TAKINGINDIA TO THEWORLD

Years of Policies and Achievementsof Department of Commerce2

SHRI NARENDRA MODIHon’ble Prime Minister of India

SMT. NIRMALA SITHARAMANHon’ble Minister of State (Independent Charge)

for Commerce and Industry

VISION AND MISSION

The Department of Commerce (DoC), Government of India is responsible for regulation, development and promotion of India’s international trade and commerce through formulation of appropriate international trade & commercial policy and implementation of the various provisions thereof. Its basic role is to facilitate the creation of an enabling environment and infrastructure to ensure accelerated growth of international trade.

The long-term vision of the Department of Commerce is to make India a major player in the world trade by 2020 and assume a role of leadership in international trade organizations commensurate with India’s growing importance. DoC’s goal is to work in close coordination with stakeholders and provide an enabling framework to help increase India’s exports of merchandise and services from the present level of US$ 403.38 billion (2015-16) to approximately US$ 900 billion by 2019-20.

US$ 403.38 BILLION(2015-16)

US$ 900 BILLION(2019-20)

EXPORTS

REFLECTIONS

INTERNATIONAL TRADE

PERFORMANCE

STRATEGICINITIATIVES AND

PRIORITIES

NEW FOREIGN

TRADE POLICY

STEPS TO IMPROVE EASE

OF DOING BUSINESS

THRUST ON THE SERVICES

SECTOR

INDIA-AFRICA TRADE MINISTER’S

MEETING

INDIA-MYANMAR BUSINESS CONCLAVE

INDIA’S STAND AT WTO

PLANTATIONS MAINSTREAMING OF STATES

STRATEGIC INITIATIVES AND PRIORITIES

1Diversification of export productbasket  2Diversification into non-

traditional markets, conclusionof ongoing FTA negotiationsand initiation of new FTAs 3 Strengthening export related

infrastructure; thrust on SEZs

4Enhancing credit flows forexports at lower cost  5Reducing transaction costs  6Diversification of services

exports 

7 Building up a brand imageof India  8Support to the plantation sector  9Providing protection to

sensitive domestic industries 

TRADE BALANCE TREND (US$ MN)

-5,000

TR

AD

E B

ALA

NC

E IN

US$

MN

-10,000

-15,000

-20,000Jul

(2014)Oct

(2014)

-5,000T

RA

DE

BA

LAN

CE

IN U

S$ M

N

-10,000

-15,000

-20,000Jul

(2014)Oct

(2014)Jan

(2015)

Apr(2015)

Jul(2015)

Oct(2015)

Jan(2016)

Jul(2015)

Oct(2015)

Jan(2016)

CAR COUNTRIES (0%)

CENTRAL AFRICA (0%)

EUROPEAN UNION (EU) (16%)

NORTH AMERICA (16%)

WEST ASIA GCC (16%)

NORTH-EAST ASIA (12%)

ASEAN COUNTRIES (10%)

SOUTH ASIA (7%)

OTHER WEST ASIAN COUNTRIES (3%)

LATIN AMERICA (3%)

EAST AFRICA (3%)

WEST AFRICA (2%)

NORTH AFRICA (2%)

OTHER EUROPEAN COUNTRIES (2%)

SOUTHERN AFRICAN CUSTOMS UNION (SACU) (2%)

OTHERS (1%)

EAST ASIA (1%)

OTHER SOUTH AFRICAN COUNTRIES (1%)

OTHER COMMONWEALTH OF INDEPENDENT STATES (CIS) COUNTRIES (1%)

EUROPEAN FREE TRADE ASSOCIATION (EFTA) (0%)

REGION WISE EXPORTS

EXIM TRENDS (US$ MN)E

XP

OR

TS/I

MP

OR

TS IN

US$

MN

Imports

Exports

10000

5000

April2014

July2014

Oct2014

Jan2015

Apr2015

Jul2015

Oct2015

Jan2016

0

15000

20000

25000

30000

35000

40000

45000

50000

Led by strong policy support for facilitation and promotion of the services sector, India's services exports reached US$ 155.45 billion in 2015-16 vis-a-vis US$ 151.48 billion during 2013-14. The total value of services imports also declined during 2014-15 vis-a-vis 2013-14.

India’s external trade (US$ billion)

India's exports (US$ billion)

ImportsExports

S. No. Year (Apr-Mar) Goods Services Total Goods Services Total

1. 2013-14 314.41 151.48 465.89 450.20 78.51 528.71

2. 2014-15 310.34 155.45 465.79 448.03 75.68 523.71

3. 2015-16 261.14 142.24* 403.38 379.59 77.51* 457.10 *April-FebruarySource: Services data- RBI

0

2013-14 2014-15 2015-16

150

300

450

600

ImportsExports

EXPORT & IMPORT TRENDS

Exports in March 2016 in rupee terms increased by1.45% compared to March, 2015.

Benefits extended under MEIS to offset cost of infrastructure deficiencies, etc. in 2015-16.Enhanced to Rs 22,000 crore for 2016-17.

21,000crore

India’s exports -16.7% Products covered under MEIS -8.95%

Export growth for Apr-Feb, 2015-16 (in US$ terms)

NEW FOREIGN TRADE POLICY

The Foreign Trade Policy (FTP) 2015-20 was released on April 1, 2015. The Department also released the FTP statement, handbook of procedures, Appendix and Aayat-Niryat forms.

RELEASE OF FOREIGN TRADE POLICY STATEMENT AND FOREIGN TRADE POLICY (2015-20)

The FTP statement, which was released for the first time, explains the vision, goals and objectives underpinning the FTP. It describes the market and product strategy envisaged and the measures required to be undertaken not just for export promotion but also  for the enhancement of the entire trade ecosystem.

FOREIGNTRADE POLICY2015-20

Ease of doing business

Linkages with Make in India, Digital India & Skills India

Increased exports, value addition and employment generation

Export from India Schemes: The new FTP has also simplified the various incentive schemes by merging them into one scheme each for merchandise and service exports, namely MEIS and SEIS.

NEW FTP SCHEMES

MERCHANDISE EXPORTS FROM INDIA SCHEME (MEIS)

Five schemes merged into one

Rewards payable as a percentage of realised FOB value of covered exports

Scheme now expanded to cover all markets for 5,012 eligible products

In 2015-16, 1,55,232 scrips were issued under MEIS for a total value ofRs 4,107 crores

Incentives for e-commerce exports

MEIS, introduced through the Foreign Trade Policy (FTP) 2015-20 on April 1, 2015, with product and market focussed incentives for 4,914 tari� lines, is a major export promotion scheme implemented by the Ministry of Commerce and Industry. Rewards under MEIS are payable as a percentage of realized FOB value of covered exports, by way of the MEIS duty credit scrip, which can be transferred or used for payment of a number of duties including the basic customs duty.

In light of the major challenges being faced by Indian exporters in the backdrop of the global economic slowdown, the Department of Commerce increased support for export of various products and included some additional items under the Merchandise Exports from India Scheme (MEIS) on October 29, 2015. 

The current revision introduces 110 new tari� lines and increases rates or country coverage or both for 2,228 existing tari� lines. 

E-commerce exports: The new FTP has also introduced a scheme to incentivise exports of goods through courier or foreign post o�ce using e-commerce under MEIS. As the regulatory structure of e-commerce export is still evolving, the scope of the scheme has been kept limited.

EXPANSION OF MERCHANDISE EXPORTSFROM INDIA SCHEME (MEIS)

SERVICES SECTOR

The services sector has emerged as a prominent sector in India in terms of its contribution to national and state incomes, trade flows, employment and FDI inflows. This sector contributes around 58% to the GDP of the country and 28% to employment. In trade terms, it contributes 25% to total trade, around 35% to exports and 20% to imports. Furthermore, the sector accounts for more than 50% of FDI inflows into the country. The services sector in India has, in general, grown faster than the overall GDP growth rate. Increasing surplus from the services trade over the previous decade has helped to o�set a major part of the merchandise trade deficit thereby, keeping a check on the current account deficit.

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SERVICES

SECTOR SERVICES EXPORTS FROM INDIA SCHEME (SEIS)

2,072 scrips for a value of Rs. 1,126 crores issued in 2015-16

Rate of reward based on net foreign exchange earned

Applies to ‘Service Providers located in India’ instead of ‘Indian Service Providers

Service Exports from India Scheme (SEIS): The new scheme under FTP 2015-20 has been made applicable to ‘Service Providers located in India’ instead of ‘Indian Service Providers’ in the earlier scheme. Thus, SEIS provides for rewards to all service providers of notified services, who are providing services from India, regardless of the constitution or profile of the service provider. The rate of reward under SEIS is based on net foreign exchange earned.

Valid for five years wef April 1, 2015

Provides affordable credit to make exporters competitive

Benefits of Rs 1,137 crore provided to eligible loanee exporters during April-March 2015-16

Interest equalisation of 3% per annum for all manufacturer exporters under 416 specified tariff lines at 4 digit ITC (HS) code and all exports by MSMEs across all ITC (HS) codes

INTERESTEQUALISATIONSCHEME

The Cabinet approved the Interest Equalisation Scheme on November 18, 2015. It is valid for five years with e�ect from April 1, 2015. Operational guidelines of the scheme were issued by RBI vide Circular No. 62 dated December 4, 2015.

Under the scheme, interest equalisation of 3% per annum is available to all manufacturer exporters under 416 specified tari� lines at 4 digit ITC (HS) code and all exports made by MSMEs across all ITC (HS) codes. Details of the scheme and 416 tari� lines are available on the RBI website. This scheme is aimed at providing a�ordable credit to exporters to enable them to be more competitive. Between April 1, 2015 and March 31, 2016, benefits to the tune of Rs 1,137 crore have been provided to eligible loanee exporters.

INTEREST EQUALISATION SCHEME

INITIATIVES FOR PLANTATION SECTOR

The Department introduced the Revenue Insurance Scheme for the plantation sector on July 28, 2015. Launched to support 5 million small growers and workers whose livelihoods are a�ected due to price and yield volatility in the tea, co�ee, rubber and spices sectors.

The scheme will protect growers from both, fall in yield and prices.

Kerala is the first state to have opted for the Revenue Insurance Scheme.

Tea Board haslaunched a pan-Indiae-auction system.

Quality Control Laboratory at Siliguri inaugurated by Smt. Nirmala Sitharaman, Hon'ble Minister of State (Independent Charge) for Commerce & Industry.

30,446 small growers trained by Tea  Board through workshops, study tours and seminars in financial year 2015-16.

These meetings provide a platform to various stakeholders to voice their concerns on the various impediments being faced in exports of goods from the state and troubleshooting by both the state governments and the Government of India to address the same.

This initiative supports trade facilitation as well

as Ease of Doing Business initiatives.

New initiative launched by the Department

of Commerce, whereby theCommerce Secretary

reviews export related issues with state o�cials at

the state capitals along with exporters from the states,

customs house agents andother stakeholders.

MAINSTREAMINGOF STATES

The Board of Trade has been reconstituted. Smt. Nirmala Sitharaman, Hon’ble Minister of State (Independent Charge) for Commerce and Industry, chaired a Board Of Trade meeting held on April 6, 2016 at New Delhi. Following initiatives/outcomes were announced during the first BOT meeting -

(i) Majority of the concerns of the bulk drugs industry/exporters have been addressed through inter-ministerial consultation (ii) Sea food industry’s issues are also proposed to be resolved with the active involvement of the Ministries concerned. (iii) Di�culties of the IT and IT enabled sector will also be appropriately taken up expeditiously (iv) SEZs as a scheme needs to be activated to be rendered more e�ective, so as to achieve a quantum jump in India’s exports and explore the full potential that exists

(v) Meetings would be held with institutions like ECGC and EXIM Bank, to understand how they can help simplify international business

(vi) Meetings with Ambassadors/High Commissioners, and the Economic and Commercial wings of Indian Missions abroad, will be held region-wise with the help of MEA to assess and help them achieve their potential in becoming instruments of export promotion in the fast changing global trade scenario

(vii) Sectors like biotech and organic products need to be given greater emphasis on the export front

(viii) Following points to be deliberated on with the Ministry of Finance:

a. Export credit should qualify as priority sector credit b. Pre-shipment export credit should be exempt from CRR/SLR

An inter-ministerial Committee under the Commerce Secretary has been constituted to facilitate trade across borders and fast track EXIM clearance

EXTENDING THE USE OF ELECTRONIC BANK REALIZATION

CERTIFICATE (eBRC) SYSTEM

The new FTP has brought about a reduction in the number of documents required for export and import from 7 & 10 respectively to 3 each now.

Documents required for export of goods from India are Bill of Lading/Airway Bill, Commercial Invoice cum Packing List and Shipping Bill/Bill of Export.

The mandatory documents required for import of goods into India are Bill of Lading/Airway Bill, Commercial Invoice cum Packing List and Bill of Entry.

The savings in terms of cost and time associated with the dispensed documents will improve Ease of Doing Business in India.

The eBRC system captures details of the foreign exchange received by exporters through the banking channel.

This data is shared with 13 state governments who may use it for processing of VAT refunds.

Discussions are on with the GST team for integrating this information with the GST network.

REDUCTION IN THE NUMBER OF DOCUMENTS

STEPS TO IMPROVE EASE OF DOING BUSINESS

Landing certificate for some markets dispensed with under MEIS

E-enabled DGFT services mean greater transparency and lowertransaction costs

Continuous engagement with state governments and othercentral government ministries for mainstreaming of trade

Inter-Ministerial Committee to facilitate cross border tradeand EXIM clearance

Board of Trade has been reconstituted

IT INITIATIVESA complaint

resolution system for resolution of EDI related issues has been set up. It is

being actively used by exporters.

A mobile app has been developed,

where information on FTP and

procedures is available to users.  

Online filing of documents/

applications and paperless trade

in a 24x7 environment

An online system for expediting issuance of authorisations for dual

use items (Special Chemicals, Organisms, Materials, Equipments

and Technologies [SCOMET]) has been developed. It will be

made operational soon.

A new look website has been launched making it more user-friendly and easy to

navigate. The DGFT website has a large dynamic component

whereby the trade community can file applications online for IEC and various other schemes of DGFT. The exporters can also

see the status of their eBRCs, almost in real-time. The website

is rich in content with all documents related to the

Foreign Trade Policy along with a responsive online grievance

redressal system.

A simplified system for issuance of

electronic Importer Exporter Code

(e-IEC) has been made

operational w.e.f. February 2016.

DGFT has launched a facility to enable online payment of application

fees through credit/debit cards and

electronic fund transfer from 53 banks

w.e.f. July 9, 2015.

SEZ online initiated and integrated with ICEGATE

Dashboard to assist exporters in exploring new markets launched

Integration of ICEGATE with DGFT portal for smooth flow of documents

Integration of SEZ online system with customs ICEGATE for paperless transactions for SEZ stakeholders

MOCI launched Twitter Seva, keeping in line the dictum “Minimum Government, Maximum Governance” of the Prime Minister.

INDIA TRADE PORTAL LAUNCHED

THE INDIA TRADE PORTAL provides vital information on 42

countries in a user friendly manner in four easy steps, which is of

immense help to Indian exporters.

Launch of mobile application for Android users for DGFT related services.

The website helps exporters to utilise FTAs and capture export opportunities.

It is being used in FTA Outreach Programmes.

Provision of important data and information in di�erent countries such as

(i) MFN tari� (ii) Preferential tari�

(iii) Rules of Origin and (iv) Non-tari� measures.

DGFT, in collaboration with IIFT has launched “Niryat Bandhu at Your Desktop”, an online certificate Programme in Export Import Business

Launched the portal DashBoard with EXIM Analytics developed by DGCIS for

disseminating information regarding foreign trade.

Integration of India Trade Portal with Indian Embassies abroad. Business

opportunities are being uploaded by Indian Embassies

TRAINING OF ENTREPRENEURS IN THE FIELD OF EXPORTS

OUTREACH

TRAINING

DGFT Regional O�ces have trained more than 28,000 entrepreneurs under the Niryat Bandhu Scheme.

FTA outreach conducted at 31

locations across India

Online certificate programme on exports and

imports launched in September 2015. Over 300

students have completed six courses in six months

108 MSME clusters have been identified and 150 outreach

programmes conducted across the country

THRUST ON THE SERVICES SECTOR

OVER 3,000 B2BMEETINGS HELD

20,000VISITORS

2ND GLOBAL EXHIBITIONON SERVICES

350 BUYERS FROM65 COUNTRIES

OVER 50 OVERSEASEXHIBITORS FROM25 COUNTRIES

COVERED17 SECTORS

Backed by policy support, India's exports in services during 2014-15 reached US$ 155.45 billion vis-a-vis US$ 151.48 billion during 2013-14. Total value of services imports also declined during 2014-15 vis-a-vis 2013-14.

In order to showcase the competence of India in the services sector, the Department of Commerce has organised two global exhibitions on services. Details of these exhibitions are as follows:

2ND INDIAN GLOBAL EXHIBITION ON SERVICES (GES) APRIL 21-23, 2016 AT GREATER NOIDA

1ST INDIAN GLOBAL EXHIBITION ON SERVICES (GES) APRIL 23-25, 2015 AT PRAGATI MAIDAN, NEW DELHI

The 1st Indian Global Exhibition on Services (GES) was held during April 23-25, 2015 at Pragati Maidan, New Delhi. The Prime Minister of India inaugurated the exhibition.The main objective of this Exhibition was to enhance trade in services between India and the rest of the world. The focus sectors for the GES are information technology and telecom, education, healthcare, logistics, media & entertainment, professional services, tourism, space and research & development.

The Department of Commerce in association with Services Export Promotion Council (SEPC), India Trade Promotion Organization (ITPO) and Confederation of Indian Industry (CII) organised the second edition of the Global Exhibition on Services during April 21-23, 2016 at India Expo Centre and Mart, Greater Noida. It provided a platform to all the participants, delegates, business visitors and other key decision makers from the services industry and other related industries to interact and explore new business avenues.

INDIA’S STAND IN THE WORLD TRADE ORGANIZATION (WTO)

10TH WTO MINISTERIAL CONFERENCE, NAIROBI, KENYA, 2015

Developing countries have committed to remove agricultural export subsidies by 2018, but will keep the flexibility to cover marketing and transport subsidies for agriculture exports until the end of 2023.

India took the stand that Doha Development Agenda (DDA) must continue and no new issues must be introduced until the DDA has been completed. DDA was launched to benefit a large number of developing countries and Least Developed Countries (LDCs), but countries like US are opposed to its continuation.

India negotiated a Ministerial Decision which recognises that developing countries will have the right to have recourse to an SSM (Special Safeguard Mechanism) for agricultural products. Members will continue to negotiate the mechanism in dedicated sessions of the Committee on Agriculture in Special Session.

India sought and successfully obtained a re-a�rmative Ministerial Decision on Public Stockholding for Food Security Purposes honouring both the Bali Ministerial and General Council Decisions. This commits members to engage constructively in finding a permanent solution to this issue.

TRADE FACILITATION

AGREEMENT

TFA contains provisions to expedite the movement, release and clearance of goods, including goods in transit.

The Agreement is in consonance with India's 'Ease of Doing Business' initiative and will help catalyse the country's external trade.

It sets out measures for e�ective cooperation between customs and other appropriate authorities on trade facilitation and customs compliance issues.

Union Cabinet chaired by Prime Minister approved the Proposal for Notification of Commitments under the Trade Facilitation Agreement (TFA) of World Trade Organisation (WTO), ratification and acceptance of the Instrument of Acceptance of Protocol of TFA to the WTO Secretariat and constitution of the National Committee on Trade Facilitation (NCTF) in February 2016.

INDIA-MYANMAR BUSINESS CONCLAVE

India hosted an India Myanmar Business Conclave at Yangon on May 18-20, 2016 as part of its Act East policy. The Indian delegation comprising of 25 top businessmen was led by Smt. Nirmala Sitharaman, Hon’ble Minister of State (Independent Charge) for Commerce & Industry. More than 40 CEOs from Myanmar also attended the conclave. First ever visit of a Minister from India after the new Government in Myanmar. The visit reinforced economic and cultural ties with Myanmar while setting the path for enhancing the bilateral engagement further. Highlight of the conclave was a Government-Business Round Table on the theme ‘Forging Partnerships’.

ATTENDED BY

34 COUNTRIES

WITH

MINISTERIAL REPRESENTATION

FROM

23 COUNTRIES

Africa welcomed India’s expended and simplified DFTP Scheme for LDCs and commended India’s services o�er to LDCs.

Commitment made to establish a joint monitoring mechanism to report on the implementation of outcomes of Ministers of Trade Meeting.

Both sides committed to continuing the tradition of mutual support in WTO negotiations

4TH INDIA-AFRICA TRADE MINISTER’S MEETING

Key agenda points -

- Diversify Africa’s exports to India- Continue joint e�orts for improved and equitable growth in trade and investment - Enhance cooperation in Africa’s SME development

UDYOG BHAWAN, NEW DELHI

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