Action plan for boosting exports
The Commerce and Industry Ministry is creating an action-oriented plan which will highlight specific sector level interventions to bolster India’s march towards becoming a US$5 trillion economy before 2025.
The focused plans will be on boosting services sector contribution to US$3 trillion, manufacturing to US$1 trillion and Agriculture to US$1 trillion.
The Ministry has created a corpus of US$1 billion to boost 12 champion sectors in services and it is working on releasing the New Industrial Policy keeping in mind the demands of the future.
Further all efforts of both the Department of Commerce and Department of Industrial Policy and Promotion have been towards achieving the goal of India becoming US$5 trillion economy, said the ministry in a release on 11 Dec 2018.
12 Champion Sectors
The Union Cabinet chaired by the Prime Minister approved the proposal of the Department of Commerce to focus on 12 identified Champion Services Sectors for promoting their development and realizing their potential.
These include Information Technology & Information Technology enabled Services (IT & ITeS), Tourism and Hospitality Services, Medical Value Travel, Transport and Logistics Services, Accounting and Finance Services, Audio Visual Services, Legal Services, Communication Services, Construction and Related Engineering Services, Environmental Services, Financial Services and Education Services.
This initiative will enhance the competitiveness of India’s service sectors through the implementation of focused and monitored Action Plans, thereby promoting GDP growth, creating more jobs and promoting exports to global markets.
Services sector in India has immense employment potential, it will enhance the competitiveness of India’s service sectors through the implementation of focused and monitored Action Plans, thereby creating more jobs in India, contributing to a higher GDP and exports of services to global markets.
As the Services sector contributes significantly to India’s GDP, exports and job creation, increased productivity and competitiveness of the Champion Services Sectors will further boost exports of various services from India.
Embedded services are substantial part of ‘Goods’ as well. Thus, competitive services sector will add to the competitiveness of the manufacturing sector as well.
The share of India’s services sector in global services exports was 3.3% in 2015 compared to 3.1% in 2014. Based on this initiative, a goal of 4.2% has been envisaged for 2022.
The share of services in Gross Value Added (GVA) was about 5 3% for India in 2015-16 (61% including construction services). A goal of achieving a share of services in GVA of 60% (67% including construction services) has also been envisaged by the year 2022
Agriculture Export Policy 2018
The Ministry has formulated India’s first ever Agricultural Export Policy with to boost India’s agricultural exports to US$60 billion by 2022 thereby assisting the Agriculture Ministry in achieving its target of US$100 billion and to integrate Indian farmers and the high quality agricultural products with global value chains and to double India’s share in world agriculture.
The vision of the Agriculture Export Policy is to harness the export potential of Indian agriculture through suitable policy instruments and to make India a global power in agriculture and raise farmers’ income.
Elements of Agriculture Export Policy
The recommendations in the Agriculture Export Policy are in two categories – Strategic and Operational:
Strategic – Policy measures, Infrastructure and logistics support,
Holistic approach to boost exports and Greater involvement of State Governments in agri exports.
Operational – Focus on Clusters, Promote value added exports, Marketing and promotion of “Brand India”, Attract private investments into production and processing, Establishment of strong quality regime and Research & Development.
Promotion of Trade
The Ministry is working closely with the Finance Ministry to ease credit flow to the export sector, especially small exporters to ensure adequate availability of funds to them.
The Commerce Minister has identified 15 strategic overseas locations where the Trade Promotion Organisations (TPOs) are proposed to be created.
India has great potential to generate greater volumes of export with these countries but at present trade with them stands as single digit numbers.
The locations where TPOs are proposed – Astana (Kazakhstan), Beijing (China) Cape town (South Africa), Dubai (UAE), Frankfurt (Germany), Ho Chi Minh City (Vietnam), Jakarta (Indonesia) Lima (Peru), London (U.K.), Melbourne (Austrialia), Mexico City (Mexico), Moscow (Russia), New York (USA), Sao Paulo (Brazil) and Tokyo (Japan).
Exports on the rise
India’s exports clocked highest growth in last 6 years. Sector specific interventions, focused export promotion initiatives, greater transparency and quick resolution of issues have led to an impressive export growth of 14.76% in 2017-18 (Oct-Sept) over previous year.
The Department of Commerce is making all efforts to diversify India’s export basket region wise and commodity wise.
Free Trade Agreements (FTAs) are a means of correcting India’s balance of trade.
With the USA bilateral negotiations are on and with China, India has held three inter-ministerial delegations in June, August and November 2018 led by the Department of Commerce to pursue market access issues with China’s Ministry of Commerce (MOFCOM).
General Administration of Custom China (GACC) has approved total 24 Indian rice mills for exporting non-basmati rice to China and the first consignment of 100 tonnes of white rice (5% broken) was shipped on 28.09.2018 and 30.09.2018.
In October 2018 another 23 tonnes of rice was exported to China followed by 260 tonnes in November 2018.
Export of rapeseed meal to China, which was discontinued in 2012, has been re-opened. Consistent and continuous efforts of Department of Commerce and GACC has approved five rapeseed mills to supply rapeseed meal to China.
The GACC teams have also visited India to inspect soybean meal mills and pomegranate orchards and pack houses in December 2018. China will also begin importing 50,000 tonnes of raw sugar from India early next year.
Metals and Minerals Trade Corporation (MMTC)
MMTC is one of the two highest earners of foreign exchange for India and the largest public sector trading body.
During the first half of the year, MMTC has achieved revenue from operations of Rs.12,511 crore as against Rs.9,969 crore during the corresponding period last year registering a growth of 26% over the same period last year on year on year basis.
The company has posted a Net Profit of Rs.41.62 crore during the period as compared to Rs.29.76 crore during the same period last year registering an increase of 40%.
The performance of the company during the second half of FY 2018-19 is likely to improve further.
Trade Infrastructure for Export Scheme
The Trade Infrastructure for Export Scheme (TIES) provides assistance for setting up and up-gradation of infrastructure projects with overwhelming export linkages like the Border Haats, Land customs stations, quality testing and certification labs, cold chains, trade promotion centres, dry ports, export warehousing and packaging, SEZs and ports, airports cargo terminuses.
The Central and State Agencies, including Export Promotion Councils, Commodities Boards, SEZ authorities and apex trade bodies recognised under the EXIM policy of Government of India, are eligible for financial support under this scheme.
Ease of doing business for exporters – steps taken by DGFT
Director General of Foreign Trade (DGFT) has taken several measures to strengthen the IT platform and create ease of doing business for exporters:
DGFT has upgraded the existing IT-hardware this year.
An online grievance redressal service was launched on DGFT website in September 2017: Contact@DGFT. It’s single point contact for all foreign trade related issues of the exporters and importers. In the last year, over 60,000 grievances have been received on this platform, 97% of the grievances have been addressed.
DGFT’s EDI system provides facility for online application by exporters-importers for most of its schemes and authorisations – IEC, Advance Authorization Scheme, Annual Advance Authorization Scheme, DFIA, EPCG Scheme, Annual EPCG Scheme, MEIS, SEIS, a FPS, FMS, MLFPS, VKGUY, SFIS, SHIS, Incremental Export Incentivisation Scheme, Authorization for import and export of restricted items. The interface with other agencies (Customs and RBI) is also through EDI system.
An online view of Shipping Bill data, electronically received form Customs, has been created for all Shipping Bills issued since 1.4.2016 for regional offices. fiinews.com