion Rubber cultivation covered a total area of Indian spices. India is the largest producer of 822,000 hectare in the country at the end of and exporter of spices in the world and 2017-18. Though 614,000 hectares were presently enjoys 47% share in the global mature, only 479,000 hectares were tapped due spice market in terms of volume. During

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2017-18, the export of Indian spices TOBACCO BOARD continued its increasing trend and achieved Tobacco Board was established on an all time record in both volume and value. 01/01/1976 under the provisions of the A total of 10,28,060 tonnes of spices and Tobacco Board Act, 1975 with its Head spice products valued Rs.17929.55 crores Quarters at Guntur, Andhra Pradesh. (US$ 2781.46 Million) has been exported Tobacco Board is headed by a Chairman. from the country as against 9,47,790 tonnes The important functions of the Tobacco valued Rs. 17664.61 crores (US$ 2633.29 Board are: Million) in 2016-17, registering an increase of 8% in volume, 1% in rupee terms and  Regulating the production and curing 6% in dollar terms of value. With regard to the Virginia tobacco to match the spices export target of 10,23,000 tons demand in India and abroad. valued at Rs.17665.10 crore (US$ 2636.58  Propagating information useful to the million) for 2017-18, the achievement was growers, dealers and exporters 100% in terms of volume,101% in rupee and (including packers) of Virginia 105% in dollar terms of value. tobacco and manufactures of International Pepper Community (IPC): Virginia tobacco products.  Promoting the grading of tobacco at The 7th Meeting of the IPC Committee on the level of the growers. R&D was held between 2nd and 4th May  Establishment of auction platforms 2018 in Kochi, hosted by the Spices Board, for the sale of Virginia tobacco and Ministry of Commerce and Industry. The function as auctioneer. meeting was attended by members of the  Maintenance and improvement of IPC Committee on R&D from India, existing markets and development of Indonesia, Malaysia, Sri Lanka, Vietnam new markers outside India. and other officials, scientists from Indian  Keeping a constant watch on the Institute of Spices Research (IISR), Virginia tobacco market, both in Directorate of Arecanut & Spices India and abroad and ensuring fair Development (DASD) etc. Further Spices and remunerative price for the same. Board has actively participated in the 46th  Purchasing Virginia tobacco from Annual Session & Meetings of International the growers when the same is Pepper Community which was held during considered necessary or expedient 1st- 4th October 2018 in Putrajaya, Malaysia.

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for protecting the interest of growers APEDA also functions as the Secretariat of with the prior approval of the the Certification Bodies under National Government of India. Programme for Organic Production (NPOP) for Organic exports. `Organic Products’ for Agricultural and Processed Food export are to be certified only if produced, Products Export Development processed and packed as per the standards Authority (APEDA) laid down in the document `National The Agricultural and Processed Food Programme for Organic Production Products Export Development Authority (NPOP).’ (APEDA) was established by the Government of India under the Agricultural APEDA has been actively engaged in the and Processed Food Products Export development of markets besides upgradation Development Authority Act passed by the of infrastructure and quality to promote the Parliament in December, 1985. The export of agro products. In its endeavour to Authority with its headquarters at New promote agro export, APEDA under its Plan Delhi, is headed by Chairman, APEDA has Scheme titled `Agricultural Export been serving the agri-export community for Promotion Scheme of APEDA’ provides the last 31 years. In order to reach out to the financial assistance to the registered exporters in different parts of the Country, exporters under sub-components of the APEDA has set up 5 Regional Offices at scheme – Market Development, Mumbai, Bengaluru, Hyderabad, Kolkata & Infrastructure Development and Quality Guwahati. Development.

APEDA has been entrusted with the THE MARINE PRODUCTS EXPORT DEVELOPMENT AUTHORITY responsibility of export promotion and (MPEDA) development of 14 agricultural and The Marine Products Export Development processed food products groups listed in the Authority, a statutory body under the First Schedule of the APEDA Act. Rice has Department of Commerce, Ministry of been included in the Second Schedule of Commerce & Industry, established in 1972, APEDA Act. In addition to this, APEDA is mandated for the development of marine has been entrusted with the responsibility to products industry with special reference to monitor the import of sugar as well. export from India.

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Export performance: Linked Immunosorbant Assay (ELISA) labs in all maritime states to During the financial year 2017-18, India has test for presence of banned exported 13,77,244 MT of seafood worth antibiotics and other substances. The US$ 7.08 billion. US and South East Asia database of Pre-Harvest Testing and NRCP lab testing are computerized. continued to be the major import markets of  Establishing traceability of Indian seafood. Frozen shrimp remained the aquaculture through enrollment of major export item followed by frozen fish. farms and hatcheries. Shrimp farms and hatcheries enrolment Thrust Areas procedures are under the process. To facilitate enhanced export of marine Presently there are 65,265 aqua products from the country MPEDA has been farms enrolled with a water spread giving greater thrust in the following areas: - area of 1,62,431 Ha. 133 shrimp hatcheries have been enrolled. 313  Diversification of export oriented hatcheries have been geo-tagged. aquaculture practices into Development of aqua farms and commercially important shellfish and establishment of hatcheries are finfish to enhance aquaculture regular and ongoing activities. production and increase the varieties. Enrolment works of more shrimp hatcheries and aqua farms are  Ensuring production of antibiotic continued. free shrimp for export by setting up LC MS Laboratories and Enzyme  Resolving trade or quality issues by organizing Trade Delegations, participating in committees on standard formulations.  Helping seafood industry for HACCP implementation by training technologists.  Establishing presence of Indian sea food in major international markets by branding Indian seafood with major buyers and by giving publicity in different media abroad.  Participating in International  Organizing biennial events viz. India Seafood Shows to showcase our International Seafood Show (IISS) resources and the potential of Indian and Aqua Aquaria India (AAI) to seafood thereby generating new trade exhibit the strength of Indian relationships.

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Aquaculture and seafood export Brooders and operating Brood Stock industry. Multiplication Centers, Hatchery, Nursery etc. for supporting the  Assisting in the setting up of state- export oriented aquaculture. of-art processing facilities for Value Added Marine Products meant for export.  Operates assistance scheme for setting up of cold chain for proper storage/transportation/ preserving the

fish and fishery products meant for export. Steps taken to increase production and exports

 Technical assistance provided for the development of aquaculture in all the maritime states of the country for sustainable production of seafood.

 Capacity building of farmers to take up certification to improve market INDIAN INSTITUTE OF FOREIGN access for cultured products. TRADE  Encouraging Cluster farming through Aqua Farmers Welfare Overview: Indian Institute of Foreign Trade Societies and adoption of Code of (IIFT) was set up on 2nd of May 1963 as an Practices for sustainable shrimp Institution with a focus on foreign trade culture by extending financial assistance for setting up common related research and training. Since facilities. inception, the Institute has evolved and  Providing assistance for adopting undergone major transformations and has, better management practices in over the years, broadened the scope and aquaculture. dimensions of its academic activity that now  Popularizing the technology through encompasses the full spectrum of field demonstrations and financial assistance for Crab farming, all male international business. Today, the Institute, Genetically Improved Farmed in its 56th year, is widely recognized for its Tilapia (GIFT) culture, Cobia knowledge and resource base, its rich culture, Seabass culture etc. heritage and strong alumni network both in  Operating Aquatic Quarantine India and abroad. Facility for importing of high quality

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MMTC Limited  Launch of India’s first Sovereign Organizational Structure and Functions’ Gold Coin - India Gold Coin (IGC) The MMTC Limited was incorporated in in November, 2015. MMTC has 1963 as an independent entity primarily to undertaken marketing of IGC deal in exports of minerals and ores and unveiled by the Hon’ble Prime imports of non-ferrous metals. Over the Minister of India. The coins are years, MMTC diversified its business minted in 5 gms, 10 gms and bars in portfolio keeping in view national 20 gms denomination at India Govt. requirements and new business opportunities Mint, Mumbai and Kolkata. Total including import and export of various turnover of IGC sales achieved items. Commodities like fertilizers, steel, during 2017-18 was Rs. 55.16 diamonds, coal & hydrocarbon, bullion, agro crore.MMTC has tied up with Banks etc. were progressively added to the to sell IGC through branches to make portfolio of the company. easy availability of the coins across Besides acting as canalizing agency for Iron India. Efforts are on to further Ore, Manganese Ore, Chrome expand distribution network for sale Ore/Concentrate & Import of Urea, MMTC of Indian Gold Coin. functions as one of the Nominated Agency  The joint venture for gold / silver for Import of Gold & Silver, sale of refining and medallion Sovereign India Gold Coin, Import of manufacturing unit in collaboration Pulses, trading in other commodities like with PAMP Switzerland in the name Agro Products, Fertilizers, Coal, Steel, Non- of MMTC-PAMP India Pvt. Ltd. ferrous metals, Pig Iron etc. and investment achieved a turnover of Rs. 34,022 in trade related JVs like NINL, MMTC crore and profit after tax of Rs. 43.69 PAMP, FTWZ, Indian Commodity crore for the year 2017-18. MMTC Exchange Limited (ICEX) etc. has received an interim dividend of 30% for its investment in MMTC- New Initiatives: PAMP India Pvt. Ltd. for FY 2017- a) Make in India: 18. MMTC-PAMP became India’s In line with Govt. of India’s initiative of first LBMA accredited refiner for Make in India, following initiatives were Gold and silver. During 2017-18, taken by MMTC. MMTC has sold Gold Bars produced

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by MPIPL in the domestic market 100% E-tendering is being followed in achieving a turnover of Rs. 481 crore MMTC including E-Payments and BHIM. and sale of silver bar of Rs. 170 crore. d) Diversification:  After lot of efforts, NINL Steel Plant MMTC has created two new divisions with (Joint venture of MMTC & Govt. of a view to diversify into new areas and Odisha) could sign Iron ore Mining enhance exports namely; lease on captive basis with Govt. of  Engineering goods and Odisha for 874.24 hectare having 92 related products with focus million tonne of mineable iron ore on SME sector. reserves in the State of Odisha.  Drugs, Pharmaceuticals and Mines are planned to commission Chemicals. iron ore production by March, 2019. e) Clean Energy: NINL has also signed MOU with MMTC has set up a 15 MW capacity Wind NALCO for setting up of Coal Tar Mill project at Gajendragad in Karnataka at Pitch Plant. a cost of Rs. 68.75 crores. The project is b) Swachh Bharat running successfully and has contributed to During 2017-18, MMTC’s Board of the development of the area by meeting Directors allocated Rs. 30 lakhs for some portion of energy needs of Karnataka undertaking CSR activities to support the state. MMTC is exploring possibilities of Swachh Bharat Abhiyan. The funds expansion of the said wind mill project. allocated for CSR were utilized for Creation f) Trade related infrastructure: of sanitation in Govt. Schools, Clean Ganga To facilitate promotion of two-way trade, Campaign etc. the SPV promoted by MMTC in association c) Digital India: with IL&FS IIDC has been allotted land to As a part of implementing Govt. of India’s set up International Cargo hub at Haldia and initiative of Digital India, MMTC ERP Free Trade and Warehousing Zone at system up-gradation / migration to a new Kandla on lines similar to Special Economic version for plugging the gaps in existing Zone. ERP module (which was implemented in g) Marketing support to North East 2002) have been upgraded. In addition, states:

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In order to provide support to North East wheat, pulses, sugar, edible oils, etc.) and states, MMTC has opened its office at industrial raw materials into India and also Guwahati, Assam and have already initiated contributed significantly in developing exports procurement of commodities like Ginger, of a large number of items from India. The core Turmeric and large Cardamom for strength of STC lies in handling exports/imports marketing in rest of India and is also of bulk agro commodities. Over the years, STC exploring for exports of the same. has also diversified into exports of steel, iron h) Government buffer stock of imported ore, red sanders, agro-chemicals and imports of Pulses: bullion, hydrocarbons, minerals, metals, Under the Price Stabilization, MMTC has fertilizers, petro-chemicals, etc. STC is today played a pioneering role for import of able to structure and execute trade deals of any pulses. For building buffer stock of pulses, magnitude, as per the specific requirement of its MMTC has been designated as one of the customers. agencies for import of pulses by Indian Institute of Packaging Government of India. As per directions of Overview: The Indian Institute of Govt. of India, during FY 2017-18, MMTC Packaging is an autonomous body in the has imported approx. 3.79 lakh tonnes of field of packaging technology which was set various pulses for the buffer stock up on 14th May, 1966 as a society under the programme. These pulses are being stored at societies registration act, 1860 by the various port godowns and are being released leading packaging and allied industries and to State Government Agencies and open the Ministry of Commerce & Industry, Govt. market as per the advice of Department of of India. The main objective of this Institute Consumer Affairs, Govt. of India. is to promote the export market by way of State Trading Corporation of India innovative package design and development STC was set up on 18th May 1956 primarily and also to upgrade the packaging standards with a view to undertake trade with East at National level. The head office of the European countries and to supplement the Institute is situated at Mumbai and its efforts of private trade and industry in branches are located at Delhi, Kolkata, developing exports from the country. Since Chennai and Hyderabad. A full-fledged then, STC has played an important role in centre of the Institute will be established at country’s economy. It has arranged imports of Ahmedabad to provide the services to the essential items of mass consumption (such as industries. In addition, there are two more

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centres are yet to be made operational at inspection to be applied to such Kakinada and Bangalore. The Institute has commodities. In this era of changing got an excellent rapport with International dynamics of food safety regulations and organizations like World Packaging certification, EIC has transformed its role Organization (WPO) and Asian Packaging and functions to build up the confidence Federation (APF). The Institute is involved among the trading partners across the globe. to different activities like testing and EIC has been instrumental in evolving the certification of packaging materials and stakeholders including exporter’s fraternity packages, training and education, to meet the changing needs of the importing consultancy services and R&D activities countries with rising prevalence of food related to packaging. In addition, the safety incidents and technological Institute do organize a bi-annual event i.e., upgradations. International packaging exhibition i.e. Indian Diamond Institute (IDI) INDIAPACK and national contest for excellence in packaging i.e., INDIASTAR. Indian Diamond Institute (IDI) was established in 1978 under Society Export Inspection Council Registration Act, 1860 and also under the The Export Inspection Council (EIC) was Bombay Public Trust Act, 1950, with a enacted under Section 3 of the focus to provide a vocational education in Parliamentarian Act, the Export (Quality the field of Diamond, Gems & Jewellery. Control and Inspection) Act, 1963 IDI is sponsored by Ministry of Government of India to ensure sound Commerce & Industry, Government of India development of export trade of India & is a project of The Gem & Jewellery through Quality Control and pre shipment Export Promotion Council. IDI conducts Inspection and for matters connected vocational educational level programmes in thereof. EIC is an advisory body to the the areas of Diamond Manufacturing, Central Government for notification of Diamond Grading, Jewellery Designing & commodities which will be subjected to Jewellery Manufacturing, Gemmology quality control and/ or inspection prior to thereby covering entire spectrum of export, establish standards of quality for Gems & Jewellery education under one roof. such notified commodities, and also to Institute, as a knowledge provider to specify the type of quality control and/or the re-skilling programmes launched by

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the GJEPC, upgrade/impart the skill to IDI is also recognized as an Anchor 315 small/medium diamond/jewellers Institute-Gems & Jewellery by Industries manufacturers in interior parts of Gujarat. Commissionerate, Government of Gujarat.

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Chapter 9: Programmes undertaken for attached to this Department are given in the the welfare of SCs/STs/OBCs, Women & succeeding paragraphs. Person with Disabilities The Department of Commerce liaises with Welfare of SC, ST and OBC the attached and sub-ordinate offices, 1. PEC LTD autonomous bodies, Public Sector Government Directives / Instructions with Undertakings and Commodity Boards under regards to SCs/STs/OBCs are duly complied its administrative control for proper with in PEC. In PEC, there exists a Time implementation of the directions of the Scale Promotion Scheme for staff cadre. Government of India related to the Qualifying period for promotion for reservation as well as other welfare employees belonging to SC/ST categories is measures for the SCs, STs, OBCs relaxed by one year in each stage of categories. Promotion. Further a Complaints register is being maintained at Head Office. No There is an SC/ST Cell headed by the complaint has been received in 2018-19. Liaison Officer – an officer of the level of Deputy Secretary, functioning in the 2. Spices Board Department of Commerce. The Liaison The Board had constituted SC/ST & OBC Officer ensures prompt disposal of the Committees for looking after the welfare of grievances of the SC/ ST category the employees and to sort out their employees and also takes care that the problems. The Board had nominated a various benefits admissible to the reserved Liaison Officer for reservation matters categories are complied with by the relating to SC/ST/OBC. associate organizations of the Department. 3. MMTC Ltd. A statement showing total number of The total strength of employees in MMTC Government employees and the number of as on 31st October, 2018 was 906 out of SCs/ STs/ OBCs/PWDs as on 31.10.2018 in which 191 employees belong to SC and 96 Department of Commerce (proper) and its to ST category. In terms of percentage of associate organizations is shown at representation of SC and ST, this works out Annexure A. The welfare activities to 21.08% and 10.59% as against the undertaken by different organizations required percentage representation of 15% and 7.5 % respectively.

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SC/ST Cell and Liaison Officer Training An SC/ST Cell is in existence in the In order to upgrade their business and soft Company. A Chief General Manager has skills, SC and ST employees were been appointed in the Corporate Office as nominated to various In-house training Chief Liaison Officer and Liaison Officers programmes as well as programmes have been appointed in each of the Regional conducted by renowned agencies. offices to ensure compliance of the Orders Quarter allotment and Instructions of the Government Reservation in quarter allotment is provided Directives pertaining to reservation and to SC and ST employees to the extent of other concessions as admissible to them. 10% for A & B type accommodation and Relaxation and Concessions 5% in respect of C & D accommodation. Relaxations of five years in age is provided Meetings to SC/ST candidates in Direct Recruitment. The Company has in place “Structured As regards departmental promotion Meetings Scheme” in which the following relaxations are provided:- Management meets various representative

 For promotion from staff cadre to bodies of employees periodically in order to officer cadre, relaxation of 5% in discuss and resolve issues on service matters qualifying marks in written test. and welfare measures. In line with this philosophy, periodic meetings with MMTC  Promotion within staff cadre, one SC/ST Welfare Associations in all offices of year relaxation in qualifying the Company and the Federation of MMTC period for promotion under SC/ST Welfare Associations are convened. seniority-cum-fitness and relaxation in qualifying marks 4. Export Credit Guarantee Corporation of India Ltd. under seniority-cum-merit. Programmes for SC & ST welfare: SC/ST representative is nominated in all  Pre-examination training for Selection Committees for Direct recruitment is conducted for Recruitment and Departmental Promotion candidates from SC/ST category. Committees for promotions.  The representatives of SC & ST

Union are nominated for training on

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reservation for recruitment and SCs/STs & OBCs. In every Departmental promotion in Government promotion/selection committee meeting Companies. Liaison Officer for SC officers of appropriate level belonging to & ST Welfare has been appointed to SC/ST and minority category have been deal with the matters related to associated to look after the interests of the employees from SC & ST category. candidates belonging to these categories.

 Reservation is provided to SC & ST 6. Coffee Board candidates in recruitment and The Coffee Board is pursuing a multi promotion as per Government of dimension approach by creating an enabling India rules. environment keeping in view the overall welfare and development of the SC, ST,  At least one member from SC OBC and Women Employees. & ST category is appointed on the panels constituted 7 Noida SEZ for recruitment/promotion of All group ‘A’ &’B’ posts are deputation candidates/employees. post except 4 Group B posts. All

Programme for OBC welfare Government diectives/instructions with regard to SC/ST/OBC are duly complied 1. Reservation policy of Government of with by NSEZ. As against total employees India is followed for recruitment of of 68 posts, there are 10, 5 and 12 OBC candidates. employees belonging to SC,ST and OBC 2. Liaison Officer for OBC welfare has respectively. been appointed to deal with the 8 State Trading Corporation of India matters related to employees from (STC) Limited OBC category. During the period (from 01.01.2018 to 3. Due consideration is given to 31.10.2018) a total of 33 employees have appointment of member from OBC been imparted training which were category on recruitment panels. domain specific and behavioural/managerial training. 5. Indian Trade Promotion Organization Guidelines on reservation were complied with in ITPO. Liaison officers have been nominated to look after the interests of

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The category wise break-up of the employees trained during the said period is given below:

Category SC ST OBC Women No. of Employee 06 00 06 11 Trained

9) Directorate General of commercial 12) Indian Institute of Foreign Trade Intelligence and Statistics The instructions issued by Government of Liaison officer for SC/ST and OBC has been India relating to Reservation are followed by appointed and as per the direction of Liaison IIFT. Relaxation of 5% marks in written officers this Directorate submits requisition test for appointment/promotion is allowed to to component authority for appointment of candidates belonging to reserved candidates. categories. As per instruction of 10) Visakhapatnam SEZ Government of India, in selection Appointed ‘Liaison Officer’ to protect Committee for Direct Recruitment a well as interest of SC&ST employees. Liaison Departmental Promotions, representatives Officer appointed for OBC Employees also. from SC/ST/OBC categories are nominated. 11) Rubber Board Programmes Undertaken for Welfare of Rubber Board appointed Liaison Persons with Disabilities(PwDs) officer to attend the grievances of SC, ST Section 34 (1) of ‘The Rights of Persons and OBC. Liaison officer maintains with Disabilities Act, 2016 inter-alia states statutory registers to file the that every appropriate Government shall complaints/grievances. Board periodically appoint in every Government establishment, monitors such complaints, if any and not less than four per cent. of the total disposes of such grievances in time. The number of vacancies in the cadre strength in services of the Liaison Officer is being each group of posts meant to be filled with effectively utilizes by SC/ST/OBC persons with benchmark disabilities of employees as and when they have which, one per cent. each shall be reserved complaint/grievances. for persons with benchmark disabilities under clauses (a), (b) and (c) and one per

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cent. for persons with benchmark disabilities year in each stage of Promotion. Further, a under clauses (d) and (e), namely: Complaints Register is being maintained at Head Office. No complaint has been (a) Blindness and low vision; received till date. (b) Deaf and hard of hearing; 2. Spices Board (c) Locomotor disability including cerebral Spices Board has nominated a Liaison palsy, leprosy cured, dwarfism, acid officer for looking after the reservation attack victims and muscular dystrophy; matters and grievances of person with disabilities. During this year, 1 post has (d) Autism, intellectual disability, specific been reserved for UR-PWD(OA/OL) in learning disability and mental illness; Group A category and the same has been (e) Multiple disabilities from amongst filled up with the approval of Department of persons under clauses (a) to (d) including Commerce on 03.04.2018. Request has deaf-blindness in the posts identified for been sent to the Ministry of Commerce and each disabilities: Industry seeking approval for filling up the vacant posts. There are guidelines on providing facilities to the disabled persons so that a barrier-free 3. Export Credit Guarantee Corporation of India Ltd. workplace is made accessible to the  PWD candidates are transferred differently abled persons. A statement according to suitability of posts to showing total number of PWDs in different PWD employees. categories as on 31.10.2016 in Department  Scribe is allowed to them in of Commerce (proper) and its associate recruitment and promotional examination. organizations is shown at Annexure B.  PWD employees are preferably 1. PEC LTD posted in the offices at ground floor. Government Directives/instructions with  Government Reservation Policy for regards to Persons with Disabilities are duly recruitment of PWD is strictly followed. complied with in PEC. In PEC, there exists a Time Scale Promotion Scheme for staff  Liaison Officer for PWD has been appointed to deal with the matter cadre. Qualifying period for promotion for related to candidates from PWD employees belonging to SC/ST and Persons category. with Disabilities categories is relaxed by one

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4. Coffee Board welfare of PWD has been followed in this The Coffee Board is pursuing a multi office and one post are reserved for dimension approach by creating an enabling orthopedically handicapped person in Group environment keeping in view the overall ‘C’ Category and same has been filled up by welfare and development of the PwD absorption/transfer on 07.11.2016.

Employees. 8. MEPZ Special Economic Zone. 5. State Trading Corporation of India Ramps made available for entry/exit from (STC) Limited the office for the physically challenged. During the period (from 01.01.2018 to Specialized rest rooms, for the persons with 31.10.2018), 03 nos. Of PWD employees disabilities has been constructed. have been imparted training which were 9. Rubber Board domain specific and behavioural /managerial Rubber Board appointed Grievance training. Redressal officer to attend the 6. MMTC Limited: grievances of persons with disabilities. The Out of total manpower of 906 as on Liaison officer maintains statutory registers 31.10.2018, there were 21 officials to file the complaints/grievances. Board belonging to PwD i.e. 2.32%. Employees periodically monitor such complaints, if any belonging to PwD have been assigned jobs and disposes of such grievances in time. The which they can perform efficiently keeping Board also celebrates the International Day in view their disability. A permanent ramp of Persons with disabilities on 3rd December has been erected at the main entrance gate of of every year by organizing speeches of Corporate Office for easy mobility of a PwD eminent persons with disabilities and honour employee who uses Wheel Chair. Office all the employees of the Board who are Buildings have auditory signals announcing differently abled. the floor destination. Some of them have 10. Indian Trade Promotion Organisation floor requisition buttons in Braille Symbols. The provisions contained in Persons Taps and Toilets have been adapted to with Disabilities (Equal Opportunities, facilitate use by persons with disabilities. Protection of Rights and Full participation) 7. Noida SEZ Act, 1995 regarding reservation in Recruitment related direction and posts/services for disabled persons have also instructions issued by the Government for been compiled with.

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Programmes Undertaken for Welfare of In compliance with the terms of Section 4(1) Women of the Sexual Harassment of women at An independent Women Cell has been set workplace (Prevention, Prohibition and up in the Department of Commerce with the Redressal) Act, 2013, ‘Internal Complaints following functions: Committee’ has been re-constituted in PEC

a) Coordination with the Ministry of for prevention and redressal of sexual Women and Child Development, harassment of women at workplace.

National Commission for Women A comprehensive policy for Prevention, and other concerned agencies in Prohibition and Redressal of Sexual respect of the matters connected with Harassment of women employee in PEC has welfare of Women. been adopted with the approval of the

b) To review plan schemes and other Competent Authority.

programmes of the Department of One complaint has been received from an Commerce and to ensure aspects of employee in Feb, 2018 and enquiry has been women welfare, development and completed as per the provisions of policy. welfare. No new complain has been received in

c) Preparation of action plans 2018-19.

pertaining to the Department for 2) MMTC Ltd. overall development of Women in (a) Women welfare activities in MMTC line with the National Policy for are derived out of the broad Empowerment of Women. guidelines of the National Policy on d) Observing Awareness Week for Women Empowerment and prevention of sexual harassment of objectives of the Forum of Women women along with Vigilance in Public Sector (WIPS). A General Awareness Week. Manager of MMTC, a female officer, e) Other incidental matters relating to is the National President of the the subject. Forum. The welfare activities for 1) PEC LTD women include creating a PEC is a small organisation having 98 networking platform for women employees, out of which 21 are women, as from various Public Sector on 31.10.2018. Enterprises, Banks and Insurance

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Companies for mainstreaming their sensitize women employees of their potential/professional growth and rights under the Scheme through integrating women welfare with the circulars. Monthly report is also growth of the organization. obtained from Regional offices of cases of Sexual Harassment of (b) Other welfare activities include Free women for close monitoring. Health Checkup for women employees. The promotion policy in (d) Good representation of women MMTC gives equal opportunity of employees is ensured in functional selection to deserving & meritorious and behavioural trainings organized candidates at every level up to below by MMTC. board level irrespective of gender. 3) Export Credit Guarantee (c) Protection against sexual harassment Corporation of India Ltd. of women – There is an active 1.Programmes on issues related to women Complaint Committee at Corporate is conducted on Women’s Day.

Office as well as at Regional Offices 2. Women employees are nominated for the to deal with Sexual Harassment of programs/seminars/workshop conducted by women based upon the Sexual WIPS (Women in Public Sector) Harassment of women at work place 3. A committee on sexual harassment at (Prevention, Prohibition & workplace is in place. Redressal) Act, 2013, Guide Lines received from DPE/Ministry of 4. Due consideration is given to Commerce and order passed by the appointment of women member on Hon’ble Supreme Court of India recruitment panels. laying down strict guidelines to be 4) Noida SEZ followed in tackling sexual In accordance with Section 4 of sexual harassment cases of women in the harassment of womn at work place, work place. Women employees are (prevention, prohibition and redressal) Act, free to approach the Complaint 2013 an intrnal complaint to Committree Committee to register any complaint have been constituted which is leaded by a related to sexual harassment. From woman officer and has 2 women members, time to time efforts are made to including one woman NGO member.

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5) Directorate General of commercial constituted. The Committee consists of four Intelligence and Statistics number of members including one member In case of women, a women cell has been from outside, who is well versed with social constituted for looking after the matter of women. work activities. The Committee meeting is being held in every quarter and no 6) Visakhapatnam SEZ complaints is reported so far. The name of Constituted internal Complaints Committee for prevention of Sexual Harassment. the Committee members is published in the website of the Rubber Board. 7) Spices Board A woman (Group A level) officer of the 9) Indian Trade Promotion Organisation Board has been appointed as “woman welfare officer” to short out the A Women’s Cell has been created in difficulties/problems, if any, or to bring ITPO in regarding to Sexual Harassment of them to the notice of the higher authorities women at work place, and reports in this along with suggestions for possible regard are being sent to Department of solutions. The grievances of woman Commerce every month. employees are timely and properly attended. 10) Indian Institute of Foreign Trade

8) Rubber Board Women are nominated on Selection As per the Law of Sexual Committee. As a welfare measure, Harassment of Women at workplace employees of the institute (including women (Prevention, prohibition and redressal) Act employees) on administrative side are 2013, Internal Complaints Committee is nominated to attend training programmes organized by ISTM and other organizations.

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Chapter 10: Transparency, Public The department will strive to evolve Facilitation and Allied Activities procedures in Foreign Trade Policy to CITIZENS’ CHARTER maximize public benefits and is committed The Department of Commerce is to simplify various requirements necessary committed to act with integrity, under rules in force, in the context of a judiciousness, transparency, accountability globalized and liberalized economy. We and with courtesy and understanding in will continuously consult client groups and dealings with the trade and public. All the give timely publicity to all changes in law services and commitments are to be and procedures relevant to the department. delivered to citizens in most effective and Standards of services provided: - efficient manner.

S. Services/Transaction Maximum Time Limit No. 1. Approval for grant of financial 90 days from the date proposals are received assistance under MAI scheme. in E&MDA Division. 2. Approval for grant of financial 90 days from the receipt of application for assistance in respect of projects under release of first instalment subject to Trade Infrastructure for Export availability of complete documents and Scheme (TIES). availability of funds. 3. Approval for setting up of Special i. Placement of cases before the Board of Economic Zone (SEZ) Approval(BOA) within 60 days of receipt of State Government’s recommendations and complete documents; ii. Issue of approval letter within 15 days of BOA approval subject to security clearance. 4. RTI Act, 2005 I. Within the time limits prescribed in I. Provide information or reject the the RTI Act, 2005. request for any of the reasons specified in the RTI Act, 2005. II. Within the time limits prescribed in II. Disposal of appeals preferred under the RTI Act, 2005. RTI Act, 2005. PUBLIC GRIEVANCE MECHANISM 5. Resolving Public Grievances 60 days * ( * Subject to receipt of complete details and receipt of response from the authority taking final decision on the grievance) ( # If longer period is involved, the complainant will be informed through an

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interim reply within 60 days.)

6. For taking actions by the Appellate Within 3 months Committee on appeals preferred against statutory orders passed by Note : This is subject to receipt of complete DGFT, etc. details/documents from the appellant and respondents

PUBLIC GRIEVANCES Vigilance Section also handles the following Public Grievance Cell deals with activities:- problems of staff of Department and offices  Conducting regular and surprise under its control for speedy redressal. A inspections of sensitive offices grievance box has also been provided at the  Review and streamlining of Information and Facilitation Counter procedures, which appear to afford situated at Gate No. 14, Udyog Bhawan, scope for corruption or misconduct New Delhi. and for initiating other measures for Vigilance the prevention, detection of corruption and other malpractices The Vigilance Section in the Department and punishment to the corrupt in the with the Joint Secretary & Chief Vigilance Department as well as its attached Officer (JS&CVO) as the Divisional head and subordinate offices and Public deals with the following work:- Sector Undertakings  Implementation of Conduct rules  Keeping a watch on the  Processing of annual property returns movement/visits of Undesirable  Furnishing of CVO’s monthly report persons in the Department on vigilance activities to CVC  Preparation of a list of officers of  Compiling quarterly statistical “Doubtful Integrity” /Agreed list and reports of vigilance cases for sending their postings to non-sensitive areas a consolidated quarterly report to the During the year 2018-19 (1st April 2018-26th Department of Personnel November 2018), about 103 (approx.)  Work relating to granting permission investigations/inquiries were conducted and under the provision of the Conduct on the basis of these inquiry proceedings, in Rules

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29 (approx.) cases major/minor penalties Secretary/Joint Secretary/Director level were imposed in attached and subordinate officers to hear and dispose of first appeal(s) offices, PSUs, Autonomous filed under the RTI Act. Shri Rajneesh, Bodies/Commodity Boards and the Joint Secretary has been designated as Department of Commerce. Transparency Officer, Department of Commerce. Vigilance Awareness Week was observed by conduct of workshop/sensitization Besides, there are 31 Public Authorities programmes, pledge taking, issue of (P.A.s) under the jurisdiction of DoC. All pamphlets etc during the period 29th these P.A.s have their own CPIOs and October, 2018 to 3rd November, 2018 to F.A.A.s for implementation of the create awareness amongst officers and staff. provisions of the RTI Act. Right to Information During the period from April, 2017 to Transparency, Public Facilitation and March, 2018, 901 RTI applications were Allied Activities – Right to Information. disposed of by different CPIOs/Appellate Authorities of this Department and 420 The Department of Commerce (DoC) has applications were transferred to other Public implemented the Right to Information Act, Authorities. During the same period, 69 2005 and has put in place all necessary appeals were also disposed of as per systems and procedures on the website of provisions of the RTI Act. the Department. During the period from April, 2018 to To facilitate the citizens who come in person September, 2018, 378 applications were to submit RTI applications/appeals, disposed of by different CPIOs of this Facilitation Counter has been set up at Gate Department and 181 applications were No. 14, Udyog Bhavan, New Delhi to transferred to other Public Authorities. receive applications/appeals from them. At During the same period, 49 appeals were present, there are 40 Central Public disposed of as per provisions of the RTI Act. Information Officers (CPIOs) of Hindi Official language Directors/Deputy Secretaries level in the Official Language: The Official Language Department and 18 First Appellate Division monitors the progressive use of Authorities (F.A.A.s), who are Additional Hindi and implements the Official Language

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Policy set out by the Department of Official the department for its attached/subordinate Language in the official work of the offices for many years. Under this scheme Department. Necessary action has been shield/trophies are awarded to the offices for taken to achieve the targets set out in the their performance in the field of official Annual Programme for the year 2018-19. language. Their performances are evaluated by a committee on the basis of the Hindi Salahakar Samiti: All the ministries prescribed performa and relevant documents and departments are required to constitute a submitted by them. The results of this Hindi Salahakar Samiti to review scheme are under consideration of the progressive use of Hindi in Official work of committee. the Department as well as various organizations under its administrative Inspections: The progress made in control. Hindi Salahkar Samiti of this promoting the use of Hindi in the department has been reconstituted and its organizations under the control of the notification has been released vide Department is monitored and reviewed resolution No.11011/4/2009, dated through their Quarterly Progress Reports 18.01.2018. and through inspections. To review the position of progressive use of Hindi in Committee of Parliament on Official official work. As on date Official Language Language: During the year 2018-19 the inspections of 6 attached offices of Committee of Parliament on Official Department of Commerce were also carried Language inspected organizations under out by the officials of Hindi Division. Department of Commerce wherein Joint Secretary (Official Language In charge) and Correspondence: The Department ensures Director (Official Language) or Joint compliance of Section 3(3) of the Official Director (Official Language) were present. Language Act wherein all papers/documents The assurances given during these meetings are issued bilingually (Hindi & English). In were communicated to the concerned compliance of Rule 5 of the Official organization for their early fulfilment. Language Rules, letters received in Hindi are invariably replied to in Hindi. Letters Rajbhasha Shield Yojna for received from the offices located in Region Attached/Subordinate offices: This ‘A’, ‘B’ and ‘C’ are also replied to in Hindi. incentive scheme is being implemented in

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Government e-Market (GeM) SPV 10.24 lakh orders, worth Rs 15,104 crores have been process through GeM. As owner of the National Public Procurement Portal (Section 8 Company The National Mission on GeM (NMG) was registered under the companies Act, 2013), launched on 5thSeptember 2018, which GeM SPV builds, operates and maintains the concluded on 17th October 2018 for GeM platform, which provides for accelerated adoption and use of GeM by Procurement of Goods and Services major Central Ministries, State/UTs and Required by Central & State Government their agencies (Including CPSUs/PSUs, Organizations. GeM has increased Local Bodies). transparency, efficiency and speed in public Pay & Account procurement. Pay & Accout Office, DOC & MOT are GeM SPV provides an end-to-end responsible for the payment of claims, online Marketplace for Central and accouting transactions consolidation of State Government Ministries /Departments, accounts and other related matters like Central & State Public Undertakings finalization & payment of pension, revision (CPSUs & SPSUs), Autonomous institutions of pensions with the help of DDO & and Local bodies for Procurement of payment of final GPF cases, Loan & common use Goods & Services in advances, Grant in aid maintenance of transparent and efficient manner. GPF/CPF, NPS, LSC & PC, etc. through the As per the GFR rule 149, Procurement four Departmental PAOs in Delhi, two each through GeM is mandatory for all Goods in Kolkata, Mumbai and Chennai. CCA and Services available in GeM. office coordinates with various rntities to facilitate implementation of PFMS (EAT/ For Non PFMS entities, including State DBT). Governments, transferring the money to

GeM Pool Account is mandatory for all These Departmental PAOs are controlled by purchases above Rs 10 lakhs. Principal Accounts Office at New Delhi As on date more than 6.52 lakh products & with CCA as the Head of the Department of services about 1.65 lakh sellers and service Accounts wing. CCA extends all assistance providers and more than 30,000 buyer to FA in budgeting, monitoring & control of organization are part of GeM. More than expenditure, render professional exprtise in

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matters related to Finaicial Management Accounting and Implementation of System, preparation of disclosure statements Prescribed Procedure with a view to as required under FRBM Act, Annual ensuring that they are correct & adequate. finance accounts, Estimation and flow of Pension and GPF Module of PFMS has Non-tax revenue reciepts etc. become operationalized in the ministry.

All operatinalization of PFMS (EIS, EAT, Supply Division – Two PAOs of supply pension, GPF, CDDO, Package, NTRP, each at Kolkata and Delhi still in existence LOA etc.) are being monitored by CCA to complete the residual works of vigilance Office. There is an internal Audit wing court cases and revision of Pension etc. under control of CCA to study the

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