exports

ASIDE is the Assistance given by the Central Government to States through Council for Developing Export Infrastructure and other Allied Activities. The objective of this Scheme is to involve the States in the export effort by providing assistance to the State Governments for creating appropriate infrastructure for the development and growth of exports.

the responsibility for promotion of exports and creating the necessary specialised infrastructure has largely been undertaken by the Central Government so far, it is increasingly felt that the States have to play an equally important role in this endeavour. The role of the State Governments is critical from the point of view of boosting production of exportable surplus, providing the infrastructural facilities such as land, power, water, roads, connectivity, pollution control measures and a conducive regulatory environment for production of goods and services. It is, therefore, felt that coordinated efforts by the Central Government in cooperation with the State Governments are necessary for development of infrastructure for exports promotion.

1.3 Department of Commerce currently implements, through its agencies, schemes for promotion and facilitation of export commodities and creation of infrastructure attendant thereto. The Export Promotion Industrial Parks Scheme (EPIP), Export Promotion Zones scheme (EPZ), and the Critical Infrastructure Balancing Scheme (CIB) are also implemented to help create infrastructure for exports in specific locations and to meet specific objectives. However, the general needs of infrastructure improvement for exports are not met by such schemes. With a view, therefore, to optimizing the utilization of resources and to achieve the objectives of export growth through a coordinated effort of the Central Government and the States this scheme has been drawn up. The features of the Scheme and the Guidelines for consideration of proposals in respect of the Scheme are given below.

                                                                                                                                                                          

2. Objective

2.1 The objective of the scheme is to involve the states in the export effort by providing assistance to the State Governments for creating appropriate infrastructure for the development and growth of exports.

2.2 States do not perceive direct gains from the growth in exports from the State. Moreover, the States do not often have adequate resources to participate in funding of infrastructure for exports. The proposed scheme, therefore, intends to establish a mechanism for seeking the involvement of the State Governments in such efforts through assistance linked to export performance.

                                                                                                                                                                          

3. Scheme

3.1.The scheme shall provide an outlay for development of export infrastructure which will be distributed to the States according to a pre-defined criteria. The existing EPIP, EPZ and CIB schemes shall be merged with the new scheme. The scheme for Export Development Fund (EDF) for the North East and Sikkim (implemented since 2000-2001) shall also stand merged with the new scheme. After the merger of the schemes in respect of EPIP,EPZ,CIB and EDF for NER and Sikkim with the new scheme, the ongoing projects under the schemes shall be funded by the States from the resources provided under the new scheme.

STONES
DIAMOND---
HIGH EXPORT EARNING FROM THIS IS BY AVAILABILITY OF EXPERTS ON CUTTING AND POLISHING IS THE ONLY REASON
NOT HIGH PRODUCTION


India’s exports grow by 21%
Current Affairs Published on www.gktoday.in from January 1, 2012 to
September 10, 2012
Commerce Secretary Rahul Khullar held that:
 In the 2011-12 fiscal, India’s exports grew 21%, to US $303.7 billion, equated to the previous fiscal.
 imports shot up 32.1%, to US $488.6 billion, leaving a trade deficit of US $184.9 billion.
 This was the highest trade deficit and was a grave concern.
 Gold imports, which added in heightening the import bill, are anticipated to turn down in the present fiscal owing
to the duties imposed by the government.

India to be second largest producer of crude steel by 2015

As per the Government, India is expected to become the 2nd largest producer of crude steel in the world by 2015.

Steel Industry in India:

Contributes over 2% to the GDP.

Production has escalated from 66 million tonne per annum in 2008-09 to 89 million tonne per annum in 2011-12

Per capita steel consumption has increased from 38 Kg in 2005-06 to 55 Kg in 2010-11.

Handicrafts export jumps to USD 2.7 billion in 2011-12 fiscal
In the 2011-12 fiscal, India’s handicrafts exports jumped to US $2.7 billion, in spite of slow-down in key importing
markets like the US and Europe. In the last fiscal, 2010-11, the exports stood at US $2.3 billion.
The growth in the last fiscal was mainly driven by growing demand in new markets like China and Latin America. Jaipur,
Jodhpur, Moradabad, Narsapur and Saharanpur are the main handicraft hubs catering to world markets, employing
nearly one million people.







Govt extends zero import duty on sugar till June, 2012
The zero import duty regime was to end on March 30, 2012 BUT the Ministry of Finance has extended the
zero import duty on sugar for another 3 months, thus adding to manufacturers’ worries. A
reconsideration of the same will be undertaken when the new sugarcane crop arrives.
Contrasting to this, the government has been systematically allowing export of sugar in parts, to ease a supply glut.
The country is again anticipating bumper sugarcane production in the fresh sugar season.
The zero import regime was enforced in 2010 in a wide range of 0 to 60%., despite a suggestions from both, the
Ministry Of Consumer Affairs and the Ministry Of Agriculture to rationalize the duty structure in the range of 15-20%,
as with other agricultural commodities.
As per the Indian Sugar Mills Association (ISMA):
 Sugar production increased 14% to 21.2 million tonnes till March 15, 2012 in the current marketing year that
started in October last year.
 Sugar production in, stood at 18.6 million tonnes in the year-ago period.
Current Affairs Published on www.gktoday.in from January 1, 2012 to
September 10, 2012
 Maharashtra, the country’s largest Sugar producing state.
 Faced with a severe squeeze on margins, sugar mills are reportedly looking at alternatives, largely in potable
alcohol and energy.









Govt to set up ‘Spice Parks’ in India to promote export of spices
By the end of year 2012, Government to set up 10 spice parks across the most strategic locations in India. The decision
to this effect was taken by the Spice Board of India, the nodal organization under the
Ministry of Commerce and Industry. Spice parks consists of units like processing,
packaging and certification. Spice Board of India, the nodal organization of the
Ministry of Commerce and Industry, has taken a decision to this effect.
Objective: To promote export of spices. The projects on Spices Park are primarily intended to benefit the growing
community through quality improvement, grading, packing, warehousing, etc for value addition which would lead to
better price realization of their produce.
Some of the centres where the Spices Parks are proposed:-











‘In volume terms, India’s export growth fastest’
As per a WTO Report, even as the global trade expansion slowed to 5%, India recorded exports
growth of 16.1 % in 2011, the fastest in the world in volume terms during 2011.
 China had the 2nd fastest export growth of at 9.3%.







India displaces China as world’s largest arms importer
The Stockholm International Peace Research Institute (SIPRI) in its new report held that India replaced China as the
world’s biggest importer of arms, by accounting for 10% of global arms sales volumes. Over the past 5 years, India’s
imports of major weapons increased by 38% b/w 2007-11. India was narrowly followed by China and Pakistan whose
weapons imports constituted 5% each of global sales. As per the Report, Pakistan took delivery of significant numbers
of combat aircrafts during this period: 50 JF-17s from China and 30 F-16s from US.
Due to significant progress in its arms production capabilities, China has become less dependent on arms
imports and at the same time has increased the volume of its arms exports. Between 2002–2006 and 2007–11, China
fell from being the largest to the fourth largest recipient of major conventional weapons, while the volume of its
exports increased by 95 per cent, making it the sixth largest supplier, narrowly trailing the UK.China’s arms export is
increasing mainly as a result of Pakistan importing more arms from China. Pakistan has a long-term military
Current Affairs Published on www.gktoday.in from January 1, 2012 to
September 10, 2012
relationship with China and during 2007–11 it received 64 per cent of the volume of Chinese exports.
As per the estimates of the Report, India will probably spend more than $100 billion on weapons and systems in the
next 15 years. India’s key recent deals were the 126 fighter jets and noteworthy deliveries of other combat aircrafts,
counting 120 Su-30MKs and 16 MIG-29Ks from Russia and 20 Jaguars from UK.
 The volume of international transfers of major conventional weapons in the period 2007–11 was 24 per cent
higher than in 2002–2006.
 The 5 biggest suppliers in 2007–11 were the United States, Russia, Germany, France and the United Kingdom.
The top 5 suppliers accounted for 75 per cent of the volume of international arms exports.
 The 5 biggest recipients in 2007–11 were India, South Korea, Pakistan, China and Singapore. The top 5 recipients
accounted for 30 per cent of the volume of international arms imports.
 The main recipient region in 2007–11 was Asia and Oceania (accounting for 44 per cent of imports), followed by
Europe (19 per cent), the Middle East (17 per cent), the Americas (11 per cent) and Africa (9 per cent).














ECB norms for power companies eased
Central Govt has liberalized the ECB (External Commercial Borrowing) norms for power sector. The Power companies
can now use up to 40% of loans to refinance their rupee debt but the rest 60% must be utilised for investments in new
projects. Earlier, power companies were allowed to use only 25% of the ECB to refinance their domestic rupee-debt
loan.
Objective: The policy decision will increase access to cheaper funds for companies in the power sector.
In another decision, the government has also opened the ECB route for capital expenditure on the maintenance and
operations of toll systems in the roadways and highways sector provided these are part of the original project.
Objective: The policy decision will provide an added source of low-cost capital and encourage greater investment in
road construction projects.RBI is likely to issue relevant notifications within 7 days giving effect to these decisions.








Govt allows 1 mn tonnes of extra sugar exports
Another 1 million tonnes of unrestricted white sugar exports were allowed by the Government. Thus
bringing the total approved so far to 3 million tonne, in line with what the industry and markets expected.
India, the world’s second-biggest producer of sugar had already allowed mills to export 2 million tonnes of
sugar without restrictions under its Open General Licence (OGL) scheme in the current year that started
in October 2011.
The extra amount is enough to have a potential impact on the market albeit it is small by comparison with leading
exporter Brazil’s 26.5 million tonnes of raw and refined exports in 2011.
Local sugar mills anticipate India to produce 26 million tonnes of the sugar in 2011-12 while the yearly domestic sugar
consumption stands at around 22 million tonne, allowing room for exports.
A panel of ministers also permitted unrestricted exports of wheat flour under the OGL mechanism for the year
starting April 1, 2012, removing a limit of 650,000 tonne set for the current fiscal.



Trade deficit records new high at US $185 billion
Although India had earlier announced that it had surpassed the export target of $300 billion for 2011-12, the rising
trade deficit, touching $184.9 billion mark, was a worrying factor for India. The Indian government had set a target of
$150 billion trade deficit.
Exports:
 Exports soared up by 21% to $303.7 billion in 2011-12 as a result of strong growth in petroleum, pharmaceuticals
and engineering products. India managed to go past the export target by adopting product and market
diversification strategy.
Imports:
 Indian Imports however, surged by 32.1% to $488.6 billion, leaving the highest-ever trade deficit of $184.9
billion.
Trade Deficit = Imports – Exports = $ (488.6 – 303.7) bn = $ 184.9 bn
Commerce Secretary Rahul Khullar held that owing to the huge trade deficit, the Current Account Deficit (CAD) is
probable to be approximately an uneasy 4% of GDP in 2011-12.










Government bans cotton exports
In order to increase the supply of natural fibre in the domestic market of India, the Government has
banned exports of cotton. In reference to this a notification was issued by the DGFT (Directorate
General of Foreign Trade).




North Indian sugar industry wants quota-based export to continue
Disputes within the sugar industry, b/w mills in northern states and those in western/southern states,
have emerged in open. Top Uttar Pradesh-based companies are protesting at a move to do away with the
quota system in the latest export approval of 1 million tonnes of sugar and to alternatively allow export on
a first come, first served basis that benefits coastal mills.




Government issues export release order for 86,039 tonne sugar
As per the latest data, the Food Ministry has issued export release orders for 86,039 tonne as on March 9, 2012 out of
the second tranche of 10 lakh tonne that the government allowed for overseas shipments in the 2011-12 marketing
year.
On February 7,2012 the Empowered Group of Ministers (EGoM), headed by Finance Minister Pranab Mukherjee, had
allowed exports of additional 1 million tonne of sugar. The decision was notified on February 24, 2012 and 10 lakh
tonne (LT) was allocated to the mills based on their average output over the last three years.
Sugar mills have been given 45 days from the notified day to apply for export release orders, which will be valid for 60
days.
The EGoM had decided to allow the second tranche of sugar exports as the country’s output is estimated to outstrip
demand in 2011-12.
 Sugar mills cannot export the sweetener without the release order from the Food Ministry.
 The sugar marketing year runs from October to September.
 Sugar production in India – the world’s second-largest producer and the biggest consumer – is estimated at 25-26
million tonne in this marketing year.
 The country’s annual demand is pegged at 22 million tonne.
 In the 2008-09 and 2009-10, sugar production was below domestic consumption at 14.53 million tonne and nearly
19 million tonne, respectively. The country had to import about 6 million tonne of sugar to meet the shortfall.








The Indian Design Mark of Indian Design Council is used for
______________? [A]Only for medical equipment and vehicles [B]Only for
agricultural machinery [C]Only for white goods [D]All types of mass-produced
products

India to be second largest producer of crude steel by 2015

As per the Government, India is expected to become the 2nd largest producer of crude steel in the world by 2015.

Steel Industry in India:

Contributes over 2% to the GDP.

Production has escalated from 66 million tonne per annum in 2008-09 to 89 million tonne per annum in 2011-12

Per capita steel consumption has increased from 38 Kg in 2005-06 to 55 Kg in 2010-11.

Govt proposes a board for growth of auto sector
NAB: National Automative Board
The government has finalized the proposal to set up NAB under theDepartment of Heavy
Industry to support fresh initiatives for the growth of the automobile sector. NAB would be set up
as an autonomous body constituting technical and domain experts to take up and synergise the
ongoing and fresh go-aheads of the government for the growth of the automobile sector.
What will be the key functions of NAB?
The key functions of the board include:
Current Affairs Published on www.gktoday.in from January 1, 2012 to
September 10, 2012
Administration, regulation and synergizing the operations of the testing centres, alleviate collaborative R&D activities
and issue of testing and homologation certificates based on test reports submitted to NAB by the testing centres.
Why NAB?
As part of its endeavour to encourage sustainable development of Indian automotive segment,the Government of
India has decided to establish a NAB. The basic idea of setting up NATRiP is to establish new automotive testing and
R&D Centres across the country, besides upgrading the existing centres.
 The NAB needs to be in position before the National Automotive Testing and R&D Infrastructure Project
(NATRiP) centres are commissioned and NATRiP Implementation Society (NATIS) is wound up.
 NATRiP has 3 centres across the India including The Vehicle Research and Development Establishment at
Ahmednagar, Automotive Research Association of India at Pune, in western India and International Centre for
Automotive Technology at Manesar, in the north Indian state of Haryana. Besides the upgradation of these three
automotive testing and R&D centres, NATRiP’s other roles included establishing four greenfield facilities at
various major destinations pan India, including Chennai, Rae Bareilly, Indore and Silchar for the purpose of
automotive testing, coupled with homologation and R&D
 NATIS is the apex body for implementation of NATRiP.











India unfurls 7-point strategy to boost exports to $360 bn in 2012-13
The Govt with an aim to thrust exports up by 20% in 2012-13 announced a series of initiative as part of 7-point
strategy including interest subsidy and market diversification programmes. It announced extension of Interest Subsidy
Scheme by 1 year till March 31, 2013 for labour intensive sectors. The government also decided to bring new
guidelines to refurbish Special Economic Zones (SEZ) and Export Oriented Unit (EOU) schemes to further boost the
shipments. In 2011, the government had introduced a special allowance for labour intensive industry by extending the
facility of 2 % interest subvention to handlooms, handicrafts, carpets and small and medium enterprises (SMEs). Now
the Govt targets to expand its coverage to include other labour intensive sectors namely toys, sports goods, processed
Current Affairs Published on www.gktoday.in from January 1, 2012 to
September 10, 2012
agricultural products and ready-made garments. India’s exports increased by 20.94 per cent to $303.71 billion in the
financial year ended in March 31, 2012, exceeding the government’s target of $300 billion. However, a steep decline in
exports growth in the last few months depicts that sustaining a similar growth this financial year would be a tedious
job.









India’s Exports slipped to $ 22.4 Billion in July 2012
India’s exports for the month of July 2012 were marked at $ 22.4 billion which showed a decrease of – 14.8 % as
compared to $ 26.3 billion during the same month of 2011. Balance of Trade was at $15.5 billion during July 2012 as
compared to $14.8 billion in July 2011.












Exports register increase of 17% in November 2011
 India’s exports registered an increase of over 17 per cent in November 2011, compared to the corresponding
period in 2010. The imports in the same period, grew by over 40%. The Finance Ministry data say that exports
during November, 2011 were valued at over Rs. 1,13,500 crore as against over Rs. 96,740 crore in November,
2010.
 Total imports for the month of November 2011 stood at over Rs. 1,82,600 Crore compared to Rs. 1,29,840 Crore
in November 2010. The cumulative value of exports for the period April to November 2011-12 registered an
increase of over 35 per cent over the same period last year. The total imports in the corresponding period grew
by over 32 per cent.





Exports of India to double by 2014
As per Government India's exports to double to $400 billion by 2014 provided the Exports retain
steady growth
India's exports grew over 46% in June to $29.2 billion
India can achieve it target by 2014, if exports keep growing at an excess of $79 billion as in the April-
June period
Due to the collective efforts and endeavors of manufacturers and exporters, this growth will be
possible






Govt withdraws embargo from export of Skimmed Milk Powder
The Government lifts the ban on exports of Skimmed Milk Powder (SMP).
 The decision comes when there is surplus availability of SMP.
Objective: The decision will perk up the finances of dairy firms and help milk producers.
Export of SMP was banned in February 2011 to control rise in domestic milk prices. Commerce Ministry is analyzing the
possibility of imposing import duty on SMP. The dairy industry is gripping with liquidity crunch as it made little profit
via sale of SMP due to sharp fall in domestic prices following surplus supplies. Domestic prices of SMP declined from Rs
190-200 per kg to Rs150 per kg in the same period in 2011.

Union Governemnt raised Export Duty on Iron Ore Exports to 30 per cent from 20 per cent

The Union government raised the ad valorem duty (export duty) on iron ore exports to 30 per cent from 20 per cent. The decision is expected to step up finances of cash-strapped government by around Rs 8500-9000 crore. The Federation of Indian Mineral Industries, the apex body of miners however complained that Indian ore would no longer be competitive internationally.

The increase in export tax could lower the profit margin of Sesa Goa Ltd., India's largest iron-ore exporter by volume.

Steel Minister Virbhadra Singh always wanted more restrictions on exports. Based on his ministry’s inputs, Finance Minister Pranab Mukherjee had earlier imposed a 20 per cent duty on exporting the domestically mined mineral.

Shipments from the South Asian country decreased 28% between April and November to 40 million tons, according to the Federation of Indian Mineral Industries. Volumes were hit by a mining ban in the southern state of Karnataka, a freeze on sale of old stocks in western Goa state and transport bottlenecks in the eastern state of Orissa.

India exported 97.64 million tons iron ore in 2012.

Prior to the export tax change, industry officials had estimated exports in 2011-12 to be between 60 million and 65 million tons because of mining-related issues. As a result of high export tax and railway freight, India's iron-ore exports is not likely to exceed 50 million tons in 2011-12.

The Supreme Court had in early 2011 banned mining in the major iron-ore producing districts of Karnataka to prevent illegal mining and environmental damage. In Goa, moves to reduce environmental impact and illegal mining affected production. The two states account for around 70% of India's iron-ore exports.

India’s Exports recorded Slowest Pace of Growth in Two Years at 3.8 per cent in November 2011

As per the to Commerce Ministry data released on 2 January 2012, India’s exports recorded their slowest pace of growth in two years at 3.8 per cent in November 2011 as a result of the global slowdown. Moderation in demand in developed markets also impacted export. The growth rate was the lowest since October 2009, when exported had contracted by 6.6 per cent.

The commerce ministry had overestimated exports by over $9 billion due to software upgrade and punching errors that prompted a revision of data revision for the previous eight months. The data on engineering exports was inflated by around $15 billion, while export of gems and jewellery and petroleum products was underestimated by $12 billion.

Export
Exports grew 3.87% to $22.3 billion in November, 2011, compared to $21.49 billion in November 2010. exports for the current fiscal is expected to be around $280 billion, below the $300 billion target for 2011-12 due to global economic slowdown.

The country's overseas shipments had amounted to $21.48 billion in November 2010.

According to export body Fieo Director General Ajay Sahai, further decine in export will push export growth ina  negetive zone.

From 82 per cent in July, export growth slipped to 44.25 per cent in August, 36.36 per cent in September and 10.8 per cent in October.

In the eight-month April-November period, exports aggregated to $192.69 billion, a year-on-year growth of 24.55 per cent. Experts opined that the country's exports growth during the entire fiscal would stand at about 20 per cent.

Import
Imports were up 24.5% at $35.92 billion in November 2011. In November, 2010, imports aggregated $28.84 billion. Oil imports grew by 32.28 per cent to USD 10.3 billion in November 2011 while non-oil imports rose by 21.69 per cent to $25.6 billion vis-a-vis the year-ago period. Between April and November oil imports stood at $94.1billion, an increase of 42.67% compared to $65.97 billion in November 2011. Non-oil imports, a key gauge of economic activity, rose 25.46% to $ 215.41 billion during the April-November period.

Trade Deficit
Imports grew at a faster rate of 24.5 per cent year-on-year to $35.9 billion in November 2011 which in the process translated into a trade deficit of $13.6 billion. Between April-November exports grew 33.2% to $192.7 billion while imports also rose 30.2% to $ 309.53 billion. The trade deficit during the eight months of the fiscal year therefore stood at $116.8 billion.