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Signs of Recovery in Indian Economy
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| 04. TRADE |
14th India Carpet expo held |
The Union Minister for Commerce & Industry, Shri Kamal Nath and the Union Minister for Textiles, Shri Shankersinh Vaghela inaugurate the India Carpet Expo, in New Delhi on February 12, 2009.
Shri Kamal Nath, Union Minister of Commerce and Industry, and Shri Shankersinh Vaghela, Union Minister for Textiles, inaugurated the 14th India Carpet Expo,. At his inaugural address, Shri Nath said that the carpet industry has made tremendous progress and added that exports during the year 2007-08, it stood at US $ 875.71 million as compared to US $ 807.94 in 2006-07. The top exporting destinations were: USA, Germany, UK, Australia and France etc. Shri G.K. Pillai, Commerce Secretary and Smt. Rita Menon, Textiles Secretary also attended the function. |
Speaking at the inaugural ceremony, Shri Nath stated that the Indian Carpet Industry has the potential for expansion since adequate skilled manpower and raw-material is available.
The Expo is world acclaimed established fair on handmade carpets and other floor coverings in South East Asia, envisaging unique business oriented platform to the importers and exporters. More than 200 exhibitors from Uttar Pradesh, Rajasthan, Jammu & Kashmir are displaying their trend setting designs of handmade carpets and floor coverings. Around 300 overseas buyers from USA, Germany, France and Italy visited the Fair.
The total export of carpets viz., handmade woollen tufted, handmade silk, handmade staple/synthetic, cotton, rugs, druggets, durries etc., during the year 2007-08 was US $ 875.71 million as compared to US $ 807.94 in 2006-07. The top exporting destinations are: USA, Germany, UK, Australia and France etc.
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Exports up by 17.1% in April-December 2008 India’s Foreign Trade Data: December 2008 |
India’s cumulative value of exports for the period April- December, 2008 was US$ 131990 million (Rs.585594 crore) as against US$ 112737 million (Rs. 454997) registering a growth of 17.1% in Dollar terms and 28.7% in Rupee terms over the same period last year.Exports during December, 2008 were valued at US $ 12690 million which was 1.1% lower than the level of US $ 12825 million during December, 2007. In rupee terms, exports touched Rs. 61715 crore, which was 22% higher than the value of exports during December, 2007.
India’s Imports during December, 2008 were valued at US $ 20256 million representing an increase of 8.8% over the level of imports valued at US $ 18610 million in December, 2007. In Rupee terms, imports increased by 34.2%. Cumulative value of imports for the period April- December, 2008 was US$ 225809 million (Rs. 1003947 crore) as against US$ 171718 million (Rs. 693445 crore) registering a growth of 31.5% in Dollar terms and 44.8% in Rupee terms over the same period last year.
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Oil imports during December, 2008 were valued at US $ 4712 million which was 30.9% lower than oil imports valued at US $ 6824 million in the corresponding period last year. Oil imports during April- December, 2008 were valued at US$ 78827 million which was 44.8% higher than the oil imports of US$ 54421 million in the corresponding period last year.
Non-oil imports during December, 2008 were estimated at US $ 15544 million which was 31.9% higher than non-oil imports of US$ 11786 million in December, 2007. Non-oil imports during April- December, 2008 were valued at US$ 146982 million which was 25.3% higher than the level of such imports valued at US$ 117297 million in April- December, 2007.
The trade deficit for April- December, 2008 was estimated at US $ 93819 million which was higher than the deficit at US $ 58981 million during April- December, 2007. |
Trade Facilitation measures announced
Following is the text of speech of Shri Kamal Nath, Union Minister of Commerce & industry, on the announcement of Trade Facility Measures
“I am happy to be present with you this morning for certain announcements of trade facilitation measures. Unlike the last four years, when the global economic mood was upbeat, today we meet against the backdrop of a global financial crisis. For the first time in more than a generation, two of the engines of global integration—trade and capital flows—are simultaneously expected to shift into reverse. In an interconnected globalized world, when all nations are being impacted, India too cannot escape unscathed. However, I believe that India will suffer less and recover faster due to the nature of our trade, the diversification of our trade basket, our trade facilitation measures and the proactive steps taken by our Government.
Backed by strong economic fundamentals, the stimulus packages announced by the Government will stimulate demand, increase confidence, uplift business sentiment and give a fresh impetus to India’s trade and growth story.
You may recall my first announcement in August 2004 of an integrated Foreign Trade Policy for a 5 year period 2004-2009. Even today our policy continues to be scripted around that singular refrain of 2004 - “Trade is not an end in itself, but a means to economic growth and national development. The primary purpose is not the mere earning of foreign exchange but the stimulation of greater economic activity”. Over the last five years our initiatives have remained focused on our twin objectives to double our percentage share of global merchandise trade within the next five years; and to act as an effective instrument of economic growth by giving a thrust to employment generation.
Over the last five years, a number of initiatives were taken to meet the above objectives as well as the strategies that had been announced in the 5 year Foreign Trade Policy. Sectors with significant export prospects coupled with potential for employment generation in semi-urban and rural areas have been identified as thrust sectors and specific sectoral strategies have been prepared. Special Focus initiatives have been prepared for Agriculture, Handicrafts, Handloom, Gems and Jewellery and Leather and Footwear sectors.
The major initiatives announced are in the folder before you. Some of the major initiatives are highlighted below:
a. The introduction of Vishesh Krishi Upaj and Gram Udyog Yojana for boosting exports of fruits, vegetables, flowers, minor forest produce and their value added products, poultry, dairy and gram udyog products.
b. Introduction of a scheme for incentivising agro processing units.
c. Introduction of Focus Product and Focus Market Schemes with a total incentive package exceeding Rs. 2000 crores.
d. Duty free import upto 5% for sectors like gems and jewellery, handloom, handicrafts, leather and footwear, etc
e. Giving Export Promotion Council status to Khadi & Village Industries Commission as well as setting up of new Export Promotion Councils namely, Electronics and Computer Software EPC, Indian Oil Seeds and Produce Exporters Association, Services Export Promotion Council and Telecom Equipment Manufacturers Association of India EPC.
f. Reduction in customs duty under EPCG scheme from 5% to 3%.
g. Extension of Export Obligation period under EPCG scheme for cottage and tiny sector from 8 years to 12 years.
h. Extension of DEPB scheme till 31st December 2009.
i. Extension of IT exemption for 100% EOUs till 31st March, 2010.
j. Introduction of a single set of common forms called ‘Aayaat Niryaat’ Forms.
k. Allowing payment of interest on delayed payments of Terminal Excise Duty and Central Sales Tax. Full Text
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Architectural general insurance and warehouses services etc to be treated as export of services outside India |
Shri Kamal Nath, Minister of Commerce and Industry, has informed that as part of further facilitation of the export sector a clarification has since been issued by CBEC in respect of architectural services, general insurance services, market research services, storage and warehousing services and knowledge & technology based services for treating them as export of services outside India. This will remove the existing ambiguity and enable refund of service tax paid in this regard. He further assured that efforts would be on for making suitable administrative changes for ensuring early refund of Service Tax claims and further simplification of refund procedures.
Addressing the press conference, Shri Kamal Nath stated that the Indian exports which were US $ 63 billion during the year 2003-04 have reached US$ 162 billion by 2007-08 recording an average annual growth rate in excess of 25%. “This year, i.e., during 2008-09 we did achieve a growth of 30.9% till September 2008 but there has been a setback recently due to the global recession. We hope to achieve a target of US$ 175 billion in exports this year. The increased economic activity has resulted in generation of around 140 lakh new jobs in the export sector. Our exports have diversified and grown. To cite a few examples, our exports have increased nine-fold to Brazil, seven-fold to Pakistan, five-fold to Mauritius, four-fold to Egypt & Vietnam and three-fold to Singapore & Turkey. Today, Indian exporters are exporting to almost all the countries in the world including such places like Marshall Islands, Greenland, Barbados, Costa Rica, Nicaragua, Burundi and Somalia”, he added. |
Exports likely to reach $60-62 billion by 2010-11. |
“Due to strong fundamentals and other derivatives of value to customers, the industry will continue to grow despite global slowdown. The BPO industry will see sustainable growth over the next two years, Mr. Mittal added. The IT and BPO industry would generate new jobs, giving 22.3 lakh direct and 80 lakh indirect jobs.
Meanwhile, a high-level Nasscom team will be on a five-day visit to the U.S. next month to hold talks with the new administration there, top politicians, think-tanks
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and corporates to convince them of the benefits of outsourcing and immigration issues. Nasscom will also raise the ‘totalisation’ issue to avoid double taxation on income in the U.S. Indians with H1B or L1 visas contribute significantly to the US social security schemes every year, but do not the get benefits since India and the U.S. does not have a ‘totalisation’ agreement.
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