Direction of External Trade in India

Transcription

1 Direction of External Trade in India India has export and import links with all the regions of the world. Region and sub-regionwise direction of India s exports and imports during April-February and April-February is outlined in table During April-February, Asia and Oceania accounted for 35.6 per cent of India s total exports, followed by West Europe (28.1 per cent), America (25.4 per cent), Africa (6.3 per cent) and East Europe (3.1 per cent). During the year Asia and Oceania were the largest suppliers of goods Table: Foreign Trade in India Year Imports Exports Total value of foreign trade Balance trade of , ,553 75, , , , , , , , ,17, , , , ,42, , , , ,72, , ,22, ,06, ,29, , ,36, ,17, ,54, , ,44, ,20, ,65, , ' 1,76, ,41, ,17, , EXPORTS Exports have shown a positive growth trend and a diversification of product country mix over the years. Commodities whose exports are increasing over the last few years include plantations, marine products, sports goods, gems and jewellery, chemical and allied products, engineering goods, textiles and handicrafts. However, during April-February negative growth has been witnessed in respect of export of ores and minerals, electronics hardware, project goods, cotton raw industries waste and petroleum products. Exports of principal commodities during April-February as compared to the corresponding period of previous year are given in table 21.3.

2 IMPORTS Imports are effected to meet the essential requirements of domestic consumption, investment and production. Bulk imports as a group registered a growth of 0.2 per cent during the current year and accounted for 31.5 per cent of the total imports. This group includes fertilizers, newsprint, petrol and petroleum products, edible oil, etc. The other principal imports consist of pearls, precious and semi-precious stones, machinery, project goods, medicinal and pharmaceutical products, organic and inorganic chemicals, coal, coke and briquettes, artificial resins, etc. The details of Indian imports of principal commodities during April-February and April-February are given in table Region/ Sub region Exports Imports April-February April -February April- April- February February I. West Europe 31,479 35,439 31,479 51,636 a) European 28,202 32,103 28,202 38,265 Common Market b) European Free 2,359 2,572 2,359 13,023 Trade c) Rest of Europe 43, Asian and Oceania Ill. Africa IV. America a) North America b) South America c) Other America 43,992 6,192 25,666 23,408 1, ,102 44,907 7,874 32,070 29,142 1,601 1,327 3,905 6,192 25,666 23,408 1, ,102 71,792 14,527 17,847 15,216 2, ,260 V. East Europe

3 Export of Principal Commodities Commodities Aprfl-February Aprfl-February Percentage change Plantations 2,857 3, Agricultural and allied 13,930 14, products Marine products 4,023 4, Ores and Minerals 3,500 3, Leather and Manufactures 5,019 5, Sports goods 16,421 21, Gems and Jewellery Chemical and 14,893 15, related products 13,930 14, Engineering goods 2,449 1, Electronics Hardware Project goods 27,959 31,

4 Textiles 1,763 2, Handicrafts 1,858 2, Carpets 1, Petroleum products Cotton Raw inc. waste Table 21.4 Commodities (Apr-February) (Apr-February) Percentage change 0.2 A. Bulk Imports 50,411 50, i) Cereals and preparations 1, ii) Fertilizers 4,010 4, iii) News Print iv) Petroleum and Petroleum products 28,065 24, v) Edible Oil 2,653 6,925 vi) Pulp and waste paper vii) Non-ferrous metals B Pearls precious 3, ,619 13,

5 nd semi precious stones 16, C. Machinery 17,716 D. Project goods 4,870 7, E. Others 53, i) Organic and inorganic chemicals 9,875 71,149 ii) Coal, coke and 10, briquettes 3,984 iii) Medicinal and 3, pharmaceutical 1,310 products Artificial resins 2,379 1, Country-specific initiatives are taken to promote trade with all our trading partners. Special thrust is being given to Latin America, Africa and Central Asian Republics. Export promotion industrial park scheme has been implemented to support state government efforts in export promotion. India Brand Equity Fund has been launched to create brand image for Indian export products abroad. Encouragement is being given for achieving higher quality standards in exports and ISO norms. IMPORT POLICY Capital goods, raw materials, intermediates, components, consumables, spare parts, accessories, instruments and other goods may be imported without any restriction except to the extent such imports are regulated by the ITC (HS) classification of Export and Import items. Goods, which are importable without any restriction, may be imported by any person whether he is an actual user or not. However, if such imports require a licence, the actual user alone may import such goods unless the actual user condition is specifically dispensed with by the licensing authorities. All second-hand capital goods may be imported in accordance with the public notice or a licence issued in this behalf. EXPORT-IMPORT POLICY

6 The new Exim policy has been formulated. The policy seeks to consolidate the gains of the previous policy and carries forward the process of liberalisation. There has been consistent efforts to deregulate and simplify procedures, to remove quantitative restrictions in a phased manner and create a congenial environment for the exporting community. The export promotion capital goods (EPCG) scheme has been continued and import of second hand capital goods has also been allowed subject to certain restrictions. The scheme offers two windows, a 10 per cent and a zero duty imports of capital goods. The duty exemption scheme is an important instrument of facilitating exports. It consists of duty-free licence, annual advance licence and duty-entitlement pass-book. The duty-free licensing scheme consists of (a) advance licence, (b) advance intermediate licence, and (c) special imprest licence. It has been provided that an exporter may export through third party or directly and discharge export obligation imposed against duty-free advance licence. The scope of deemed export has been widened by according certain categories of supply of goods manufactured in India the deemed export status. Such exports are eligible for the following benefits: (a) special imprest licence/advance intermediate licence, (b) deemed exports drawback scheme, (c) refund of terminal excise duty and (d) special import licence. EOU/EPZ/EHTP/STP The units undertaking to export their entire production of goods may be set up at Export Processing Zones (EPZs), Electronic Hardware Technology Commerce Park (EHTP), Software Technology Park (STP) and Export Oriented Units (EOUs). EPZs are special enclaves, separated from the Domestic Tariff Area (DTA) by fiscal barriers and are intended to provide an internationally competitive duty free environment for export production at low cost. Recent changes in EOU/EPZ/EHTP/STP scheme include (a) enhancement of tax holiday from five years to 10 years; (b) higher domestic access; (c) rationalisation of minimum Net Foreign Exchange Earning as Percentage of exports (NFEP) and minimum export performance; (d) enlargement of the scope of private bonded warehouses in EPZs to include procurement of indigenous goods for exports; (e) undertaking of job work on behalf of domestic units for direct exports in certain sectors, etc. EXPORT PROCESSING ZONES India has seven Export Processing Zones (EPZs) at Kandla (Gujarat), Santacruz (Maharashtra), Cochin (Kerala), Chennai (Tamil Nadu), Noida (U.P.), Falta (West Bengal) and Visakhapatnam (A.P.). Each zone provides basic infrastructural facilities in addition to a whole range of fiscal incentives. Customs clearance facilities are offered within the zone. Government has recently permitted development of EPZs by the private, state or joint sectors. The inter-ministerial committee on private EPZs has already cleared the proposals for private EPZs to be set up in Mumbai, Surat, Tirunelveli and Kancheepuram and at Greater Noida by the Government of Uttar Pradesh. The scheme of Export Oriented Units (EOUs) introduced in early 1981 is complementary to the EPZ Scheme. It adopts the same production regime but offers a wider option in locations with reference to factors like source of raw materials, ports of exports,

7 hinterland facilities, availability of technological skills, existence of an industrial base and the need for a larger area of land for the project. A Centrally-sponsored Export Promotion Industrial Parks (EPIP) Scheme has been introduced in August 1994 with a view to involving the state governments in the creation of infrastructural facilities for export-oriented production. It provides for 75 per cent of capital expenditure towards creation of infrastructural facilities limited to Rs 10 crore of grant to the State government. So far 19 proposals for establishment of EPIPs have been sanctioned. Provisional export figures from EOU/EPZ units during is of the order of Rs 16,120 crore which is 8 per cent higher than the exports achieved last year. Source: