IM Individual Assignment

8/2/2019 IM Individual Assignment

1/19

ASSIGNMENT

ON

INTERNATIONAL MARKETING

(Role of WTO,EXIM Bank & DoC in development of Indias Foreign Trade)

Submitted by:Submitted by:Submitted by:Submitted by:

Arun Sarkar

Role No.47

Marketing II


2/19

INDIAS FOREIGN TRADE: DECEMBER, 2011

EXPORTS (including re-exports)

Exports during December, 2011 were valued at US$ 25015.89 million (Rs.131775.95crore) which was 6.71 per cent higher in Dollar terms (24.48 per cent higher in Rupee

terms) than the level of US$ 23442.07 million (Rs. 105856.90) during December, 2010.

Cumulative value of exports for the period April-December 2011 -12 was US$

217663.66 million (Rs 1024706.95 crore) as against US$ 172964.94 million

(Rs.789068.93 crore) registering a growth of 25.84 per cent in Dollar terms and 29.86

per cent in Rupee terms over the same period last year.

IMPORTS

Imports during December, 2011 were valued at US$ 37753.36 million (Rs.198873.00

crore) representing a growth of 19.81 per cent in Dollar terms (39.76 per cent in Rupee

terms) over the level of imports valued at US$ 31511.08 million ( Rs. 142293.94 crore)

in December, 2010. Cumulative value of imports for the period April-December, 2011-

12 was US$ 350935.69 million (Rs.1651239.75 crore) as against US$ 269175.16 million

(Rs. 1228074.48 crore) registering a growth of 30.37 per cent in Dollar terms and 34.46

per cent in Rupee terms over the same period last year.

CRUDE OIL AND NON-OIL IMPORTS:

Oil imports during December, 2011 were valued at US$ 10279.3 million which was

11.20 per cent higher than oil imports valued at US$ 9243.6 million in the

corresponding period last year. Oil imports during April-December, 2011-12 werevalued at US$ 105588.7 million which was 40.39 per cent higher than the oil imports of

US$ 75211.4 million in the corresponding period last year.

Non-oil imports during December, 2011 were estimated at US$ 27474.1 million which

was 23.38 per cent higher than non-oil imports of US$ 22267.5 million in December,

2010. Non-oil imports during April - December, 2011-12 were valued at US$ 245347.0

million which was 26.49 per cent higher than the level of such imports valued at US$

193963.8 million in April - December, 2010-11.


3/19

TRADE BALANCE

The trade deficit for April-December, 2011-12 was estimated at US$ 133272.03 million

which was higher than the deficit of US$ 96210.22 million during April-December,

2010-11.

EXPORTS & IMPORTS : (US $ Million)EXPORTS & IMPORTS : (US $ Million)EXPORTS & IMPORTS : (US $ Million)EXPORTS & IMPORTS : (US $ Million)

(Source :(Source :(Source :(Source : PRESS RELEASE,PRESS RELEASE,PRESS RELEASE,PRESS RELEASE, MinistrMinistrMinistrMinistry of Commerce and Industry Department ofy of Commerce and Industry Department ofy of Commerce and Industry Department ofy of Commerce and Industry Department of

Commerce)Commerce)Commerce)Commerce)


4/19

WORLD TRADE ORGANISATION (WTO)

While the WTO is driven by its member states, it could not function without its

Secretariat to coordinate the activities. The Secretariat employs over 600 staff, and its

experts lawyers, economists, statisticians and communications experts assist

WTO members on a daily basis to ensure, among other things, that negotiations

progress smoothly, and that the rules of international trade are correctly applied and

enforced.

Trade negotiationsTrade negotiationsTrade negotiationsTrade negotiations

Implementation and monitoringImplementation and monitoringImplementation and monitoringImplementation and monitoring

Dispute settlementDispute settlementDispute settlementDispute settlement

Building trade capacityBuilding trade capacityBuilding trade capacityBuilding trade capacity

OutreachOutreachOutreachOutreach

ROLE OF WTO IN DEVELOPING INDIAS FOREIGN TRADE

Endorsement of a trade assistance programme designed to help LDCs (Least Developed

Countries) increase their ability to trade.

Announcements of new and improved preferential market access measures for LDCs

by 19 developed and developing countries. Among the WTO members that announced

improved market access for LDCs were:

The European CommunitiesEuropean CommunitiesEuropean CommunitiesEuropean Communities will eliminate discrimination among all LDCs, from 1

January 1998, by giving all of them equivalent treatment, whether they are members

of the Lom Convention or not. The LDCs will be

allowed derogations from normal ECs rules of origin.

The United StatesUnited StatesUnited StatesUnited States said its Africa Initiative will provide improved access to the US

market for the countries of sub-Saharan Africa. Legislation is moving through the US

Congress, which includes a long-term renewal of the GSP programme, including

permanent GSP for LDCs.


5/19

Mo Mo Mo Moroccoroccoroccorocco announced the elimination in 1998 of tariffs for African LDCs on a wide

range of agricultural and industrial products;

Singapore Singapore Singapore Singapore will eliminate tariffs on 107 products of export interest to LDCs. It will alsoorganize with the WTO trade policy courses for LDC trade officials.

Other WTO members that announced new or additional preferential market access

measures for LDCs were: Egypt, IndiaEgypt, IndiaEgypt, IndiaEgypt, India, KoreaKoreaKoreaKorea, MalaysiaMalaysiaMalaysiaMalaysia, MauritiusMauritiusMauritiusMauritius, South AfricaSouth AfricaSouth AfricaSouth Africa,

SwitzerlandSwitzerlandSwitzerlandSwitzerland, ThailandThailandThailandThailand and TurkeyTurkeyTurkeyTurkey.

Market access for leastMarket access for leastMarket access for leastMarket access for least----developdevelopdevelopdeveloped countriesed countriesed countriesed countries

TTTTrade is only a small share of economic activity in most least-developed countries: on

average, exports and imports account respectively for about 9 per cent and 16 per cent

of their GDP, compared with 24 percent and 26 percent for developing countries as a

group. The least-developed countries exports have grown far more slowly than world

trade over the past twenty years, and their collective share of world merchandise

exports has consequently declined from about 0.8 per cent in 1980 to 0.46 per cent in

1995, when their exports were valued at about $23 billion. In the 1990s, the annual

growth in value of least-developed countries exports has averaged less than 2 per cent,

compared with 8 percent for world trade as a whole. On the import side, the

participation of least-developed countries in trade is equally marginal; their total

import bill in 1995 was equivalent to 0.7 per cent of world merchandise imports.

Over 60 per cent of the least-developed countries exports is sold in developed country

markets, mainly the European Union, Japan and the United States . Thirty-four

percent is sold in developing country markets, of which the main ones (accounting

annually for $150 million or more) are Brazil, China, Chinese Taipei, Hong Kong,

India, Indonesia, Korea, Malaysia, Singapore, South Africa, and Thailand.

The product structure of the least-developed countries exports is familiar and has

changed little over the past twenty-five years. Primary commodities, mainly minerals

and tropical agricultural products make up over 70 per cent of the total. Most are

exported as raw materials with very little processing. Manufactured products (mainly

textiles and clothing) constitute about 20 per cent of the least-developed countriesexports in aggregate, but they are significant for only a few of them, notably


6/19

Bangladesh. Most least-developed countries are dependent upon a very small range of

export products, usually just two or three.

About 75 per cent of least-developed countries total exports are accounted for by 112

products (classified at the 6-digit H.S. level), out of over 5,000 that are tradedinternationally. On average, the top three export commodities account for over 70 per

cent of each least-developed countrys total exports, leaving them vulnerable to changes

in demand and prices on world markets and to exogenous factors affecting domestic

supply.

The dependence of least-developed countries on exports of a narrow range of largely

unprocessed primary commodities and raw materials, which are susceptible to price

volatility on world markets, whose price and income elasticity of demand is low, andwhose growth has been far more sluggish than world trade overall, is one of the main

factors hindering their export performance. It also limits severely the stimulus that the

export sector can provide to the domestic economy through backward linkage activities.

As has been suggested repeatedly in the past, the diversification of their economies.

Indias status in the Multilateral Trade System

New Delhi makes use of the WTO Special and Differential Treatment in two ways: as a

beneficiary, because of its status as a developing country; and as a provider, especially

for Least Developed Countries (LDCs). Indeed, the WTO Agreements contain special

provisions which allow for the possibility of more developed countries treating

developing countries more favourably than other WTO members. These provisions

include longer time periods for implementing agreements and commitments, measures

to increase trading opportunities for developing countries, support to help developing

countries build the infrastructure for WTO work, dispute resolution, and

implementation of technical standards,26 in addition to provisions relating specifically

to LDC members. Secondly, India receives preferential market access in the EU, US,

Russia and Japan, among others, under the General System of Preferences (GSP). The

latter was first developed at the second United Nations Conference on Trade and

Development (UNCTAD) session in New Delhi, in 1968. It is a non contractual

instrument by which developed countries unilaterally and on the basis of non-

reciprocity and non-discrimination extend tariff concessions to developing countries. It


7/19

is also at the origin of the Enabling Clause, which emerged as a result of the Tokyo

round of talks and provided for a legal basis for the GSP preferences in 1979. The

Enabling Clause system also provides a legal basis for the Global System of Trade

Preferences (GSTP), of which India is also a member alongside other developingcountries within the G77. The principle of this agreement, in force in India since 1989,

is the exchange of trade concessions on the Most Favoured Nation (MFN) principle on

tariffs, Para-tariffs, non-tariff measures, direct trade measures including medium- and

long-term contracts and sectoral agreements. The GSTP is to be based and applied on

the principle of mutuality of advantages, although the LDCs particular needs shall

also be taken into account and they may benefit from special measures and concessions

on a non-reciprocal basis. Finally, the Global System of Trade Preferences shall notreplace, but supplement and reinforce regional and inter-regional economic groupings

of developing countries of the Group of 77, and shall take into account the concerns and

commitments of such economic groupings. Even if Indian offers of tariff preferences are

ultimately limited, this agreement is nevertheless interesting because it provides, more

broadly, for the spirit of Indian trade agreements with developing and Least Developed

Countries.

In addition to the Enabling Clause, other WTO provisions allow exceptions to the Most

Favoured Nation principle, pillar of the world trade system, in order to create Regional

Trade Agreements (RTAs), but on certain conditions only, founded on articles XXIV

GATT and V of the General Agreement on Services (GATS). In the WTO sense, a RTA

is based on the formation of a customs union or of a free trade area (FTA), or the

adoption of an interim agreement (generally a Preferential Trade Agreement [PTA])

necessary for the formation of a customs union or of a free-trade area. Besides,

regional must not be taken here in a geographical sense but designates a trade

agreement between two parties at least, whatever their continent of origin. Legal

requirements to create a RTA compatible with WTO law are comparatively reasonable,

especially for developing countries.28 In practice, the main objective of RTAs is to

facilitate substantially trade among their members and not to raise barriers to trade

for other parties.29 Most RTAs concluded by India and reported to the WTO, such as


8/19

the South Asia Preferential Trade Agreement (SAPTA) and the Asia-Pacific Trade

Agreement (APTA), are based on the enabling clause, except for the agreement with

Singapore. In fact, most of them refer to the relevant provisions of the GATT, without

further detail. New RTAs, especially with South- East Asia, refer to article XXIV GATTand V GATS but, in the meantime, allow SDTs for the less developed partners, in

conformity with the enabling clause. Furthermore, a full Free Trade Agreement should

normally be established within ten years, while so far most Indian RTAs are in fact

PTAs, achieved particularly through the system of Early Harvest Schemes (EHS),

permitting a more rapid reduction of tariffs on certain items only.

Indias policy at the WTO

The Indian position in the Doha Agenda negotiations

The Doha Agenda for development has led to the hope that developing countries

interests could be taken into account in more effective and fairer ways. Within the

WTO, one of the most important negotiating groups including developing countries is

the G-20. Created in the final stage of the Cancun Ministerial Meeting, this group, first

concerned with agriculture, now deals with issues such as non-agricultural market

access (NAMA), services, and trade facilitation. The G- 20 position on agricultural

products is that developed countries should eliminate trade-distorting subsidies. In the

meantime, they should considerably reduce their customs tariffs, while allowing

developing countries to maintain appropriate customs tariffs for the protection of their

domestic production. India particularly defends the idea that developing countries

should be able to self-designate and protect Special Products based on the criteria of

food security, livelihood security and rural development. G-20 is a somewhat hostile

alliance, frequently opposing the EU and the USA, and one in which the support of

China will be crucial for bargaining.33 Nevertheless, there are a fair number of

contradictions between its members. Some of them, Brazil for instance, are also part of

the Cairns Group, which advocates overall reductions, particularly of higher tariffs (in

accordance with the Swiss formula), especially in agriculture, reductions to which

India is firmly opposed.34 These positions are also challenged by the proposals taken

by the G-33 on Special Products and on the special safeguard mechanism in agriculturefor developing countries.


9/19

ROLE OF EXIM BANK

Exim Bank : A Catalyst for Indias International TradeExim Bank : A Catalyst for Indias International TradeExim Bank : A Catalyst for Indias International TradeExim Bank : A Catalyst for Indias International Trade

With India amongst leading global services exporters, the Bank has played a pivotal

and pioneering role in catalysing Indias software exports since the mid 1980s, while

the Banks support to Indian engineering and consultancy services has added to

the momentum in the significant growth in Indias overall services exports witnessed in

recent years.

The growing domain expertise as also increasing technical sophistication of Exim Bank

would, perhaps, be best reflected by the fact that the Bank, in its journey spanning a

quarter century, has been partnering and sharing its experience with other developingand emerging economies in their efforts to set up similar institutions, fostering an era

of South-South cooperation.

Challenges abound in the globalised trading environment; with increased focus on

regional trade, and South-South cooperation emerging as important drivers of growth,

the significant role of the Bank in facilitating enhanced regional trade through the

setting up of the Asian Exim Banks Forum, as also the creation of the Global Network

of Exim Banks and Development Finance Institutions (G-NEXID) in 2006 in Genevaunder the auspices of UNCTAD to boost South-South cooperation in trade and

investment, would, inter alia, serve to highlight the continuous evolution of the Banks

endeavours in meeting global challenges.


10/19


11/19

BUSINESS INITIATIVES

To enhance market diversification, the Bank lays special emphasis on extension of

Lines of Credit (LOCs) as an effective market entry mechanism especially for small andmedium enterprises. During the year, 16 LOCs were extended aggregating US$ 542 mn

to support exports of projects, goods and services from India. The Bank now has in

place 73 LOCs covering 83 countries in Africa, Asia, CIS, Europe and Latin America,

with credit commitments aggregating US$ 2.3 billion, and the Bank is proactively

seeking to expand geographical reach and volumes under the LOC programme.

With the pivotal role of the Bank in supporting Indias project exports, renewed focus in

this direction has seen 21 Indian exporters, with Exim Banks support, securing57 contracts amounting to Rs. 140 billion covering 20 countries.

Indian consultants, suppliers and contractors have demonstrated increasing capability

to execute a range of projects. With Indian companies increasing endeavours to expand

their reach overseas, the Banks focus in this direction is evident from the fact that

29 proposals were supported during the year for part financing their overseas

investments in diverse sectors covering different markets.

The Bank has, over the years, supported 176 ventures set up by over 147 companies in

54 countries, both in industrial countries and developing & emerging economies.

Towards facilitating inclusive globalisation, and in line with the Government of Indias

focus on village and rural sectors, the Bank has introduced an innovative facility

to support globalisation of rural industries through its Grassroots Business Initiative.

The programme seeks to address the needs of relatively disadvantaged sections of

society while creating expanded opportunities for traditional craftsperson and artisans,

and rural entrepreneurs of the country.

Towards this end, the Bank has consciously sought to establish, nurture and foster a

variety of institutional linkages with select Non-Governmental Organisations

(NGOs) / Self Help Groups (SHGs), with a view to assisting their members with

capacity building, training and access to national and global markets. During the year,

the Bank, in association with the International Finance Corporation (IFC), a member


12/19

institution of the World Bank Group, organised an India Day at IFCs display-

cumsales centre called Pangea at Washington D.C. at which products made by a

number of NGOs/ SHGs in India were displayed. The Bank is also in discussion with

the Khadi and Village Industries Commission (KVIC), to set up a joint Exportmarketing Organisation that will contribute to capacity building of grassroots business

enterprises and promote exports of products from rural enterprises.

Exim Banks Commencement Day Annual Lecture 2007, delivered by Dr. David Hulme,

Professor of Development Studies and Founder Director of Chronic Poverty Research

Centre, University of Manchester, United Kingdom, focused on Inclusive Globalisation:

Tackling Chronic Poverty. To enhance support provided to the SME sector, a vibrantand important sector of the Indian economy, Exim Bank, under its cooperation

arrangement with the International Trade Centre (ITC) for implementing ITCs unique

Enterprise Management Development Services program, seeks to support small

enterprises through capacity building and assistance in formulating viable proposals.

The Bank has also partnered the Commonwealth Secretariat in the Commonwealth-

India Small Business Competitiveness Development Programme to undertake capacity

development initiatives that promote economic development (through increased

employment, investment, trade and economic activity) in Commonwealth member

states. Exim Bank is in discussion with Asian Development Bank for a long term line of

credit of US$ 250 mn without sovereign guarantee for supporting and strengthening

export oriented SME sector in India. Exim Bank has concluded an agreement with

Japan Bank for International Cooperation (JBIC) for a US$ 100 mn equivalent

Japanese Yen loan to support exporting companies in India with Japanese interest.

Research studies brought out by the Bank during the year include Strengthening R &

D Capabilities in India; Sector study of Indian Chemical Industry; Opportunities

abroad for Indian Construction Industry; as also, Analysis of Japanese and US Foreign

Direct Investments in Indian Manufacturing Sector. Towards diversification of

export markets, the Banks Occasional Papers have identified opportunities for

enhancing Indias commercial presence as also bilateral trade and investment

relations with countries in the Maghreb region and the CIS region.


13/19

The Bank also brought out a publication titled Looking through the Kaleidoscope:

India and Globalisation which is a compendium of Exim Banks Commencement Day

Annual Lecture Series for the period 1986 to 2006, in commemoration of the

Banks Silver Jubilee. As part of the Banks Silver Jubilee Year celebrations, a series ofseminars on topics of relevance were organised at select centres in India which included

Potential for Export of Agricultural Products from Bihar at Patna; Globalisation

through Overseas Investment at Kolkata; Potential for Export of Agricultural

Products from the North-Eastern Region at Guwahati; Trade and Investment

Opportunities between India and GCC Countries at Dubai; Indian Industry: Journey

Towards Borderless World at Chennai; and the concluding seminar on Globalisation:

Opportunities and Challenges for Indian Companies at Mumbai.

ROLE OF DEPARTMENT OF COMMERCE, GOVERNMENT OF INDIA

The basic role of the Department of Commerce is to facilitate and create an enabling

environment and infrastructure for accelerated growth of Indias international trade. In

consonance with the Governments vision of making India a major player in world

trade, the Foreign Trade Policy (FTP) is announced every five years. It provides the

basic policy framework of translating this vision into specific strategies, goals and

targets. Keeping in line with the cherished goal of the economy to grow at a double digit

rate over the next decade, the aspiration of the Department, has been outlined in the

Strategic Plan to achieve an average annual growth of exports of 25% over the next six

years.

The Outcome Budget is a technique of presenting the budget of the

ministry/Department in terms of functions, programmes, and activities. The Outcome

Budget 2011-12 of the Department of Commerce highlights the various programmes

and activities undertaken/envisaged to be undertaken by the Department in

furtherance of the core objective of strengthening Indias foreign trade performance in

the context of the related targets and achievements for 2009-10 and first nine months

of 2010-11 and targets set for 2011-12 in terms of financial outlays, physical


14/19

outputs/quantifiable deliverables and outcomes. The present document is divided into

six chapters viz:

Chapter IChapter IChapter IChapter I brings out a brief introductory note on the goals, objectives and functions; the

organizational set up; its mandate and the list of major programmes/ schemesimplemented by the Department.

The Department is headed by a Secretary who is assisted by an Additional Secretary &

Financial Adviser, three Additional Secretaries and thirteen Joint Secretaries and

Joint Secretary level officers and a number of other senior officers. The Department is

functionally organized into the eight Divisions viz - Administration and General

Division, Finance Division, Economic Division, Trade Policy Division, Foreign Trade

Territorial Division, State Trading & Infrastructure Division, Supply Division andPlantation Division.

The various offices/ organizations under the administrative control of the Department

are: (A) three Attached Offices, (B) eleven Subordinate Offices, (C) ten Autonomous

Bodies, (D) five Public Sector Undertakings, (E) Advisory Bodies, (F) fourteen Export

Promotion Councils and (G) other Organizations.

Chapter IIChapter IIChapter IIChapter II presents the vertical compression and horizontal expansion of Statement of

Budget Estimates. The main objective is to establish a one to one correspondence

between (financial) Budget 2011-12 and Outcome Budget 2011-12. The details comprise

of the financial outlays, projected physical outputs and projected/ budgeted outcomes.

For the year 2010-11, an outlay of Rs.3,980.05 crore was approved for the various Plan

and Non-Plan schemes of the Department. Out of this, Plan outlay was Rs.1,680 crore.

The provisional Plan Expenditure (upto 31.12.2010) for the year 2010-11 is estimated

at Rs. 1,275.73 crore. As against this, an outlay of Rs 6,516.08 crore has been approved

for the year 2011-12; consisting of Plan outlay of Rs.2,000 crore and Non-Plan outlay of

Rs. 4,516.08 crore. As export promotion and market development is the core of the

activities of the Department, assistance in the form of export subsidy, grants and

interest subsidy to banks at Rs. 1,000.00 crore constitutes the bulk of the Non-Plan

expenditure. On the Plan side, the Centrally-sponsored scheme of Assistance to States

for the Development of Export Related Infrastructure and Allied Activities (ASIDE)

constitutes the single most important activity accounting for an outlay of Rs. 850.96

crore.


15/19

Chapter IIIChapter IIIChapter IIIChapter III highlights the details of reforms measures and policy initiatives

undertaken by the Department and how these relate to the intermediate outputs and

final outcomes in areas such as public private partnership, delivery mechanisms, social

and gender empowerment processes, greater decentralization, transparency etc.Against the backdrop of a global economic crisis and faltering exports the current

Foreign Trade Policy (FTP), 2009-14 was unveiled by the Government on 27th August,

2009. The new Policy clearly spells out both the short term and the long term objectives

of the Government. The short term objective of FTP (2009-14) is to arrest and reverse

the declining trend of exports and to provide additional support, especially to those

sectors which have been hit badly by recession in the developed world. The FTP (2009-

14) envisages three basic pillars for supporting Indias exports. These are (i)Strengthening of infrastructure related to exports, (ii) bringing down transaction costs,

and (iii) providing full refund of all indirect taxes and levies. The only option available

with the Department of Commerce towards attainment of these objectives is to achieve

further acceleration in exports growth. Keeping in line with the cherished goal of the

economy to grow at a double digit rate over the next decade, the aspiration of the

Department, as outlined in the Strategic Plan, is to achieve an average annual growth

of exports of 25% over the next six years.

It is against this backdrop of a global economic crisis and faltering exports that the new

Foreign Trade Policy (FTP), 2009-14 was unveiled by the Government on 27th August,

2009. The new Policy clearly spells out both the short term and the long term objectives

of the Government. The short term objective of FTP (2009-14) is to arrest and reverse

the declining trend of exports and to provide additional support especially to those

sectors which have been hit badly by recession in the developed world. The Policy, with

clearly enunciated objectives and strategies and necessary initiatives taken by the

Government during the last five years, has been very effective in putting Indias

exports on a higher growth trajectory. The Indian exports grew from US$ 83.5 billion in

2004-05 to US$ 185.3 billion in 2008-09, registering an average annual growth rate of

about 24%. As far as giving special thrust to employment generation is concerned,

sectors with significant export potential, coupled with employment generation in semi-

urban and rural areas, were identified and specific sectoral strategies were prepared.


16/19

Subsequent to announcements made in FTP (2009-14), short term sectoral performance

review of the exporting sectors was carried out and additional measures were extended

for higher support for market and product diversification undertaken in the Annual

Supplement, 2010-11as under: Additional benefit of 2% bonus, over and above the existing benefits of 5% / 2% under

Focus Product Scheme, allowed for about 135 existing products, which have suffered

due to recession in exports. Major sectors include all Handicrafts items, silk carpets,

toys and sports goods (all of which were earlier eligible for 5% benefits); leather

products and leather footwear, handloom products and engineering Items including

bicycle parts and grinding media balls (all of which were earlier eligible for 2% benefit).

256 new products added under FPS (at 8 digit level), which shall be entitled for

benefits @ 2% of FOB value of exports to all markets. Major sectors/product groups are

engineering, electronics, rubber & rubber products, other oil meals, finished leather,

packaged coconut water and coconut shell worked items.

Instant Tea and CSNL Cardinol included for benefits under VKGUY @ 5% of FOB

value of exports.

Nearly 300 products (at 8 digit level) from the readymade garment sector incentivised

under MLFPS for further 6 months from October, 2010 to March, 2011 for exports to 27

EU countries.

Since October 2009, exports have resumed their uptrend and recovery has been

maintained since then. Exports during the first nine months of the current fiscal

i.e.AprilDecember, 2010-11, are estimated at US $164.7 billion recording a growth

rate of 29.5% over the same period last year.

Chapter IVChapter IVChapter IVChapter IV reviews the scheme-wise past performance of the various programmes and

activities undertaken by the Department during 2009-10 and 2010-11 in terms of

targets already set.

The Plan Schemes being implemented by the Department are aimed at creating an

enabling environment for promotion of Indian exports.


17/19

The scheme-wise performance in respect of major schemes being implemented by the

Department is given below:-

Assistance to States for Development of Export Infrastructure and Allied Activities

(ASIDE) Scheme: The basic objective of the scheme is to involve the States/UTs inexport efforts by providing incentive-linked assistance to concerned Governments and

to create appropriate infrastructure for development and growth of exports. It has been

possible to achieve this in spite of various constraints as is evident from active

participation of States/UTs in sponsoring a large number of export related projects for

assistance from the ASIDE Scheme.

During 2009-10, total number of projects approved by State Governments under ASIDE

scheme were, 122 worth Rs. 1147.68 crore. Out of this Rs. 554.89 crore only has beenproposed by state govt./UTs to be met from the ASIDE funds, and the balance of Rs.

592.79 crore have been/are being leveraged from the resources of State Govt/UTs and

other sources identified by the State Govt./UTs. Similarly in the central component a

total of 40 projects worth Rs. 187.99 crore have been approved so far and out of this Rs.

139.07 crore only has been/ is to be funded from the central component of ASIDE

scheme. Balance Rs. 48.92 crore has been/is being leveraged from other sources

including states, private partnership and agencies of states.

Development of Special Economic Zones (SEZs) is a major initiative of the Government.

This is aimed at generation of additional economic activity; promotion of exports of

goods and services; promotion of investment from domestic and foreign sources;

creation of employment opportunities and development of infrastructure facilities. In

the short span of about five years since the SEZs Act and Rules were notified in

February, 2006, formal approvals have been granted for setting up of 580 SEZs out of

which 374 have been notified. Out of the total employment provided to 6,44,073 persons

in SEZs as a whole, incremental employment of 5,09,369 persons was generated after

February, 2006 when the SEZ Act came into force. This is apart from millions of man

days of employment created by the developer for infrastructure activities. Physical

exports from the SEZs has increased from Rs. 99,689 crore in 2008-09 to Rs.

2,20,711.39 crore in 2009-10, registering a growth of 121%. There has been overall

growth of export of 1493% over past seven years (2003-04 to 2009-10). The total


18/19

physical exports from SEZs as on 31st December, 2010 i.e. in the first three quarters of

the current financial year, has been to the tune of Rs. 2,23,132.31 crore approximately

registering a growth of 46.70% over the exports of corresponding period of the previous

financial year. The total investment in SEZs till 31st December, 2010 is Rs. 1,95,348.16crore approximately, including Rs. 1,91,312.65 crore in the newly notified zones. 100%

FDI is allowed in SEZs through automatic route. A total of 130 SEZs are currently

doing exports.

Revenue SectionRevenue SectionRevenue SectionRevenue Section

Plan:Plan:Plan:Plan:During 2009-10, the Plan expenditure was Rs. 885.54 crore as against Rs.857.76

crore during 2008-2009. The provision for the year 2010-11 was Rs. 997.01 crore and

Revised Estimate was Rs. 997.01 crore.NonNonNonNon----Plan:Plan:Plan:Plan:During 2009-10, the Non-Plan expenditure was Rs.2,295.61 crore as against

Rs.3,448.79 crore during 2008-2009. The provision for the year 2010-11 was Rs.2,304.55

crore and the Revised Estimate was Rs.4,997.94 crore.

Capital SectionCapital SectionCapital SectionCapital Section

Plan:Plan:Plan:Plan:During the year 2009-2010, the Plan expenditure was Rs.610.50 crore as against

Rs.584.25 crore during the year 2008-09. The provision for the year 2010-2011 was

Rs.682.99 crore for Budget Estimates and Revised Estimates.

Chapter VIChapter VIChapter VIChapter VI reviews the performance of the Statutory and Autonomous Bodies under

the administrative control of the Department.

The Export Inspection Agencies (EIA) under the Export Inspection Council of India

(EIC) certified export items valued at Rs 10,667.80 crore during the year 2009-10.

During April-November 2010, the value of exports certified by the EIAs was Rs

5,609.09 crore.

The Government is committed to facilitate efficiency, transparency and

decentralization of decision making process through intensive use of Information and

Communication Technologies (ICT) based tools. To facilitate quick appraisal of inter-

ministerial and inter-agency trade related matters, an Executive Video Conference

System (EVCS) has been installed in the Department, connecting Secretaries to

Government of India and all Chief Secretaries/Administrators of States/UTs over NIC

network (NICNET). For bilateral and multilateral international negotiations, a Video


19/19

Conferencing Studio has been setup in the Ministry of Commerce & Industry. The

Department's web site (http://commerce.nic.in) is the major source of information

dissemination and provides Government-to-Citizen (G2C) and Government-to-Business

(G2B) interface for electronic delivery of services, trade facilitation and monitoringvarious applications. The access to various e-governance and office automation

systems/applications and databases is available to the user in the Department through

an Intranet Portal.

IM Individual Assignment

Documents

Transcript of IM Individual Assignment