Ministry of Commerce & Industry
Steps to overcome trade deficit
Posted On:
27 DEC 2017 5:56PM by PIB Delhi
India’s merchandise export registered a positive growth of 11.27% during the last six months in 2017-18 (June-Nov) as compared to the corresponding period of the previous year. The trade deficit has increased from 57.18 US$ billions in 2016-17 (June-Nov) to 74.27 US$ billions in 2017-18 (June-Nov). Trade deficit depends upon relative fluctuations in the import and export of different commodities due to the global and domestic factors such as demand and supply in domestic and international markets, currency fluctuations, cost of credit, logistics costs, etc.
The names of the top 25 countries/SAR with which India has registered favourable merchandise trade balance during the last three years and the current year are as follows:
|
S. No.
|
2014-15
|
2015-16
|
2016-17
|
2017-18 (Apr-Oct)*
|
|
1
|
U S A
|
U S A
|
U S A
|
U S A
|
|
2
|
Hong Kong
|
U Arab Emts
|
U Arab Emts
|
U Arab Emts
|
|
3
|
U Arab Emts
|
Hong Kong
|
Bangladesh PR
|
Bangladesh PR
|
|
4
|
Sri Lanka DSR
|
Bangladesh PR
|
Hong Kong
|
Nepal
|
|
5
|
Bangladesh PR
|
Sri Lanka DSR
|
Nepal
|
U K
|
|
6
|
U K
|
U K
|
U K
|
Hong Kong
|
|
7
|
Kenya
|
Nepal
|
Vietnam Soc Rep
|
Turkey
|
|
8
|
Nepal
|
Turkey
|
Turkey
|
Singapore
|
|
9
|
Turkey
|
Kenya
|
Sri Lanka DSR
|
Sri Lanka DSR
|
|
10
|
Netherland
|
Netherland
|
Netherland
|
Netherland
|
|
11
|
Vietnam Soc Rep
|
Vietnam Soc Rep
|
Singapore
|
Vietnam Soc Rep
|
|
12
|
Singapore
|
Pakistan IR
|
Kenya
|
Spain
|
|
13
|
Mauritius
|
Spain
|
Spain
|
Kenya
|
|
14
|
Mozambique
|
Gibraltar
|
Oman
|
Egypt A RP
|
|
15
|
Tanzania Rep
|
Egypt A RP
|
Pakistan IR
|
Mexico
|
|
16
|
Pakistan IR
|
France
|
Gibraltar
|
Italy
|
|
17
|
Egypt A RP
|
Mozambique
|
Israel
|
Pakistan IR
|
|
18
|
Spain
|
Mauritius
|
Italy
|
Israel
|
|
19
|
Philippines
|
Philippines
|
Philippines
|
Mauritius
|
|
20
|
Israel
|
Ethiopia
|
Egypt A RP
|
Poland
|
|
21
|
Italy
|
Tanzania Rep
|
Mauritius
|
Ethiopia
|
|
22
|
Ethiopia
|
Israel
|
Tanzania Rep
|
Philippines
|
|
23
|
Gibraltar
|
Sudan
|
Ethiopia
|
Tanzania Rep
|
|
24
|
Oman
|
Mexico
|
Portugal
|
Somalia
|
|
25
|
Jordan
|
Uganda
|
Mexico
|
Portugal
|
Source: DGCI&S, Kolkata (*Provisional)
The names of the sectors in which India has favourable merchandise trade balance during the last three years and the current year are as follows:
|
S. No.
|
2014-15
|
2015-16
|
2016-17
|
2017-18 (Apr-Oct)*
|
|
1.
|
Textile & Allied Products
|
Textile & Allied Products
|
Textile & Allied Products
|
Textile & Allied Products
|
|
2.
|
Transport Equipments
|
Transport Equipments
|
Marine Products
|
Transport Equipments
|
|
3.
|
Agricultural & Allied Products
|
Marine Products
|
Leather & Leather Manufactures
|
Marine Products
|
|
4.
|
Marine Products
|
Leather & Leather Manufactures
|
Transport Equipments
|
Leather & Leather Manufactures
|
|
5.
|
Leather & Leather Manufactures
|
Agricultural & Allied Products
|
Articles of stone, plaster, cement, asbestos, mica or similar materials; ceramic products; glass and glassware
|
Agricultural & Allied Products
|
|
6.
|
Articles of stone, plaster, cement, asbestos, mica or similar materials; ceramic products; glass and glassware
|
Articles of stone, plaster, cement, asbestos, mica or similar materials; ceramic products; glass and glassware
|
Agricultural & Allied Products
|
Articles of stone, plaster, cement, asbestos, mica or similar materials; ceramic products; glass and glassware
|
|
7.
|
Plantation
|
Plantation
|
Plantation
|
Plantation
|
|
8.
|
Sports Goods
|
Sports Goods
|
Base Metals
|
Office Equipments
|
|
9.
|
--
|
--
|
Office Equipments
|
--
|
|
10.
|
--
|
--
|
Sports Goods
|
--
|
Source: DGCI&S, Kolkata (*Provisional)
The names of the top 25 countries/SAR with which India has registered merchandise trade deficit during the last three years and the current year are as follows:
|
S.No.
|
2014-15
|
2015-16
|
2016-17
|
2017-18 (Apr-Oct)*
|
|
1
|
China P RP
|
China P RP
|
China P RP
|
China P RP
|
|
2
|
Switzerland
|
Switzerland
|
Switzerland
|
Switzerland
|
|
3
|
Saudi Arab
|
Saudi Arab
|
Saudi Arab
|
Saudi Arab
|
|
4
|
Qatar
|
Indonesia
|
Iraq
|
Korea RP
|
|
5
|
Iraq
|
Iraq
|
Indonesia
|
Iraq
|
|
6
|
Kuwait
|
Korea RP
|
Korea RP
|
Indonesia
|
|
7
|
Venezuela
|
Qatar
|
Australia
|
Australia
|
|
8
|
Nigeria
|
Nigeria
|
Iran
|
Unspecified
|
|
9
|
Indonesia
|
Unspecified
|
Qatar
|
Iran
|
|
10
|
Korea RP
|
Australia
|
Japan
|
Qatar
|
|
S.No.
|
2014-15
|
2015-16
|
2016-17
|
2017-18 (Apr-Oct)*
|
|
11
|
Australia
|
Venezuela
|
Nigeria
|
Russia
|
|
12
|
Malaysia
|
Malaysia
|
Venezuela
|
Nigeria
|
|
13
|
Belgium
|
Japan
|
Unspecified
|
Venezuela
|
|
14
|
Germany
|
Germany
|
Germany
|
Japan
|
|
15
|
Iran
|
Kuwait
|
Malaysia
|
Germany
|
|
16
|
Japan
|
Iran
|
Russia
|
Malaysia
|
|
17
|
Angola
|
Belgium
|
Kuwait
|
Kuwait
|
|
18
|
Unspecified
|
Russia
|
Angola
|
Thailand
|
|
19
|
Chile
|
Angola
|
South Africa
|
Angola
|
|
20
|
Thailand
|
Thailand
|
Thailand
|
Canada
|
|
21
|
Russia
|
South Africa
|
Ukraine
|
South Africa
|
|
22
|
Ukraine
|
Ghana
|
Canada
|
Argentina
|
|
23
|
Taiwan
|
Canada
|
Argentina
|
Brazil
|
|
24
|
Canada
|
Argentina
|
Brazil
|
Taiwan
|
|
25
|
Argentina
|
Taiwan
|
Ghana
|
Ukraine
|
Source: DGCI&S, Kolkata (*Provisional)
The names of the sectors in which India has merchandise trade deficit during the last three years and the current year are as follows:
|
S. No.
|
2014-15
|
2015-16
|
2016-17
|
2017-18 (Apr-Oct)*
|
|
1.
|
Petroleum Crude and Products
|
Petroleum Crude and Products
|
Petroleum Crude and Products
|
Petroleum Crude and Products
|
|
2.
|
Electronics Items
|
Electronics Items
|
Electronics Items
|
Electronics Items
|
|
3.
|
Ores & Minerals
|
Ores & Minerals
|
Ores & Minerals
|
Gems & Jewellery
|
|
4.
|
Gems & Jewellery
|
Gems & Jewellery
|
Machinery
|
Ores & Minerals
|
|
5.
|
Machinery
|
Machinery
|
Gems & Jewellery
|
Machinery
|
|
6.
|
Plastic and Rubber Articles
|
Plastic and Rubber Articles
|
Plastic and Rubber Articles
|
Plastic and Rubber Articles
|
|
7.
|
Chemicals & Related Products
|
Base Metals
|
Paper & related Products
|
Paper & related Products
|
|
8.
|
Paper & related Products
|
Paper & related Products
|
Optical, Medical & Surgical instruments
|
Chemicals & Related Products
|
|
9.
|
Project Goods
|
Chemicals & Related Products
|
Project Goods
|
Optical, Medical & Surgical instruments
|
|
10.
|
Optical, Medical & Surgical instrument
|
Project Goods
|
Chemicals & Related Products
|
Project Goods
|
|
11.
|
Base Metals
|
Optical, Medical & Surgical instrument
|
--
|
Base Metals
|
|
12.
|
Office Equipments
|
Office Equipments
|
--
|
Sports Goods
|
Source: DGCI&S, Kolkata (*Provisional)
The Government announced a major relief package for exporters in October 2017 by extending the Advance Authorization (AA) / Export Promotion Capital Goods (EPCG) / 100% EOU schemes to sourcing inputs etc. from abroad as well as domestic suppliers. Holders of AA / EPCG and EOUs would not have to pay Integrated Goods and Services Tax (IGST), Cess etc. on imports. Also, domestic supplies to holders of AA / EPCG and EOUs would be treated as deemed exports. During the mid-term review of Foreign Trade Policy, export incentives under Merchandise Exports from India (MEIS) have been increased by 2% across the board for labour intensive MSME sectors leading to additional annual incentive of Rs 4,567 cr. This was in addition to already announced increase in MEIS incentives from 2% to 4% for Ready-made Garments and Made Ups in the labour intensive Textiles Sector with an additional annual incentive of Rs 2,743 cr. Further, incentives under Services Exports from India Scheme (SEIS) have also been increased by 2% leading to additional annual incentive of Rs 1,140 cr.
The Minister of State for Commerce and Industry Shri C.R.Chaudhary gave this information in a written reply to a question in Rajya Sabha today.
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(Release ID: 1514374)
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