AnnuAl RepoRt

2017-2018

Government of India
Ministry of Commerce & Industry
Department of Commerce
Contents

Overview ............................................................................................................................ 6

Organizational Structure and Functions .......................................................................... 13

Vision & Mission ............................................................................................................... 14

Emerging Global Economic Realities and India .............................................................. 21

Trends in India's Foreign Trade ........................................................................................ 27

Foreign Trade Policy and Exim Trade .............................................................................. 59

Commercial Relation, Trade Agreements and International Trade Organisations ...... 71

Export Promotion Mechanism .......................................................................................... 97

Centres of Export Production - SEZs & EOUs ....................................................... 111

Specialized Agencies .......................................................................................................... 116

Programmes undertaken for the welfare of SCs/STs/OBCs, Women & Person with Disabilities ...... 146

Transparency, Public Facilitation and Allied Activities .................................................. 165

Audit Paras - Appendix-II ................................................................................................... 169

 OVERVIEW

An Overview of the Global Scenario risks, including trade policy measures, monetary tightening,
The global crisis had produced a wide-ranging yet geopolitical tensions and costly natural disasters”.
differentiated impact across the globe which included economic
slowdown and contraction in world trade. However, the latest India is projected grow at the rate of 7.4 per cent in 2018 thus
number from WTO now points towards healthy prospects for becoming the fastest growing economy in the world (IMF, 2018).
global trade. The estimate for growth in world merchandise trade As per the estimates of the International Monetary Fund (IMF,
volume in 2017 was raised to 3.6%. The previous estimate for 2017 January 2018), the global economic activity continues to firm up.
was 2.4%. For 2017 trade growth is placed within a range from Global growth, which in 2016 was the weakest since the global
3.2% to 3.9% (WTO, 2017). financial crisis at 3.2 per cent, is projected at 3.9 per cent in 2018
and 2019. Growth is projected to rise over this year and next in
As per the WTO September 2017 press release “Stronger-than- emerging market and developing economies, supported by
expected growth is driven by Asia and North America, where improved external factors - a benign global financial environment
import demand is recovering from weak results in 2016. Trade and a recovery in advanced economies. Growth in China and other
growth should moderate to 3.2% in 2018, within a range from parts of emerging Asia remains strong. In advanced economies,
1.4% to 4.4%, as global GDP growth remains stable. The ratio of the notable 2017 growth pickup is broad based, with stronger
trade growth to GDP growth should rise to 1.3 in 2017. Export activity in the United States and Canada, the Euro area, and Japan.
orders have strengthened signalling sustained trade momentum in It is against this background that the recent Indian growth story
second half of 2017. Recovery could be undermined by downside appears particularly bright.

India Trade Story

India’s Merchandise Trade Value in US$ Billion

Source: DGCI&S

6 | Annual Report 2017-18 | Department of Commerce

 India's Services Trade Value in US$ Billion

Source: RBI

A profile of our Exports: Commodities and Territories

Share of Top Five Commodities in Share of Top Five Commodities in

India’s Exports, Apr-Nov 2017-18 (P) India’s Imports, Apr-Nov 2017-18 (P)

Source: DGCI&S Source: DGCI&S

Top 5 Countries of Exports, Top 5 Countries of Imports,

Share (%) Apr-Nov 2017 Share (%) Apr-Nov 2017

Current Focus areas garments and made ups increased from 2% to 4% involving
Given this positive trajectory of growth, so far as, the Export additional annual incentives of Rs 2,743 crore.
sector is concerned, there are number of critical areas which form
the focus of Department of Commerce. These are: ● Across the board increase of 2% in existing MEIS incen-
1. Foreign Trade Policy 2015-20, Mid-term review notified in tives for exports by MSME’s/labour intensive industries in-
December 2017 volving additional annual incentive of Rs 4,567 crore. Major
Key features: sectors covered are leather, agriculture, carpets, hand-tools,
A. Encouraging Exports by MSMEs and Labour Intensive marine products, rubber products, ceramic, sports goods
Industries and medical and scientific products, electronic and telecom
● MEIS incentives for two sub sectors of textiles i.e. readymade products.

Department of Commerce | Annual Report 2017-18 | 7

● To provide impetus to the services trade, the SEIS incentives have the Centre.
been increased by 2% for notified services such as Business,
Legal, Accounting, Architectural, Engineering, Educational, Hos- ● Therefore, a new scheme was formulated for strengthening of
pital, Hotels and Restaurants. The estimated additional annual in- export infrastructure namely; TIES. After taking all the neces-
centive for the services sector will be Rs 1,140 crore. sary approvals, this scheme has been launched by CIM on 15th
March, 2017.
● The validity period of the Duty Credit scrips was increased
from 18 months to 24 months to enhance their utility in the ● The Central Government funding will be in the form of grant-
GST framework. in-aid, normally not more than the equity being put in by the
implementing agency or 50 per cent of the total equity in the
● GST rate for transfer/sale of scrips has been reduced to zero project. (In case of projects located in North Eastern States
from the earlier rate of 12% and Himalayan States including J&K, this grant can be upto 80
per cent of the total equity).
B. New trust based self-ratification scheme for duty free
import of raw material ● TIES scheme would provide assistance for setting up and up-
● New trust based self-ratification scheme introduced to allow gradation of infrastructure projects with overwhelming export
duty free inputs for export production under duty exemption linkages like:
scheme with a self-declaration. o Border Haats
o Land customs stations
● Under this scheme, instead of getting a ratification of the o Quality testing and certification labs
Norms Committee for inputs to be used in the manufacture o Cold chains
of export products, exporters will self-certify the requirement o Trade Promotion centres
of duty free raw materials/inputs and take authorization from o Dry Ports,
DGFT. The scheme would initially be available to the Author- o Export warehousing and packaging
ized Economic Operators. o SEZs and ports/airports cargo terminuses.

● The scheme will expedite export of new products by decreas- ii) New Logistics Division
ing product turn-around time, particularly in sectors such as ● New logistics division has been created in the Commerce De-
pharma, chemicals, textiles, engineering and high technology partment to develop and coordinate implementation of an ac-
which have dynamic raw material requirements. tion plan for the integrated development of the logistics sector,
by way of policy changes, improvement in existing procedures,
2. Alignment with GST identification of bottlenecks and gaps and introduction of
Issue of working capital blockage of the exporters due to upfront technology in this sector.
payment of GST on inputs has been addressed. Under advance
authorization, Export Promotion for Capital Goods (EPCG) Scheme, ● This division proposes to create an IT backbone and develop
100% Export Oriented Units (EOU’s), exporters have been extended a National Logistics Information Portal which will also be an
the benefit of sourcing inputs/capital goods from abroad as well as online Logistics marketplace to bring together various stake-
domestic suppliers for exports without upfront payment of GST. holders viz. logistics service providers, buyers as well as Central
Further an e wallet will be launched from 1st April 2018 to make & State Government agencies such as Customs, DGFT, Rail-
these schemes operational. ways, ports, airports, inland waterways, coastal shipping etc.,
on a single platform.
GST has ushered a new regulatory regime for India’s exports.
It introduced many positive features for domestic firms as well as ● These steps would improve India’s ranking in the Logistics Per-
exporters. Firms now pay less number of taxes (one GST replaces formance Index (LPI) and promote exports and enhanced
17 taxes), less amount of tax (average GST rate for industrial growth.
products is 18% compared to the pre-GST tax burden of 25-28%),
and face less tax on tax incidences. The uniform GST rates across 4. Government e- Market (GeM) SPV
the states further reduce the tax burden and compliance cost. ● DGS&D created a dedicated e-market for different goods &
These changes reduce cost and improve competitiveness and hence services procured/sold by Government/PSUs, a technology
would be beneficial for exports. driven platform to facilitate procurement of goods and serv-
ices by various Ministries and agencies of the Government.
GST treats exports as zero rated supply. This is in line with the The portal launched on 9th August 2016 and became fully
WTO accepted principles. Initially, the GST law required that all functional by October, 2016.
duties must be paid at the time of sourcing of inputs for export
● DGS&D has been wound up as on 31st October, 2017.
production and refund for these to be obtained after the exports.
However, the exporters apprehended blockage of working capital. ● GeM - a scalable system and being completely online, transpar-
On their request, the GST council in its Oct 6, 2017 meeting decided ent, and system driven, makes procurement of goods and serv-
to allow exemption from payment of GST on inputs sourced using ices, easy, efficient and fast. GeM covers entire procurement
the advance authorizations, EPCG and the 100% EOU schemes. process chain, right from vendor registration, item selection by
buyer, supply order generation, and receipt of goods/services
3. Trade Infrastructure and Logistics by the consignees (s), to online payment to vendor.
i) Launch of Trade Infrastructure for Export Sector (TIES)
● Assistance to States for Developing Export Infrastructure and Al- ● As on date, more than 4.44 lakh products & services, about
lied Activities (ASIDE): Department of Commerce has, till now, 71,700 sellers and service providers and more than 16,000
worked with States to fill infrastructure gaps through ASIDE. buyer organizations are part of GeM. More than 2.36 lakh or-
ders, worth Rs 4,000 crores have been processed through GeM.
● As per 14th Finance Commission recommendations, tax devo-
lution to states has been increased from 32% to 42%, which ● GeM is now getting ready for launch of GeM 3.0 with further
resulted in delinking of ASIDE scheme from the support of ease of transaction and updated features.

8 | Annual Report 2017-18 | Department of Commerce

5. Interest Equalisation Scheme on Pre & Post Shipment b) The initiative envisages processing trade information from
Rupee Export Credit DGCIS and other national and international data bases related
Cabinet Committee on Economic Affairs (CCEA) approved to India’s key export markets and identifying specific actions
the Interest Equalisation Scheme on 18.11.2015 for 5 years with to address export interests in various markets and products’.
effect from 01.04.2015. Operational guidelines of the scheme were
issued by RBI vide Circular No.62 dated 04.12.2015. 8. Exploring new export markets
a) Focus on increasing India’s exports in under and un-tapped
The main features of the scheme are as follows: markets in high potential regions like Africa, to cover not just
a) The rate of interest equalisation @ 3% per annum will be avail- trade in goods and investment but also in capacity building,
able on Pre Shipment Rupee Export Credit and Post Shipment technical assistance and services such as healthcare and educa-
Rupee Export Credit. tion. Sectors like agro processing, manufacturing, mining, tex-
tiles, consumer goods, infrastructure development and
b) The scheme would be applicable w.e.f 01.04.2015 for 5 years. construction should be focus areas.
Government, however, reserves the right to modify/amend the
Scheme at any time. b) Greater engagement with Latin America and the Caribbean re-
gion, including encouragement of project exports through easy
c) The scheme will be available to all exports under 416 specified access to credit facilities.
tariff lines [at ITC (HS) code of 4 digit] and to all exports
made by Micro, Small & Medium Enterprises (MSMEs) across c) ECGC will be strengthened and substantially expanded to en-
all ITC (HS) codes. sure insurance cover to exporters, particularly MSME ex-
porters exporting to new and risky markets.
d) Scheme would not be available to merchant exporters.
9. Exploring new export products
e) Banks are required to completely pass on the benefit of interest a) Focus on increasing exports of products which have become
equalisation, as applicable, to the eligible exporters upfront and important in the world trade of late, in recognition of the fact
submit the claims to RBI for reimbursement, duly certified by that 70% of India’s exports involve products whose share in
the external auditor. the total world exports is only 30%.

In the Financial Year 2015-16 and 2016-17 funds to the tune of b) Focus on promising product groups like medical devices/ equip-
Rs. 1,100 crore and Rs. 1,000 crore respectively have been released ment, technical textile, electronic component, project goods,
to RBI for the settlement of the claims of various banks under the defence and hi-tech products in addition to labor intensive and
scheme. For the year 2017-18, an amount of Rs. 2,000 crore has MSME products like agricultural, marine, carpets, leather, Ayush
been allocated and the entire amount would be fully utilised. and health, textiles and readymade garments, handloom, handi-
crafts, coir, jute products, diamond, gold and jewellery.
6. Trade Facilitation
a) National Trade Facilitation Committee (NTFC) has been set up 10. Focus on agricultural exports for increasing farmers’ in-
under Cabinet Secretary following ratification by India of the come
Trade Facilitation Agreement (TFA). NTFC supported by steer- a) New Agricultural Exports Policy under formulation to focus
ing committee, jointly headed by Commerce Secretary and Rev- on increasing exports of agricultural value added products
enue Secretary, to perform supervisory and monitoring role. through elements like:
● A stable and ‘open’ export policy for the long term.
b) Four Working Groups set up by Steering Committee to focus
on (i) Infrastructure, (ii) Legal issues, (iii) Outreach and (iv) ● Effective handling of sanitary and phytosanitary standards
Time Release Study. (SPS) and technical barriers to trade (TBT) issues in domestic
and destination markets.
c) Further, the National Trade Facilitation Action Plan (NTFAP)
drawn out in consultation with the stakeholders, identifying 76 ● Creating cold chain and transport logistics facilities from the
trade facilitation measures with implementation timelines of farm to the ports and airports.
which 51 are TFA-plus activities. Under TFA Category ‘B’ items, ● Promoting organic exports through appropriate policy inter-
efforts are being made to expedite implementation of these ventions.
measures within 3 years, in advance of the envisaged 5 years.
● Setting up credible and up-to-date organic export certification
d) Comprehensive IT-based system called Export Data Processing and accreditation programmes.
and Monitoring System (EDPMS) for monitoring of export of
goods and software and facilitating AD banks to report various 11. Greater participation in the global and regional value
returns through a single platform developed by RBI. chains
a) Focus on increasing participation in high value segments of
e) MOU with the Goods and Services Network (GSTN) for shar- RVCs and GVCs to increase India’s exports, in recognition of
ing foreign exchange realisation and Import Export code data the fact that products manufactured through GVCs account
signed by DGFT. This will strengthen processing of export for two-thirds of world trade in manufactured goods.
transactions of taxpayers under GST, increase transparency
and reduce human interface. b) This would be facilitated by a focus on automating port and
f) 24x7 Customs clearance facility has been extended to all Bills customs operations, allowing green channel clearances and
of Entry at 19 sea ports and 17 Air Cargo Complexes. benchmarking the turnaround time of ships with the best
global practices.
7. State-of-Art Trade Analytics
a) State-of-Art trade analytics division set up in DGFT for data 12. Leveraging services for increasing exports
based policy actions. a) New Services division set up in DGFT to examine EXIM poli-

Department of Commerce | Annual Report 2017-18 | 9

 cies and procedures from the point of view of “Services”. ● Indian Trade Portal launched by Department of Commerce and
managed by FIEO displays information useful for exports and
b) Efforts underway to improve the availability of data on services. imports. It contains the Trade enquiries uploaded by Indian
trade missions, Tariff and Trade data of India’s major trade
c) An ambitious reform agenda in services being pursued through partners, Export Market Reports, and Trade Agreements etc.
an inter-ministerial mechanism.
vii) Capacity Building
d) Efforts for effective market access abroad through comprehen- ● Skilling new entrepreneurs for exports is an important priority.
sive economic partnership agreements with important markets.
● In the last two years, over 50,000 entrepreneurs have been
e) The very successful Global Exhibition on Services institution- trained under the Niryat Bandhu program implemented by
alized as an annual event to showcase India’s strengths in the DGFT, thus complementing the Startup India and Skill India
Services sector. initiatives.

13. Trade Facilitation in Indian Context ● Institutional set up under Department of Commerce like – In-
Trade facilitation is a priority of the Government for cutting dian Institute of Foreign Trade, Indian Institute of Packaging,
down the transition cost and time and thereby making Indian Indian Institute of Plantation, Export Promotion Councils,
exports more competitive. The following are the major Ease of Centres of Excellence, Plantation Research Institutes, etc. –
Doing Business and e-governance initiatives: are being leveraged for capacity building, export promotion,
i) Reducing number of Documents: Number of mandatory doc- research & analysis and long term policy formulation.
uments required for exports and imports have been reduced ● Centre for Research in International Trade
to 3 each for export and import. Earlier 7 documents were re- o Given the growing complexity of the process of global-
quired for exports and 10 for imports. ization and its spillover effects on domestic policymaking,
there is a need to significantly deepen existing research capa-
ii) Reducing number of Schemes: The New Foreign Trade Policy bilities and widen them to encompass new and specialized
(2015-20) was launched on 1st April, 2015 with a focus of sup- areas. In this context, a new institution, namely, the Centre for
porting both merchandise and services exports and improving Research in International Trade (CRIT) has been set up.
the ‘Ease of Doing Business’. DGFT consolidated 5 different
incentive schemes under the earlier policy for rewarding mer- o CRIT is expected to fill this gap and will also help in
chandise exports into a single scheme, namely the Merchandise forming enduring coalitions with a large number of developing
Exports from India Scheme. The Mid-Term Review of FTP countries which may have convergence of interests with India
has also been completed. and could potentially become India’s allies on various trade is-
sues at the global level. CRIT will have 5 centres namely Centre
iii) Importer Exporter Code-PAN of firm is being issued as IEC for Trade & Investment law, Centre for Regional Trade, Centre
by the DGFT with effect from July 1, 2017. By this process for Training, Centre for Trade Promotion and Centre for WTO
the application and issuance of IEC can now be done online Studies (already in existence). In 2017, two new centres have
and is secure. IEC has also been integrated with the eBIZ por- become functional.
tal of DIPP. IEC and EPCG applications have been integrated
with the eNivesh portal implemented by PMG set up by the ● Involvement of the states in export promotion - The Council
Cabinet Secretariat. for Trade Development and Promotion was constituted in July
2015. It would ensure a continuous dialogue with State Gov-
iv) Use of electronic bank realization certificate (eBRC) system ernments and UT’s on measures for providing an international
has been extended. DGFT shares data generated by the elec- trade enabling environment in the States and create a frame-
tronic bank realization certificate (eBRC) system with 17 agen- work for making the States active partners in boosting India’s
cies. The eBRC system captures details of the foreign exchange exports.
received by exporters through the banking channel. So far
DGFT has signed MOUs with 14 state governments , 2 central ● The State governments have been requested to develop their
government agencies and GSTN for sharing of the data. At export strategy, appoint export commissioners, address infra-
the state level, Commercial Tax Departments of 14 states have structure constraints restricting movement of goods, facilitate
signed MoU with DGFT for receiving e-BRC data for VAT re- refund of VAT/ Octroi/State level cess, and address other is-
fund purposes. These are: (i) Maharashtra, (ii) Delhi, (iii) sues relating to various clearances etc. and build capacity of
Andhra Pradesh, (iv) Odisha, (v) Chhattisgarh, (vi) Haryana, new exporters, in order to promote exports. So far, 17 States
(vii) Tamil Nadu, (viii) Karnataka, (ix) Gujarat, (x) Uttar have prepared their exports strategy. The third Council for
Pradesh, (xi) Madhya Pradesh, (xii) Kerala, (xiii) Goa and (xiv) Trade and Investment meeting was held on 8th January, 2018,
Bihar. In addition, Ministry of Finance, Enforcement Direc- whereby, the Report on Logistics Ease Across Different States
torate, Agricultural & Processed Food Products Export Devel- (LEADS) was launched.
opment Authority and GSTN have also signed a MoU.
● A new initiative launched by DOC, whereby, Commerce
v) Simplification of forms - The ‘Aayat Niryat’ Forms used for Secretary convenes a joint meeting in each State with the
making online application to DGFT, have been simplified State Government officials, the exporters and other
bringing in clarity in different provisions, and enhancing elec- stakeholders to resolve concerns and facilitate efficiency in
tronic governance. exports.

● Meetings held in major exporting States of Madhya Pradesh,

vi) Web Portals
Maharashtra, Tamil Nadu, Gujarat, North East, Andhra
● DGFT has launched an updated website making it more user-
Pradesh, Telangana, Odisha, Rajasthan, Chattisgarh, Uttar
friendly and easy to navigate. DGFT website has a large dynamic
Pradesh, West Bengal, Kerala, Punjab and Haryana. Visits to
component whereby the trade community can file applications
other major exporting States are on the anvil and also follow-
online for IEC and various other schemes of DGFT.
up visits are being proposed.

10 | Annual Report 2017-18 | Department of Commerce

14. Fostering Better Trade Relations and Exploring New 17. Permanent solution on public stockholding for food secu-
Markets rity purposes
● India – Canada CEPA – 10th Round completed. In accordance with the obligation placed on member countries
by the Ministerial decisions at the Bali and Nairobi Ministerial
● India – Australia CECA – ongoing. Conferences, India and the G-33, as the key proponents, sought a
permanent solution at the Eleventh Ministerial Conference at
● Regional Comprehensive Economic Partnership (RCEP) Buenos Aires. While the proponents were naturally seeking a
[ASEAN + their 6 FTA Partners i.e Australia, China, India, permanent solution that would be an improvement over the
Japan, South Korea and New Zealand]. RCEP ministerial at existing interim mechanism, others sought stronger safeguards. In
Manila on 10th Sep 2017; next (20th) round in Korea in Oct the absence of consensus, a permanent solution could not,
2017 however, be achieved.
● India –Sri Lanka Economic and Technology Cooperation
Agreement – five rounds completed India’s public stockholding programmes, however, continue to
be protected due to the interim mechanism which is available in
● India – Peru negotiations – first round held in 8th – 11th Au- perpetuity.
gust, 2017.
18. Ministerial Declaration
● India - EFTA TEPA (Iceland, Norway, Liechtenstein and A few members did not support the acknowledgment or
Switzerland) – 16th round starting 18th September, 2017. reiteration of key underlying principles guiding the WTO and
various agreed mandates. As a result, Ministers could not arrive at
● 2nd India Indonesia Biennial Trade Ministers Forum was held an agreed Ministerial Declaration at the end of the Conference.
on 21st September, 2017.
However, even in the absence of a Ministerial Declaration, the
● CIM also participated in the ASEAN Economic Ministers
existing mandates and decisions would remain valid and be carried
meeting.
forward. This ensures that work will go forward and the WTO
● India EU summit where trade related issues were also dis- would continue to work on issues such as the permanent solution
cussed, was held on 6th October 2017. on public stockholding for food security purposes, agricultural
subsidies and other issues.
● CIM and CS and Senior officials from DOC, DIPP, MEA etc.
led a high level delegation to attend back to back meetings 19. Recent Developments on WTO negotiations in Services
of India-US Trade Policy Forum and Commercial Dialogue trade and India’s stand
from 25th October to 27th October 2017 at Washington A. Discussion on Domestic Regulations
D.C. The General Agreement on Trade in Services (GATS) and the
Decision on Domestic Regulation call upon WTO members to
● The WTO meeting was held in Buenos Aires from 10th-14th develop necessary disciplines to ensure that measures relating to
December 2017. Both CIM and CS participated qualification requirements and procedures, technical standards and
licensing requirements and procedures do not constitute
● India-UK JETCO meeting held on 11th January, 2018 and was unnecessary barriers to trade in services.
chaired by CIM and UK Trade Minister.
Discussions on development of disciplines on domestic
● India EaEU trade negotiations – 30-31st January 2018
regulations have been ongoing in the WTO in the Working Party
on Domestic Regulations (WPDR) since 2016. About 10 proposals
15. Integrated Exhibition cum Convention Centre (IECC)
were merged into a consolidated text which was tabled as a
Government has approved construction of a modern world-
Ministerial Document for discussions at MC11. India engaged
class Integrated Exhibition cum Convention Centre (IECC) at
constructively on the text and suggested incorporating
Pragati Maidan to create air-conditioned exhibition space of 1.2
commercially meaningful disciplines addressing the barriers faced
lakh sq. mtr. and an iconic state-of-the-art Convention Centre with
by natural persons supplying services, including qualification
7,000 pax seating capacity. Underground parking space for 4,800
requirements & procedures and development issues consistent with
Passenger Car Units (PCU) is also planned.
the GATS mandate. As a way forward, India proposed a well-
structured post MC11 Work Programme on services incorporating
Project work has begun and will be completed within 24
some elements of the Indian proposal for Trade Facilitation in
months by September 2019, creating an appropriate venue for all
Services, including those related to Mode 4, as well as DR
types of major national and international events. It will be a unique
disciplines as per the Chair’s Reports of 2009 and 2011. As there
symbol of New India, and will reflect India’s aspirations to be a
was no consensus on these issues, no Ministerial Decision or Work
global power.
Programme was agreed to on Domestic Regulations at MC11.
16. Eleventh Ministerial Conference of the WTO and the Fu-
B. E-commerce
ture of the Doha Round (10th to 13th December 2017)
At MC11 there was wide divergence of views on how to engage
The Eleventh Ministerial Conference of the WTO (‘MC11’)
on E-commerce. India and a number of developing countries were
was held in Buenos Aires, Argentina during December 10-13,
of the view that the existing 1998 work programme on E-
2017.
commerce should continue, while others desired a fast-track
approach by formalising the dedicated discussion on the work
In the run-up to the Conference, decisions were expected on a
programme under the General Council. In the end, MC11 broadly
permanent solution on the issue of public stockholding for food
endorsed the Nairobi Ministerial Decision on E-Commerce which
security purposes and other agricultural issues. Some WTO
seeks continuation of work under the 1998 Work Programme
member countries were seeking outcomes on domestic regulations
(WT/L/274); to endeavour to reinvigorate work; instruct the
in services, disciplines on fisheries subsidies, E-commerce,
General Council to hold periodic reviews in its sessions of July
Investment Facilitation and Micro, Medium and Small Enterprises
and December 2018 and July 2019 and report to the next session
(MSMEs).

Department of Commerce | Annual Report 2017-18 | 11

of the Ministerial Conference. Members agreed to maintain the instructions of Cabinet Secretariat DBT was successfully
current practice of not imposing customs duties on electronic implemented in 7 schemes in Department of Commerce.
transmissions until the next session in 2019 along with
continuation of the moratorium on TRIPS non-violation 23. Quality Standards
complaints. Government is committed to transforming India into a
manufacturing and exporting hub. This will require focus on
20. Special Economic Zones (SEZs) improving product quality. Many Indian products fail quality tests
● In GST regime, zero-rated supply to SEZs has been ensured due to traces of pesticides, pathogens, illegal dyes, etc. An
by the Department of Revenue. For removing/clarifying pro- endeavour would be made to upgrade quality and infrastructure to
cedural difficulties with regard to GST issues, Open Houses help firms to move to higher quality standards and also protect
are being organised in various SEZs in collaboration with local Indian consumers from substandard imports. Setting up more
GST Administration/Development Commissioners. globally accredited testing laboratories, enhancing the capacity of
Indian testing laboratories and Mutual Recognition Agreements
● The Central Government vide S,.O. 968(E) dated 08.04.2015 (MRA) with partner countries would be areas of focus.
has notified the rules of operations framed by RBI, SEBI and
IRDA for the Units in an International Financial Services Cen- A roadmap has been developed on measures required to
tre (IFSC) in SEZs. protect consumers, raise the quality of the merchandise produced
and enhance India’s capacity to export to even the most discerning
● In order to facilitate paperless transaction for movement of markets. Standards Conclaves are being held annually in New Delhi
goods for imports and exports from SEZs to Ports, SEZ Online and various regions to build awareness on the need for producing
System has been integrated with the Customs ICEGATE system. quality products in the country. A long term branding strategy has
● To streamline power Generation, Transmission and Distribu- been conceptualised and is under implementation to enable India
tion in Special Economic Zones (SEZs) power guidelines has to hold its own in a highly competitive global environment and to
been issued on 16th February, 2016. ensure that ‘Brand India’ becomes synonymous with high quality.
Further, a programme to promote the branding and
● Initially there were no provisions for Audit, Demand, Refund, commercialisation of products registered as Geographical
Adjudication, Review and Appeal with regard to matters relat- Indications and facilitate their exports has been initiated.
ing to authorized operation under SEZs Act, 2005, transactions
and goods and services related thereto. The Central Govern- 24. Anti Dumping and DGTR
ment vide GS.R. 772(E) dated 05.08.2016 has notified the The role of Directorate General of Anti-dumping and Allied
Rules in this regard. Duties (DGAD) under the Department of Commerce is to provide
the level playing field to the Country’s domestic industry from the
21. Focus on Export Credit Related Issues foreign exporters so that they are able to compete effectively in
Project exports are being encouraged, especially in the the domestic market. This measure is taken under the WTO
emerging markets with high infrastructure needs, through special agreement and comes under the Customs Tariff Act, 1975 and
lines of credit offered by the Ministry of External Affairs and the Rules made thereunder.
Buyers’ Credit Scheme of the Department of Commerce through
Exim Bank of India and ECGC. This will, inter alia, continue to In August 2017, the investigation processes of DGAD became
enable Indian businesses to develop long term business ISO 9001:2015 compliant which has brought in transparency and
relationships, facilitate easier acceptance of India’s exports and accountability in the operations of DGAD. The department has
build visibility for Indian products. In addition, EXIM Bank will developed Standard Operating Procedures (SOPs) for its functions and
undertake a study on the concept of ‘revolving credit’ for activities. These SOPs are codified in Quality Manual and procedures.
promoting our exports in new markets, especially in South Asia,
Africa, CIS and Latin America. EXIM Bank will also explore 25. Medium Term Expenditure Framework, All Schemes Ap-
developing strong ties with international lending agencies such as praised
African Development Bank, Inter-American Development Bank, With the Twelfth Five Year Plan coming to end, for all the
Caribbean Bank, etc. ECGC will be supported to enhance existing and New Schemes of DOC, a complete and intensive
insurance cover to exporters particularly MSME’s exploring new appraisal process was completed for the Medium-Term
or difficult markets. Expenditure Framework (from 2017-18 to 2019-20) of the 14th
Finance Commission. DOC has Seven Central Sector Schemes
ECGC: It is a premier export credit agency and its portfolio has namely; Market Access Initiative, Tea Development & Promotion,
nearly 20,000 distinct exporters, 85% of whom are MSMEs. ECGC Integrated Coffee Development Project, Sustainable & inclusive
will get a fresh capital infusion of Rs. 2,000 crores in 3 years, with development of Rubber Sector, Infusion of capital in ECGC,
Rs. 1,000 crores being added this year itself to enable it to support contribution of grant in aid (corpus) to NEIA Trust and APEDA
a larger number of exporters. ECGC has settled claims of nearly with a proposed outlay above Rs. 500 crore which is to be
Rs. 7,000 crores in the last 10 years which has provided support to continued upto 2019-20. The appraisal process for all the seven
the exporters, and relief to the banking system. schemes has already been completed by Expenditure Finance
Committee, chaired by Secretary (Expenditure).
22. Digitisation and PFMS
Successful implementation of PFMS had been rolled out in all The schemes, Spices Board, MPEDA, Cashew EPC, CRIT, IIP
PAOS of this office (Delhi, Chennai, Kolkata and Mumbai). For (upgradation of Infrastructural facilities) Niryat Bandhu,
digitisation, EAT module and DBT module of PFMS has been Modernisation of Infrastructure of IT in DGFT, setting up of
implemented for end to end online payments. A part of pre-check CFCs for Gems and Jewellery Industry, FDDI establishment of
as well as payment for bills is also done through electronic mode campus Networking Centre and IIP having outlays less than Rs.
via PFMS. An action plan has been made with approval of Ministry 500 crore, have similarly been evaluated, appraised by Standing
and as per directions of CGA to implement 100% EIS in all Finance Committee and approved by Commerce and Industry
NCDDOs by 31st March, 2018. In year 2016-17 on the Minister. ■

12 | Annual Report 2017-18 | Department of Commerce

ORGANIZATIONAL
STRUCTURE AND
FUNCTIONS

Department of Commerce | Annual Report 2017-18 | 13

 Vision and Mission Functions
The long-term vision of the Department is The Department formulates, implements
to make India a major player in the world and monitors the Foreign Trade Policy
trade by 2020 and assume a role of (FTP) which provides the basic framework
leadership in the international trade of policy and strategy to be followed for
organizations commensurate with India’s promoting exports and trade. The Trade
growing importance. The medium term Policy is periodically reviewed to
vision is to double India’s exports of goods incorporate changes necessary to take
and services by 2017-18 over the level of care of emerging economic scenarios both
2008-09 with a long-term objective of in the domestic and international economy.
doubling India’s share in Global trade. Besides, the Department is also entrusted
with responsibilities relating to multilateral
The policy tools being adopted in this and bilateral commercial relations, Special
context are: the Strategy Paper focusing on Economic Zones, state trading, export
the targeted commodity and country wise promotion and trade facilitation, and
strategy in the medium term and the development and regulation of certain
Strategic Plan / vision and the Foreign export oriented industries and
Trade Policy in the long run. commodities. Work allocated to the
Department, in accordance with the
Allocation of Business Rules, 1961, is
placed at Annexure1.1.

The Department is headed by a Secretary

who is assisted by one Special Secretary,
one Additional Secretary & Financial
Adviser, two Additional Secretaries, twelve
Joint Secretaries and Joint Secretary level
officers and a number of other senior
officers.

14 | Annual Report 2017-18 | Department of Commerce

 The Department is functionally organized into the following 9 (iii) Directorate General of Anti-Dumping & Allied Duties
Divisions: (DGAD)
1. International Trade Policy Division The Directorate General of Anti-Dumping & Allied Duties was
2. Foreign Trade Territorial Division constituted in April, 1998 and is headed by the Designated Authority
3. Export Products Division of the level of Additional Secretary to the Government of India,
4. Export Industries Division who is advised on costing issues by a Principal Adviser (Cost) and
5. Export Services Division one Joint Secretary level officer. In addition, there are Investigating
6. Economic Division and Costing Officers with varied experience to conduct various
7. Administration & General Service Division investigations like anti-dumping, anti-subsidy, circumvention of anti-
8. Finance Division dumping duty investigations etc. The Directorate is responsible for
9. Supply Division carrying out investigations and recommending, where required,
under the Customs Tariff Act, the amount of anti-dumping
The various offices / organizations under the administrative duty/countervailing duty on the identified articles as would be
control of the Department are: (A) two Attached Offices, (B) ten adequate to remove injury to the domestic industry.
Subordinate Offices, (C) ten Autonomous Bodies, (D) five Public
Sector Undertakings, (E) one Advisory Body, (F) fourteen Export (B) Subordinate Offices
Promotion Councils and (G) five Other Organizations. A complete (i) Directorate General of Commercial Intelligence and
list of these offices/ organizations along with the postal addresses Statistics (DGCI&S)
is given at Annexure 1. The Directorate General of Commercial Intelligence & Statistics
(DGCIS) is a Subordinate Office of Department of Commerce
The broad organizational set up and major role and functions (DoC) under the administrative and financial control of DGFT,
of the offices / organizations under the administrative control of DoC. This Directorate, with its office located at Kolkata, is headed
the Department are discussed below: by the Director General. It is entrusted with the work of collecting,
compiling and disseminating trade statistics and various types of
(A) Attached Offices commercial information required by the policy makers, researchers,
(i) Directorate General of Foreign Trade (DGFT) importers, exporters, traders as well as international organizations.
Directorate General of Foreign Trade (DGFT) Organization is It is the first large scale data processing organization in the country
an Attached Office of the Ministry of Commerce and Industry and with ISO certification for compilation and dissemination of India’s
is headed by Director General of Foreign Trade. Right from its foreign trade statistics, which has been upgraded to ISO 9001:2015
inception till 1991, when liberalization in the economic policies of during this year.
the Government took place, this Directorate has been essentially
involved in the regulation and promotion of foreign trade. Keeping (ii) Office of Development Commissioner of Special
in line with liberalization and globalization and the overall objective Economic Zones (SEZs)
of increasing of exports, DGFT has since been assigned the role of The main objectives of the SEZ Scheme is generation of
“Facilitator”. The shift was from prohibition and control of additional economic activity, promotion of exports of goods and
imports/exports to promotion and facilitation of exports/imports, services, promotion of investment from domestic and foreign
keeping in view the interests of the country. sources, creation of employment opportunities along with the
development of infrastructure facilities. All laws of India are
Organisational Set-up applicable in SEZs unless specifically exempted as per the SEZ
This Directorate, with headquarters at New Delhi, is headed by Act/Rules. Each Zone is headed by a Development Commissioner
the Director General of Foreign Trade. It assists Government in and is administered as per the SEZ Act, 2005 and SEZ Rules, 2006.
formulation of Foreign Trade Policy and is responsible for Units may be set up in the SEZ for manufacturing, trading or for
implementing the Foreign Trade Policy and Schemes under FTP with service activity. The units in the SEZ have to be net foreign exchange
the main objective of promoting India’s Exports. Further, it is earners but they are not subjected to any predetermined value
responsible for implementation of Foreign Trade (Development and addition except (Gems & Jewellery Units) or minimum export
Regulation) Act, 1992 and Rules & Regulations notified thereunder. performance requirements. Sales in the Domestic Tariff Area from
The DGFT also issues authorisations to exporters and monitors the SEZ units are treated as if the goods are being imported and are
their corresponding obligations through a network of 38 regional subject to payment of applicable customs duties.
offices and an extension counter at Indore.
(iii) Pay and Accounts Office (Supply)
All regional offices provide facilitation to exporters in regard to The payment and accounting of the Supply Division, including
developments in International Trade i.e. WTO agreements, Rules of of DGS&D are performed by the office of Chief Controller of
Origin and anti-dumping issues, etc to help exporters in their import Accounts (Supply Division) under the Departmentalisation
and export decisions in an international dynamic environment. Accounting System, through its Regional Pay and Accounts officers
at New Delhi, Kolkata, Mumbai and Chennai. Consequent upon
(ii) Government e-Marketplace- Special Purpose Vehicle (GeM Cabinet Decision to close the DGS&D w.e.f. 31.10.2017, the office
SPV) of CCA(sy) has been discontinued and residual works are now being
The Union Cabinet chaired by Hon’ble Prime Minister on 12th handled by CCA(Commerce) with the skeletal staff and 3 PAOs in
April 2017 gave its approval for setting up of a Special Purpose New Delhi and Kolkata.
Vehicle to be called Government e-Marketplace (GeM SPV) as the
National Public Procurement Portal as Section 8 Company registered (iv) Pay and Accounts Office (Commerce & Textiles)
under the Companies Act, 2013, for providing procurement of Pay & Accounts Office, DOC & MOT are responsible for the
goods & services required by Central & State Government Payment of claims, accounting Transactions, consolidation of
organizations. In view of setting up of GeM SPV, the Cabinet also Accounts and other related matters like Finalization & Payment of
approved closure of DGS&D by 31.10.2017. The process of Pension & Payment of final GPF cases, loan & Advance, Grant in
winding up was initiated and all Regional Offices/Directorates of Aid, Maintenance of GPF/CPF, NPS, LSC & PC, etc. through the
DGS&D across India were closed. The closure of DGS&D was four Departmental PAOs in Delhi, two each in Kolkata, Mumbai &
effected on 31.10.2017. Chennai. CCA office implements PFMS (EAT/DBT) and CDDO

Department of Commerce | Annual Report 2017-18 | 15

(PFMS) Module in all Implementing Agencies and CDDO (iv) Tobacco Board
respectively along with PFMS (EIS) in all DDOs. The Tobacco Board was constituted as a statutory body on 1st
January, 1976 under Section (4) of the Tobacco Board Act, 1975. The
These Departmental PAOs are controlled by Principal Account Board is headed by a Chairman with its headquarters at Guntur,
office at New Delhi with CCA as the head of the Department of Andhra Pradesh and is responsible for the development of the tobacco
Accounts Wing. CCA extends all assistance to FA in Budgeting, industry. While the primary function of the Board is export promotion
Monitoring & Control of expenditure, render Professional expertise of all varieties of tobacco and its allied products, its functions extend
in functioning of Financial Management System, Preparation of to production, distribution (for domestic consumption and exports)
disclosure statement as required under FRBM Act, Annual Finance and regulation of Flue Cured Virginia (FCV) tobacco.
Report and Annual outcome & System Report, Preparation of Annual
/ Five year Plan, Estimation & flow of Non-tax Revenue Receipts etc. (v) Spices Board
There is an internal Audit Wing under Control of CCA to study the Spices Board was constituted as a statutory body on 26th February,
Accounting and Implementation of Prescribed Procedure with a view 1987 under Section (3) of the Spices Board Act, 1986. The Board is
to ensuring that they are correct adequate & free from any Lacunae. headed by a Chairman with its head office at Kochi. Spices Board is
responsible for the overall development of cardamom industry and
(C) Autonomous Bodies export promotion of 52 spices as scheduled under Spices Board Act,
(i) Coffee Board 1986. The function of the Board includes development of small and
Coffee Board is a statutory organization under the Ministry of large cardamom, promotion, development, regulation of export of
Commerce & Industry, constituted under The Coffee Act 1942. The spices and quality control, development of spices and organic spices in
Board comprises 33 members. The Secretary, Coffee Board is one NE region. Board is the authority to issue certificates of registration
of the member of the Board along with 31 other members as exporter of spices and issue of cardamom dealers and auctioneers
comprising Members of the Parliament and Members representing certificates. Board undertakes programes and projects like infrastructure
various interests of Coffee Industry. Coffee Board focuses its support for improvement in spices processing, encouraging studies and
activities in the areas of research, extension, development, market research on medicinal properties of spices, development of new
intelligence, external & internal promotion and welfare measures. products, improvement of processing, grading, packaging and setting
The Coffee Board functions with its Head Office in Bengaluru and up spice parks. The licensed/registered cardmom auctioneers and
the Central Research Station viz., Central Coffee Research Institute dealers facilitate the domestic marketing through cardamom e-auctions.
(CCRI) at Balehonnuru, Chikkamagaluru District, Karnataka with a
Sub-Station at Chettalli (Karnataka) and Regional Research Stations (vi) The Marine Products Export Development Authority
at Chundale (Kerala), Thandigudi (Tamil Nadu), Narasipatnam (MPEDA)
(Andhra Pradesh) and Diphu (Assam) and the Extension Units The Marine Products Export Development Authority was set up
spread over the traditional coffee growing areas (Karnataka, Kerala as a Statutory Body in 1972 under an Act of Parliament (No.13 of
and Tamil Nadu), Non-Traditional Areas (Andhra Pradesh and 1972). The Authority, with its headquarters at Kochi and Field
Odisha) and North Eastern Region (Assam, Tripura, Mizoram, Offices in all the maritime States of India, is headed by a Chairman.
Meghalaya, Nagaland, Manipur and Arunachal Pradesh). The Authority is responsible for development of the marine industry
with special focus on marine exports.
(ii) Rubber Board
The Rubber Board is a statutory body constituted under Section (vii) Agricultural and Processed Food Products Export
(4) of the Rubber Act, 1947 and functioning under the administrative Development Authority (APEDA)
control of the Ministry of Commerce and Industry. The Board is The Agricultural and Processed Food Products Export
headed by a Chairman appointed by the Central Government and has Development Authority (APEDA) was established by the
27 members representing various interests of natural rubber industry. Government of India under the Agricultural and Processed Food
Execution powers of the Board are vested with Executive Director. Products Export Development Authority Act passed by the
The Board’s headquarters is located at Kottayam in Kerala. Parliament in December, 1985. The Authority, with its headquarters
Developmental and regulatory functions pertaining to the entire at New Delhi, is headed by a Chairperson. APEDA has been serving
value-chain of the Indian rubber industry are discharged by the Board the agri-export community for 30 years. In order to reach out to the
by way of assisting and encouraging research, development, extension exporters in different parts of the Country, APEDA has set up 5
and training activities related to natural rubber (NR). The functions Regional offices at Mumbai, Bangalore, Hyderabad, Kolkata &
of the Board also include maintaining statistics of rubber, promoting Guwahati.
marketing of rubber and undertaking labour welfare activities.
Rubber Research Institute of India (RRII) is situated at Kottayam, (viii) Export Inspection Council of India (EIC)
Kerala State and has 10 Regional Research Stations located in various The Export Inspection Council (EIC) was established as a
rubber-growing states of the country. Statutory Body on 1st January, 1964 under Section 3 of the Export
(Quality Control and Inspection) Act, 1963 to ensure sound
(iii) Tea Board development of export trade of India through quality control and
The Tea Board is a statutory body constituted under the Tea Act, inspection and for matters connected therewith. The EIC is an
1953 to discharge various functions, duties and responsibilities advisory body to the Central Government. with its office located at
envisaged in the Act for overall development of tea industry in India. New Delhi and is headed by a Chairman appointed by the Central
The Tea Board consists of 31 members, including the Chairman. Government. The Executive Head of the EIC is the Director of
The tenure of the Board is three years. The Deputy Chairman is the Inspection & Quality Control who is responsible for the enforcement
Chief Executive Officer and there are two Executive Directors who of quality control and compulsory pre-shipment inspection of various
are stationed at Zonal offices one each at Guwahati in Assam and commodities meant for export and notified by the Government under
for Southern India at Coonoor, Tamil Nadu. The Board functions the Export (Quality Control and Inspection) Act, 1963.
as an Apex body by providing necessary assistance for research and
development aimed at increasing production, productivity and Today, EIC guarantees exporters a gateway to demanding markets
quality, facilitation of trade and promotion of exports so as to and the assurance to importing countries that food and related
ensure maximum returns to the producers, including small growers; products sourced from India are fit for human consumption and
safeguarding the interests of the workers and the consumers. adhere to stringent international quality standards. EIC is located at

16 | Annual Report 2017-18 | Department of Commerce

New Delhi while the five ElAs responsible to carry out the work of has also taken up, on domestic front, distribution of fertilizer to
quality control, inspection & certification of notified commodities for tobacco growers, conducting cardamom auctions with a view to
exports under the Export (Quality Control & Inspection) Act,1963 safeguard interests of farmers, sale of gold coins/ silver medallions
are headquartered at Chennai, Delhi, Kochi, Kolkata & Mumbai each and small volume of sale of goods under STC brand.
having sub-offices under them (a network of 30 sub-offices) including
state-of-the art. NABL accredited based on ISO 17025 laboratories STCL Ltd., a subsidiary of STC, is in the process of winding up
at important ports and industrial centers in India to cater to the and stopped all its business activities since 2014-15 onwards.
requirements of the exporters at these places. The network of its
laboratories comprises main food laboratories at Chennai, Kochi, (ii) MMTC Limited
Kolkata & Mumbai, having state-of-art facilities besides a number of The MMTC Limited was created in 1963 as an independent
field laboratories attach to various sub-offices for microbiological entity primarily to deal in exports of minerals and ores and imports
testing supports reliable third party certification by the organisation. of non-ferrous metals. Over the years, MMTC diversified its
business portfolio keeping in view national requirements and new
The competitive worldwide export market place demands high business opportunities including import and export of various items.
quality assurance solutions that effectively meet today's needs and Commodities like fertilizers, steel, diamonds, bullion, agro etc. were
address tomorrow’s challenges. EIC has been instrumental partner progressively added to the portfolio of the company.
in implementation of new system for Certification of Origin of
Goods for the EU Generalised System of Preferences (GSP) under Besides acting as canalizing agency for Iron Ore, Manganese
Registered Exporter (REX) system implemented w.e.f. 1st January Ore, Chrome Ore/Concentrate & Import of Urea, MMTC functions
2017 by registering and providing trainings to the exporters and as one of the Nominated Agency for Import of Gold & Silver, sale
other designated Authorities. of Sovereign India Gold Coin, Import of Pulses, trading in other
commodities like Agro Products, Fertilizers, Coal, Steel, Non-ferrous
EIC has actively facilitated exporters by developing guide on metals, Pig Iron etc. and investment in trade related JVs like NINL,
Good beekeeping in English and Hindi. Cooperation arrangement MMTC PAMP, FTWZ etc.
between the EIC, FSSAI and GFSP was signed to develop an
international training centre on food safety and applied nutrition at Subsidiary Company
Mumbai to provide improved skill development. In addition, EIC has MMTC Transnational Pte Ltd., Singapore (MTPL) is a wholly
been entrusted with the additional new responsibility of sprouted owned subsidiary company of MMTC and was incorporated in
seed exports to EU and peanut and peanut products to Macedonia October 1994 under the laws of Singapore with a share Capital of
by designating as competent Authority by Government of India. USD 1 million. Since inception, the company has been engaged in
commodity trading and has established itself as a credible and
(ix) Indian Institute of Foreign Trade (IIFT) reputable trading company in Singapore.
Indian Institute of Foreign Trade (IIFT) was set up by
Government of India on 2nd May, 1963 with a focus on foreign trade (iii) PEC Limited
related research and training. In 53 years, the Institute has broadened PEC Limited was incorporated as a subsidiary Company of State
the scope and dimensions of its academic activities covering the Trading Corporation in 1971 as “The Projects and Equipment
entire gamut of international business. Today, the Institute is widely Corporation of India Limited”. The name of the Company was
recognized for its knowledge and resource base, rich heritage and for changed to PEC Limited on 25th November, 1997. The main
its strong alumni network both in India and abroad. functions of the PEC Ltd. Include export of projects; engineering
equipment and defence equipment, import of bullion and trading in
(x) Indian Institute of Packaging (IIP) industrial raw material and agro commodities.
The Indian Institute of Packaging is an autonomous body in the
field of packaging technology which was set up on 14th May, 1966 (iv) ECGC Ltd (Formerly Export Credit Guarantee
as a society under the societies registration act, 1860 by the leading Corporation of India Ltd.)
packaging and allied industries and the Ministry of Commerce & ECGC is a premier Export Credit Agency (ECA) of the
Industry, Govt. of India. The main objective of this Institute is to Government of India set up in 1957 under the Companies Act 1953,
promote the export market by way of innovative package design and to provide Export Credit Insurance Services to the Exporters and
development and also to upgrade the packaging standards at Banks on a self sustainable basis. The covers and compensations to
National Level. The head office of the Institute is situated at beneficiaries — both exporters and bankers, have provided crucial
Mumbai and its branches are located at Delhi, Kolkata, Chennai, backing to the overall export achievements of the country. ECGC
Hyderabad and Ahmedabad. The Institute has got an excellent provides credit insurance covers (popularly known as 'Policies') to
rapport with International organizations like World Packaging exporters to protect them against losses due to non-payment of
Organisation (WPO) and Asian Packaging Federation (APF) export dues by overseas buyers due to political and/ or commercial
risks. It also offers covers (known as Export Credit Insurance for
(D) Public Sector Undertakings (PSUs) Banks-ECIB) to banks to augment / ensure flow of adequate bank
(i) State Trading Corporation of India Limited (STC) credit to exporters at both pre-shipment and post-shipment stages.
STC was set up on 18th May 1956 primarily with a view to Both the above schemes address the credit insurance requirements
undertake trade with East European countries and to supplement the of exports made under short term (ST) basis i.e. exports with
efforts of private trade and industry in developing exports from the realisation/ credit period not exceeding 180 days and some cases up
country. Since then, STC has played an important role in country’s to maximum of 360 days. ECGC also offers Policy and ECIB covers
economy. It has arranged imports of essential items of mass to promote Medium and Long Term exports (MLT), otherwise called
consumption (such as wheat, pulses, sugar, edible oils, etc.) and Project Exports that are made on credit period exceeding 360 days.
industrial raw materials into India and also contributed significantly in
developing exports of a large number of items from India. The core National Export Insurance Account (NEIA)
strength of STC lies in handling exports/imports of bulk commodities. National Export Insurance Account (NEIA) is a vital policy
Over the years, STC has also diversified into exports of steel, iron ore, instrument that enables Govt. of India to support project exports
molasses, red sanders and imports of bullion, hydrocarbons, minerals, in the national interest thereby enabling creation of sustenance of
metals, ores, fertilizers, petro-chemicals, etc. In the recent years, STC visible impact on India's capacity in executing projects abroad.

Department of Commerce | Annual Report 2017-18 | 17

NEIA through its cover for project exports helps make Indian Trade Policy 2015-2020. It has 17 offices across the country covering
project exporters more competitive and gain a stronger foothold in all the Metros and also cities like Kanpur, Ludhiana, Guwahati,
regions of national strategic interest. Ranchi, Indore etc. FIEO has been functioning as a platform for
interaction between exporters and policy makers. As an apex EPC,
Government of India established NEIA trust in 2006 to FIEO is instrumental in channelizing the efforts of Indian exporting
promote project exports from India that are of strategic and national community cutting across various commodities and services. It is an
importance. Credit insurance covers to such projects are not ISO 9001-2008 certified Organization.
available in the private market and ECGC is not in a position to
cover such projects due to its underwriting capacity, exposure norms As an apex organization for Export Promotion, FIEO Managing
and risk management constraints. Committee consists of representatives of EPCs and Commodity
Boards, APEDA, MPEDA etc. In accordance Foreign Trade Policy,
(v) India Trade Promotion Organization (ITPO) FIEO is designated as Registering Authority for status holder
India Trade Promotion Organisation (ITPO) is the premier trade exporting firms and, exporters dealing in multiple products. It also
promotion agency of India, provides a broad spectrum of services grants Certificates of Origin [Non-Preferential] required as proof
to trade and industry and acts as a catalyst for growth of India’s of origin of goods. FIEO functions as a servicing agency to provide
trade. ITPO is a section 8 Company and its main corporate integrated assistance to over 22,000 members comprising of
objectives are to promote external and domestic trade of India in a exporting firms holding recognition status granted by the
cost effective manner by organizing and participating in international Government, Consultancy firms and Service providers.
trade fairs in India and abroad; organizing buyer-seller meets and
contact promotion programmes abroad; exchanging and (ii) Indian Diamond Institute (IDI)
coordinating visits of business delegations, and undertake need Indian Diamond Institute (IDI) was established in 1978 under
based research to facilitate trade in specific sectors/markets; support Society Registration Act, 1860 and also under the Bombay Public
and assist small and medium enterprises to access markets both in Trust Act, 1950, with a focus to provide a vocational education in
India and abroad; disseminate trade information and facilitate E- the field of Diamond, Gems & Jewellery. IDI is sponsored by
commerce/trade; facilitate promotion of Trade in goods and Ministry of Commerce & Industry, Government of India & is a
services connected with or relating to fairs, exhibitions, conventions project of The Gem & Jewellery Export Promotion Council. IDI
in India and abroad; conducts vocational educational level programmes in the areas of
Diamond Manufacturing, Diamond Grading, Jewellery Designing &
(E) Export Promotion Councils (EPCs) Jewellery Manufacturing, Gemmology there by covering entire
Presently, there are fourteen Export Promotion Councils under spectrum of Gems & Jewellery education under one roof. Institute,
the Department of Commerce. Names and addresses of these as a knowledge provider to the re-skilling programmes launched by
Councils are given at Annexure 1.2. These Councils are registered as the GJEPC, upgrade/impart the skill to 315 small / medium
non-profit organizations under the Companies Act/Societies diamond/jwelleries manufacturers in interior parts of Gujarat. IDI
Registration Act. The Councils perform both advisory and executive is also recognized as an Anchor Institute-Gems & Jewellery by
functions. The role and functions of these Councils are guided by the Industries Commissionerate, Government of Gujarat.
Foreign Trade Policy, 2015-20. These Councils are also the registering
authorities for exporters under the Foreign Trade Policy 2015-20. (iii) Footwear Design & Development Institute (FDDI)
The Footwear Design & Development Institute (FDDI) was set
(i) Indian Oilseeds & Produce Export Promotion Council up by Ministry of Commerce and Industry, Department of
(IOPEPC) Commerce, Government of India in 1986 as a Society under the
Indian Oilseed and Produce Export Promotion Council Societies Registration Act, 1860 with an objective to provide skilled
(IOPEPC) is concerned with the promotion of various Oilseeds and manpower and technical services to the footwear industry. The
Oils. Formerly known as IOPEA, it was formed in 1956 and was Footwear Design and Development Institute Act, 2017 has conferred
recognised as an Export Promotion Council in November 2006. the status of “Institute of National Importance” (INI) to Footwear
Design & Development Institute (FDDI) w.e.f. 16th October, 2017
(ii) Cashew Export Promotion Council of India (CEPCI) vide this Department’s notification dated 5th October, 2017.
The Cashew Export Promotion Council of India(CEPC) was
established by the Government of India in the year 1955, with the The institute conducts wide range of professional programmes
active cooperation of the cashew industry. The primary objective of in the area of Footwear Design & Production, Retail and Fashion
the Council is to promote exports of cashew kernels and cashewnut Merchandise, Fashion Leather Accessory Design and Creative
shell liquid from India. Design & CAD/CAM.

(F) Advisory Bodies (iv) National Centre for Trade Information (NCTI)
(i) Board of Trade (BOT) The National Centre for Trade Information (NCTI) was
The Board of Trade (BOT) was reconstituted vide Trade Notice incorporated on 31st March, 1995 as a Company under Section 25
No.21 dated 23.03.2016 as per mandate given under Para 300 of of Companies Act, 1956. The Company started functioning w.e.f.
Foreign Trade Policy Statement 2015-2020. The objective of BOT March, 1996. It has a Board of Directors for administration of its
is to have continuous discussion and consultation with trade and affairs, which includes representatives from Ministry of Commerce
industry. The Board of Trade would, inter-alia, advise the & Industry, National Informatics Centre (NIC), Indian Institute of
Government on policy measures related to Foreign Trade Policy in Foreign trade (IIFT), and Directorate General of Commercial
order to achieve the objective of boosting India’s trade. Intelligence & Statistics (DGCI&S). Other representatives are from
India Trade Promotion Organisation (ITPO) and other Export
(G) Other Organizations Promotion Councils / Apex Bodies.
(i) Federation of Indian Export Organizations (FIEO)
FIEO was set up in 1965, as an Apex Body of Export (v) Price Stabilization Fund Trust (PSFT)
Promotion Organizations. It is registered under the Societies Price Stabilization Fund Trust (PSFT) was registered as a Trust
Registration Act of 1860 with Headquarters in Delhi. It is identified on 11.9.2003 for a period of 10 years to administer the Price
as an Export Promotion Council under Appendix 2T of Foreign Stabilization Fund Schemes. The Trust was implementing two

18 | Annual Report 2017-18 | Department of Commerce

schemes viz., The Price Stabilization Fund Scheme (2003) and of premium is to be met from the funds available in the PSF Corpus.
Personal Accident Insurance Scheme (PAIS) (2005) to provide
financial relief to small growers of plantation crops viz. tea, coffee, (vi) India Brand Equity Foundation
rubber and tobacco when prices of these commodities fall below a India Brand Equity Foundation (IBEF) is a Trust established by
specified level. Under the Price Stabilization Fund Scheme, a Corpus the Department of Commerce, Ministry of Commerce and Industry,
of Rs. 500 crores (Govt. of India contribution of Rs. 482.88 crores Government of India in 2003 with the objective of promoting and
and growers’ contribution(towards entry fee) of Rs. 17.22 crores was creating international awareness of the Brand India label in markets
to be created and the scheme was to be implemented with interest overseas and to facilitate dissemination of knowledge of Indian
earnings on the Corpus Fund. However, the actual contribution made products and services. Towards this objective, IBEF works closely
by DoC and growers to the Corpus was of the order of Rs. 432.88 with stakeholders across government and industry.
crores and Rs. 2.67 crores respectively (Total: Rs. 435.55 crores). Both
these schemes were closed on 30.9.2013. The total funds available with IBEF endeavours to ensure consistent and effective messaging on
PSF Corpus as on 31.3.2017 amounted to Rs.1187.67 crore, which is the India growth story through brand building initiatives/campaigns
vested in the Public Account of the Government of India. undertaken in partnership with various stakeholders ranging from lead
industry associations to export promotion councils. IBEF has been the
PSFT formulated a Modified Price Stabilization Fund Scheme, branding and communication partner for all The India Show(s) and trade
which was discussed in the meeting held under the chairmanship of exhibitions organised under the aegis of the Department of Commerce.
Secretary (Expenditure) on 4.6.2014. After a detailed PowerPoint
presentation and discussion on the scheme, Secretary (Expenditure) As part of brand building, IBEF undertakes activities aimed at
advised that the available Corpus with the Price Stabilization Fund promotion of knowledge, communications and exports. IBEF’s
Trust may be utilized by the Department of Commerce to website www.ibef.org provides extensive, accurate and
implement a modified insurance premium subvention scheme for comprehensive information on the Indian economy and business
insuring the growers. trends. Business information reports on the website span a range of
sectors besides the states, and also the export promotion councils
Department of Commerce, accordingly, approved the affiliated to the Department of Commerce. IBEF brings out a
implementation of a pilot scheme in the name of “Revenue Insurance bimonthly business magazine, India Now Business and Economy
Scheme for Plantation Crops(RISPC)” in nine districts of seven States and a range of thought leadership studies on emerging areas such
viz. Tamil Nadu, Karnataka, Kerala, Andhra Pradesh, Assam, West as India’s business potential, multinationals, entrepreneurial
Bengal and Sikkim during one crop cycle, which may spread over two ecosystem, and contribution to global business. Digital media and
years, commencing from the year 2016-17 to protect small growers of web technologies are an integral part of its nation brand campaigns
Tea, Coffee, Rubber & Cardamom(Small & Large) from the twin risks both within India and overseas markets.
of weather and price resulting in income loss caused by fall in
international/ domestic prices or yield loss due to adverse weather IBEF has also successfully transitioned to sectoral branding
parameters, pest attacks etc. at a likely estimated cost of Rs.168.77crores, initiatives in accordance with the priorities of the Department of
which was proposed to be shared by the Central Government Commerce. The identified sectors where IBEF is focussing its
(Department of Commerce), concerned State Governments and activities are pharmaceuticals, engineering, services, agri-products,
growers in the ratio of 75:15:10. Central Government’s share of 75% textiles and leather. ■

Annexure-1
Attached/Subordinate Offices/ Autonomous Bodies/ Public Sector Undertakings/ Export Promotion Councils/Other
Organizations under the Department of Commerce

Attached Offices
1. Directorate General of Foreign Trade, Udyog Bhavan, New Delhi – 110107.
2. Directorate General of Anti-Dumping & Allied Duties, Jeevan Tara Building, 4th Floor, Parliament Street, New Delhi-110001. Ph.:011-
23348653, 23348654
Subordinate Offices
1. Directorate General of Commercial Intelligence and Statistics, 565, Anandapur, Ward No. 108, Sector– 1, Plot No. 22, ECADP Kolkata –
700107 Phone: 91.33.24434055(4 lines) Fax : +91.33.24434051
2. Cochin Special Economic Zone, Administrative Building, Kakkanad, Kochi – 600030, Kerala.
3. Falta Special Economic Zone, IInd MSO Building, 4th Floor, R.No. 44, Nizam Palace Complex, 234/4, AIC Bose Road, Kolkata – 700020,
West Bengal.
4. MEPZ Special Economic Zone, National Highway 45, Administrative Office Building, Tambaram, Chennai – 600045, Tamil Nadu.
5. Kandla Special Economic Zone, Gandhidham, Kutch-370230, Gujarat.
6. SEEPZ Special Economic Zone, Andheri (East), Mumbai – 400096, Maharashtra.
7. Visakhapatnam Special Economic Zone, Administrative Building, Duvvada, Visakhapatnam – 530046, Andhra Pradesh.
8. Noida Special Economic Zone, Noida Dabri Road, Phase-II, Noida – 201305, Distt. Gautam Budh Nagar, Uttar Pradesh.
9. Pay and Accounts Office (Commerce), Udyog Bhavan, New Delhi - 110107.
10. Pay and Accounts Office (Supply Division), 16-A, Akbar Road Hutments, New Delhi – 110011.

Autonomous Bodies
1. Coffee Board, 1, Dr. B.R. Ambedkar Veedhi, Bangalore – 560001, Karnataka.
2. Rubber Board, Sub-Jail Road, P.B. No.1122, Kottayam – 686002, Kerala.
3. Tea Board, 14, BTM Sarani, Brabourne Road, P.B. No.2172, Kolkata – 700001, West Bengal.
4. Tobacco Board, P.B.No.322, Guntur – 522004, Andhra Pradesh.
5. Spices Board, Sugandha Bhavan, N.H. Bypass, PB-2277, Palarivattom P.O. Kochi – 682025, Kerala.
6. Marine Products Export Development Authority, MPEDA House, Panampilly Avenue, Kochi – 682036, Kerala.

Department of Commerce | Annual Report 2017-18 | 19

7. Agricultural & Processed Food Products Export Development Authority, NCUI Building, Siri Institutional Area, August Kranti Marg, New
Delhi – 110016.
8. Export Inspection Council of India, 3rd Floor, NDYMCA Cultural Centre Building, 1, Jai Singh Road, New DelhI-110001.
9. Indian Institute of Foreign Trade, B-21, Institutional Area, South of IIT, New Delhi – 110016.
10. Indian Institute of Packaging, B-2, MIDC Area, P.B.No. 9432, Andheri (East), Mumbai – 400096, Maharashtra.

Public Sector Undertakings

1. State Trading Corporation of India, Jawahar Vyapar Bhavan, Tolstoy Marg, New Delhi - 110001.

Subsidiary of STC
1. STCL Ltd., No. 7A, "STC Trade Centre", 3rd Floor, Nandini Layout, Bengaluru – 560096, Karnataka.
2. MMTC Ltd., Scope Complex, 7, Institutional Area, Lodhi Road, New Delhi - 110003.
3. PEC Ltd.,“Hansalaya”, 15, Barakhamba Road, New Delhi - 110001.
4. Export Credit Guarantee Corporation of India Ltd., 10th Floor, Express Towers, P.B. No. 373, Nariman Point, Mumbai - 400021,
Maharashtra.
5. India Trade Promotion Organization, Pragati Maidan, Mathura Road, New Delhi – 110001.

Export Promotion Councils

1. Chemexcil, Jhansi Castle(4th Floor), 7-cooperage Road, Mumbai-400039. Phone No.22021288, 2021330 Fax No.022-2026684
2. Cashew EPC, P.B.No.1709, Chittoor Road, Ernakulam South, Cochin-682016 (Phone No. 0484-2376459,2376080 Fax No.0484-2377973)
3. CAPEXIL, Vanijya Bhavan, International Trade Facilitation Centre, 1/1 Wood Street, 3rd Floor, Kolkata-700016. (Phone No. 033-
22890524/25 Fax No.033-22891724)
4. Council for Leather Exports, No.1, CMDA Tower II, 3rd Floor, Gandhi Irwin Road, Egmore, Chennai-600008. (Phone No. 044-28594367
Fax No.044-28594363)
5. EEPC India, Vanijya Bhavan, International Trade Facilitation Centre, 1st Floor, 1/1 Wood Street, Kolkata-700016. (Phone No. 033-
22890651/52 Fax : 033- 22890654)
6. Export Promotion Council for EOUs & SEZ Units, 8-G, Hansalaya, 15, Barakhamba Road, New Delhi-110001.
7. Gem & Jewellery EPC, Diamond Plaza, 5th Floor, 391-A, Dr. D.B.Marg, Mumbai- 400004. (Phone No. 022-23821801, 23821806 Fax No.022-
23808752)
8. The Plastic EPC, Crystal Tower, Gundivali Road No.3, Off Sir M.V. Road, Andheri East, Mumbai- 400069. (Phone No. 022-26833951 Fax
No.022-26833953)
9. Sports Goods EPC, 1-E/6, Swami Ram Tirth Nagar, Jhandewalan Extn., New Delhi- 110055. (Phone No. 011-23516183 Fax No.011-
23632147)
10. Shellac Export Promotion Council, Vanijya Bhavan, International Trade Facilitation Centre, 2nd Floor, 1/1 Wood Street, Kolkata-700016.
(Phone No. 033-22834417, 22834697 Fax No.033-22834699)
11. Pharmexcil, 101, Aditya Trade Centre, Ameerpet, Hyderabad, Andhra Pradesh – 500038. (Tel: 23735462/66 Fax No. 23735464)
12. Services EPC, 6 A/6, 3rd Floor, NCHF Building, Siri Fort Institutional Area, August Karanti Marg, New Delhi- 110049(Tel: 011-41046328)
13. Project EPC, 123, I Floor, Behind Shankar Road Market, New Rajinder Nagar, New Delhi – 110060 (Tel.: 011-45623100-01 Fax : 91-11-
45623110)
14. Indian Oilseeds and Produce Exporters Association, 78-79 Bajaj Bhawan, Nariman Point, Mumbai-400021.

Other Organizations
1. Federation of Indian Export Organizations, Niryat Bhawan, Rao Tula Ram Marg, Opp. Army Hospital (Research & Referral), New Delhi-
110057.
2. Indian Diamond Institute, Katargam, GIDC, Sumul Dairy Road, P.B. No. 508, Surat-395008, Gujarat.
3. Footwear Design & Development Institute, A-10/A, Sector-24, Noida – 201301, Gautam Budh Nagar, Uttar Pradesh.
4. National Centre for Trade Information, NCTI Complex, Pragati Maidan, New Delhi - 110001.
5. Price Stabilisation Fund Trust, Room No.2003. 20th Floor, Jawahar Vyapar Bhawan, Tolstoy Marg, Connaught Place. New Delhi - 110001.
6. India Brand Equity Foundation, 20th Floor, Jawahar Vyapar Bhawan, Tolstoy Marg, New Delhi - 110001

20 | Annual Report 2017-18 | Department of Commerce

 EMERGING GLOBAL
ECONOMIC REALITIES
AND INDIA

Department of Commerce | Annual Report 2017-18 | 21

T
he global upswing in economic activity is strengthen- move, which promises the unification of India’s vast domestic mar-
ing. Global growth, which in 2016 was the weakest ket, is among several key structural reforms under implementation
since the global financial crisis at 3.2 percent, is pro- that are expected to help push growth above 8 per cent in the
jected to rise to 3.6 percent in 2017 and to 3.7 percent medium term.
in 2018. The growth forecasts for both 2017 and 2018
are 0.1 percentage point stronger compared with the April 2017 Global Trade Developments
World Economic outlook (WEO) forecast. Broad-based upward re- Global trade continues to be sluggish with low commodity
visions in the Euro area, Japan, emerging Asia, emerging Europe and prices, especially of minerals and petroleum products. Although
Russia- where growth outcomes in the first half of 2017 were better global economic recovery is expected to be modest, much of the
than expected –more than offset downward revisions for the United contribution to global economic growth is expected to be driven by
States, the United Kingdom and India. developing countries, especially emerging economies like India and
China. This denotes the fact that the centre of gravity of global eco-
This recovery is supporting by notable pickups in trade, invest- nomic activity is shifting towards the Indo-Pacific region where con-
ment and industrial production, coupled with strengthening business ditions are more propitious for robust economic activity.
and consumer confidence.
The global economy is facing serious challenges in the form of
The pickup in global activity that started in the second half of increasing protectionism reflected in countries contesting and exiting
2016 gathered steam in the first half of 2017, reflecting firmer do- trade/economic partnership agreements, questioning the functioning
mestic demand growth in advanced economies and China and im- of multilateral institutions, excessive use of non-tariff measures and
proved performance in other large emerging market economies. practices such as licenses and quotas. It is evident that these tools
Growth in China and other emerging Asia remains strong, and the are being increasingly used by developed countries to deny market
still-difficult conditions faced by several commodity exporters in access. These developments are likely to undermine free trade with
Latin America, the Commonwealth of Independent states, and sub- serious consequences for developing and least developed countries’
Saharan Africa show some signs of improvement. In advanced participation in global trade in a manner that addresses their devel-
economies, the notable 2017 growth pickup is broad based, with opmental concerns.
stronger activity in the United States and Canada, the Euro area and
Japan. Prospects for medium-term growth are more subdued, how- The rising tide against globalisation is another major challenge
ever, as negative output gaps shrink (leaving less scope for cyclical for global trade. This has the potential to disrupt the rule-based
improvement) and demographic factors and weak productivity weigh multilateral trading system that has served the global community
on potential growth. The welcome cyclical pickup in global eco- well so far in resolving differences on trade matters in a spirit of
nomic activity after disappointing growth over the past few years cooperation and mutual accommodation. Whereas developing
provides an ideal window of opportunity to undertake key reforms countries have long questioned global trade arrangements on the
designed to boost potential output and ensure that its benefits are issue of their efficacy in addressing cross-country disparities, the
broadly shared and to build resilience against downside risks. With more recent disenchantment of some developed countries is the
countries still facing differences in cyclical conditions, varied stances result of unprecedented inequality and an economic underclass
of monetary and fiscal policy remain appropriate. Completing the within these nations, notwithstanding very high per capita incomes,
economic recovery and adopting strategies to ensure fiscal sustain- which is wrongly attributed to globalisation, whereas it has more
ability remain important goals in many economies. The continued to do with the lack of inclusiveness of domestic socio-economic
recovery in global investment stimulated stronger manufacturing ac- policies. The WTO ensures equity and fair play for all countries.
tivity. World trade growth moderated in the second quarter after ex- Preserving and strengthening its relevance is crucial for developing
panding very rapidly in the first. and least developed countries. Retaining the centrality of ‘devel-
opment’ in the WTO processes will ensure its relevance. However,
Strong trade growth is a sign of strong economic growth, as new issues being pushed by developed countries on the WTO
trade provide a way for developing and emerging economies to grow agenda could potentially undermine developmental issues and se-
quickly, and strong import growth is associated with faster growth riously impair its functioning.
in the developed countries. World trade growth was weaker in 2016
(1.3% in 2016 in comparison to 2.6% in 2015, WTO press release, The rapid changes in technology are impacting global trade like
2017), due to falling import demand and slowing GDP growth in never before. The increasing use of automation, artificial intelligence
several major developing economies as well as in North America. and robotic engineering in manufacturing activity, characterized by
However, in 2017, trade rebounded strongly (world trade growth is productivity enhancing servicification of manufacturing with a di-
3.6 % in 2017(P), WTO Press Release, Sep 2017) and this is attrib- minishing distinction between goods and services, known as Indus-
uted to a resurgence of Asian trade flows as intra-regional shipments trial Revolution 4.0, will determine the competitiveness of
picked up and as import demand in North America recovered after enterprises across the globe and those who cannot cope might be
stalling in 2016. left behind.

Among emerging market and developing economies, higher Increasingly, economic activity will be driven by internet-based
domestic demand in China and continued recovery in key emerg- technologies in which e-commerce, digital trade, digital intelligence
ing market economies supported growth in the first half of 2017. and data collection will play a significant role. These technologies
In India, growth momentum slowed, reflecting the persisting im- could disrupt the traditional ‘brick and mortar’ enterprises and seri-
pact of its currency exchange initiative as well as uncertainty re- ously jeopardise employment opportunities. This calls for upgrada-
lated to the mid-year introduction of the country-wide Goods and tion of skills to remain competitive. While some of the existing
Services Tax. enterprises will perish as a consequence of their inability to adapt
to change, new enterprises, particularly start-ups, will emerge. These
India’s growth projection for 2017 has been revised down to 6.7 trends will support the global value and supply chains in a big way
per cent (7.2 per cent in April), reflecting still persisting disruptions as enterprises would be able to use internet platforms to access mar-
associated with the currency exchange initiative introduced in No- kets and make their products available at competitive prices even
vember 8, 2016 as well as the transition costs related to the launch from remote locations. Therefore, initiatives such as impartation of
of the National Goods and Services Tax in July 2017. The latter high order skills, access to capital and technology would be crucial

22 | Annual Report 2017-18 | Department of Commerce

to retain competitiveness of nations. 1, 2017. The process of making application and issuance of IEC is
online and secure. IEC has also been integrated with the eBIZ portal
Positive facts about India: of DIPP. IEC and EPCG applications have been integrated with the
Investment Rating eNivesh portal implemented by PMG set up by the Cabinet Secre-
Moody’s has upgraded the Government of India’s local and for- tariat.
eign currency issuer ratings from Baa3 to Baa2 and changed the out-
look on the rating from positive to stable. Moody’s has also raised (d) Use of electronic bank realization certificate (eBRC) system
India’s long term foreign currency bond celling from Baa2 to Baa1 has been extended. DGFT shares data generated by the electronic
and long term foreign currency bank deposit celling from Baa3 to bank realization certificate (eBRC) system with 17 agencies. The
Baa2. The short-term foreign currency bond ceiling remains un- eBRC system captures details of the foreign exchange received by
changed at P-2 and the short term foreign currency bank deposit exporters through the banking channel. So far DGFT has signed
ceiling has been raised from P-3 to P-2. The long term local currency MOUs with 14 state governments, 2 central government agencies
deposit and bond ceilings remain unchanged at A1. and GSTN for sharing of the data. At the state level, Commercial
Tax Departments of 14 states have signed MoU with DGFT for re-
The decision to upgrade the ratings is carried by Moody’s expec- ceiving e-BRC data for VAT refund purposes. These are: (i) Maha-
tation that continued progress on economic and institutional re- rashtra, (ii) Delhi, (iii) Andhra Pradesh,(iv) Odisha, (v) Chhattisgarh,
forms will over time, enhance India’s high growth potential and its (vi) Haryana, (vii) Tamil Nadu, (viii) Karnataka, (ix) Gujarat, (x)
large and stable financing base for government debt and will likely Uttar Pradesh, (xi) Madhya Pradesh, (xii) Kerala, (xiii) Goa, (xiv)
contribute to a gradual decline in the general government debt bur- Bihar.
den over the medium term.
(e) The ‘Aayat Niryat’ Forms used for making online application
Ease of Doing Business to DGFT, have been simplified bringing in clarity in different pro-
India had ranked poorly on the ease of doing business ranking visions, and enhancing electronic governance.
for past few years. In the previous rankings for 2017, it ranked at
130th position. Recently world bank has released Ease of Doing Web Portals
Business report for 2018, which placed India at 100th rank out of ❉ DGFT has launched a new look website making it more user-
190 countries. India is among top 30 nations in three categories that friendly and easy to navigate. DGFT website has a large dy-
is getting electricity, securing credit and protecting minority in- namic component whereby the trade community can file
vestors. India improved its ranking on six out of ten parameters be- applications online for IEC and various other schemes of
coming the only large economy to do so. However, the World Bank DGFT. The exporters can also see the status of their electronic
noted that India lagged in areas such as starting a business, enforcing Bank realization certificates in almost real-time. The website is
contracts and dealing with construction permits. rich in content with all documents related to Foreign Trade Pol-
icy along with a responsive online grievance redressal system.
❉ Indian Trade Portal launched by Department of Commerce
and managed by FIEO displays information useful for export
import. It contains the trade enquiries uploaded by Indian trade
missions, tariff and trade data of India’s major trade partners,
export market reports, and trade agreements etc.
❉ EXIM Dashboard launched at the commerce.gov.in website. It
allows users a graphical understanding of India’s exports and
imports at the product, country and port level. It is popular
with exporters on account of useful data depicted in uncom-
plicated manner.

(g) DGFT: Facilities for Complaint Resolution

❉ Contact@DGFT system has been activated at the DGFT web-
site (www.dgft.gov.in) as a single point contact for resolving all
foreign trade related issues. Exporters/importers use this fa-
cility for resolution of foreign trade related issues either di-
rectly concerning DGFT (headquarters or regional offices) or
concerning other agencies of the Central or State Govern-
ments. A reference number is issued for each request so that
Trade Facilitation in the Indian Context the status of action taken can be tracked. Effective monitoring
Reducing number of Documents: Number of mandatory arrangements have been made.
documents required for exports and imports have been reduced to ❉ DGFT maintains an active Twitter handle (#DGFTINDIA)
3 each for export (from 7) and import (from 10). with more than 27,500 followers. Responses to tweets sent to
CIM’s account and DGFT handle are managed through the
Reducing number of Schemes: The New Foreign Trade Policy Twitterseva service and more than 7,500 tweets have been
(2015-20) was launched on 1st April, 2015 with a focus on support- replied to w.e.f Apr 2016 with an average reply time of less
ing both merchandise and services exports and improving the ‘Ease than 12 hours.
of Doing Business’. DGFT consolidated 5 different incentive ❉ Grievances on policy, procedure and implementation issues
schemes under the earlier policy for rewarding merchandise exports registered at the Public grievances portal of Department of
into a single scheme, namely the Merchandise Exports from India Administrative Reforms & Public Grievances are handled
Scheme(MEIS). The replaced schemes are: Focus Product Scheme promptly.
(FPS), Focus Market Scheme (FMS), Market Linked Focus Product
Scrip (MLFPS), Vishesh Krishi and Gram Udyog Yojna (VKGUY), (h) Involvement of the states in export promotion: The
Agri. Infrastructure Incentive Scrip. Council for Trade Development and Promotion was constituted in
(c) PAN of firms is being issued as IEC by the DGFT wef July July 2015. It would ensure a continuous dialogue with State Govern-

Department of Commerce | Annual Report 2017-18 | 23

ments and UT’s on measures for providing an international trade en- the overall cost and increasing the speed and ease of goods move-
abling environment in the States and create a framework for making ment, but shall also contribute towards making Indian goods more
the States active partners in boosting India’s exports. So far two competitive in the global market. With the improvement in India’s
meetings of the council have taken place. The second meeting was ranking in the Logistics Performance Index (LPI), Indian exports
held on 5.1.2017. shall automatically see an enhanced growth.
(i) The State governments have been requested to develop their
export strategy, appoint export commissioners, address infrastruc- Global value chain
ture constraints restricting movement of goods, facilitate refund of Importance of GVC: For emerging nations, engaging in global
VAT/ Octroi/State level cess, and address other issues relating to value chain is key to their economic development. There appears
various clearances etc. and build capacity of new exporters, in order to be a positive correlation between participation in GVC and
to promote exports. So far, 17 States have prepared their exports GDP per capita growth rates (United Nations). GVC are most ben-
strategy. eficial for countries that contribute in the higher value-added seg-
ments of a production chain. GVC participation leads to job
Trade Eco System: creation in developing countries, provided it occurs with high-skill
(a) GST related Reforms: On the export of finished products, based value addition.
there is an option of either obtaining refund of GST paid or getting
exemption from payment of GST on submission of Letter of Un-
dertaking/Bond. Issue of working capital blockage of the exporters
due to upfront payment of GST on inputs has been addressed. Issue
of gold availability for exporters resolved by allowing Specified
Nominated Agency to import gold without payment of IGST. Mer-
chant exporters have been allowed to pay nominal GST of 0.1% for
procuring goods from domestic suppliers for export.

(b) Capacity Building: In the last two years, 50,000 new and
prospective exporters have been trained under the Niryat Bandhu
outreach programs through the regional offices of DGFT. DGFT
conducted outreach activities at 34 clusters, as part of Niryat
Bandhu. In addition, an online training programme has been started
with the IIFT for first time entrepreneurs.

(c) Role of Services in increasing Exports: To examine the

EXIM policies and procedures from the services view point, a new
services division set up in DGFT. The very successful Global Exhi-
bition on Services has been institutionalized as an annual event to
showcase India’s strengths in the services sector.

(d) New Markets and New products: Focus on increasing Global value chain is one sure way to export more from India.
India’s exports in under and un-tapped markets in high potential However, inputs and products manufactured in GVCs account for
regions like Africa, to cover not just trade in goods and investment two-thirds of the world trade. Sharp reduction in transportation
but also in capacity building, services such as education and health- costs, advancements in information and communication technology,
care. Promoting growth of exports from high value addition and and trade and investment liberalisation have facilitated fragmentation
employment generating sectors with a strong domestic manufac- of the production process across multiple countries. This has re-
turing base, to be the keystone of India’s overall export growth sulted in increasing the importance of Global Value Chains. Based
strategy. on OECD and WTO Trade in Value Added database, OECD has
concluded that India has seen acceleration in its GVC integration.
(e) Trade Infrastructure and Logistics: The Logistics Divi- As evidence, the OECD points out that over the last two decades,
sion in the Department of Commerce was created consequent to the foreign content of India’s exports increased from 10% in 1995
the amendment to the second schedule of the Government of India to 24% in 2011. The sector specific studies on GVC and India shows
(Allocation of Business) Rules, 1961, on 7th July 2017, that allocated automobile industry is often perceived as a success story in GVC.
the task of “Integrated development of Logistics Sector” to the De- India’s automobile industry has achieved a global footprint. Turning
partment of Commerce. The division ids headed by a special secre- to the apparel sector, most of the Indian firms that are integrated
tary to Govt. of India and has been given the mandate to develop into GVCs are full package suppliers to some global brands.
an Action Plan for the integrated development of logistics sector in
the Country, by way of policy changes, improvement in existing pro- The importance of GVC has been steadily increasing in the last
cedures, identification of bottlenecks and gaps and introduction of decades. Around 60% of global trade consists of trade in interme-
technology in this sector. diate goods and services, which are then incorporated at different
stages of production (UNCTAD’s World Investment Report 2013).
Logistics division has also planned to create an IT backbone and The development contribution of GVCs can be significant. In de-
develop a National Logistics Information Portal which will also be veloping countries, value added trade contributes nearly 30 percent
an online Logistics marketplace that will serve to bring together the to countries’ GDP on average as compared to 18 percent in devel-
various stakeholders viz logistics service providers, buyers as well as oped countries. And there is a positive correlation between partici-
Central & State Government agencies such s Customs, DGFT, Rail- pation in GVCs and growth rates of GDP per capita. GVCs have a
ways, Ports, Airports, Inland waterways, Coastal shipping etc., on direct economic impact on value added, jobs and income. They can
single platform. also be an important avenue for developing countries to build pro-
ductive capacity, including through technology dissemination and
The planned activities of the Logistics division shall have an im- skill building, thus opening up opportunities for longer-term indus-
pact not only on the domestic movement of goods by bringing down trial upgrading.

24 | Annual Report 2017-18 | Department of Commerce

 Now the question arises why India’s share with respect to par- banks’ debt recovery mechanisms.
ticipation in GVCs are low? Some of the factors hindering India’s
❉ India should continue with the fiscal consolidation through
active participation in GVCs are the small basket component of
revenue measures, as well as further reductions in subsidies.
India’s trade and weak global share.
❉ Maintain the strong momentum for structural reforms in ad-
Small basket: Poor trade infrastructure increases cost and time dressing the infrastructure gaps, improving the efficiency of
of export operations which prohibit the country from participating labour and product markets as well as furthering agricultural
in GVCs. 70 percent of India’s export earnings come from the small reforms.
basket products. The small basket contains products that account ❉ Reforming the market regulations in order to create a more fa-
for 30% of world trade. The large basket holds the remaining 70 vorable environment for investment and employment, there is
percent. These small basket items include small diamonds, jewellery, a need to reduce the number of labour laws which currently
rice, buffalo meat, shrimps, petroleum, cotton, yarn etc. The small number around 250 across the central and the state level.
size of the global market limits the potential for future growth. Also,
most products face intense competition from low-cost countries ❉ India should also focus on closing the gender gap which may
such as Bangladesh and Vietnam. help a great deal in boosting the employment opportunities for
women
Weak global share: Electronics, telecom, and high-end engi- ❉ Improvements in infrastructure can be one important way to
neering products are large basket items. India has a weak global ex- facilitate the entry of women into the labour force. But in ad-
port share in these commodities. India has an insignificant presence dition, there is a need to strengthening the implementation of
in large basket products that have become important in world trade. specific gender regulations, as well as to invest more in gender
Most large basket products are critical products whose parts are specific training and education.
manufactured in several countries. China, Japan, South Korea, Thai-
land and Malaysia have become part of GVCs through the quality Banking Reforms
trade infrastructure trade. The Government took a massive step to capitalise PSBs in a
front-loaded manner, with a view to support credit growth and job
What India should do to be more participative in GVC? creation. This entails mobilization of capital, with maximum alloca-
India needs to improve connectivity infrastructure and industrial tion in the current year, to the tune of about Rs 2.11 lakh crore over
laws to raise its ranking in world trade. Policy initiative must target all the next two years, through budgetary provisions of Rs 18,139 crore,
parts of the GVC life-cycle from conceptualisation, development of recapitalisation bonds to the tune of Rs 1.35 lakh crore and the bal-
a prototype, to manufacturing, to after-sales service. India needs to ance through raising of capital by banks from the market while di-
set up a National Trade Network (NTN) to enable all export-import luting non-Government equity (estimated potential Rs 58,000 crore).
related compliance online. NTN will allow exporters to file all docu-
ments online at one place; there will be no need to deal with customs, Recapitalisation of PSBs through widely-discussed recapitalisa-
shipping companies, sea and air ports, and banks separately. Automate tion bonds has precedence not only in India but also in many other
port and customs operations and allow green channel clearances countries (Korea and Malaysia, for example). The obvious advan-
(clearance of goods without routine examination of goods) for most tages of such bonds are that they do not alter the fiscal maths, as
consignments. India needs to match the turnaround time of the ships Government earned both dividends and market returns on bank
with the global best parameters. This will ensure quicker transactions shares. The Government need not raise immediate tax revenues and
and allow better use of infrastructure. Indian firms need to upgrade by borrowing directly from the banking system instead of the mar-
production processes and product quality to meet the requirements kets, the Centre can avoid crowding out private borrowings or dis-
of GVCs. India needs to create an institution to develop standards, torting market yield.
set up globally accredited testing laboratories, and sign Mutual Recog-
nition Agreements (MRA) with partner countries. We need to identify Impact of GST on Exports
sectors with higher value addition as well as low entry barriers in global GST has ushered in a new regulatory regime for India’s exports.
markets, to achieve quicker export success. It introduced many positive features for domestic firms as well as
exporters. Firms now pay less number of taxes (one GST replaces
These steps will reduce the cost and time of exporting and in- 17 taxes), less amount of tax (average GST rate for industrial prod-
crease competitiveness. In the medium term, it will decrease India’s ucts is 18% compared to the pre GST tax burden of 25-28%), and
dependence on the import of electronic and telecom goods and in- face less tax on tax incidences. The uniform GST rates across the
crease overall exports from India. states further reduce the tax burden and compliance cost. These
changes reduce cost and improve competitiveness and hence would
There is a plan to develop standards and benchmarking in vari- be beneficial for exports.
ous facets of the sector.
GST treats exports as zero rated supply. This is in line with the
Reforming The Market Regulations in Order to Create a More WTO accepted principles. Initially, the GST law required that all du-
Favorable Environment ties must be paid at the time of sourcing of inputs for export pro-
The IMF during its review in Oct 2017 has suggested a three— duction and refund for these to be obtained after the exports.
pronged approach for structural reform in India that includes ad- However, as the exporters apprehended blockage of working capital,
dressing the corporate and banking sector weaknesses, continued on their request, the GST council in its Oct 6, 2017 meeting decided
fiscal consolidation through revenue measure, and improving the ef- to allow exemption from payment of GST on inputs sourced using
ficiency of labour and product markets. the Advance authorisations, EPCG and the 100% EOU schemes.
An e-Wallet scheme has been announced to replace these exemp-
The fund felt that favorable outlook for Asia was an important tions w.e.f 1st Apr 2018 and ensure electronic accounting of exemp-
opportunity for India to push forward with difficult reforms. The tions/refunds.
fund prescribed: -
❉ Address the corporate and banking sector weaknesses, by ac- We have five months of India’s Export Data (July-November
celerating the resolution of non-performing loans, rebuilding 2017) to assess the impact of GST on exports. Five months is
the capital buffers for the public sector banks, and enhancing too short a period. The exports figure for the period July-No-

Department of Commerce | Annual Report 2017-18 | 25

 vember 2017 over the same period previous year show an increase
Trade Growth Rate and GDP Growth Rate in exports @13.5% in US$ terms. Cumulative value of exports
Years Trade Growth GDP growth rate for the period July-November 2017-18 was US$ 124.27 billion as
rate (2011-12 base year) against US$ 109.48 billion in 2016-17, registering a positive
growth of 13.5 per cent in dollar terms over the same period last
2006-07 30.1 9.6* year.
2007-08 14.8 9.3*
2008-09 32.8 6.7* Conclusion and Way Forward
The trade performance of a country is very closely and insep-
2009-10 -0.3 8.6* arably linked with the country’s overall economic performance.
2010-11 27.7 8.9* With the backdrop of world trade recovery, India’s biggest tax re-
form such as GST and improvement of indicators like Ease of
2011-12 35.1 6.7
Doing Business and investment rating, one may be of optimistic
2012-13 12.9 5.4 view with respect to India’s trade scenario. This will boost robust
2013-14 7.4 6.1 growth forecast with a strong pull factor for inward investments in
the future. By and large, Indian economy is in good state in current
2014-15 0.3 7.2 days, so these reforms will have positive long term impact. To ad-
2015-16 -9.2 7.9 dress the external problems very efficiently, India have to tackle all
2016-17(P) 5.3 6.6 the domestic inadequacies very carefully, no doubt long-term inter-
ventions are needed, but many short and medium term measures
*Converted to base year 2011-12 from 2004-05. such as sector specific economic policies can improve the trade
Source: DGCI&S and RBI ecosystem of the country. ■

26 | Annual Report 2017-18 | Department of Commerce

TRENDS IN INDIA’S
FOREIGN TRADE

Department of Commerce | Annual Report 2017-18 | 27

India’s Trade Performance per cent and the 14th largest importer with a share of 2.2 per cent in 2016.
India’s merchandise exports reached a level of US$ 275.85
billion during April-March 2016-17 registering a positive growth of Exports
5.17 percent as compared to a negative growth of 15.48 percent Exports recorded a positive growth of 11.15 per cent during
during the previous year. Despite the setback faced by India’s export Apr-Nov 2017-18 (P) over the corresponding period of the previous
sector due to global slowdown, merchandise exports recorded a year in US$ terms. The merchandise exports have reached US$
Compound Annual Growth Rate (CAGR) of 6.01 percent from 194.97 billion in Apr-Nov 2017-18 (P).
April-March 2007-08 to April-March 2016-17.
Import
World Trade Scenario Cumulative value of import during Apr-Nov 2017-18 (P) was US$
In latest forecast made by IMF, in its World Economic Outlook 297.82 billion as against US$ 243.30 billion during the corresponding
(WEO) Update, October, 2016, the growth projection for India is 6.7 period of the previous year registering a positive growth of 22.41 per
per cent and 7.4 per cent in years 2017 and 2018. The world output cent in US$ terms. Oil imports were valued at US$ 52.66 billion during
growth is projected at 3.6 per cent and 3.7 per cent for 2017 and 2018 Apr-Nov 2017-18 (P) which was 21.51 per cent higher than oil import
respectively. While the advanced economies are expected to grow at valued at US$ 43.34 billion in the corresponding period of previous
2.2 per cent and 2.0 per cent in 2017 and 2018 respectively, growth year. Non-oil imports were valued at US$ 245.16 billion during Apr-
of emerging and developing economies is projected at 4.6 per cent Nov 2017-18 (P) which was 22.61 per cent higher than non-oil import
and 4.9 per cent for 2017 and 2018 respectively. of US$ 199.96 billion in previous year.

The growth in world trade volume has decreased in 2016 to 2.4 Trade Balance
per cent from 2.8 per cent in 2015; it is expected to improve to 4.2 The trade deficit in Apr-Nov 2017-18 (P) was estimated at US$
per cent in 2017 and to 4.0 per cent in 2018. 102.85 billion which was higher than the deficit of US$ 67.89 billion
during the corresponding period of the previous year. Performance of
As per WTO’s World Trade Statistical Review 2017, in merchandise Exports, Import and Balance of Trade both in Rupee and Dollar terms
trade, India is the 20th largest exporter in the world with a share of 1.7 during 2007-08 to 2017-18 (Apr-Nov) (P) is given in the tables below:

Table A: Trade Data for period 2007-08 to 2017-18 (P) (Values in Rs Crore)
S.No Year Exports %Growth Imports %Growth Trade Balance
1 2007-2008 655864 14.71 1012312 20.44 -356448
2 2008-2009 840755 28.19 1374436 35.77 -533680
3 2009-2010 845534 0.57 1363736 -0.78 -518202
4 2010-2011 1136964 34.47 1683467 23.45 -546503
5 2011-2012 1465959 28.94 2345463 39.32 -879504
6 2012-2013 1634318 11.48 2669162 13.8 -1034844
7 2013-2014 1905011 16.56 2715434 1.73 -810423
8 2014-2015 1896348 -0.45 2737087 0.8 -840738
9 2015-2016 1716378 -9.49 2490298 -9.02 -773920
10 2016-2017 1849429 7.75 2577666 3.51 -728237
April-November 2016-17 1174997 1630200 -455203
April-November 2017-18 (P) 1258014 7.07 1921823 17.89 -663809
Data Source: DGCIS, Kolkata

Table B: Trade Data for period 2007-08 to 2017-18 (P) Values in US$ Million
S.No Year Exports %Growth Imports %Growth Trade Balance
1 2007-2008 163132 29.05 251654 35.49 -88522
2 2008-2009 185295 13.59 303696 20.68 -118401
3 2009-2010 178751 -3.53 288373 -5.05 -109621
4 2010-2011 249816 39.76 369769 28.23 -119954
5 2011-2012 305964 22.48 489319 32.33 -183356
6 2012-2013 300401 -1.82 490737 0.29 -190336
7 2013-2014 314405 4.66 450200 -8.26 -135794
8 2014-2015 310338 -1.29 448033 -0.48 -137695
9 2015-2016 262290 -15.48 381007 -14.96 -118717
10 2016-2017 275852 5.17 384356 0.88 -108504
April-November 2016-17 175411 243297 -67886
April-November 2017-18 (P) 194971 11.15 297822 22.41 -102852
Data Source: DGCIS, Kolkata

28 | Annual Report 2017-18 | Department of Commerce

 Chart 3.1
Year-on-Year Export Growth during 2017-18 (Apr-Nov) (P) in $ terms

Data Source: DGCIS, Kolkata

Exports by Principal Commodities:

Disaggregated data on exports of Prin- Chart 3.2
cipal Commodities, both in Rupee and Dol- Share of Top Five Commodities in
lar terms available for the period Apr-Oct India’s Export Apr-Oct 2017-18 (P)
2017-18 (P) as compared to Apr-Oct 2016-
17 are given in Table 3.1 and Table 3.2 re-
spectively in the appendix. Exports of the
top five commodities during the period
Apr-Oct 2017-18 (P) registered a share of
32.97 per cent mainly due to significant
contribution in the exports of Petroleum
Products; Pearl, precious, semi-precious
Stones; Gold and other Precious Metal Jew-
ellery; Drug Formulations Biological; and
Iron and Steel. The share of top five com-
modities in India’s total exports during
2017-18 (Apr-Oct) (P) is given at Chart 3.2:

The export performance (in terms of

growth) of top five commodities during
Apr-Oct 2017-18 (P) vis-a-vis the corre-
sponding period of the previous year is Data Source: DGCIS, Kolkata
shown in Chart 3.3:

Chart 3.3
Growth of Top Five Exports during 2016-17 (Apr-Oct) & 2017-18 (Apr-Oct) (P)

Data Source: DGCIS, Kolkata

Department of Commerce | Annual Report 2017-18 | 29

Plantation Crops and Plastic sheet, film, plates etc. by 17.82 per cent.
Export of Plantation crops during 2017-18 (Apr-Oct) (P), in-
creased by 16.78 per cent in US$ terms compared to corresponding Articles of Stone, Plaster, Cement Asbestos, Mica or similar
period of the previous year. This is mainly due to double digit materials, Ceramic products, Glass and Glassware
growth in Tea and Coffee and more than 300 per cent growth in During the period 2017-18 (Apr-Oct) (P), the export of goods
Natural rubber in 2017-18 (Apr-Oct) (P). in this category increased to US$ 2,575.19 million from US$ 2,390.53
million in the corresponding period of the previous year registering
Agriculture and Allied Products a positive growth of 7.72 per cent. All the commodities under this
Agriculture and Allied Products as a group include Rice-Basmati; commodity group registered a positive growth in the said period.
Non-Basmati; Other Cereals; Pulses; Tobacco; Spices; Cashew; Meat;
Fresh Fruits & Vegetables, etc. During 2017-18 (Apr-Oct) (P), export Paper & Related products
increased to US$ 15,353.04 million from US$ 13,559.89 million in During the period 2017-18 (Apr-Oct) (P), the export of Paper
the previous year registering a positive growth of 13.22 per cent. & Related products marginally increased to US$ 1,452.53 million
This is mainly because, out of 40 commodities under this commod- from US$ 1,421.74 million in the corresponding period of the pre-
ity group, 23 commodities registered a positive growth during the vious year registering a positive growth of 2.17 per cent. Under this
said period. commodity group, except for Books, publications and printing and
Pulp & Waste Paper; all commodities in this group have shown a
Marine Products positive growth.
During 2017-18 (Apr-Oct) (P), export of marine products reg-
istered a positive growth of 29.08 per cent reaching a value of US$ Base Metals
4,479.12 million from US$ 3,470.04 million in the corresponding pe- During the period 2017-18 (Apr-Oct) (P), the export of Base
riod of the previous year. Metals increased to US$ 15,436.23 million from US$ 10,777.27 mil-
lion in the corresponding period of the previous year registering a
Ores and Minerals positive growth of 43.23 per cent. This is mainly because, all com-
During 2017-18 (Apr-Oct) (P), export of Ores and Minerals in- modities in this group have registered positive growth during the pe-
creased to US$ 1,681.98 million from US$ 1,440.52 million in the riod except for Nickel, Product made of Nickel.
corresponding period of the previous year registering a positive
growth of 16.76 per cent. This is mainly due to positive growth in Optical, Medical & Surgical Instruments
exports of Iron Ore by 41.53 per cent and Coal, coke & Briquettes, During the period 2017-18 (Apr-Oct) (P), export of Optical,
etc. by 25.17 per cent. Medical & Surgical Instruments increased to US$ 1,247.00 million
compared to US$ 1,069.47 million in the corresponding period of
Leather and Leather Manufactures the previous year registering a positive growth of 16.60 per cent. All
Export of Leather and Leather Manufactures recorded a positive commodities in this group have registered positive growth in the
growth of 0.79 per cent during 2017-18 (Apr-Oct) (P) as the value said period.
of exports increased to US$ 3,178.84 million from US$ 3,153.92 mil-
lion in the corresponding period of the previous year. Electronic Items
During the period 2017-18 (Apr-Oct) (P), export of Electronic
Gems and Jewellery Items increased to US$ 3,350.08 million from US$ 3,283.40 million
Export of Gems and Jewellery decreased to US$ 24,655.45 mil- in the corresponding period of the previous year registering positive
lion in 2017-18 (Apr-Oct) (P) from US$ 26,602.43 million in the cor- growth of 2.03 per cent. Except for Consumer Electronics all com-
responding period of the previous year registering a negative growth modities in this group have registered a positive growth in this
of 7.32 per cent. This is mainly due to the fall in exported value of group.
Pearl, precious, semiprecious stones and Gold by 3.07 per cent and
43.83 per cent respectively. Machinery
Machinery export during the period 2017-18 (Apr-Oct) (P) in-
Sports Goods creased to US$ 13,268.78 million compared to US$ 11,582.17 million
During the period 2017-18 (Apr-Oct) (P), the export of Sports in the corresponding period of the previous year registering a posi-
Goods increased to US$ 145.66 million from US$ 144.09 million in tive growth of 14.56 per cent. Under this commodity group, 12 out
the corresponding period of the previous year registering a positive of 15 commodities have registered positive growth during the pe-
growth of 1.09 per cent. riod.

Chemicals and Related Products Office Equipments

During the period 2017-18 (Apr-Oct) (P), the export of Chem- During the period 2017-18 (Apr-Oct) (P), the export of Office
icals and Related Products increased to US$ 20,377.31 million from Equipments decreased to US$ 52.67 million from US$ 63.77 million
US$18,724.01 million in the corresponding period of the previous in the corresponding period of the previous year registering a neg-
year registering a positive growth of 8.83 per cent. This is mainly ative growth of 17.41 per cent.
due to positive growth in exports of Dyes by 5.23 per cent, Agro
Chemicals by 15.05 per cent, Inorganic Chemicals by 35.77 per cent, Transport Equipments
Organic Chemicals by 38.23 per cent and Residual Chemicals & Al- During the period 2017-18 (Apr-Oct) (P), the export of Trans-
lied Products by 12.01 per cent. port Equipments increased to US$ 13,341.62 million compared to
US$12,789.09 million in the corresponding period of the previous
Plastic & Rubber Articles year registering a positive growth of 4.32 per cent. This is mainly
During the period 2017-18 (Apr-Oct) (P), the export of Plastic because all the commodities in this group have registered a positive
& Rubber Articles increased to US$ 4,101.49 million from US$ growth except for Aircraft, Spacecraft & Parts.
3,655.37 million in the corresponding period of the previous year
registering a positive growth of 12.20 per cent. This is mainly due Project Goods
to positive growth in exports of Other rubber product except During the period 2017-18 (Apr-Oct) (P), the export of Project
footwear by 17.87 per cent, Plastic raw materials by 17.67 per cent Goods decreased to US$ 3.31 million from US$ 17.05 million in the

30 | Annual Report 2017-18 | Department of Commerce

corresponding period of the previous year registering a negative registering a rise of 16.45 per cent.
growth of 80.58 per cent.
Import by Principal Commodities
Textiles & Allied Products Disaggregated data on import by principal commodities, both
During the period 2017-18 (Apr-Oct) (P), the export of Textiles in Rupee and Dollar terms; available for the period Apr-Oct 2017-
& Allied Products was US$ 20,411.65 million compared to US$ 18 (P) as compared to Apr-Oct 2016-17 are given in Table 3.3 and
19,625.18 million in the corresponding period of the previous year Table 3.4 respectively. Import of the top five commodities during
registering a positive growth of 4.01 per cent. During the period, the period Apr-Oct 2017-18 (P) registered a share of 42.49 per cent
out of 25 commodities under this group, 15 commodities have reg- mainly due to significant import of Petroleum Crude; Gold; Pearls,
istered a positive growth. precious and semi-precious stones; Telecom Instruments; and Coal,
Coke and Briquettes etc.
Petroleum Crude & Products
Export of Petroleum Crude & Products increased to US$ The share of top five commodities in India’s total import during
20,012.44 million during 2017-18 (Apr-Oct) (P) as compared to US$ 2017-18 (Apr-Oct) (P) is given at Chart 3.4 below:
17,185.66 million in the corresponding period of the previous year

Chart 3.4
Share of Top Five Commodities in India's Import Apr-Oct 2017-18 (P)

Data Source: DGCIS, Kolkata

The import performance by growth of top five Principal commodities during 2017-18 (Apr-Oct) (P) vis-a-vis the corresponding period
of the previous year is shown at Chart 3.5:

Chart 3.5
Growth of Top Five Imports during 2016-17 (Apr-Oct) & 2017-18 (Apr-Oct)(P)

Data Source: DGCIS, Kolkata

Department of Commerce | Annual Report 2017-18 | 31

Plantation Crops Articles of Stone, Plaster, Cement Asbestos, Mica or similar
Import of Plantation crops during 2017-18 (Apr-Oct) (P) in- materials, Ceramic products, Glass and Glassware
creased by 19.46 per cent in US$ terms. The value of import in- During the period 2017-18 (Apr-Oct) (P), import of goods in
creased from US$ 525.91 million in 2016-17 (Apr-Oct) to US$ this category increased to US$ 1,575.96 million from US$ 1,355.69
628.28 million in 2017-18 (Apr-Oct) (P). All the commodities in this million in the corresponding period of the previous year registering
group have reflected a positive growth. a positive growth of 16.25 per cent. Except for Granite, Natural
Stone & Product; all commodities in this group have registered a
Agriculture and Allied Products positive growth.
During 2017-18 (Apr-Oct) (P), import of Agriculture and
Allied Products increased by 15.13 per cent over the correspon- Paper & Related products
ding period of the previous year. The value of import increased During the period 2017-18 (Apr-Oct) (P), import of Paper &
from US$ 12,201.53 million in 2016-17 (Apr-Oct) to Related Products increased to US$ 4,912.21 million from US$
US$14,047.85 million in 2017-18 (Apr-Oct) (P). Out of 39 com- 4,119.39 million in the corresponding period of the previous year
modities under this group, 10 have registered negative growth registering a positive growth of 19.25 per cent. All commodities
during this period. under this group have registered positive growth during the period.

Marine Products Base Metals

During 2017-18 (Apr-Oct) (P), import of marine products de- During the period 2017-18 (Apr-Oct) (P), import of Base Metals
creased to US$ 55.15 million from US$ 56.81 million in the corre- increased to US$ 15,483.56 million from US$ 12,413.78 million in
sponding period of the previous year registering a negative growth the corresponding period of the previous year registering a positive
of 2.92 per cent. growth of 24.73 per cent. Except for Zinc and products made of
zinc; all commodities in this group have registered a positive growth.
Ores and Minerals
During 2017-18 (Apr-Oct) (P), import of Ores and Minerals in- Optical, Medical & Surgical Instruments
creased to US$ 16,925.31 million from US$ 10,845.77 million in the During the period 2017-18 (Apr-Oct) (P), import of Optical,
corresponding period of the previous year registering a positive Medical & Surgical Instruments was US$ 3,022.14 million compared
growth of 56.05 per cent. All the commodities in this group have to US$ 2,471.41 million in the corresponding period of the previous
reflected a positive growth except Sulphur, unroasted iron pyrite year registering a positive growth of 22.28 per cent. This is mainly
which fell by 14.83 per cent. due to the fact that all commodities under this group have registered
positive growth during the period.
Leather and Leather Manufactures
Import of Leather and Leather Manufactures recorded a Electronic Items
positive growth of 3.16 per cent during 2017-18 (Apr-Oct) During the period 2017-18 (Apr-Oct) (P), import of Electronic
(P) as the value of import increased to US$ 612.94 million Items was US$ 29,787.41 million compared to US$ 22,806.10 million
from US$ 594.17 million in the corresponding period of the in the corresponding period of the previous year registering a posi-
previous year. This is mainly due to rise in the growth rate of tive growth of 30.61 per cent. All commodities under this group
Finished Leather and Footwear of Leather which exhibits have registered positive growth during the period.
positive g rowth of 2.48 per cent and 14.27 per cent
respectively. Machinery
During the period 2017-18 (Apr-Oct) (P), import of Machinery
Gems & Jewellery was US$ 21,544.20 million compared to US$ 18,541.30 million in the
During 2017-18 (Apr-Oct) (P), import of Gems & Jewellery in- corresponding period of the previous year registering a positive
creased to US$ 43,671.70 million from to US$ 26,451.21 million in growth of 16.20 per cent. Except for Nuclear reactor, including boiler,
the corresponding period of the previous year registering a positive parts; all commodities in this group have registered a positive growth.
growth of 65.10 per cent. All commodities in this group registered
positive growth. Office Equipments
During the period 2017-18 (Apr-Oct) (P), import of Office
Sports Goods Equipments decreased to US$ 29.59 million from US$ 46.23 million
During the period 2017-18 (Apr-Oct) (P), import of Sports in the corresponding period of the previous year registering a neg-
Goods increased to US$ 164.41 million from US$ 128.81 million in ative growth of 36.00 per cent.
the corresponding period of the previous year registering a positive
growth of 27.64 per cent. Transport Equipments
During the period 2017-18 (Apr-Oct) (P), import of Transport
Chemicals and Related Products Equipments stood at US$ 8,133.37 million compared to US$
During the period 2017-18 (Apr-Oct) (P), the import of Chem- 10,145.37 million in the corresponding period of the previous year
icals and Related Products increased to US$ 22,960.92 million from registering a negative growth of 19.83 per cent. This is mainly due
US$ 20,369.57 million in the corresponding period of the previous to fall in the imports of Aircraft, Spacecraft & Parts and Ship, boat
year registering a positive growth of 12.72 per cent. Out of 15 com- and Floating structure with negative growth of 41.21 per cent and
modities under this group, 11 have registered positive growth during 25.75 per cent respectively.
this period.
Project Goods
Plastic & Rubber Articles Import of Project Goods increased to US$ 1,251.53 million dur-
During the period 2017-18 (Apr-Oct) (P), import of Plastic ing 2017-18 (Apr-Oct) (P) as compared to US$ 1,132.13 million in
& Rubber Articles increased to US$ 9,854.17 million from US$ the corresponding period of the previous year showing a rise of
8,334.77 million in the corresponding period of the previous 10.55 per cent.
year registering a positive growth of 18.23 per cent. All com-
modities under this group have registered positive growth during Textiles & Allied Products
the period. During the period 2017-18 (Apr-Oct) (P), import of Textiles &

32 | Annual Report 2017-18 | Department of Commerce

Allied Products was US$ 3,873.79 million compared to US$ 3,490.14 Oct) (P) are given in Chart 3.6 and 3.7 respectively.
million in the corresponding period of the previous year registering
a positive growth of 10.99 per cent. Out of 25 commodities under During the period 2017-18 (Apr-Oct) (P), the share of Asia
this category, 19 have registered positive growth in imports during comprising of East Asia, ASEAN, West Asia, Other West Asia,
the period. North East Asia and South Asia accounted for 49.39 per cent of
India’s total exports. The share of America and Europe in India’s
Petroleum Crude &Products exports stood at 21.09 per cent and 19.24 per cent respectively of
Import of Petroleum Crude & Products increased to US$ which EU countries (27) comprises 17.07 per cent. During the pe-
55,786.90 million during 2017-18 (Apr-Oct) (P) as compared to US$ riod, USA (16.06 per cent) has been the most important country of
46,788.46 million in the corresponding period of the previous year export destination followed by UAE (10.14 per cent), Hong Kong
registering a positive growth of 19.23 per cent. This is due to the (5.22 per cent), China P REPUBLIC (3.98 per cent) and Singapore
rise in value of imports of Petroleum Crude by 19.12 per cent and (3.72 per cent).
Petroleum products by 19.69 per cent during the period.
Asia accounted for 60.49 per cent of India’s total import during
Direction of India’s Foreign Trade the period 2017-18 (Apr-Oct) (P), followed by Europe (14.78 per
The value of India’s exports and imports from major cent) and America (11.81 per cent). Among individual countries the
regions/countries both in Rupee and Dollar terms are given in Table share of China (16.86 per cent) stood highest followed by USA (5.47
3.5, 3.6, 3.7 and 3.8 respectively. Share of major destinations of per cent), UAE (5.01 per cent), Saudi Arabia (4.65 per cent) and
India’s Exports and major sources of Import during 2017-18 (Apr- Switzerland (4.38 per cent).

Chart 3.6
Major Destinations of India's Exports for Apr-Oct 2017-18 (P) in US$ terms

Data Source: DGCIS, Kolkata

Chart 3.7
Major Sources of India's Imports for Apr-Oct 2017-18 (P) in $ terms

Data Source: DGCIS, Kolkata

Department of Commerce | Annual Report 2017-18 | 33

 ANNEXURE TABLES
TABLE 3.1
Export of Principal Commodities
(Values in US$ Million)
Commodity Apr-Mar Apr-Mar Apr-Oct Apr-Oct % Growth % Share
2015-16 2016-17 2016-17 2017-18(P)
1. Plantation 1,562.60 1,611.74 895.02 1,045.25 16.78 0.62
Tea 720.03 731.26 410.7 462.56 12.63 0.27
Coffee 783.87 842.84 481.81 572.25 18.77 0.34
Natural Rubber 58.7 37.65 2.51 10.44 315.37 0.01
2. Agri & Allied Products 24,521.93 24,549.19 13,559.89 15,353.04 13.22 9.07
Rice -Basmati 3,477.98 3,208.60 1,817.08 2,355.79 29.65 1.39
Rice (Other Than Basmati) 2,368.64 2,525.19 1,414.15 1,993.98 41 1.18
Wheat 164.22 66.85 52.02 43 -17.34 0.03
Other Cereals 261.18 212.3 120.85 117.33 -2.91 0.07
Pulses 252.11 191.05 116.76 122.67 5.06 0.07
Tobacco Unmanufactured 665.33 634.38 361.86 337.6 -6.71 0.2
Tobacco Manufactured 316.68 324.31 194.09 187.23 -3.54 0.11
Spices 2,541.46 2,851.95 1,644.38 1,743.40 6.02 1.03
Cashew 768.55 786.93 396.61 568.96 43.46 0.34
Cashew Nut Shell Liquid 8.83 6.56 4.14 2.91 -29.74 0
Sesame Seeds 459.77 402.17 244.02 238.55 -2.24 0.14
Niger Seeds 18.99 17.46 9.47 5.58 -41.08 0
Groundnut 620.36 809.6 315.75 234.03 -25.88 0.14
Other Oil Seeds 147.77 126 46.99 93.81 99.64 0.06
Vegetable Oils 79.93 116.29 62.46 49.51 -20.73 0.03
Oil Meals 553.01 805.45 267.65 526.94 96.88 0.31
Guergam Meal 496.57 463.35 216.2 352.07 62.85 0.21
Castor Oil 705.2 674.73 388.64 627.57 61.48 0.37
Shellac 30.9 33.6 16.33 25.22 54.41 0.01
Sugar 1,490.52 1,290.71 734.32 556.88 -24.16 0.33
Molasses 101 47.06 41.62 8 -80.79 0
Fruits / Vegetable Seeds 80.89 78.16 46.23 64.9 40.4 0.04
Fresh Fruits 635.49 743.23 321.53 311.48 -3.12 0.18
Fresh Vegetables 799.93 863.12 498.95 410.66 -17.69 0.24
Processed Vegetables 258.92 263.57 152.82 156.11 2.15 0.09
Processed Fruits And Juices 574.46 584.79 330.91 351.7 6.28 0.21
Cereal Preparations 513.03 531.7 316.07 312.56 -1.11 0.18
Cocoa Products 193.31 162.18 102.14 95.47 -6.53 0.06
Milled Products 169.12 121.37 74.8 75.01 0.29 0.04
Misc. Processed Items 444.28 455.59 274.56 312.09 13.67 0.18
Animal Casings 2.61 2.06 1.34 20.15 1,399.28 0.01
Buffalo Meat 4,069.08 3,903.49 2,264.05 2,291.07 1.19 1.35
Sheep/Goat Meat 128.38 129.69 78.15 83.91 7.37 0.05
Other Meat 0.03 0.03 0.99 3,119.09 0
Processed Meat 0.96 0.69 0.25 0.52 110.14 0

34 | Annual Report 2017-18 | Department of Commerce

 ANNEXURE TABLES
TABLE 3.1
Export of Principal Commodities
(Values in US$ Million)
Commodity Apr-Mar Apr-Mar Apr-Oct Apr-Oct % Growth % Share
2015-16 2016-17 2016-17 2017-18(P)
Dairy Products 256.93 253.73 134.73 155.12 15.14 0.09
Poultry Products 117.42 79.11 44.63 44.23 -0.89 0.03
Floriculture Products 73.8 81.55 48.76 46.35 -4.95 0.03
Alcoholic Beverages 310.31 298.9 169.99 186.96 9.98 0.11
Ayush And Herbal Products 364 401.68 234.57 242.73 3.48 0.14
3. Marine Products 4,767.50 5,903.06 3,470.04 4,479.12 29.08 2.64
Marine Products 4,767.50 5,903.06 3,470.04 4,479.12 29.08 2.64
4. Ores & Minerals 2,014.92 3,255.61 1,440.52 1,681.98 16.76 0.99
Iron Ore 191.46 1,533.53 557.12 788.5 41.53 0.47
Mica 52.72 55.83 31.36 36.65 16.87 0.02
Coal, Coke And Briquettes Etc. 160.45 164.57 48.37 60.55 25.17 0.04
Bulk Minerals And Ores 550.51 419.21 211.23 219.18 3.76 0.13
Processed Minerals 872.82 898.51 491.18 477 -2.89 0.28
Sulphur, Unroasted Iron Pyrite 78.93 52.13 29.86 33.7 12.88 0.02
Other Crude Minerals 108.02 131.84 71.41 66.4 -7.01 0.04
5. Leather & Leather Manufactures 5,554.34 5,308.30 3,153.92 3,178.84 0.79 1.88
Raw Hides And Skins 0.28 0.33 0.08 0.16 104.29 0
Finished Leather 1,049.26 887.03 535.71 526.12 -1.79 0.31
Leather Goods 1,370.84 1,316.59 778.11 790.4 1.58 0.47
Leather Garments 553.98 535.37 331.59 319.09 -3.77 0.19
Footwear of Leather 2,148.41 2,127.90 1,247.28 1,259.58 0.99 0.74
Leather Footwear Component 285.1 298.71 175.68 192.77 9.72 0.11
Saddlery And Harness 146.47 142.37 85.45 90.72 6.16 0.05
6. Gems & Jewellery 39,283.46 43,412.76 26,602.43 24,655.45 -7.32 14.56
Pearl, Precious, Semi-precious Stones 22,297.26 24,923.77 15,465.96 14,991.24 -3.07 8.85
Gold 5,573.54 6,121.43 3,551.76 1,994.94 -43.83 1.18
Silver 7.35 11.29 6.62 5.38 -18.68 0
Other Precious And Base Metals 447.29 421.66 195.91 232.88 18.87 0.14
Gold & Other Precious 10,958.01 11,934.61 7,382.19 7,431.01 0.66 4.39
Metal Jewellery
7. Sports Goods 227.7 224.83 144.09 145.66 1.09 0.09
Sports Goods 227.7 224.83 144.09 145.66 1.09 0.09
8. Chemicals & Related Products 32,169.23 32,779.30 18,724.01 20,377.31 8.83 12.03
Fertilizers Crude 11.83 9.17 5.12 7.13 39.23 0
Fertilizers Manufactured 91.7 60.33 27.51 33.45 21.56 0.02
Bulk Drugs, Drug Intermediates 3,597.28 3,383.52 1,952.37 1,941.29 -0.57 1.15
Dye Intermediates 181.14 185.08 108.4 114.6 5.72 0.07
Dyes 1,873.95 1,923.12 1,142.56 1,202.29 5.23 0.71
Drug Formulations, Biologicals 12,647.84 12,666.44 7,465.91 7,249.75 -2.9 4.28
Agro Chemicals 1,965.71 2,140.73 1,130.93 1,301.16 15.05 0.77

Department of Commerce | Annual Report 2017-18 | 35

 ANNEXURE TABLES
TABLE 3.1
Export of Principal Commodities
(Values in US$ Million)
Commodity Apr-Mar Apr-Mar Apr-Oct Apr-Oct % Growth % Share
2015-16 2016-17 2016-17 2017-18(P)
Inorganic Chemicals 628.2 727.63 381.32 517.73 35.77 0.31
Organic Chemicals 4,859.52 4,844.39 2,648.26 3,660.78 38.23 2.16
Other Miscellaneous Chemicals 673.64 640.2 354.16 404.44 14.2 0.24
Cosmetics And Toiletries 1,356.58 1,454.15 833.39 941.68 12.99 0.56
Essential Oils 115.44 112.45 61.81 84.96 37.45 0.05
Residual Chemical & Allied Prod 3,505.17 3,894.92 2,175.79 2,437.02 12.01 1.44
Paint, Varnish & Allied Product 594.73 662.39 391.47 430.48 9.97 0.25
Graphite, Explosives 66.49 74.78 45.01 50.57 12.35 0.03
& Accessories
9. Plastic & Rubber Articles 6,415.86 6,438.39 3,655.37 4,101.49 12.2 2.42
Other Rubber Product 922.3 961.33 536.03 631.81 17.87 0.37
Except Footwear
Footwear of Rubber/Canvas Etc. 308.15 338.55 204 195.28 -4.27 0.12
Moulded And Extruded Goods 1,049.22 1,032.33 585.15 609.6 4.18 0.36
Plastic Raw Materials 2,491.33 2,508.93 1,391.77 1,637.77 17.67 0.97
Plastic Short, Film, Plates Etc. 1,030.51 1,020.56 591.88 697.37 17.82 0.41
Stationary/Office, School Supply 244.09 231.37 145.01 129.82 -10.47 0.08
Other Plastic Items 370.27 345.31 201.53 199.83 -0.84 0.12
10. Articles of Stone, Plaster, 3,879.36 4,087.58 2,390.53 2,575.19 7.72 1.52
Cement, Asbestos, Mica Or
Similar Materials; Ceramic
Products; Glass And Glassware
Granite, Natural Stone & Product 1,832.35 1,856.08 1,073.18 1,130.82 5.37 0.67
Cement, Clinker & Asbestos Cement 335.62 374.87 217.91 232.22 6.57 0.14
Ceramics And Allied Products 990.21 1,175.13 683.01 792.19 15.99 0.47
Glass And Glassware 721.19 681.5 416.44 419.96 0.85 0.25
11. Paper & Related Products 2,347.60 2,335.17 1,421.74 1,452.53 2.17 0.86
Books, Publications & Printing 285.48 280.97 170.96 150.5 -11.97 0.09
Newsprint 2.67 2.42 1.65 2.2 33.84 0
Paper, Paper Board & Product 1,184.56 1,217.89 759.49 784.54 3.3 0.46
Plywood & Allied Products 777.69 781.52 473.93 490.77 3.55 0.29
Other Wood & Wood Products 85.88 45.35 10.02 23.86 138.07 0.01
Pulp & Waste Paper 11.32 7.01 5.7 0.66 -88.48 0
12. Base Metals 18,497.79 21,890.32 10,777.27 15,436.23 43.23 9.12
Iron And Steel 5,492.75 8,683.01 3,882.19 6,151.88 58.46 3.63
Products of Iron & Steel 6,134.95 5,895.44 3,320.87 3,800.23 14.43 2.24
Aluminium, Products of Aluminium 2,639.77 3,244.69 1,686.45 2,559.56 51.77 1.51
Copper & Products Made of Copper 2,539.74 2,672.94 1,294.50 1,968.44 52.06 1.16
Lead And Products Made of Led 181.53 236.89 79.91 191.07 139.11 0.11
Nickel, Product Made of Nickel 492.88 92.65 65.05 27.61 -57.56 0.02
Tin And Products Made of Tin 57.22 8.84 3.33 6.53 95.78 0

36 | Annual Report 2017-18 | Department of Commerce

 ANNEXURE TABLES
TABLE 3.1
Export of Principal Commodities
(Values in US$ Million)
Commodity Apr-Mar Apr-Mar Apr-Oct Apr-Oct % Growth % Share
2015-16 2016-17 2016-17 2017-18(P)
Zinc And Products Made of Zinc 527.07 609.71 187.79 445.96 137.48 0.26
Other Non-Ferrous Metal & Product 431.88 446.17 257.18 284.96 10.8 0.17
13. Optical, Medical & 1,635.07 1,889.58 1,069.47 1,247.00 16.6 0.74
Surgical Instruments
Surgicals 302.88 333.36 193.84 211.68 9.21 0.12
Optical Items (Incl. Lens Etc.) 342.96 379.53 214.82 262.3 22.1 0.15
Medical & Scientific Instrument. 989.24 1,176.69 660.81 773.02 16.98 0.46
14. Electronics Items 5,690.23 5,689.18 3,283.40 3,350.08 2.03 1.98
Computer Hardware, Peripherals 358.18 262.38 149.05 152.95 2.62 0.09
Consumer Electronics 651.48 583.85 353.26 214.01 -39.42 0.13
Electronics Components 1,842.05 1,789.41 1,060.67 1,169.21 10.23 0.69
Electronics Instruments 1,962.80 2,009.94 1,128.94 1,158.39 2.61 0.68
Telecom Instruments 875.72 1,043.60 591.48 655.52 10.83 0.39
15. Machinery 18,922.31 20,151.74 11,582.17 13,268.78 14.56 7.84
Electrodes 42.53 40.68 24.25 24.89 2.64 0.01
Accumulators And Batteries 203.3 233.07 131.13 144.04 9.85 0.09
Hand Tool, Cutting Tool of Metals 640.6 638.95 379.24 401.95 5.99 0.24
Machine Tools 392.35 452.01 271.19 269.79 -0.51 0.16
Ac, Refrigeration Machinery Etc. 1,048.09 983.59 570.15 626.03 9.8 0.37
Cranes, Lifts And Winches 423.63 386.28 248.68 185.25 -25.51 0.11
Electric Machinery & Equipment 3,689.51 4,742.25 2,690.75 3,338.52 24.07 1.97
IC Engines And Parts 2,106.23 2,115.14 1,262.11 1,467.57 16.28 0.87
Industrial. Machinery For Dairy Etc. 4,641.95 4,640.98 2,613.40 2,874.68 10 1.7
ATM, Injecting Melding 1,262.83 1,268.77 715.72 851.06 18.91 0.5
Machinery Etc.
Nuclear Reactor, 680.77 669.96 411.98 330.69 -19.73 0.2
Industrial Boiler, Part
Other Construction Machinery 1,077.86 1,067.42 575.57 737.91 28.21 0.44
Other Misc. Engineering Items 1,988.33 2,132.95 1,261.74 1,460.60 15.76 0.86
Prime Mica And Mica Products 17.15 18.17 10.18 12.57 23.43 0.01
Pumps Of All Types 707.18 761.5 416.07 543.22 30.56 0.32
16. Office Equipments 89.49 117.92 63.77 52.67 -17.41 0.03
Office Equipments 89.49 117.92 63.77 52.67 -17.41 0.03
17. Transport Equipments 21,336.08 23,163.13 12,789.09 13,341.62 4.32 7.88
Auto Tires And Tubes 1,387.25 1,494.25 848.15 984.6 16.09 0.58
Auto Components/Parts 4,217.37 4,205.38 2,465.19 2,817.97 14.31 1.66
Bicycle And Parts 298.44 293.68 169.16 179.42 6.07 0.11
Aircraft, Spacecraft & Parts 3,729.36 3,381.66 1,900.21 1,302.20 -31.47 0.77
Motor Vehicle/Cars 6,727.44 7,547.45 4,319.86 4,326.72 0.16 2.55
Railway Transport 109.93 231.92 113.49 179.84 58.46 0.11
Equipments, Parts

Department of Commerce | Annual Report 2017-18 | 37

 ANNEXURE TABLES
TABLE 3.1
Export of Principal Commodities
(Values in US$ Million)
Commodity Apr-Mar Apr-Mar Apr-Oct Apr-Oct % Growth % Share
2015-16 2016-17 2016-17 2017-18(P)
Ship, Boat & Floating Structure 3,088.46 4,370.60 2,024.15 2,420.26 19.57 1.43
Two And Three Wheelers 1,777.84 1,638.19 948.88 1,130.61 19.15 0.67
18. Project Goods 25.13 28.74 17.05 3.31 -80.58 0
Project Goods 25.13 28.74 17.05 3.31 -80.58 0
19. Textiles & Allied Products 35,952.65 35,766.63 19,625.18 20,411.65 4.01 12.05
Manmade Staple Fiber 540.41 594.24 322.73 368.84 14.29 0.22
Cotton Yarn 3,608.12 3,337.49 1,702.29 1,784.80 4.85 1.05
Cotton Fabrics, Made-ups Etc. 5,266.17 5,212.53 3,041.82 3,113.64 2.36 1.84
Other Textile Yarn, 335.69 358.21 205.45 227.16 10.57 0.13
Fabric made-up Article
Silk, Raw 0.22 0.07 0.02 0 -97.96 0
Natural Silk Yarn, Fabrics, made-up 84.05 61.81 39.24 31.82 -18.92 0.02
Manmade Yarn, Fabrics, Made-up 4,621.63 4,557.08 2,637.34 2,756.00 4.5 1.63
Wool, Raw 0.44 0.22 0.14 0.33 141.99 0
Woolen Yarn, Fabrics, Made-up etc. 196.44 174.87 98.79 97.7 -1.11 0.06
RMG Cotton Include Accessories 9,091.55 8,513.22 4,837.67 4,745.32 -1.91 2.8
RMG Silk 244.06 141.71 67.22 90.8 35.08 0.05
RMG Manmade Fibers 4,181.71 5,035.94 2,726.61 3,116.83 14.31 1.84
RMG Wool 262.37 214.5 146.87 108.3 -26.26 0.06
RMG Of Other Textile Material 3,184.54 3,462.79 2,042.37 1,943.56 -4.84 1.15
Coir And Coir Manufactures 261.59 294.96 167.05 191.47 14.62 0.11
Handloom Products 368.52 359.73 210.91 214.88 1.88 0.13
Silk Waste 13.74 14.58 9.28 8.05 -13.21 0
Jute, Raw 17.18 11.44 6.95 6.42 -7.6 0
Jute Yarn 18.34 10.65 4.61 11.03 139.38 0.01
Jute Hessian 125.54 138.23 78.19 84.78 8.43 0.05
Floor Caring of Jute 34 37.75 22.19 25.93 16.85 0.02
Other Jute Manufactures 117.47 123.31 66.2 77.45 16.99 0.05
Carpet (Excl. Silk) Handmade 1,437.60 1,480.69 854.9 838.19 -1.96 0.49
Silk Carpet 2.6 9.5 3.9 0.92 -76.43 0
Cotton Raw Including. Waste 1,938.66 1,621.11 332.43 567.43 70.7 0.34
20. Petroleum Crude & Products 30,582.72 31,545.26 17,185.66 20,012.44 16.45 11.82
Petroleum: Crude
Petroleum Products 30,582.72 31,545.26 17,185.66 20,012.44 16.45 11.82
21. Others 6,814.13 5,703.27 3,493.78 3,179.77 -8.99 1.88
Other Commodities 4,303.28 2,823.01 1,725.47 1,566.32 -9.22 0.92
Human Hair, Products Thereof 301.15 295.55 166.2 149.71 -9.92 0.09
Packaging Materials 572.04 657.96 385.97 411.31 6.56 0.24
Handcrafts 1,637.67 1,926.75 1,216.13 1,052.43 -13.46 0.62
(Excl. Handmade Carpet)
Total 262,290.12 275,851.71 155,344.40 169,349.39 9.02 100

38 | Annual Report 2017-18 | Department of Commerce

 ANNEXURE TABLES
TABLE 3.2
Import of Principal Commodities
(Values in US$ Million)
Commodity Apr-Mar Apr-Mar Apr-Oct Apr-Oct % Growth % Share
2015-16 2016-17 2016-17 2017-18(P)
1. Plantation 895.75 841.22 525.91 628.28 19.46 0.24
Tea 58.04 50.45 32.56 32.73 0.52 0.01
Coffee 122.59 138.2 73.28 93.95 28.2 0.04
Natural Rubber 715.12 652.57 420.07 501.6 19.41 0.19
2. Agri & Allied Products 20,673.58 23,210.67 12,201.53 14,047.85 15.13 5.45
Rice-Basmati
Rice (Other Than Basmati) 0.91 1.08 0.58 0.98 69.85 0
Wheat 135.45 1,268.64 170.07 255.04 49.97 0.1
Other Cereals 51.84 73.3 29.87 50.66 69.58 0.02
Pulses 3,902.22 4,244.13 1,906.55 2,084.84 9.35 0.81
Tobacco Unmanufactured 20.54 11.47 0.95 3.2 237.81 0
Tobacco Manufactured 29.74 34.07 19.94 16.44 -17.57 0.01
Spices 823.79 858.95 478.47 554.52 15.9 0.22
Cashew 1,339.34 1,346.58 920.75 1,030.16 11.88 0.4
Cashew Nut Shell Liquid 0.87 0.55 0.5 0.17 -65.46 0
Sesame Seeds 27.59 65.88 24.83 15.99 -35.59 0.01
Niger Seeds 6.76 12.38 8.77 2.87 -67.3 0
Groundnut 0.05 0.21 0.04 1.61 4,273.84 0
Other Oil Seeds 32.99 58.55 28.66 29.79 3.93 0.01
Vegetable Oils 10,492.08 10,892.75 6,210.82 7,234.16 16.48 2.81
Oil Meals 65.26 145.3 92.13 75.52 -18.02 0.03
Guergam Meal 2.07 0.36 0.18 0.29 59.15 0
Castor Oil 0.17 0.22 0.15 0.17 10.64 0
Shellac 2.99 2.01 0.81 1.47 81.95 0
Sugar 612.24 1,021.81 504.18 631.16 25.19 0.24
Molasses 1.16 1.35 0.62 9.57 1,449.41 0
Fruits / Vegetable Seeds 107.57 97.42 66.93 82.1 22.67 0.03
Fresh Fruits 1,694.84 1,682.88 925.45 1,075.54 16.22 0.42
Fresh Vegetables 59.78 1.66 1.19 2.85 139.8 0
Processed Vegetables 18.4 17.16 9.87 10.52 6.55 0
Processed Fruits And Juices 80.31 81.73 46.36 69.46 49.83 0.03
Cereal Preparations 87.81 86.33 50.73 53.53 5.53 0.02
Cocoa Products 212.96 229.67 127.99 125.26 -2.13 0.05
Milled Products 3.26 2.42 1.47 1.29 -12.32 0
Misc. Processed Items 277.2 315.61 182.86 202.64 10.82 0.08
Animal Casings
Sheep / Goat Meat 0.73 1.27 0.63 1.15 82.43 0
Data Source: DGCIS, Kolkata
Department of Commerce | Annual Report 2017-18 | 39
 ANNEXURE TABLES
TABLE 3.2
Import of Principal Commodities
(Values in US$ Million)
Commodity Apr-Mar Apr-Mar Apr-Oct Apr-Oct % Growth % Share
2015-16 2016-17 2016-17 2017-18(P)
Other Meat 2.64 2.84 1.48 2.25 52.32 0
Processed Meat 0.42 0.67 0.43 0.23 -47.06 0
Dairy Products 56.64 38.02 25.58 29.17 14.03 0.01
Poultry Products 4.04 4.41 3.26 2.17 -33.36 0
Floriculture Products 17.43 19.96 12.34 12.19 -1.21 0
Alcoholic Beverages 447.38 535.56 315.25 346.29 9.85 0.13
Ayush And Herbal Products 54.13 53.5 30.84 32.58 5.65 0.01
3. Marine Products 97.23 94.37 56.81 55.15 -2.92 0.02
Marine Products 97.23 94.37 56.81 55.15 -2.92 0.02
4. Ores & Minerals 20,684.17 21,636.83 10,845.77 16,925.31 56.05 6.57
Iron Ore 494.25 322.25 203.76 292 43.3 0.11
Mica 0.86 1.28 0.62 1.06 69.74 0
Coal, Coke And Briquettes Etc. 13,667.59 15,759.93 7,713.37 12,261.18 58.96 4.76
Bulk Minerals And Ores 5,256.25 4,286.96 2,205.60 3,367.23 52.67 1.31
Processed Minerals 714.85 862.37 477.6 759.49 59.02 0.29
Sulphur, Unroasted Iron Pyrite 217.1 131.19 83.95 71.5 -14.83 0.03
Other Crude Minerals 333.28 272.84 160.86 172.85 7.46 0.07
5. Leather & Leather Manufactures 1,031.28 992.81 594.17 612.94 3.16 0.24
Raw Hides And Skins 62.96 57.15 33.53 28.92 -13.75 0.01
Finished Leather 596.45 552.18 334.67 342.96 2.48 0.13
Leather Goods 82.84 68.28 43.21 36.27 -16.08 0.01
Leather Garments 7.99 1.67 1.14 2.16 88.56 0
Footwear Of Leather 253.18 290.07 166.51 190.27 14.27 0.07
Leather Footwear Component 27.62 23.13 14.88 12.11 -18.59 0
Saddlery And Harness 0.25 0.32 0.21 0.25 16.74 0
6. Gems & Jewellery 56,508.62 53,738.63 26,451.21 43,671.70 65.1 16.94
Pearl, Precious, 20,069.95 23,808.59 13,662.18 19,570.83 43.25 7.59
Semi precious Stones
Gold 31,770.74 27,518.03 11,427.72 19,925.50 74.36 7.73
Silver 3,742.74 1,839.17 1,013.79 2,081.62 105.33 0.81
Other Precious And Base Metals 218.82 191.2 100.33 201.83 101.16 0.08
Gold & Other 706.37 381.63 247.19 1,891.92 665.38 0.73
Precious Metal Jewellery
7. Sports Goods 221.01 224.19 128.81 164.41 27.64 0.06
Sports Goods 221.01 224.19 128.81 164.41 27.64 0.06
8. Chemicals & Related Products 36,888.21 33,680.84 20,369.57 22,960.92 12.72 8.91
Fertilizers Crude 1,013.87 758.21 469.82 437.29 -6.92 0.17

40 | Annual Report 2017-18 | Department of Commerce

 ANNEXURE TABLES
TABLE 3.2
Import of Principal Commodities
(Values in US$ Million)
Commodity Apr-Mar Apr-Mar Apr-Oct Apr-Oct % Growth % Share
2015-16 2016-17 2016-17 2017-18(P)
Fertilizers Manufactured 7,057.65 4,265.75 3,308.96 3,075.63 -7.05 1.19
Bulk Drugs, Drug Intermediates 3,248.36 2,738.47 1,596.28 1,663.80 4.23 0.65
Dye Intermediates 607.41 607.91 322.34 459.03 42.4 0.18
Dyes 319.62 304.86 183.24 193.71 5.71 0.08
Drug Formulations, Biologicals 1,582.60 1,662.18 1,001.81 988.25 -1.35 0.38
Agro Chemicals 843.94 1,049.21 704.18 859.1 22 0.33
Inorganic Chemicals 4,447.11 3,947.29 2,453.88 2,645.30 7.8 1.03
Organic Chemicals 9,623.24 9,879.06 5,562.20 6,792.05 22.11 2.63
Other Miscellaneous Chemicals 596.74 528.42 304.24 360.62 18.53 0.14
Cosmetics And Toiletries 941.25 1,051.61 619.62 745.56 20.33 0.29
Essential Oils 134.1 142.85 80.18 79.73 -0.56 0.03
Residual Chemical & Allied Prod 5,087.35 5,298.35 2,973.35 3,588.43 20.69 1.39
Paint, Varnish & Allied Product 1,320.49 1,369.92 749.66 992.78 32.43 0.39
Graphite, explosives & accessories 64.48 76.77 39.81 79.65 100.06 0.03
9. Plastic & Rubber Articles 13,760.68 14,019.63 8,334.77 9,854.17 18.23 3.82
Other Rubber Product 1,685.60 1,747.61 1,028.70 1,213.90 18 0.47
Except Footwear
Footwear Of Rubber/Canvas Etc. 192.2 221.98 132.73 181.75 36.93 0.07
Moulded And Extruded Goods 1,190.02 1,246.59 746.71 794.05 6.34 0.31
Plastic Raw Materials 8,821.51 8,810.00 5,246.30 6,232.64 18.8 2.42
Plastic Sheet, Film, Plates Etc. 1,066.82 1,144.28 665.91 801.82 20.41 0.31
Stationary/Office, School Supply 88.32 86.07 52.65 58.15 10.45 0.02
Other Plastic Items 716.2 763.1 461.77 571.85 23.84 0.22
10. Articles Of Stone, Plaster, 2,438.51 2,271.48 1,355.69 1,575.96 16.25 0.61
Cement, Asbestos, Mica Or
Similar Materials; Ceramic
Products; Glass And Glassware
Granite, Natural Stone & Product 500.15 449.78 285.29 262.69 -7.92 0.1
Cement, Clinker & Asbestos Cement 104.19 139.81 86.72 92.03 6.12 0.04
Ceramics And Allied Products 866.43 628.32 368.71 465.06 26.13 0.18
Glass And Glassware 967.74 1,053.56 614.97 756.18 22.96 0.29
11. Paper & Related Products 7,157.27 6,993.65 4,119.39 4,912.21 19.25 1.91
Books, Publications & Printing 348.02 276.86 159.09 180.26 13.31 0.07
Newsprint 805.41 849.88 489.96 506.04 3.28 0.2
Paper, Paper Board And Product 2,407.64 2,601.94 1,474.31 1,906.97 29.35 0.74
Plywood And Allied Products 1,082.55 1,087.77 658.86 809.74 22.9 0.31
Other Wood And Wood Products1,557.93 1,202.07 756.26 807.42 6.76 0.31
Pulp And Waste Paper 955.72 975.14 580.9 701.77 20.81 0.27

Department of Commerce | Annual Report 2017-18 | 41

 ANNEXURE TABLES
TABLE 3.2
Import of Principal Commodities
(Values in US$ Million)
Commodity Apr-Mar Apr-Mar Apr-Oct Apr-Oct % Growth % Share
2015-16 2016-17 2016-17 2017-18(P)
12. Base Metals 24,703.54 21,551.87 12,413.78 15,483.56 24.73 6.01
Iron And Steel 11,251.89 8,238.88 4,653.46 6,207.95 33.41 2.41
Products of Iron And Steel 3,725.66 3,444.17 1,985.19 2,120.21 6.8 0.82
Aluminum, Products of Aluminum 3,507.21 3,557.04 2,080.19 2,520.01 21.14 0.98
Copper & Products Made of Copper 3,358.76 3,449.40 1,984.80 2,660.07 34.02 1.03
Lead & Products Made of Led 491.9 597.09 326.66 426.22 30.48 0.17
Nickel, Product Made of Nickel 901.86 554.94 354.65 358.04 0.95 0.14
Tin & Products Made of Tin 192.53 173.32 97.14 134.11 38.06 0.05
Zinc & Products Made of Zinc 460.49 701.65 462.21 442.78 -4.2 0.17
Other Non-Ferrous Metal & Product 813.24 835.39 469.49 614.17 30.82 0.24
13. Optical, Medical & 4,176.62 4,398.06 2,471.41 3,022.14 22.28 1.17
Surgical Instruments
Surgical 554.89 540.82 311.34 329.59 5.86 0.13
Optical Items (Incl. Lens Etc.) 332.79 311.51 172.93 395.53 128.73 0.15
Medical & Scientific Instrument 3,288.94 3,545.73 1,987.14 2,297.02 15.59 0.89
14. Electronics Items 40,021.93 41,930.39 22,806.10 29,787.41 30.61 11.55
Computer Hardware, Peripherals 7,508.87 6,894.35 3,996.68 4,645.45 16.23 1.8
Consumer Electronics 4,106.49 3,992.18 2,420.15 2,690.12 11.15 1.04
Electronics Components 7,115.42 8,407.68 4,145.85 5,674.83 36.88 2.2
Electronics Instruments 5,888.50 6,064.61 3,339.26 4,019.70 20.38 1.56
Telecom Instruments 15,402.65 16,571.57 8,904.15 12,757.31 43.27 4.95
15. Machinery 33,217.30 32,768.63 18,541.30 21,544.20 16.2 8.36
Electrodes 81.38 83.17 50.07 51.56 2.97 0.02
Accumulators And Batteries 836.51 865.32 480.3 692.65 44.21 0.27
Hand Tool, Cutting Tool of Metals 845.52 777.72 454.73 539.76 18.7 0.21
Machine Tools 1,911.93 2,256.85 1,260.96 1,323.16 4.93 0.51
Ac, Refrigeration Machinery Etc. 4,042.86 2,898.60 1,610.55 1,761.79 9.39 0.68
Cranes, Lifts And Winches 1,147.97 1,379.85 816.49 892.95 9.37 0.35
Electric Machinery & Equipment 6,040.66 6,315.78 3,598.83 4,586.82 27.45 1.78
IC Engines And Parts 2,080.68 1,925.17 1,088.94 1,367.92 25.62 0.53
Including Machinery for Dairy Etc. 9,669.28 9,375.97 5,262.12 5,868.13 11.52 2.28
ATM, Injecting Melding 771.01 817.21 483.47 520.63 7.69 0.2
Machinery Etc.
Nuclear Reactor, 562.17 354.98 208.86 136.36 -34.71 0.05
Including Boiler, Part
Other Construction Machinery 1,456.28 1,666.07 890.84 1,111.94 24.82 0.43
Other Misc. Engineering Items 2,756.23 2,997.88 1,720.07 1,970.84 14.58 0.76
Prime Mica And Mica Products 203.29 208.42 123.62 138.78 12.27 0.05

42 | Annual Report 2017-18 | Department of Commerce

 ANNEXURE TABLES
TABLE 3.2
Import of Principal Commodities
(Values in US$ Million)
Commodity Apr-Mar Apr-Mar Apr-Oct Apr-Oct % Growth % Share
2015-16 2016-17 2016-17 2017-18(P)
Pumps Of All Types 811.52 845.65 491.46 580.91 18.2 0.23
16. Office Equipments 124.22 91.56 46.23 29.59 -36 0.01
Office Equipments 124.22 91.56 46.23 29.59 -36 0.01
17. Transport Equipments 15,394.27 19,560.20 10,145.37 8,133.37 -19.83 3.15
Auto Tyres And Tubes 515.28 507.99 328.29 297.98 -9.23 0.12
Auto Components/Parts 4,370.13 4,063.06 2,381.60 2,856.83 19.95 1.11
Bicycle And Parts 184.85 226.48 137.67 140.8 2.28 0.05
Aircraft, Spacecraft And Parts 4,983.82 8,372.38 4,468.24 2,627.01 -41.21 1.02
Motor Vehicle/Cars 288.59 328.51 175.15 165.55 -5.48 0.06
Railway Transport 500.14 369.29 239.98 244.32 1.81 0.09
Equipments, Parts
Ship, Boat & Floating Structure 4,503.37 5,652.13 2,391.45 1,775.66 -25.75 0.69
Two And Three Wheelers 48.09 40.38 23 25.22 9.69 0.01
18. Project Goods 2,761.07 2,074.44 1,132.13 1,251.53 10.55 0.49
Project Goods 2,761.07 2,074.44 1,132.13 1,251.53 10.55 0.49
19. Textiles & Allied Products 5,332.57 5,516.64 3,490.14 3,873.79 10.99 1.5
Manmade Staple Fiber 402.59 365.94 215.3 204.33 -5.1 0.08
Cotton Yarn 41.69 52.25 31.82 19.79 -37.81 0.01
Cotton Fabrics, Made-up Etc. 504.34 372.73 229.97 275.62 19.85 0.11
Other Textile Yarn, 766.52 711.58 424.78 556.16 30.93 0.22
Fabric Made-up Article
Silk, Raw 153.71 162.88 95 114.37 20.39 0.04
Natural Silk Yarn, Fabrics, made-up 46.55 44.76 26.66 31.59 18.47 0.01
Manmade Yarn, Fabrics, Made-up 1,727.44 1,606.85 970.27 1,071.91 10.48 0.42
Wool, Raw 308.47 282.42 166.7 181.33 8.77 0.07
Woolen Yarn, Fabrics, Made-up etc. 58.74 44.11 28.48 39.98 40.39 0.02
RMG Cotton 269.27 288.6 173.71 179.93 3.58 0.07
Including Accessories
RMG Silk 4.83 3.91 2.39 2.67 12.1 0
RMG Manmade Fibers 167.81 175.95 110.38 138.19 25.2 0.05
RMG Wool 14.17 11.2 7.24 7.78 7.44 0
RMG Of Other Textile Material 124.5 116.34 68.27 87.69 28.45 0.03
Coir And Coir Manufactures 4.7 7.25 4.06 5.11 25.93 0
Handloom Products 10.43 5.35 2.82 5.41 92.04 0
Silk Waste 5.53 2.24 1.67 0.8 -52.46 0
Jute, Raw 55.68 104.96 80.75 23.57 -70.81 0.01
Jute Yarn 77.57 74.95 52.38 27.57 -47.36 0.01
Jute Hessian 27.79 8.6 2.83 8.4 197.26 0

Department of Commerce | Annual Report 2017-18 | 43

 ANNEXURE TABLES
TABLE 3.2
Import of Principal Commodities
(Values in US$ Million)
Commodity Apr-Mar Apr-Mar Apr-Oct Apr-Oct % Growth % Share
2015-16 2016-17 2016-17 2017-18(P)
Floor Covering Of Jute 1.23 0.89 0.75 0.85 13.29 0
Other Jute Manufactures 85.54 54.57 32.11 31.9 -0.66 0.01
Carpet (Excl. Silk) Handmade 79.35 71.42 40.9 53.26 30.21 0.02
Silk Carpet 0.01 0.02 0 0
Cotton Raw Including Waste 394.1 946.88 720.91 805.59 11.75 0.31
20. Petroleum Crude & Products 82,944.47 86,963.84 46,788.46 55,786.90 19.23 21.64
Petroleum: Crude 65,922.98 70,705.39 37,791.57 45,018.25 19.12 17.46
Petroleum Products 17,021.49 16,258.45 8,996.89 10,768.65 19.69 4.18
21. Others 11,974.33 11,795.59 7,016.42 3,478.99 -50.42 1.35
Other Commodities 11,017.77 10,747.05 6,356.73 2,891.30 -54.52 1.12
Human Hair, Products Thereof 8.29 5.93 3.38 3.37 -0.49 0
Packaging Materials 255.48 258.82 147.64 168.94 14.43 0.07
Handcrafts 692.79 783.79 508.66 415.38 -18.34 0.16
(Excl. Handmade Carpet)
Total 381,006.62 384,355.56 209,834.97 257,800.38 22.86 100

Data Source: DGCIS, Kolkata

ANNEXURE TABLES
TABLE 3.3
Exports to Principal Regions and Countries
(Values in US$ Million)
Region/Countries Apr-Mar Apr-Mar Apr-Oct Apr-Oct % Growth % Share
2015-16 2016-17 2016-17 2017-18(P)
1) Europe 50343.68 53241.06 30035.29 32580.99 8.48 19.24
1.1 EU Countries 44496.26 47195.06 26483.67 28904.64 9.14 17.07
1) U K 8858.00 8551.14 5111.81 5263.03 2.96 3.11
2) Germany 7094.57 7183.86 4092.86 4780.59 16.80 2.82
3) Belgium 5027.65 5656.92 3132.43 3284.67 4.86 1.94
4) France 4633.73 5250.27 2682.65 2724.83 1.57 1.61
5) Netherland 4727.38 5071.22 2775.57 3084.97 11.15 1.82
6) Italy 4218.20 4902.70 2590.42 3114.66 20.24 1.84
7) Spain 3237.46 3426.13 1922.78 2204.54 14.65 1.30
8) Poland 1025.30 1197.81 676.19 863.45 27.69 0.51
9) Sweden 683.64 708.93 418.64 435.18 3.95 0.26
10) Denmark 688.85 693.00 391.27 431.58 10.30 0.25
11) Portugal 589.64 669.66 366.60 411.23 12.17 0.24
12) Czech Republic 488.53 533.14 383.35 224.39 -41.47 0.13
13) Ireland 526.12 485.42 274.20 295.37 7.72 0.17

44 | Annual Report 2017-18 | Department of Commerce

 ANNEXURE TABLES
TABLE 3.3
Exports to Principal Regions and Countries
(Values in US$ Million)
Region/Countries Apr-Mar Apr-Mar Apr-Oct Apr-Oct % Growth % Share
2015-16 2016-17 2016-17 2017-18(P)
14) Hungary 345.13 406.29 231.37 228.68 -1.16 0.14
15) Austria 339.83 383.16 225.58 258.51 14.60 0.15
16) Greece 335.72 381.07 200.02 210.29 5.14 0.12
17) Finland 248.57 269.90 150.50 166.59 10.69 0.10
18) Romania 255.74 257.57 153.75 198.08 28.84 0.12
19) Slovenia 265.00 251.63 154.25 163.52 6.01 0.10
20) Bulgaria 145.53 239.53 174.87 92.85 -46.90 0.05
21) Slovak Rep 137.51 146.15 86.34 86.58 0.28 0.05
22) Malta 325.03 137.23 66.54 130.61 96.29 0.08
23) Latvia 79.50 115.60 56.86 61.69 8.50 0.04
24) Estonia 63.68 97.50 54.34 48.37 -11.00 0.03
25) Lithuania 88.09 95.99 50.89 60.42 18.72 0.04
26) Cyprus 59.80 71.77 52.61 74.01 40.68 0.04
27) Luxembourg 8.07 11.48 6.99 5.97 -14.60 0.00
1.2 European Free 1538.21 1240.69 709.82 674.60 -4.96 0.40
Trade Association (EFTA)
1) Switzerland 977.21 978.34 554.27 524.29 -5.41 0.31
2) Norway 541.63 244.89 141.69 145.67 2.81 0.09
3) Iceland 18.55 16.72 13.52 3.51 -74.03 0.00
4) Liechtenstein 0.82 0.73 0.34 1.14 233.18 0.00
1.3 Other European Countries 4309.21 4805.31 2841.81 3001.74 5.63 1.77
1) Turkey 4140.01 4626.59 2738.31 2870.12 4.81 1.69
2) Croatia 112.44 124.13 70.12 101.17 44.27 0.06
3) Albania 24.04 26.45 17.43 14.55 -16.52 0.01
4) Macedonia 12.87 14.88 8.47 8.97 5.90 0.01
5) Bosnia-Herzegovina 19.70 13.10 7.32 6.93 -5.38 0.00
6) Union Of Serbia & Montenegro 0.15 0.15 0.15 0.00 -99.42 0.00
2) Africa 25026.78 23129.39 13379.22 14182.00 6.00 8.37
2.1 Southern African 3804.70 3785.71 2044.79 2472.51 20.92 1.46
Customs Union (SACU)
1) South Africa 3588.75 3545.97 1921.71 2353.88 22.49 1.39
2) Namibia 73.62 89.88 42.63 25.44 -40.32 0.02
3) Botswana 52.38 77.12 43.39 62.15 43.24 0.04
4) Swaziland 59.90 39.56 18.32 15.22 -16.89 0.01
5) Lesotho 30.06 33.18 18.76 15.82 -15.64 0.01
2.2 Other South African Countries 1968.37 1510.90 847.69 769.87 -9.18 0.45
1) Mozambique 1241.99 1009.97 551.07 408.55 -25.86 0.24

Department of Commerce | Annual Report 2017-18 | 45

 ANNEXURE TABLES
TABLE 3.3
Exports to Principal Regions and Countries
(Values in US$ Million)
Region/Countries Apr-Mar Apr-Mar Apr-Oct Apr-Oct % Growth % Share
2015-16 2016-17 2016-17 2017-18(P)
2) Zambia 298.11 237.21 154.67 150.45 -2.73 0.09
3) Angola 223.19 154.63 72.00 143.57 99.40 0.08
4) Zimbabwe 205.08 109.08 69.94 67.30 -3.78 0.04
2.3 West Africa 6095.39 5651.72 3301.65 3916.06 18.61 2.31
1) Nigeria 2221.90 1764.11 1003.92 1167.95 16.34 0.69
2) Ghana 623.73 681.03 437.49 386.93 -11.56 0.23
3) Senegal 545.84 634.10 366.76 427.99 16.69 0.25
4) Benin 427.30 447.89 309.52 337.54 9.05 0.20
5) Cote D' Ivories 397.04 418.66 186.12 316.74 70.18 0.19
6) Guinea 278.57 354.95 207.82 209.77 0.94 0.12
7) Togo 532.19 315.70 211.19 279.77 32.47 0.17
8) Cameroon 190.99 148.79 74.60 129.11 73.07 0.08
9) Liberia 133.88 146.30 88.07 186.04 111.23 0.11
10) Congo P Rep 166.66 135.82 91.54 64.30 -29.75 0.04
11) Burkina Faso 108.79 114.94 64.23 74.56 16.09 0.04
12) Mali 107.93 107.70 55.96 67.25 20.16 0.04
13) Sierra Leone 91.17 93.71 43.46 44.29 1.90 0.03
14) Niger 80.16 81.24 43.37 73.87 70.32 0.04
15) Mauritania 58.35 65.98 41.05 40.62 -1.06 0.02
16) Gambia 59.54 62.38 29.51 68.27 131.34 0.04
17) Gabon 36.82 43.34 26.11 25.89 -0.82 0.02
18) Guinea Bissau 14.47 21.66 12.04 7.22 -40.02 0.00
19) Equilateral Guinea 17.53 11.24 7.64 6.48 -15.11 0.00
20) Cape Verde Is 1.43 1.25 0.65 0.85 31.82 0.00
21) Sao Tome 0.93 0.92 0.59 0.62 5.62 0.00
22) St Helena 0.16 0.02 0.02 0.00 -95.19 0.00
2.4 Central Africa 1251.50 1044.92 615.03 653.25 6.22 0.39
1) Uganda 569.94 494.48 289.97 279.88 -3.48 0.17
2) Congo D. Rep. 317.63 199.19 122.69 126.13 2.80 0.07
3) Malawi 176.13 178.42 96.38 150.01 55.64 0.09
4) Rwanda 106.08 88.05 55.96 51.37 -8.19 0.03
5) Chad 43.49 38.52 24.97 13.00 -47.94 0.01
6) Burundi 29.06 35.98 18.85 25.71 36.39 0.02
7) C Africa Rep 9.17 10.29 6.19 7.14 15.33 0.00
2.5 East Africa 7311.87 6728.81 3986.37 3526.60 -11.53 2.08
1) Kenya 3025.85 2194.29 1259.24 1090.46 -13.40 0.64
2) Tanzania Rep 1654.64 1783.57 1125.97 798.58 -29.08 0.47

46 | Annual Report 2017-18 | Department of Commerce

 ANNEXURE TABLES
TABLE 3.3
Exports to Principal Regions and Countries
(Values in US$ Million)
Region/Countries Apr-Mar Apr-Mar Apr-Oct Apr-Oct % Growth % Share
2015-16 2016-17 2016-17 2017-18(P)
3) Mauritius 855.73 881.38 469.53 544.66 16.00 0.32
4) Ethiopia 793.62 773.50 500.70 457.65 -8.60 0.27
5) Somalia 486.60 504.04 290.61 298.80 2.82 0.18
6) Djibouti 204.55 280.41 195.29 159.21 -18.47 0.09
7) Madagascar 197.04 213.70 88.38 115.63 30.83 0.07
8) Reunion 42.70 41.16 22.96 27.44 19.50 0.02
9) Seychelles 34.14 35.96 21.54 22.47 4.32 0.01
10) Comoros 17.01 20.78 12.16 11.71 -3.72 0.01
2.6 North Africa 4594.95 4407.33 2583.69 2843.70 10.06 1.68
1) Egypt A Republic 2337.65 2067.35 1233.96 1471.51 19.25 0.87
2) Algeria 787.81 841.89 478.34 383.72 -19.78 0.23
3) Sudan 782.35 748.71 442.56 527.73 19.24 0.31
4) Morocco 342.19 373.91 208.09 243.08 16.81 0.14
5) Tunisia 222.37 255.42 142.65 146.17 2.47 0.09
6) Libya 122.58 120.05 78.08 71.49 -8.44 0.04
7) Canary Is
3) America 52754.27 54912.56 32425.42 35711.18 10.13 21.09
3.1 North America 45223.42 47681.59 28242.55 30748.48 8.87 18.16
1) U S A 40339.85 42216.48 25120.22 27203.59 8.29 16.06
2) Mexico 2865.16 3460.98 1968.76 2224.28 12.98 1.31
3) Canada 2018.42 2004.13 1153.57 1320.60 14.48 0.78
3.2 Latin America 7530.85 7230.97 4182.87 4962.70 18.64 2.93
1) Brazil 2650.34 2400.48 1398.71 1752.56 25.30 1.03
2) Colombia 888.11 784.51 449.53 532.24 18.40 0.31
3) Peru 703.12 696.42 412.54 434.67 5.36 0.26
4) Chile 679.32 674.34 377.85 421.38 11.52 0.25
5) Argentina 536.50 510.73 299.81 422.95 41.07 0.25
6) Guatemala 255.97 241.23 138.42 173.25 25.16 0.10
7) Dominic Rep 175.11 224.98 135.40 111.12 -17.93 0.07
8) Panama Republic 201.41 220.21 133.96 150.71 12.51 0.09
9) Ecuador 153.20 197.73 101.10 165.93 64.13 0.10
10) Uruguay 152.81 187.80 89.62 89.96 0.38 0.05
11) Costa Rica 134.76 159.31 90.24 70.69 -21.67 0.04
12) Honduras 155.05 134.97 82.78 85.95 3.82 0.05
13) Paraguay 98.22 125.03 71.98 90.90 26.28 0.05
14) Nicaragua 82.54 86.33 56.74 48.01 -15.38 0.03
15) Trinidad 92.88 84.53 47.68 55.86 17.17 0.03

Department of Commerce | Annual Report 2017-18 | 47

 ANNEXURE TABLES
TABLE 3.3
Exports to Principal Regions and Countries
(Values in US$ Million)
Region/Countries Apr-Mar Apr-Mar Apr-Oct Apr-Oct % Growth % Share
2015-16 2016-17 2016-17 2017-18(P)
16) Bolivia 74.43 79.52 43.95 56.93 29.53 0.03
17) Haiti 62.27 71.44 40.02 55.69 39.15 0.03
18) Venezuela 130.66 62.22 40.84 57.83 41.59 0.03
19) El Salvador 68.54 60.45 35.38 35.96 1.65 0.02
20) Jamaica 40.21 43.01 25.48 30.87 21.14 0.02
21) Cuba 54.31 41.79 23.99 22.80 -4.96 0.01
22) Netherland antic 37.25 38.12 25.43 26.84 5.57 0.02
23) Guyana 21.87 20.07 10.70 12.56 17.39 0.01
24) Belize 14.51 15.23 8.06 8.92 10.68 0.01
25) Barbados 10.50 12.35 7.31 9.22 26.13 0.01
26) Suriname 12.86 10.50 6.41 11.26 75.69 0.01
27) Bahamas 11.96 5.93 3.26 4.52 38.88 0.00
28) Virgin Is Us 4.23 5.33 2.01 1.18 -41.30 0.00
29) Cayman Is 3.54 4.74 3.01 2.63 -12.64 0.00
30) Guadeloupe 2.87 4.39 2.73 4.08 49.12 0.00
31) St Lucia 2.67 4.32 2.07 1.73 -16.30 0.00
32) Bermuda 2.59 4.20 2.35 2.42 2.87 0.00
33) Martinique 4.44 4.13 3.16 2.61 -17.47 0.00
34) St Kitt N A 2.20 3.09 2.07 1.75 -15.52 0.00
35) Grenada 1.87 3.02 2.13 1.85 -12.94 0.00
36) Dominica 1.47 2.46 1.94 0.93 -52.00 0.00
37) Antigua 2.56 1.97 1.32 1.60 21.76 0.00
38) Fr Guiana 1.17 1.47 1.15 1.35 17.47 0.00
39) Turks C Is 0.16 0.78 0.43 0.10 -77.75 0.00
40) St Vincent 0.55 0.78 0.58 0.45 -22.72 0.00
41) Montserrat 0.96 0.62 0.38 0.01 -96.48 0.00
42) Br Virgn Is 0.84 0.41 0.36 0.43 20.85 0.00
43) Falkland Is 0.00 0.00 0.00 0.00 0.00
4) Asia 127846.80 137747.64 75320.23 83649.74 11.06 49.39
4.1 East Asia (Oceania) 3667.24 3369.00 1989.78 2670.47 34.21 1.58
1) Australia 3263.11 2957.79 1743.83 2414.01 38.43 1.43
2) New Zealand 308.04 309.66 180.97 193.43 6.88 0.11
3) Fiji Is 44.15 52.52 35.36 31.98 -9.55 0.02
4) Papua N Gna 39.45 36.28 23.93 23.70 -0.97 0.01
5) Nauru Republic 0.01 2.53 0.00 1.34 31172.09 0.00
6) Timor Leste 3.42 2.31 0.72 1.90 164.25 0.00
7) Solomon Is 2.71 2.31 1.71 0.76 -55.62 0.00

48 | Annual Report 2017-18 | Department of Commerce

 ANNEXURE TABLES
TABLE 3.3
Exports to Principal Regions and Countries
(Values in US$ Million)
Region/Countries Apr-Mar Apr-Mar Apr-Oct Apr-Oct % Growth % Share
2015-16 2016-17 2016-17 2017-18(P)
8) Vanuatu Rep 2.01 2.08 1.21 1.20 -1.33 0.00
9) Samoa 2.22 1.77 0.98 1.14 17.34 0.00
10) Tonga 1.12 1.21 0.57 0.50 -13.23 0.00
11) Kiribati Rep 0.94 0.47 0.42 0.44 4.69 0.00
12) Tuvalu 0.06 0.08 0.08 0.06 -20.05 0.00
4.2 ASEAN 25154.71 30961.78 15597.96 19192.82 23.05 11.33
1) Singapore 7719.97 9564.67 4777.96 6298.54 31.82 3.72
2) Vietnam Soc Rep 5266.15 6786.56 3409.74 4242.25 24.42 2.51
3) Malaysia 3706.91 5224.88 2462.84 3055.16 24.05 1.80
4) Indonesia 2819.55 3488.16 1794.13 2083.06 16.10 1.23
5) Thailand 2987.86 3133.44 1661.55 1990.36 19.79 1.18
6) Philippines 1374.23 1482.52 865.03 906.95 4.85 0.54
7) Myanmar 1070.65 1107.89 528.47 511.24 -3.26 0.30
8) Cambodia 143.01 105.06 55.77 64.15 15.02 0.04
9) Brunei 28.45 42.88 25.63 29.88 16.61 0.02
10) Lao Pd Republic 37.94 25.72 16.84 11.24 -33.26 0.01
4.3 West Asia- GCC 41678.97 41768.35 24571.25 23362.99 -4.92 13.80
1) U Arab Emirates 30290.01 31175.50 18566.18 17165.36 -7.54 10.14
2) Saudi Arab 6394.48 5110.28 3003.17 2926.58 -2.55 1.73
3) Oman 2190.79 2728.30 1407.51 1497.40 6.39 0.88
4) Kuwait 1247.51 1497.99 861.73 761.95 -11.58 0.45
5) Qatar 902.04 784.56 443.69 699.12 57.57 0.41
6) Bahrain Is 654.14 471.71 288.97 312.58 8.17 0.18
4.4 Other West Asia 7883.08 7879.16 4480.33 4986.73 11.30 2.94
1) Israel 2821.23 3087.18 1753.85 1741.90 -0.68 1.03
2) Iran 2781.52 2379.62 1396.41 1685.29 20.69 1.00
3) Iraq 1004.39 1111.45 641.76 801.44 24.88 0.47
4) Jordan 499.76 522.41 256.81 253.90 -1.13 0.15
5) Yemen Republic 399.79 446.13 249.20 280.16 12.43 0.17
6) Lebanon 239.55 210.65 119.54 140.66 17.67 0.08
7) Syria 136.83 121.74 62.77 83.38 32.83 0.05
4.5 Ne Asia 30842.48 34547.17 18311.27 21889.09 19.54 12.93
1) Hong Kong 12092.21 14047.24 8210.90 8846.95 7.75 5.22
2) China P Republic 9013.54 10171.69 4678.83 6736.15 43.97 3.98
3) Korea Republic 3523.72 4242.56 2200.67 2491.35 13.21 1.47
4) Japan 4662.91 3845.82 2181.19 2609.96 19.66 1.54
5) Taiwan 1428.81 2183.74 1003.88 1150.61 14.62 0.68

Department of Commerce | Annual Report 2017-18 | 49

 ANNEXURE TABLES
TABLE 3.3
Exports to Principal Regions and Countries
(Values in US$ Million)
Region/Countries Apr-Mar Apr-Mar Apr-Oct Apr-Oct % Growth % Share
2015-16 2016-17 2016-17 2017-18(P)
6) Korea Dp Republic 110.88 44.84 28.80 39.20 36.13 0.02
7) Mongolia 8.44 9.78 5.93 7.79 31.40 0.00
8) Macao 1.97 1.51 1.09 7.08 551.96 0.00
4.6 South Asia 18620.32 19222.18 10369.64 11547.64 11.36 6.82
1) Bangladesh Pr 6034.95 6820.13 3534.08 4206.70 19.03 2.48
2) Nepal 3930.09 5453.59 3050.91 3305.98 8.36 1.95
3) Sri Lanka Dsr 5309.53 3913.15 2183.22 2413.28 10.54 1.43
4) Pakistan Ir 2171.16 1821.88 887.87 850.08 -4.26 0.50
5) Bhutan 468.95 509.28 313.94 260.58 -17.00 0.15
6) Afghanistan Tis 526.60 506.34 293.95 397.43 35.20 0.23
7) Maldives 179.04 197.79 105.67 113.60 7.50 0.07
5) CIS & Baltics 2391.64 2793.94 1562.51 1756.18 12.39 1.04
5.1 Cars Countries 362.46 338.32 181.43 203.64 12.24 0.12
1) Kazakhstan 151.91 120.88 65.49 65.89 0.60 0.04
2) Uzbekistan 94.64 108.97 50.59 64.81 28.12 0.04
3) Turkmenistan 68.53 57.60 36.57 40.64 11.13 0.02
4) Kyrgyzstan 25.11 30.44 17.63 17.84 1.18 0.01
5) Tajikistan 22.26 20.44 11.15 14.46 29.69 0.01
5.2 Other CIS Countries 2029.18 2455.62 1381.08 1552.54 12.41 0.92
1) Russia 1587.81 1937.06 1088.33 1259.17 15.70 0.74
2) Ukraine 259.12 310.16 170.43 179.44 5.29 0.11
3) Georgia 82.57 90.93 59.71 39.76 -33.40 0.02
4) Azerbaijan 33.38 40.27 15.77 24.11 52.86 0.01
5) Belarus 35.70 40.16 21.20 24.72 16.57 0.01
6) Armenia 22.78 30.33 21.82 21.18 -2.93 0.01
7) Moldova 7.81 6.71 3.82 4.16 8.95 0.00
6) Unspecified Region 3926.95 4027.12 2621.72 1469.30 -43.96 0.87
1) Unspecified 2414.29 2436.40 1478.79 1207.05 -18.38 0.71
2) Gibraltar 1182.88 1286.88 955.69 96.06 -89.95 0.06
3) Puerto Rico 115.00 105.87 74.29 34.18 -53.99 0.02
4) Installations In International Waters 7.11 79.66 45.23 34.74 -23.18 0.02
5) Serbia 43.34 50.07 29.53 34.17 15.73 0.02
6) Montenegro 26.19 36.37 19.93 34.45 72.87 0.02
7) New Caledonia 4.68 8.09 4.32 7.99 85.10 0.00
8) Aruba 6.92 7.91 4.50 3.99 -11.33 0.00
9) Fr Polynesia 3.81 4.13 2.40 4.52 88.47 0.00
10) South Sudan 3.24 1.70 3.71 118.76 0.00

50 | Annual Report 2017-18 | Department of Commerce

 ANNEXURE TABLES
TABLE 3.3
Exports to Principal Regions and Countries
(Values in US$ Million)
Region/Countries Apr-Mar Apr-Mar Apr-Oct Apr-Oct % Growth % Share
2015-16 2016-17 2016-17 2017-18(P)
11) Eritrea 6.45 3.22 1.79 4.93 174.58 0.00
12) Monaco 1.05 1.53 0.92 1.30 41.69 0.00
13) Us Minor Outlying Islands 0.17 1.08 0.74 0.37 -50.14 0.00
14) Faroe Is. 1.75 0.59 0.57 0.01 -97.75 0.00
15) Guam 0.38 0.49 0.25 0.48 88.93 0.00
16) Norfolk Is 0.33 0.28 0.28 0.14 -51.62 0.00
17) San Marino 0.26 0.23 0.08 0.10 23.42 0.00
18) Mayotte 0.17 0.07 0.04 -48.30 0.00
19) Cook Is 0.05 0.15 0.14 0.16 18.40 0.00
20) Andorra 0.12 0.14 0.10 0.26 159.07 0.00
21) Marshall Island 101.91 0.14 0.07 0.03 -49.16 0.00
22) Micronesia 0.36 0.14 0.11 0.24 123.96 0.00
23) America Samoa 0.16 0.08 0.05 0.18 262.25 0.00
24) Pitcairn Is. 0.05 0.05 0.00 0.00 0.00
25) Anguilla 0.02 0.04 0.02 0.01 -35.78 0.00
26) Vatican City 0.05 0.04 0.00 0.02 0.00 0.00
27) Palau 0.02 0.04 0.02 0.03 35.05 0.00
28) Tokelau Is 0.03 0.03 0.00 0.00 0.00
29) Cocos Is 0.02 0.02 0.00 0.00 0.00
30) N. Mariana Is. 0.56 0.01 0.01 0.04 182.31 0.00
31) Panama C Z 0.16 0.01 0.01 0.01 64.41 0.00
32) Wallis F Is 0.01 0.01 0.05 772.22 0.00
33) Saharwi A.Dm Republic 0.00 0.00 0.00 0.01 950.00 0.00
34) Sint Maarten (Dutch Part) 0.00 0.00 0.01 0.00 0.00
35) Greenland 8.81 0.00 0.01 0.00 0.00
36) Fr S Ant Tr 0.06 0.00 0.00 0.00 0.00
37) Antarctica 0.00 0.00 0.00 0.00 0.00
38) Channel Is
39) Christmas Is. 0.03
40) Niue Is 0.04 0.00 0.00 0.00 0.00
41) Heard Macdonald
42) St Pierre 0.00 0.00 0.00 0.00
Total 262290.13 275851.71 155344.41 169349.40 9.02 100.00

Data Source: DGCIS, Kolkata

Department of Commerce | Annual Report 2017-18 | 51

 ANNEXURE TABLES
TABLE 3.4
Import from Principal Regions and Countries
(Values in US$ Million)
Region/Countries Apr-Mar Apr-Mar Apr-Oct Apr-Oct % Growth % Share
2015-16 2016-17 2016-17 2017-18(P)
1) Europe 64632.91 61446.85 33106.63 38113.91 15.12 14.78
1.1 EU Countries 43898.10 42359.23 24214.82 25589.31 5.68 9.93
1) Germany 12088.37 11583.67 6626.42 7418.67 11.96 2.88
2) Belgium 8256.06 6624.63 4335.73 3367.59 -22.33 1.31
3) France 3730.31 5707.77 2995.11 2914.73 -2.68 1.13
4) Italy 4072.22 3895.01 2262.60 2578.30 13.95 1.00
5) U K 5192.54 3664.96 2150.13 2698.01 25.48 1.05
6) Spain 1646.02 1968.77 906.84 948.93 4.64 0.37
7) Netherland 1859.90 1895.71 1016.71 1288.70 26.75 0.50
8) Sweden 1484.85 1161.12 670.48 846.63 26.27 0.33
9) Finland 1002.37 1011.67 532.49 684.04 28.46 0.27
10) Austria 827.11 908.34 551.26 518.89 -5.87 0.20
11) Poland 569.66 690.98 372.49 421.95 13.28 0.16
12) Czech Republic 507.89 539.25 315.06 379.49 20.45 0.15
13) Ireland 551.51 525.82 276.27 309.55 12.05 0.12
14) Denmark 428.54 481.55 279.82 289.83 3.58 0.11
15) Romania 309.30 317.36 183.62 216.19 17.74 0.08
16) Lithuania 214.35 271.16 124.27 95.71 -22.98 0.04
17) Hungary 242.64 218.78 113.54 148.97 31.21 0.06
18) Bulgaria 93.72 182.22 69.90 78.52 12.33 0.03
19) Portugal 102.54 141.16 85.17 112.81 32.46 0.04
20) Greece 111.03 121.95 60.43 48.46 -19.82 0.02
21) Estonia 142.04 102.47 61.52 35.83 -41.76 0.01
22) Slovenia 88.60 101.68 64.26 62.82 -2.24 0.02
23) Slovak Rep 64.64 68.53 42.81 46.72 9.14 0.02
24) Cyprus 48.18 66.59 51.43 7.78 -84.87 0.00
25) Luxembourg 175.72 46.08 23.15 27.00 16.63 0.01
26) Latvia 61.57 39.65 28.15 36.61 30.07 0.01
27) Malta 26.43 22.37 15.20 6.59 -56.63 0.00
1.2 European Free 19890.28 17821.01 8138.65 11792.96 44.90 4.57
Trade Association (EFTA)
1) Switzerland 19299.49 17248.68 7924.60 11302.20 42.62 4.38
2) Norway 585.37 566.79 211.97 487.17 129.83 0.19
3) Iceland 4.25 4.68 1.53 2.95 92.27 0.00
4) Liechtenstein 1.18 0.86 0.55 0.65 17.23 0.00
1.3 Other European Countries 844.53 1266.62 753.15 731.64 -2.86 0.28
1) Turkey 776.94 1207.31 727.03 653.32 -10.14 0.25

52 | Annual Report 2017-18 | Department of Commerce

 ANNEXURE TABLES
TABLE 3.4
Import from Principal Regions and Countries
(Values in US$ Million)
Region/Countries Apr-Mar Apr-Mar Apr-Oct Apr-Oct % Growth % Share
2015-16 2016-17 2016-17 2017-18(P)
2) Croatia 36.00 25.36 7.70 21.60 180.49 0.01
3) Macedonia 7.08 24.13 14.62 20.06 37.19 0.01
4) Albania 17.20 6.50 1.43 31.49 2104.70 0.01
5) Bosnia-Herzegovina 4.40 3.32 2.38 5.17 117.51 0.00
6) Union Of Serbia & Montenegro 2.90 0.00 0.00 0.00 0.00
2) Africa 31667.23 28844.72 15186.64 20470.34 34.79 7.94
2.1 Southern African 6546.83 7255.61 3443.64 4881.23 41.75 1.89
Customs Union (SACU)
1) South Africa 5948.42 5833.75 2816.49 3864.75 37.22 1.50
2) Botswana 542.23 1307.39 592.40 938.90 58.49 0.36
3) Namibia 10.42 50.31 19.82 32.04 61.69 0.01
4) Swaziland 40.82 39.24 8.74 5.12 -41.40 0.00
5) Lesotho 4.94 24.91 6.19 40.41 552.61 0.02
2.2 Other South African Countries 3629.51 3947.14 1859.85 3113.40 67.40 1.21
1) Angola 2766.81 2596.49 1184.88 1950.50 64.62 0.76
2) Zambia 475.38 743.90 445.33 565.93 27.08 0.22
3) Mozambique 362.88 546.29 210.27 565.07 168.73 0.22
4) Zimbabwe 24.45 60.46 19.36 31.90 64.78 0.01
2.3 West Africa 16740.61 13024.96 7313.90 9322.31 27.46 3.62
1) Nigeria 9949.17 7659.48 4180.72 5026.04 20.22 1.95
2) Ghana 2981.27 1938.54 523.80 1385.49 164.51 0.54
3) Equilateral Guinea 457.30 797.85 716.89 380.79 -46.88 0.15
4) cote d'ivoire 572.48 455.81 392.50 374.46 -4.60 0.15
5) Cameroon 557.54 359.11 258.62 145.36 -43.79 0.06
6) Senegal 263.95 315.85 208.76 224.19 7.39 0.09
7) Guinea 370.05 279.20 156.32 366.55 134.49 0.14
8) Burkina Faso 238.11 256.42 92.19 424.97 360.96 0.16
9) Guinea Bissau 198.17 215.67 201.65 231.35 14.73 0.09
10) Benin 275.66 207.40 179.50 182.23 1.52 0.07
11) Congo P Rep 201.64 156.52 123.50 93.25 -24.49 0.04
12) Togo 225.09 138.42 95.82 100.07 4.43 0.04
13) Mali 242.78 99.23 78.55 106.73 35.88 0.04
14) Gabon 105.63 69.46 47.66 161.95 239.79 0.06
15) Gambia 31.35 43.20 38.18 49.20 28.85 0.02
16) Sierra Leone 16.56 12.23 7.73 15.94 106.26 0.01
17) Mauritania 18.56 10.95 6.94 1.84 -73.52 0.00
18) Liberia 32.20 7.65 3.64 30.55 740.42 0.01

Department of Commerce | Annual Report 2017-18 | 53

 ANNEXURE TABLES
TABLE 3.4
Import from Principal Regions and Countries
(Values in US$ Million)
Region/Countries Apr-Mar Apr-Mar Apr-Oct Apr-Oct % Growth % Share
2015-16 2016-17 2016-17 2017-18(P)
19) Cape Verde Is 2.77 1.90 0.93 1.60 71.95 0.00
20) Niger 0.32 0.03 0.01 19.76 142023.74 0.01
21) Sao Tome 0.00 0.02 0.00 0.00 0.00 0.00
22) St Helena 0.00
2.4 Central Africa 530.75 368.70 250.11 262.74 5.05 0.10
1) Chad 320.88 169.36 139.72 56.57 -59.51 0.02
2) Congo D. Rep. 97.76 85.92 43.93 151.73 245.44 0.06
3) Uganda 45.52 68.93 43.08 35.89 -16.70 0.01
4) Malawi 64.31 41.33 21.39 11.54 -46.04 0.00
5) Burundi 0.11 1.60 1.06 3.21 201.65 0.00
6) Rwanda 1.35 1.18 0.62 2.78 347.28 0.00
7) C Africa Rep 0.83 0.38 0.31 1.03 232.71 0.00
2.5 East Africa 1326.79 1319.11 503.10 671.32 33.44 0.26
1) Tanzania Rep 924.79 948.49 283.00 502.68 77.63 0.19
2) Madagascar 141.74 119.82 55.70 63.25 13.56 0.02
3) Kenya 127.55 104.36 69.96 41.39 -40.83 0.02
4) Ethiopia 60.99 67.07 47.52 25.28 -46.79 0.01
5) Comoros 15.10 25.65 8.08 12.22 51.22 0.00
6) Mauritius 20.36 18.37 12.65 11.29 -10.71 0.00
7) Somalia 15.58 17.70 15.56 2.38 -84.67 0.00
8) Reunion 18.78 13.90 8.34 9.46 13.40 0.00
9) Djibouti 1.23 2.82 1.77 2.71 52.76 0.00
10) Seychelles 0.67 0.93 0.52 0.63 22.36 0.00
2.6 North Africa 2892.76 2929.21 1816.04 2219.34 22.21 0.86
1) Egypt A Republic 1221.20 1163.77 689.78 680.10 -1.40 0.26
2) Morocco 1077.58 792.93 514.33 463.09 -9.96 0.18
3) Algeria 299.44 605.12 404.92 687.51 69.79 0.27
4) Sudan 149.20 245.15 114.24 283.77 148.41 0.11
5) Tunisia 136.49 114.80 88.88 86.48 -2.71 0.03
6) Libya 8.86 7.45 3.89 18.39 373.20 0.01
3) America 45990.40 46674.11 25311.59 30451.50 20.31 11.81
3.1 North America 28298.61 29383.48 15741.45 18390.79 16.83 7.13
1) U S A 21781.39 22307.44 12439.44 14096.84 13.32 5.47
2) Canada 4234.03 4131.52 1890.86 2704.29 43.02 1.05
3) Mexico 2283.19 2944.52 1411.16 1589.67 12.65 0.62
3.2 Latin America 17691.79 17290.63 9570.14 12060.71 26.02 4.68
1) Venezuela 5701.81 5512.06 3100.54 3660.85 18.07 1.42

54 | Annual Report 2017-18 | Department of Commerce

 ANNEXURE TABLES
TABLE 3.4
Import from Principal Regions and Countries
(Values in US$ Million)
Region/Countries Apr-Mar Apr-Mar Apr-Oct Apr-Oct % Growth % Share
2015-16 2016-17 2016-17 2017-18(P)
2) Brazil 4040.09 4114.69 2014.01 2880.76 43.04 1.12
3) Argentina 2471.52 2500.75 1614.70 1640.19 1.58 0.64
4) Chile 1960.67 1226.34 735.49 1127.07 53.24 0.44
5) Peru 820.22 1076.69 501.45 1296.15 158.48 0.50
6) Dominic Rep 478.62 674.86 482.88 307.37 -36.35 0.12
7) Colombia 807.79 593.96 289.61 319.97 10.48 0.12
8) Ecuador 563.77 355.99 150.39 134.75 -10.40 0.05
9) Bahamas 77.23 258.82 258.14 5.88 -97.72 0.00
10) Panama Republic 72.49 201.83 23.95 34.74 45.05 0.01
11) Bolivia 240.25 173.54 29.71 366.79 1134.62 0.14
12) Trinidad 91.94 173.54 73.35 24.39 -66.74 0.01
13) Paraguay 112.26 155.28 113.31 88.63 -21.78 0.03
14) Netherland antil 59.24 66.70 62.81 5.22 -91.70 0.00
15) Costa Rica 62.21 58.83 42.59 51.98 22.04 0.02
16) Suriname 43.33 45.92 15.67 47.78 204.87 0.02
17) Honduras 15.91 22.16 16.55 9.45 -42.89 0.00
18) Guatemala 12.52 21.70 12.88 10.25 -20.44 0.00
19) Guyana 18.48 14.48 9.06 4.23 -53.34 0.00
20) Uruguay 17.71 13.45 7.24 18.87 160.77 0.01
21) Br Virgn Is 1.55 6.72 6.65 0.26 -96.06 0.00
22) El Salvador 6.18 5.77 2.82 6.12 116.78 0.00
23) Virgin Is Us 1.08 4.53 0.08 0.15 84.85 0.00
24) Haiti 3.28 3.61 2.43 4.12 69.73 0.00
25) Nicaragua 3.85 2.62 1.76 2.94 66.74 0.00
26) Fr Guiana 1.16 1.45 0.26 0.12 -53.28 0.00
27) Cuba 1.33 1.31 0.77 1.29 68.05 0.00
28) Jamaica 1.55 1.17 0.47 3.28 594.79 0.00
29) Dominica 0.10 0.77 0.01 0.14 1260.38 0.00
30) Belize 1.01 0.52 0.29 1.17 306.50 0.00
31) St Lucia 0.45 0.24 0.13 0.27 111.11 0.00
32) Barbados 0.17 0.18 0.10 0.07 -27.00 0.00
33) Grenada 0.06 0.00 0.14 0.00 0.00
34) Turks C Is 0.02 0.03 0.00 0.02 358.33 0.00
35) Cayman Is 0.02 0.02 5.26 28048.66 0.00
36) Bermuda 0.00 0.02 0.00 0.00 0.00 0.00
37) St Kitt N A 0.16 0.01 0.00 0.00 -50.00 0.00
38) Antigua 0.01 0.00 0.00 0.01 735.71 0.00

Department of Commerce | Annual Report 2017-18 | 55

 ANNEXURE TABLES
TABLE 3.4
Import from Principal Regions and Countries
(Values in US$ Million)
Region/Countries Apr-Mar Apr-Mar Apr-Oct Apr-Oct % Growth % Share
2015-16 2016-17 2016-17 2017-18(P)
39) Falkland Is 1.75 0.00 0.00 0.00 0.00
40) St Vincent 0.00 0.00 0.00 0.00 0.00
41) Guadeloupe 0.06 0.00 0.01 0.00 0.00
42) Martinique
43) Montserrat
4) Asia 222627.92 230569.05 127070.66 155938.00 22.72 60.49
4.1 East Asia (Oceania) 9702.58 11828.22 5176.07 8142.97 57.32 3.16
1) Australia 8898.78 11154.48 4771.07 7640.73 60.15 2.96
2) New Zealand 547.61 504.44 309.83 391.61 26.39 0.15
3) Papua N Gna 179.59 108.06 67.41 70.92 5.21 0.03
4) Solomon Is 67.67 53.96 21.05 39.21 86.25 0.02
5) Samoa 2.46 6.30 6.24 0.18 -97.11 0.00
6) Fiji Is 0.37 0.60 0.28 0.24 -13.21 0.00
7) Timor Leste 0.03 0.17 0.03 0.07 127.16 0.00
8) Tuvalu 0.01 0.13 0.08 0.00 -98.44 0.00
9) Tonga 0.00 0.05 0.05 0.00 0.00 0.00
10) Nauru Republic 5.76 0.04 0.03 0.01 -62.54 0.00
11) Vanuatu Rep 0.29 0.00 0.00 0.00 0.00
12) Kiribati Rep
4.2 ASEAN 39909.60 40617.31 22609.22 26596.18 17.63 10.32
1) Indonesia 13131.93 13427.99 6881.75 9405.01 36.67 3.65
2) Malaysia 9083.83 8933.59 5211.21 5211.81 0.01 2.02
3) Singapore 7308.38 7086.57 3919.58 4040.60 3.09 1.57
4) Thailand 5510.16 5415.40 3168.97 3917.69 23.63 1.52
5) Vietnam Soc Rep 2560.39 3320.56 1952.30 2573.65 31.83 1.00
6) Myanmar 984.27 1067.25 804.43 540.76 -32.78 0.21
7) Brunei 554.02 627.85 289.07 286.56 -0.87 0.11
8) Philippines 542.16 494.62 282.04 465.15 64.93 0.18
9) Lao Pd Republic 180.03 207.38 79.10 125.27 58.38 0.05
10) Cambodia 54.43 36.10 20.78 29.68 42.79 0.01
4.3 West Asia- GCC 55790.47 55171.91 30388.94 35116.87 15.56 13.62
1) U Arab Emts 19445.68 21509.83 11600.17 12927.84 11.45 5.01
2) Saudi Arab 20321.33 19972.40 11048.48 11975.94 8.39 4.65
3) Qatar 9022.16 7646.22 4237.72 4493.76 6.04 1.74
4) Kuwait 4969.69 4462.28 2513.86 3272.45 30.18 1.27
5) Oman 1674.71 1290.50 800.14 2238.88 179.81 0.87
6) Bahrain Is 356.90 290.69 188.58 208.00 10.30 0.08

56 | Annual Report 2017-18 | Department of Commerce

 ANNEXURE TABLES
TABLE 3.4
Import from Principal Regions and Countries
(Values in US$ Million)
Region/Countries Apr-Mar Apr-Mar Apr-Oct Apr-Oct % Growth % Share
2015-16 2016-17 2016-17 2017-18(P)
4.4 Other West Asia 20139.82 25071.08 13395.16 16187.23 20.84 6.28
1) Iraq 10837.58 11707.94 6215.61 8744.51 40.69 3.39
2) Iran 6278.75 10506.51 5461.84 5637.03 3.21 2.19
3) Israel 2095.33 1961.12 1158.51 1161.31 0.24 0.45
4) Jordan 853.12 828.24 517.51 598.86 15.72 0.23
5) Syria 40.54 32.25 18.01 18.72 3.98 0.01
6) Lebanon 27.61 30.21 20.57 21.32 3.65 0.01
7) Yemen Republic 6.88 4.81 3.11 5.46 75.76 0.00
4.5 NE Asia 94110.44 95067.13 53798.26 68196.00 26.76 26.45
1) China P Republic 61706.83 61281.57 34988.93 43465.09 24.23 16.86
2) Korea Republic 13047.12 12585.35 6793.74 9904.20 45.78 3.84
3) Japan 9850.22 9754.64 5678.88 6172.34 8.69 2.39
4) Hong Kong 6051.66 8204.18 4417.90 6419.08 45.30 2.49
5) Taiwan 3354.28 3142.89 1838.08 2203.58 19.89 0.85
6) Korea DP Republic 87.90 88.59 74.02 25.94 -64.95 0.01
7) Macao 8.29 7.91 5.14 4.42 -14.00 0.00
8) Mongolia 4.14 1.99 1.57 1.34 -14.80 0.00
4.6 South Asia 2975.01 2813.40 1703.01 1698.76 -0.25 0.66
1) Bangladesh PR 727.15 701.68 434.09 319.67 -26.36 0.12
2) Sri Lanka Dsr 742.79 602.20 343.74 407.32 18.50 0.16
3) Pakistan IR 441.03 454.49 292.88 298.70 1.99 0.12
4) Nepal 470.59 445.13 250.01 233.24 -6.71 0.09
5) Bhutan 281.27 307.82 225.99 201.07 -11.03 0.08
6) Afghanistan Tis 307.90 292.90 151.05 235.31 55.79 0.09
7) Maldives 4.29 9.17 5.25 3.45 -34.18 0.00
5) CIS & Baltics 7078.38 9322.77 4531.00 7325.84 61.68 2.84
5.1 Cars Countries 456.91 612.45 305.96 738.52 141.38 0.29
1) Kazakhstan 352.93 521.29 248.90 642.52 158.15 0.25
2) Uzbekistan 45.26 46.54 28.42 22.78 -19.84 0.01
3) Tajikistan 9.98 21.82 11.22 32.32 187.96 0.01
4) Turkmenistan 46.97 21.32 16.99 10.22 -39.84 0.00
5) Kyrgyzstan 1.79 1.48 0.42 30.68 7159.96 0.01
5.2 Other CIS Countries 6621.47 8710.32 4225.04 6587.31 55.91 2.56
1) Russia 4584.98 5552.30 2935.94 4913.68 67.36 1.91
2) Ukraine 1751.10 2481.47 997.14 1275.35 27.90 0.49
3) Azerbaijan 77.09 461.67 174.26 286.25 64.27 0.11
4) Belarus 164.90 170.57 99.06 89.09 -10.06 0.03

Department of Commerce | Annual Report 2017-18 | 57

 ANNEXURE TABLES
TABLE 3.4
Import from Principal Regions and Countries
(Values in US$ Million)
Region/Countries Apr-Mar Apr-Mar Apr-Oct Apr-Oct % Growth % Share
2015-16 2016-17 2016-17 2017-18(P)
5) Georgia 24.47 31.52 16.30 21.74 33.39 0.01
6) Moldova 4.89 11.73 1.41 0.87 -38.71 0.00
7) Armenia 14.04 1.05 0.93 0.33 -64.26 0.00
6) Unspecified Region 9009.78 7498.04 4628.45 5500.79 18.85 2.13
1) Unspecified 8709.59 7343.64 4518.40 5397.19 19.45 2.09
2) Puerto Rico 50.17 49.99 25.18 49.64 97.13 0.02
3) Eritrea 167.45 36.41 35.04 1.96 -94.41 0.00
4) Serbia 22.34 27.24 17.30 15.39 -11.03 0.01
5) New Caledonia 50.35 23.98 17.35 5.62 -67.60 0.00
6) Marshall Island 0.41 8.71 8.65 0.10 -98.80 0.00
7) Aruba 0.30 4.27 4.16 0.29 -93.06 0.00
8) Monaco 1.53 1.11 0.86 0.87 1.79 0.00
9) Us Minor Outlying Islands 0.36 0.56 0.42 0.68 63.12 0.00
10) Antarctica 1.11 0.50 0.50 0.01 -97.46 0.00
11) Panama C Z 0.45
12) San Marino 0.52 0.39 0.23 0.20 -15.55 0.00
13) South Sudan 0.18 0.12 27.04 22989.92 0.01
14) America Samoa 1.13 0.14 0.08 0.27 246.18 0.00
15) Guernsey 0.11 0.00 0.23 0.00 0.00
16) Greenland 0.10 0.10 0.00 0.01 0.00 0.00
17) Andorra 0.00 0.09 0.09 0.00 0.00 0.00
18) Montenegro 0.05 0.05 0.00 0.01 2375.00 0.00
19) N. Mariana Is. 0.23 0.03 0.03 0.01 -72.01 0.00
20) Vatican City 0.00 0.02 0.00 0.00 0.00 0.00
21) Christmas Is. 0.00 0.02 0.02 0.05 184.66 0.00
22) Fr Polynesia 0.02 0.01 0.00 0.02 293.02 0.00
23) Norfolk Is 0.07 0.01 0.01 0.15 1985.71 0.00
24) Tokelau Is 0.00 0.01 0.01 0.05 416.98 0.00
25) Faroe Is. 0.04 0.01 0.00 0.00 0.00 0.00
26) Palau 3.70 0.00 0.00 0.75 0.00 0.00
27) Pitcairn Is. 0.01 0.00 0.00 0.22 7932.14 0.00
28) Anguilla 0.01 0.00 0.00 0.00 0.00 0.00
29) Heard Macdonald 0.00 0.00 0.00 0.00 0.00
30) Guam
31) Cook Is 0.00 0.01 0.00 0.00
32) Fr S Ant Tr 0.03 0.00 0.00 0.00 0.00
33) Gibraltar 0.00 0.01 0.00 0.00
34) Niue Is 0.00 0.00 0.00 0.00 0.00
35) St Pierre 0.02 0.00 0.00 0.00 0.00
36) Wallis F Is 0.24 0.00 0.00 0.00 0.00
Total 381006.63 384355.56 209834.98 257800.39 22.86 100
Data Source: DGCIS, Kolkata
58 | Annual Report 2017-18 | Department of Commerce
FOREIGN TRADE POLICY
AND EXIM TRADE

Department of Commerce | Annual Report 2017-18 | 59

T
he Five-year Foreign Trade Policy (FTP) 2015-20 released The FTP has been suitably modified to incorporate the relevant
on 01.04.2015 provides a framework for increasing exports GST provisions.
of goods and services. With the release of the Foreign
Trade Policy (FTP) 2015-20, FTP statement, Handbook of II. Foreign Trade Policy 2015-20
procedures) Appendix and Aayat-Niryat forms were also released on Foreign Trade Policy Statement
01.04.2015. Handbook of procedures notifies the procedure to be The Foreign Trade Policy Statement explains the vision,
followed by an exporter or importer or by the licensing/Regional Au- goals and objectives underpinning the Foreign Trade Policy for
thority or by any authority for purpose of implementing the provi- the period 2015-2020. It describes the market and product strat-
sions of Foreign Trade (Development and Regulation) Act, Rules and egy envisaged and the measures required not just for export pro-
Orders issued under the provisions of Foreign Trade Policy. The pro- motion but also for the enhancement of the entire trade
cedure contains the following documents:- ecosystem.

(a) Hand Book of Procedures. It is the first comprehensive statement on the government pri-
(b) Appendices & Aayat Niryat Forms and orities in the Foreign Trade Sector. For improving foreign trade
(c) Standard Input Output Norms (SION) performance, it is necessary to develop a broader frame work that
provided the scope for coordinating with a number of administrative
The FTP for 2015-2020 seeks to provide a stable and sustainable ministries. Through the FTP statement the overall thinking on ex-
policy environment for foreign trade in merchandise and services; ternal sector have been articulated, first its spells out the government
link rules, procedures and incentives for exports and imports with strategy for addressing some of the structural and institutional in-
other initiatives such as “Make in India”, “Digital India”, “Skills stitutes which are the relevance for improving the performance of
India” and “ease of doing business” to promote the diversification Foreign Trade Sector. Secondly, it states the ways in which the gov-
of India’s export basket by helping various sectors of the Indian ernment would make trade and economic integration agreement with
economy to gain global competitiveness. The Foreign Trade Policy trade partners and would work better for Indian enterprises. Foreign
through its various schemes serves the objective of neutralization Trade Policy has taken ‘whole of government’s approach’. Through
of duty incidence, encourage technological up gradation and pro- FTP the government has taken a major ‘path breaking’ initiative that
vides promotional measures to boost India’s exports with the objec- the department has taken to main stream States, Union Territories
tive to offset infrastructural inefficiencies and associated costs and various departments of government of India in the process of
involved in order to provide exporters a level playing field. international trade.

Mid Term Review of Foreign Trade Policy 2015-2020

Mid-term Review of Foreign Trade Policy 2015-2020 was released by Hon’ble CIM Shri Suresh Prabhu
on 5th December 2017 in New Delhi. The highlights and subsequent trade related policies are as follows:
● MEIS (Merchandise Exports from India Scheme) incentives for two sub-sectors of Textiles i.e. Ready Made Garments and Made Ups
increased from 2% to 4% involving additional annual incentives of Rs. 2,743 crore.
● Across the board increase of 2% in existing MEIS incentive for exports by MSMEs /labour intensive industries amounting to Rs. 4,576 crore.
● To provide an impetus to the services trade, the SEIS (Service Export from India Scheme) incentives have been increased by 2% for notified services such
as Business, Legal, Accounting, Architectural, Engineering, Educational, Hospital, Hotels and Restaurants amounting to Rs. 1,140 crore.
● The validity period of the Duty Credit Scrips has been increased from 18 months to 24 months to enhance their utility in the GST
framework. GST rate for transfer/sale of scrips has been reduced to zero from the earlier rate of 12%.
● New trust based Self Ratification Scheme introduced to allow duty free inputs for export production under duty exemption scheme
with a self-declaration. Under this scheme, instead of getting a ratification of the Norms Committee for inputs to be used in the man-
ufacture of export products, exporters will self-certify the requirement of duty free raw materials/ inputs and take an authorization
from DGFT. The scheme would initially be available to the Authorized Economic Operators (AEOs).
● Contact@DGFT service for Complaint Resolution has been activated on the DGFT website (www.dgft.gov.in) as a single window contact
point for exporters and importers for resolving all foreign trade related issues.
● To focus on improving Ease of Trading across Borders for exporters and importers, a professional team envisaged to handhold, assist
and support exporters with their export related problems, accessing export markets and meeting regulatory requirements.
● New Logistics Division created in the Commerce Department to develop and coordinate implementation of an Action Plan for the in-
tegrated development of the logistics sector, by way of policy changes, improvement in existing procedures, identification of bottlenecks
and gaps and introduction of technology in this sector.
● For clarity, a negative list of capital goods which are not permitted under the EPCG (Export Promotion on Capital Goods) scheme has been notified.
● The concept of Domestic Tariff Area (DTA) sale from Export Oriented Units (EoUs) on concessional and full duty has been removed and hence, the limit
on entitlement of DTA sale has also been removed. Consequently, restriction on DTA sale of motor cars, alcoholic liquors, books and tea has been removed.
● Second Hand Goods imported for the purpose of repair/ refurbishing/re-conditioning or re-engineering have been made free, thereby
facilitating generation of employment in the repair services sector.
● Issue of working capital blockage of the exporters due to upfront payment of GST on inputs has been addressed. Under advance au-
thorization Export Promotion for Capital Goods (EPCG) Scheme, 100% EoU’s, exporters have been extended the benefit of sourcing
inputs/capital goods from abroad as well as domestic suppliers for exports without upfront payment of GST. Further an e wallet will
be launched from 1st April 2018 to make these schemes operational from 1st April, 2018.
● The Union Cabinet Committee on 15th December 2017, approved the special package for employment generation in leather and footwear
sector. The package involves implementation of Central Sector Scheme "Indian Footwear, Leather & Accessories Development Pro-
gramme" with an approved expenditure of Rs. 2,600 crore over the three years from 2017-18 to 2019-20. The scheme would lead to de-
velopment of infrastructure for the leather sector, address environment concerns specific to the leather sector, facilitate additional
investments, employment generation and increase in production. The Special Package has the potential to generate 3.24 lakhs new jobs in
3 years and assist in formalization of 2 lakh jobs as cumulative impact in Footwear, Leather & Accessories Sector.

60 | Annual Report 2017-18 | Department of Commerce

 The FTP introduces two new schemes, namely “Merchandise Herbals, Project Goods, Auto Components, Telecom, Computer,
Exports from India Scheme (MEIS)” for export of specified goods Electrical and Electronics Products, Railway, Transport Equipment,
to specified markets and “Service Exports from India Scheme industrial machinery, IC engines, machine tools, parts, hand tools,
(SEIS)” for increasing exports of notified services. pumps of all types, automobiles, two wheelers, bicycles, ships,
planes, chemicals, plastics, rubber, ceramic and glass, leather gar-
Merchandise Exports from India Scheme (MEIS) ments, saddlery items, footwear, steel furniture, prefabs, lighters
MEIS was introduced on 1st April 2015 under FTP 2015-20 with wood, paper, stationary, iron, steel, and base metals products.
an objective to promote export of notified goods manufactured / pro-
duced in India. At the time of introduction MEIS covered 4914 tariff Services Exports from India Scheme (SEIS)
lines at 8 digits. Keeping in mind the global economic downturn and the Services Exports from India Scheme is an incentive scheme for
adverse environment faced by exporters, it was expanded to include ad- eligible service exports and it was introduced in the Foreign Trade
ditional lines and currently it covers 8013 lines, all with global coverage. Policy (2015-20) replacing the Served from India Scheme (SFIS).
SEIS offers reward @ 3 per cent or 5 per cent of net foreign ex-
In the FY 2017-18, the tariff lines under MEIS schedule were change earned. Only Mode 1 and Mode 2 services are eligible. This
aligned with the ITC HS 2017 which came into effect from 1st Jan- scheme covers ‘Service Providers located in India’ instead of ‘Indian
uary, 2017. The initial envisaged annual revenue foregone of Rs. Service Providers’, which was the case in the earlier policy. Under
18,000 crore now stands at Rs. 23,500 crore. MEIS incentives are the new scheme, the incentive scrips issued are transferable. The va-
available at 2, 3 and 5 per cent of the realized FOB value of exports. lidity of the scrips under SEIS, which was 18 months, has been in-
The incentives are issued as duty scrips that can be used for payment creased to 24 months in order to enhance the utility of the scrips.
of basic customs duty under the GST regime and are freely trans-
ferable. The validity of the scrips under MEIS, which was 18 Some important Services covered under SEIS are as follows:
months, has been increased to 24 months in order to enhance the ● Legal, Accounting, Architectural, Engineering, Educational,
utility of the scrips. Hospital services at 5%
● Hotels and restaurants, Travel agencies and tour operators,
Major product groups covered under MEIS:- other business services at 3%.
Agricultural products, Fruits, Flowers, vegetables, Tea Coffee, The following table shows the details of issuance of scrips under
Spices, Value added and packaged products, Handicraft, Handloom, MEIS and SEIS along with value of scrips and FOB value of ex-
Jute products, Textile and garments, Pharmaceuticals, Surgical, ports during 2016-17 and Apr-Sept 2017:

Export Promotion Schemes 2016-17 Apr-Sept 2017

Merchandise Number of Scrips 159446 90333
Exports from India Value of Scrips (Rs. Crore) 18116.80 10581.53
Scheme (MEIS)
FOB value of Exports (Rs. Crore) 688473.22 420296.97
Service Exports Number of Scrips 1368 2173
from India Value of Scrips (Rs. Crore) 561.03 1440.70
Scheme (SEIS)
FOB value of Exports (Rs. Crore) 167172.47 773818.65

III. Other Export Promotion Schemes under earlier Foreign Trade Policies
Scrips are also issued under various schemes viz. (i) Focus Product Scheme (FPS), (ii) Focus Market Scheme (FMS), (iii) Vishesh Krishi and
Gram Udyog Yojna (VKGUY), (iv) Incremental Export Incentive Scheme, (v) Served From India Scheme and (vi) Status Holder Incentive Scrip
(SHIS). The details of issuance of scrips under various export promotion schemes along with value of scrips and FOB value of exports during
2016-17 and Apr-Sept 2017 is given in the following table:

Export Promotion Schemes 2016-17 Apr-Sept 2017

Focus Market Number of Scrips 6999 1280

Scheme (FMS) Value of Scrips (Rs. Crore) 527.85 95.52
FOB value of Exports (Rs. Crore) 15104.03 2829.84
Number of Scrips 20795 3846
Focus Product
Scheme (FPS) Value of Scrips (Rs. Crore) 1124.67 219.85
FOB value of Exports (Rs. Crore) 47213.93 9356.32
Number of Scrips 2532 306
Vishesh Krishi & Gram
Udyog Yojna (VKGUY) Value of Scrips (Rs. Crore) 111.70 9.81
FOB value of Exports (Rs. Crore) 2369.40 214.50
Served From India Number of Scrips 1423 495
Scheme (SFIS) Value of Scrips (Rs. Crore) 1251.76 138.32
Status Holder Incentive Number of Scrips 305 32
Scrip (SHIS) Value of Scrips (Rs. Crore) 204.32 20.87
Incremental Export Number of Scrips 1422 303
Incentivisation Scheme (IEIS) Value of Scrips (Rs. Crore) 368.32 74.83

Department of Commerce | Annual Report 2017-18 | 61

Figure 1 depicts the number of scrips issued under various export promotion schemes during 2016-17 and Apr-Sept 2017.

Figure 1: Issuance of Scrips under Various Export Promotion Schemes

Figure 2 depicts the value of scrips issued under various export promotion schemes during 2016-17 and Apr-Sept 2017

Figure 2: Value of Scrips under Various Export Promotion Schemes

Figure 3 depicts the FOB value of export under various export promotion schemes during 2016-17 and Apr-Sept 2017

Figure 3: FOB Value of Exports under various Export Promotion Schemes

62 | Annual Report 2017-18 | Department of Commerce

IV. DUTY REMISSION SCHEMES RAs, on or before 31.3.2018.
Duty neutralization / remission schemes are based on the prin-
ciple and the commitment of the Government that “Goods and Duty Free Import Authorization (DFIA)
Services are to be exported and not the Taxes and Levies”. Purpose Under DFIA Scheme operational from 01.05.2006, Duty Free Im-
is to allow duty free import / procurement of inputs or to allow re- port Authorization shall be issued on post export basis for products
plenishment either for the inputs used or the duty component on for which Standard Input Output Norms (SION) have been notified,
inputs used. Brief of these schemes are given below. once export is completed. One of the objectives of the scheme is to
facilitate transfer of the authorization or the inputs imported as per
Advance Authorization Scheme SION, once export is completed. Provisions of DFIA Scheme are
Advance Authorization Scheme allows duty free import of in- similar to Advance Authorization scheme. A minimum value addition
puts, along with fuel, oil, and catalyst etc., required for manufactur- of 20% is required under the scheme. For items where higher value
ing the export product. Inputs are allowed either as per Standard addition has been prescribed under Advance Authorization in Appen-
Input Output Norms (SION) or on adhoc Norms basis under Ac- dix, the same value addition shall be applicable for DFIA also. Pre-
tual User condition. Norms are fixed by Technical Committee i.e., export DFIA has been discontinued in FTP 2015-2020.
Norms Committee. This facility is available for physical exports (also
including supplies to SEZ units & SEZ Developers) and deemed ex- Schemes for Gems & Jewellery Sector
ports including intermediate supplies. Minimum value addition pre- Gems & Jewellery exports constitute a major portion of our
scribed is 15% except for certain items. Exporter has to fulfill the total merchandise exports. It is an employment oriented sector. Ex-
export obligation over a specified time period, both quantity and ports from this sector suffered significantly on account of the global
value wise. The facilities to club authorizations were simplified and economic slowdown.
powers decentralized to RAs. Certain items which are prohibited
for export have been allowed for export under advance authorization Duty free import / procurement of precious metal (Gold / Sil-
scheme, subject to stipulated conditions. ver / Platinum) from the nominated agencies is allowed either in ad-
vance or as replenishment. Duty Free Import Authorization Scheme
In FTP 2015-2020, (i) a longer export obligation (EO) period shall not be available for Gems and Jewellery Sector. The Schemes
of 24 months has been provided for export items falling in the cat- for Gems and Jewellery Sector are as follows:
egory of defence, military store, aerospace and nuclear energy in- ● Advance Procurement/replenishment of Precious Metals
stead of the normal 18 months under the advance authorization from Nominated Agencies
scheme. A list of military stores requiring NOC of Department of ● Replenishment Authorization for Gems
Defence Production has been separately notified. (ii) Imports against ● Replenishment Authorization for Consumables
Advance Authorisation shall also be eligible for exemption from ● Advance Authorization for Precious Metals
Transitional product Specific Safeguard Duty. One time relaxation
is provided for Clubbing of advance Authorisations issued during Issuance of Authorization under Duty Remission Schemes
foreign trade policy 2002-07 and foreign trade policy 2004-09. One Authorizations are issued under the various schemes, viz., Ad-
time relaxation is provided for extension of export obligation period vance Authorization, Duty Free Import Authorization (DFIA) and
of Advance authorizations issued under Foreign Trade Policy 2002- Replenishment License (Gems & Jewellery). Details of number of
07, Foreign Trade Policy 2004-2009 and Advance Authorisations is- authorizations issued, CIF value of imports and FOB value of ex-
sued prior to 5.6.2012 under foreign trade Policy 2009-14. Request ports under various schemes during 2016-17 and April-Sept 2017
for extension of Export obligation period shall be filed in respective are given in the following table:

Duty Remission Schemes 2016-17 Apr-Sept 2017

Number of Authorizations 22853 10487
Advance
Authorization CIF Value of Imports (Rs.Crore) 200709.69 90426.36
FOB Value of Exports (Rs.Crore) 312159.59 143921.18
Duty Free Import Number of Authorizations 581 368
Authorization CIF Value of Imports (Rs.Crore) 1127.65 1266.34
(DFIA) FOB Value of Exports (Rs.Crore) 1941.12 1714.39
Replenishment Number of Authorizations 45 45
License (Gem & CIF Value of Imports (Rs.Crore) 64.80 42.57
Jewellery) FOB Value of Exports (Rs.Crore) 748.34 491.94
Figure 4 depicts the number of authorisations issued under various export promotion schemes during 2016-17 and Apr-Sept 2017.

Figure 4: Number of Authorisations

under Duty Remission Schemes

Department of Commerce | Annual Report 2017-18 | 63

 Figure 5 depicts the CIF value of import under various export Figure 6 depicts the FOB value of export under various export
promotion schemes during 2016-17 and Apr-Sept 2017. promotion schemes during 2016-17 and Apr-Sept 2017.

Figure 5: CIF Value of Import (Rs. Crore) Figure 6: FOB Value of Export (Rs. Crore)

Figure 7 depicts the percentage share of various schemes in is- initial lining and spare refractories; and
suance of total number of scrips during Apr-Sept 2017. It shows that iv) Catalysts for initial charge plus one subsequent charge.
the highest share of 91.46% scrips was issued under MEIS during Apr-
Sept 2017. b) Import of capital goods for Project Imports notified by Central
Board of Excise and Customs is also permitted under EPCG
Figure 7: Percentage share of various Scheme.
schemes in total number of scrips issued
c) Authorisation is valid for import for 18 months from the date of
during Apr-Sept 2017 issue of Authorisation. Revalidation of EPCG Authorisation shall
not be permitted.

d) Second hand capital goods are not permitted to be imported

under EPCG Scheme.

e) Authorisation under EPCG Scheme is not issued for import of

any Capital Goods for generation / transmission of power (in-
cluding Captive plants and Power Generator Sets of any kind) for
i) Export of electrical energy (power)
ii) Supply of electrical energy (power) under deemed exports
iii) Supply/Use of power (energy) in their own unit, and
iv) Supply/export of electricity transmission services

f) The scheme also requires maintenance of average level of exports

achieved by the exporter in the preceding three licensing years for
V. Export Promotion of Capital Goods (EPCG) Scheme the same and similar products within the overall export obligation
The objective of the EPCG Scheme is to facilitate import of period including extended period, except for certain specified sec-
capital goods for producing quality goods and services to enhance tors/ products as listed under para 5.13 of Handbook of Proce-
India’s export competitiveness. The EPCG Scheme allows import dures.
of capital goods at Zero customs duty subject to an export obliga-
tion equivalent to 6 times of duties, taxes and cess saved on capital g) The scope of the EPCG scheme is also extended to a service
goods, to be fulfilled in 6 years reckoned from date of issue of Au- provider who is designated / certified as a Common Service
thorisation. Details of EPCG scheme are as follows: Provider (CSP) by the DGFT, Department of Commerce or State
(a) EPCG Scheme allows import of capital goods for pre-produc- Industrial Infrastructural Corporation in a Town of Export Ex-
tion, production and post-production at Zero customs duty. Capital cellence subject to provisions of Foreign Trade Policy/Handbook
goods imported under EPCG scheme for physical exports are also ex- of Procedures with the following conditions:-
empt from whole of the Integrated Tax and Compensation cess levi- i) Export by users of the common service, to be
able thereon under the subsection (7) and subsection (9) respectively, counted towards fulfilment of EO of the CSP shall con-
of section 3 of the Customs Tariff Act, 1975 (51of 1975), as may be tain the EPCG authorisation details of the CSP in the re-
provided in the notification issued under Department of Revenue. Al- spective Shipping bills and concerned RA must be
ternatively, the authorisation holder may also procure Capital Goods informed about the details of the Users prior to such ex-
from indigenous sources in accordance with provisions of paragraph port;
5.07 of FTP. Capital goods for the purpose of the EPCG scheme shall ii) Such export will not count towards fulfilment of specific
include: export obligations in respect of other EPCG authorisa-
i) Capital Goods as defined in Chapter 9 including in CK- tions (of the CSP/User); and
DISKD condition thereof; iii) Authorisation holder shall be required to submit Bank
ii) Computer software systems; Guarantee (BG) which shall be equivalent to the duty
iii) Spares, moulds, dies, jigs, fixtures, tools & refractories for saved. BG can be given by CSP or by any one of the users

64 | Annual Report 2017-18 | Department of Commerce

 or a combination thereof, at the option of the CSP. ii) Exports shall be physical exports. Certain deemed exports
iv) Guidelines for designating/certifying a Common Service are also counted towards fulfillment of EO.
Provider (CSP) by DGFT, Department of commerce or iii) The export obligation under the Scheme shall be over and
State Industrial Infrastructure Corporation in a town of above, the average level of exports achieved by the EPCG
Export Excellence under Para 5.02 (b) FTP 2015-2020. authorization holder in the preceding three licensing years
for the same and similar products within the overall ex-
h) A person holding an EPCG authorisation may source capital port obligation period including extended period, other
goods from a domestic manufacturer. Such domestic man- than the categories exempted for this purpose.
ufacturer shall be eligible for deemed export benefit under iv) There is no requirement of maintaining average EO for
paragraph 7.03 of FTP and as may be provided under GST certain sectors like handicraft, handlooms, cottage, tiny
Rules under the category of Deemed Exports. Such domes- sector, agriculture, aqua-culture (including fisheries), ani-
tic sourcing shall also be permitted from EOUs and these mal husbandry, floriculture, horticulture, pisciculture, viti-
supplies shall be counted for purpose of fulfillment of positive culture, poultry, sericulture, Carpets, coir and Jute.
NFE by said EOU as provided in Para 6.09 (a) of FTP. v) Extension in EO period may be granted for a period of 2
i) Authorization holder shall produce, within six months years subject to certain conditions specified in Para 5.17
from date of completion of import, to the concerned RA, of HBP.
a certificate from the jurisdictional Central Excise Author- o) Import of Capital Goods is subject to Actual User Condition till
ity or an independent Chartered Engineer, at the option EO is completed.
of the authorisation holder, confirming installation of
capital goods at factory/premises of authorization holder Post Export EPCG Duty Credit Scrip(s):
or his supporting manufacturer(s). The RA may extend Post export EPCG Duty Credit Scrip(s) is available to ex-
the said period for producing the certificate by a maxi- porters who intend to import capital goods on full payment of ap-
mum period of another 12 months. Where a unit regis- plicable duties and choose to opt for this scheme. Basic Customs
tered with Central Excise opts for independent Chartered duty paid on capital goods is remitted in the form of freely trans-
Engineer’s certificate, the authorisation holder shall send ferable duty credit scrip(s), similar to those issued under Chapter
a copy of the certificate to the jurisdictional Central Ex- 3 of FTP. Specific EO is 85% of the applicable specific EO under
cise Authority as intimation/record. the EPCG Scheme. However, average EO shall remain unchanged.
Duty remission is in proportion to the EO fulfilled. All provisions
j) In the case of import of spares, the installation certificate shall be for utilization of scrips issued under Chapter 3 of FTP are appli-
submitted by the Authorization holder within a period of three cable to Post Export EPCG Duty Credit Scrip(s). All provisions
years from the date of import. of the existing EPCG scheme shall apply insofar as they are not
inconsistent with this scheme.
k) EPCG Authorisation is issued with a single port of registration
as per paragraph 4.37 of HBP, for imports. However, exports can Details of EPCG authorizations are given in the table as follows:
be made from any port specified in paragraph 4.37 of HBP.

l) Specific EO in respect of export of Green Technology Products is Issuance under Export Promotion
75% of the normal EO as mentioned in the Para 5.10 of FTP. Capital Goods Scheme
The list of Green Technology products is given in Para 5.29 of
HBP 2015-20. EPCG Scheme 2016-17 Apr-Sept 2017
Number of Authorizations 23,101 8,363
m) For units located in J&K, North Eastern Region including Sikkim,
specific EO shall be 25% of the EO as stipulated in Para 5.01 of Duty saved Amount 13,470.53 5,283.81
FTP. (Rs. Crore)

n) Export Obligation (EO) conditions under EPCG Scheme: FOB value of Export 84,118.01 32,353.44
i) EO is to be fulfilled by export of goods manufactured/ (Rs. Crore)
service(s) rendered by applicant.

Figure 8 depicts the number of authorizations issued under various export promotion schemes along with duty saved amount and FOB
value of export during 2016-17 and Apr-Sept 2017.
Figure 8: Issuance of Authorisation under Export Promotion Capital Goods Scheme

Department of Commerce | Annual Report 2017-18 | 65

VI. Interest Equalization Scheme on Pre & Post Shipment d) Where the exporter desires to claim drawback determined and
Rupee Export Credit fixed by Central Excise Authority (brand rate), he shall follow
Cabinet Committee on Economic Affairs (CCEA) approved the para 4.15 of FTP regarding declarations to be made in applica-
Interest Equalization Scheme on 18.11.2015 for 5 years w.e.f. tion for the authorisation and make export under claim for brand
01.04.2015. Operational guidelines of the scheme were issued by rate. In such cases the value addition shall be as per para 4.08 of
RBI vide Circular No.62 dated 04.12.2015. The main features of FTP. Minimum value addition shall be as per para 4.09 of FTP.
the scheme are as follows:
a) The rate of interest equalization @ 3% per annum will be avail- e) Authorisation, and the fabric imported, shall be subject actual
able on Pre Shipment Rupee Export Credit and Post Shipment user condition. The same shall be non transferable even after
Rupee Export Credit. completion of export obligation. However fabric imported may
be transferred for job work as permitted by Central Excise (ex-
b) The scheme would be applicable w.e.f 01.04.2015 for 5 years. cluding to units located in areas eligible for area based exemption
Government, however, reserves the right to modify/amend the from Central Excise Duty). Invalidation of the authorisation
Scheme at any time. shall not be permitted.

c) The scheme will be available to all exports under 416 specified tariff f) The fabric imported shall be subject to pre-import condition and
lines [at ITC (HS) code of 4 digit] and to all exports made by Micro, it shall be physically incorporated in the export product (making
Small & Medium Enterprises (MSMEs) across all ITC (HS) codes. normal allowance for wastage). Only Physical exports shall fulfill
the export obligate.
d) Scheme would not be available to merchant exporters.
VIII. Alignment of Foreign Trade Policy with the GST Rules
e) Banks are required to completely pass on the benefit of interest Policy Provisions and Procedures under Chapter 4 of Foreign Trade
equalisation, as applicable, to the eligible exporters upfront and Policy 2015-20 has been aligned in line of GST Rules. Holders of AA/
submit the claims to RBI for reimbursement, duly certified by EPCG and EOUs would not have to pay IGST, Cess etc. on imports.
the external auditor. Also, domestic supplies to holders of AA/ EPCG and EOUs would be
treated as deemed exports under Section 147 of CGST/ SGST Act and
f) All eligible exports under the scheme would have to meet the refund of tax paid on such supplies given to the supplier.
criteria of minimum processing for the goods to be called as
Originating from India and would be governed by provision of IX. Status Holders Recognition:
Paragraph 2.108 (a) (Rules of Origin [Non preferential]) of All exporters of goods, services and technology having an im-
Handbook of Procedures of Foreign Trade Policy 2015-2020. porter-exporter code (IEC) number are eligible for recognition as a
Status Holder, which depends upon export performance in the cur-
In the Financial Years 2015-16 and 2016-17 funds to the tune rent year plus last three years (except for Gems and Jewellery Sector.
of Rs.1100 crore and 1000 crore respectively had been provisioned The current threshold to cross for getting One Star Export House
in Budget Estimate. In the current Financial Year 2017-18, Rs. 1100 status is USD 3 Million in current plus last three years. The Foreign
crore has been granted under BE out of which full amount has been Trade Policy 2015-20 provides for certain privileges and preferential
released to RBI as on October 2017 against the claims of Scheduled treatment and priority in handling of consignments of Status holders
Commercial Banks upto February, 2017 (part) and Urban Co-oper- by the concerned agencies. Also, a shortened time line of one day for
ative Banks upto May, 2017. 4 and 5 star status holders and 2 days for 1, 2 and 3 star status holders
has been stipulated for regional authorities to issue advance authori-
VII. Special Advance Authorization Scheme for export of arti- zations to status holders and for its subsequent amendments, if any.
cles for apparel and clothing accessories
A new scheme for import of fabrics and eligibility to claim All Manufacturers who are also Status Holders have been enabled
Industry Rate of Duty Drawback was introduced w.e.f 1st Septem- to self-certify their manufactured goods as originating from India
ber 2016. This new scheme called Special Advance Authorization with a view to qualify for preferential treatment under different Pref-
Scheme for export of Articles of Apparel and Clothing Accessories. erential Trading Agreements [PTAs], Free Trade Agreements
Exporters are entitled for an authorization for fabrics including inter [FTAs], Comprehensive Economic Cooperation Agreements
lining on pre-import basis, and All Industry Rate of Duty Drawback [CECAs] and Comprehensive Economic Partnerships Agreements
for non-fabric inputs on the exports. [CEPAs], which are in operation. There are more than 6,500 IEC
Holders who have been given a Status Holder Certificate, One Star
This scheme is allowed for export of items which are covered and above under the FTP 2015-20.
under Chapter 61 and 62 of ITC(HS) Classification of Export and
Import, subject to the following terms and conditions: X. Export Oriented Units (EOUs), Electronics Hardware
a) The authorization shall be issued based on Standard Input output Technology Parks (EHTPs), Software Technology Parks
Norms (SION) or prior fixation of norms by Norms Committee. (STPs) and Bio-Technology Parks (BTPs):
Units undertaking to export their entire production of goods
b) The authorization shall be issued for the import of relevant fab- and services (except permissible sales in DTA), may be set up
rics including inter lining only as input. No other input, packing under the Export Oriented Unit (EOU) Scheme, Electronics Hard-
material, fuel, oil and catalyst shall be allowed for import under ware Technology Parks (EHTP) Scheme, Software Technology
this authorization. Parks (STP) Scheme or Bio-Technology Parks (BTP) for manu-
facturing of goods, including repair, remaking, reconditioning, re-
c) Exporters shall be eligible for All Industry Rate of Duty Draw- engineering and rendering of services, development of software,
back, for non fabric inputs, as determined by Central Govern- agriculture including agro-processing, aquaculture, animal hus-
ment for this scheme. For the purpose of value addition norm bandry, bio-technology, floriculture, horticulture, pisciculture, viti-
of para 4.08 of FTP, the value of any other input used on which culture, poultry and sericulture. Trading units are not covered
benefit of Drawback is claimed or intended to be claimed shall under these schemes.
be equal to 22% of the FOB value of export realized. Minimum
value addition shall be as per para 4.09 of FTP. An EOU/EHT/STP BTP unit may export all kinds of goods

66 | Annual Report 2017-18 | Department of Commerce

and services except items that are prohibited in ITC (HS) and may In the last few years 63409 (approx.) new & prospection ex-
import/or procure, from bonded warehouses in DTA/international porters have attended Niryat Bandhu outreach programs conducted
exhibition held in India, without payment of Customs duty/addi- by the Regional Officers all over India and Online Courses by IIFT.
tional duty of Customs/Integrated Tax and GST compensation cess,
all types of goods, including capital goods, required for its activities, Allocation of funds for 2017-18 was only 100 lakhs and the pro-
provided they are not prohibited items of import in the ITC (HS). grammes conducted/ beneficiaries so far are as follows:-
The units are also allowed to procure GST goods or excisable goods, i) So far 1366 persons have participated in programmes conducted
from DTA, on payment of GST taxes as applicable or without pay- by under C1 (New IEC holders), C2 ( Town of excellence/In-
ment of excise duty as the case may be. All these units shall be a dustrial clusters) C3 (Seminars at Business Schools/Universi-
positive net foreign exchange earner except for sector specific pro- ties).
vision of Appendix-6B of HBP Volume I, where a higher value ad-
dition shall be required. ii) Online training programmes are being conducted by the Indian
Institute of Foreign Trade, New Delhi. In 2017-18, 11 programs
XI. Deemed Exports have been sanctioned and 5 have been held so far. There were
“Deemed Exports” refer to those transactions in which goods 192 participants (162 male + 30 female).
supplied do not leave country, and payment for such supplies is re-
ceived either in Indian Rupees or in free foreign exchange. Deemed iii) It may be mentioned here that Online certificate program in ex-
Export Scheme is for encouraging import substitution and mainly port-import business commenced in September 2015. So far 6
covers such supply of goods which are otherwise allowed at zero programs were held in 2015-16, beneficiaries were 303 out of
custom duty. For deemed exports supplies, benefit of advance au- which 35 were women. In 2016-17, 9 programs were held and
thorization, duty drawback of Customs duty paid on inputs and re- beneficiaries were 353 out of which 76 were females.
fund of terminal excise duty paid on final goods/exemption, as
applicable as per Foreign Trade Policy, are available. iv) As regards continuation of Niryat Bandhu Scheme beyond
2017-18 to 21-22-Proposal has been accepted for Rs. 12.37
XII. Niryat Bandhu Scheme crores.
The Government of India had conceptualized the Niryat
Bandhu Scheme ,as part of its Foreign Policy (FTP) on 13th Octo- XIII. Board of Trade (BOT)
ber, 2011 which was incorporated in the FTP 2009-2014 as a novel The Board of Trade (BOT) has been reconstituted vide Trade
scheme for mentoring the first generation entrepreneurs. The ob- Notice No. 21 dated 23.03.2016. The objective of BOT is to have
jective of the Scheme is to reach out to the new and potential ex- continuous discussion and consultation with trade and industry. The
porters and mentor (hand holding) them through orientation Board of Trade would, inter-alia, advise the Government on policy
programs, counseling sessions and individual facilitation so that they measures related to Foreign Trade Policy in order to achieve the ob-
may get into international trade and boost exports from India jective of boosting India’s trade.
through timely and appropriate guidance of DGFT officers.
First meeting of the reconstituted Board of Trade was held on
The outreach awareness programs are conducted under the 06.04.2016. 13 Ministries / Departments and 34 Trade bodies/ or-
Scheme through the 36 Regional Authorities(field offices) of DGFT, ganizations took part. Action initiated on the recommendations. Sec-
spread all over the country, which directly comes into interaction ond meeting took place on June 19, 2017 to take member’s
with the new and prospective exporters while issuing of Importer suggestions on the Mid-term Review of the Foreign Trade Policy
Exporter Code (IEC), authorizations, incentives, scrips, etc. 2015-20.

Considering the significance of MSMEs in manufacturing sector XIV. Matter related to Exports
and employment generation, the outreach programs specifically focus Export Authorization
on the exporters from MSME Clusters, with the objective of adding The Export Cell deals with Export Policy of various items under
new exporters from that sector and boosting the export of the spe- Schedule 2 of ITC(HS) Classification for Export and Import, cat-
cific product. DGFT identifies MSME Clusters for its outreach pro- egorised as ‘free’ / ‘restricted’ or ‘prohibited’. The Export Policy of
grams to be implemented all over the country. These clusters are items are reviewed in consultation with the concerned subject com-
mostly in the small cities with the objective to train potential entre- modity Division of the Department of Commerce & Ministry / De-
preneurs and exporters from these cities. DGFT has identified “In- partment concerned and notified time to time. Accordingly, Export
dustrial Partners”, such as Export Promotion Councils, to provide Cell provides clarifications / interpretations on Export Policy of
resource inputs for the export of the product, and “Knowledge Part- items whenever sought by individuals / firms / companies or Min-
ners”, such as academia, customs, banks, etc., who would provide re- istry / Department / Organisation concerned. Export of items cat-
source inputs on procedural aspects for export of that product. egorised as ‘Restricted’ in Schedule 2 of ITC(HS) Classification for
Export, is subject to license.
The allocation & expenditure and beneficiary so far, are as
follows: The applications for issuance of export authorization for 'Re-
stricted' items (other than SCOMET items). e.g. as Onion seeds, live
S. No. Year Allocation Expenditure Beneficiaries animals, seaweeds, non-Basmati Rice Paddy (Husk) other than seed
(in lakhs) (in lakhs) quality, fodder material, fertilizers (NPK, SSP, urea etc.), chemicals
under Montreal Protocol and export of value added products of
1. 2013-14 2.00 0.12 1277 wood etc., are processed in Export Cell and considered by an EXIM
Facilitation Committee (EFC) chaired by Addl. DGFT in-charge of
2. 2014-15 100.00 81.07 18283 export and comprising representatives of various Ministries and De-
3. 2015-16 250.00 245.78 28000 partments. EFC generally meets once in a month and based on
NOC/comments of subject commodity Division of the DOC and
4. 2016-17 100 .00 98.44 15849 Administrative Ministry/ Department concerned, cases are decided
and permissions issued to concerned Regional Authorities of DGFT
Total 452.00 Rs. 435.41 63409 for issue of export authorisation/ license. Out of the total 220 ap-

Department of Commerce | Annual Report 2017-18 | 67

plications (including 27 cases brought forward from 2016-17) re- 2017-18 (upto September 2017).
ceived for export permission during 2017-18 (upto 30th September
2017), 170 applications (which constitute approx. 77% of the total XV. Matters related to Imports
applications received) have been granted export permission, 10 cases Import Authorization
were rejected, 05 cases were dropped from agenda due to non-re- Import Cell considers the applications for import of items which
ceipt of clarification/ supporting documents from the applicants are restricted for import. The applications for issuance of import
and remaining 35 applications are pending with the concerned Min- authorization for import of such Restricted Items (such as Live An-
istry/Department for want of their inputs/NOC. During the year imals, Scrap of rubber, Refrigerant Gases and Arms and Ammuni-
2016-17 (upto 31.03.2017), 350 applications for export permission tion etc.) are considered by an Exim Facilitation Committee (EFC)
were received, out of which, 294 applications (which constitute ap- consisting of representatives of various Administrative Ministries
prox. 84% of the total applications received) were approved and and Departments. Such cases are decided on receipt of written tech-
granted export permission, 29 cases rejected/dropped (10%) and re- nical inputs / comments of concerned Administrative Ministry /
maining 27 cases deferred for the subsequent year for want of in- Department. Apart from the above, it also grants permission under
puts/NOC from the concerned Ministry/Department. para 2.20 of FTP with the approval of DGFT for the items (such
as fuel, rice, wheat, etc.) import of which are allowed through State
SCOMET Trading Enterprises.
“Special Chemicals, Organism, Materials, Equipment and Tech-
nologies (SCOMET)” items are dual-use items having potential for Out of total 449 applications received during 2017-18 (upto Oc-
both civilian and Weapons of Mass Destruction (WMD) applica- tober, 2017), 251 cases were given import permission.
tions. Export of such items is either restricted, requiring an autho-
risation for their export, or is prohibited. The export policy relating Pre-Shipment Inspection Agency (PSIA)
to SCOMET items is given in Paragraph 2.73 of Hand Book of Pro- As per Para 2.57 of HBP 2015-20, import of any form of metal-
cedures of FTP 2015-20 and the list of such items is given in Ap- lic waste or scrap will be subject to the condition that it will not con-
pendix 3 to Schedule 2 of ITC (HS) Classification of Export and tain hazardous, toxic waste, radioactive contaminated waste / scrap
Import Items. There are eight categories of such items. containing radioactive material, any type of arms, ammunition,
mines, shell, live or used cartridge or any other explosive material in
All applications for export of SCOMET items as well as appli- any form either used or otherwise. Import of metallic waste and
cations for onsite verification are considered on merits by an Inter- scrap is permitted only if the importer furnishes to the customs at
Ministerial Working Group (IMWG) in the DGFT under the the time of clearance of goods the Pre-shipment inspection certifi-
Chairmanship of Additional Director General of Foreign Trade as cate as per the format in Annexure 2H from any of the PSIAs rec-
per guidelines and criteria laid down in Para 2.74 of the Hand Book ognized by DGFT as given in Appendix 2G to the effect that the
of Procedures. Members include, inter-alia, MEA, Cabinet Secre- consignment was checked for radiation level and scrap does not con-
tariat, NACWC, DRDO, ISRO, DAE, Department of Chemicals & tain radiation level in excess of natural background.
Petro-Chemicals and Department of Bio-technology.
XVI. New Initiatives in DGFT
No export permission is required for supply of SCOMET items e-Commerce Exports
from DTA to SEZ. However, export permission is required if the Goods falling in the category of handloom products, books/pe-
SCOMET items are to be physically exported outside the country riodicals, leather footwear, toys and customized fashion garments,
from SEZ. The SCOMET list was harmonised with the lists of Nu- having FOB value up to Rs. 25,000 per consignment (finalized using
clear Suppliers Group (NSG) and Missile Technology Control e-Commerce platform) are eligible for benefits under FTP. Such
Regime (MTCR) leading to India joining the MTCR in June 2016. goods can be exported in manual mode through Foreign Post Of-
The Export Control List has further been harmonised with the con- fices at New Delhi, Mumbai and Chennai.
trol lists of the Wassenaar Arrangement (WA) and the Australia
Group (AG) and notified vide DGFT Notification No. 05/2015-20 Export of such goods under Courier Regulations shall be al-
dated 24.04.2017, which came into effect from 1st May 2017. lowed manually on pilot basis through Airports at Delhi, Mumbai
Through this notification the updated export control list of and Chennai as per appropriate amendments in regulations to be
SCOMET items has been replaced with the existing Appendix 3 of made by Department of Revenue. Department of Revenue shall fast
Schedule 2. Further, the licensing jurisdiction for various categories track the implementation of EDI mode at courier terminals.
of the SCOMET list has also been clearly defined.
Trade Facilitation
Out of the total 196 applications (including 18 deferred cases Trade facilitation is a priority of the Government for cutting
brought forward from previous year) received for export permission down the transition cost and time and thereby rendering Indian ex-
during 2017-18 (upto 30th September 2017), 150 applications (which ports more competitive. e-Trade is an initiative that set the stage for
constitute approx. 76.5% of the total applications received) have creating an electronic single window for trade and facilitates user to
been granted export permission, 03 cases were dropped (referred to carry out all their foreign trade related, regulatory and other com-
Department of Defence Production) and remaining 43 applications pliances online.
were pending with the concerned IMWG member agencies for want
of their inputs/NOC. During the year 2016-17 (upto 31.03.2017), The following are the major Ease of Doing Business and e-gov-
268 applications (including 20 deferred cases brought forward from ernance initiatives:
previous year) for export permission were received, out of which, i) Reducing number of Documents: Number of mandatory
244 applications (which constitute approx. 91% of the total appli- documents required for exports and imports have been reduced
cations received) were approved and granted export permission, 06 to 3 each for export and import. Earlier 7 documents were re-
cases rejected/dropped (2 %) and remaining 18 cases deferred for quired for exports and 10 for imports. DGFT in January 2016
the subsequent year for want of inputs/NOC from the IMWG has also specified that any violations in this regard should be
member agencies. brought to its notice.

The total value of authorizations for export of SCOMET items ii) Reducing number of Schemes: The New Foreign Trade Pol-
stood at US$ 54.93 million during 2016-17 and US$ 98.18 million in icy (2015-20) was launched on 1st April, 2015 with a focus on

68 | Annual Report 2017-18 | Department of Commerce

 supporting both merchandise and services exports and improv- ● EXIM Dashboard launched at the commerce.gov.in web-
ing the ‘Ease of Doing Business’. DGFT consolidated 5 differ- site. Allows users a graphical understand of India’s ex-
ent incentive schemes under the earlier policy for rewarding port and imports at the product, country and port level.
merchandise exports into a single scheme, namely the Merchan- Popular with exporters on account of useful data de-
dise Exports from India Scheme. The replaced schemes are: picted in uncomplicated manner.
Focus Product Scheme (FPS), Focus Market Scheme (FMS),
Market Linked Focus Product Scrip (MLFPS), Vishesh Krishi vii) Facilities for Complaint Resolution
and Gram Udyog Yojna (VKGUY), Agri. Infrastructure Incen- ● Contact@DGFT system has been activated at the DGFT
tive Scrip. website (www.dgft.gov.in) as a single point contact for
resolving all foreign trade related issues. Exporters/Im-
iii) PAN of firm is being issued as IEC by the DGFT wef July porters use this facility for resolution of foreign trade
1,2017. The process of making application and issuance of IEC related issues either directly concerning DGFT (head-
is online and secure. IEC has also been integrated with the eBIZ quarters or regional offices) or concerning other agen-
portal of DIPP. IEC and EPCG applications have been inte- cies of the Central or State Governments. A reference
grated with the eNivesh portal implemented by PMG set up by number is issued for each request so that the status of
the Cabinet Secretariat. action taken can be tracked. Effective monitoring
arrangements have been made.
iv) Use of electronic bank realization certificate (eBRC) system has ● DGFT maintains an active Twitter handle (#DGFTIN-
been extended. DGFT shares data generated by the electronic DIA) with more than 27500 followers. Responses to
bank realization certificate (eBRC) system with 17 agencies. The tweets sent to CIM’s account and DGFT handle are
eBRC system captures details of the foreign exchange received managed through the Twitterseva service and more than
by exporters through the banking channel. So far DGFT has 7500 tweets have been replied to w.e.f Apr 2016 with an
signed MOUs with 14 state governments 2 central government average reply time of less than 12 hours.
agencies and GSTN for sharing of the data. At the state level, ● Grievances on policy, procedure and implementation is-
Commercial Tax Departments of 14 states have signed MoU sues registered at the Public grievances portal of Depart-
with DGFT for receiving e-BRC data for VAT refund purposes. ment of Administrative Reforms & Public Grievances
These are: (i) Maharashtra, (ii) Delhi, (iii) Andhra Pradesh,(iv) are handled promptly.
Odisha, (v) Chhattisgarh, (vi) Haryana, (vii) Tamil Nadu, (viii) ● Outreach & Niryat Bandhu Scheme: In the last two
Karnataka, (ix) Gujarat, (x) Uttar Pradesh, (xi) Madhya Pradesh, years, 50,000 new and prospective exporters have at-
(xii) Kerala, (xiii) Goa, (xiv) Bihar. In addition, Ministry of Fi- tended the Niryat Bandhu outreach programs through
nance, Enforcement Directorate, Agricultural & Processed Food the regional offices of DGFT. DGFT conducted out-
Products Export Development Authority and GSTN have reach activities at 34 clusters, as part of Niryat Bandhu.
signed MoU. In addition, an online training programme has been
started with the IIFT for first time entrepreneurs.
v) The ‘Aayat Niryat’ Forms used for making online application to
DGFT, have been simplified bringing in clarity in different pro- (VIII). Enhanced Foreign Trade Data Dashboard-Trade
visions, and enhancing electronic governance. Analytics
Digitization of the government records and data analytics is cru-
vi) Web Portals cial for fast and effective evidence based planning and policy inter-
● DGFT has launched a new look website making it more vention. This has an important role to play in effective and
user-friendly and easy to navigate. DGFT website has a transparent governance.
large dynamic component whereby the trade community
can file applications online for IEC and various other The Dashboard provides a visualisation of exports, imports and
schemes of DGFT. The exporters can also see the status balance of trade of India. The portal has five main menu on Ex-
of their electronic Bank realization certificates in almost ports, Imports, Balance of Trade, Quick Estimates and link to
real-time. The website is rich in content with all docu- DGCI&S Data, the source agency. Each of these views provide the
ments related to Foreign Trade Policy along with a re- users with features to inspect the trade between India and a partic-
sponsive online grievance redressal system. ular country, zoom into the activities of a particular port and reflect
● Indian Trade Portal launched by Department of Com- trade pattern over any months of the user's choice for last five years.
merce and managed by FIEO displays information use- The Dashboard provides an enabling environment to importers and
ful for export import. It contains the Trade enquiries exporters to identify and access global trade opportunities based on
uploaded by Indian trade missions, Tariff and Trade data reliable and updated information, directly accessible to the public
of India’s major trade partners, Export Market Reports, through Government sources. The dashboard has the provision for
and Trade Agreements etc. downloading the country-wise data in excel format. A look of the

Department of Commerce | Annual Report 2017-18 | 69

Dashboard is as follows:

IX. Monitoring of Export Promotion Schemes X. Involvement of the states in export promotion
For effective monitoring and evaluation of the Foreign Trade Pol- The Council for Trade Development and Promotion was con-
icy (FTP), a comprehensive Management Information System (MIS) stituted in July 2015. It would ensure a continuous dialogue with
Report on Export Promotion Schemes 2017 was brought out by Sta- State Governments and UT’s on measures for providing an interna-
tistics Division of DGFT, which was launched by Commerce Secretary tional trade enabling environment in the States and create a frame-
on 29th June 2017 on the occasion of Statistics Day. Based on the work for making the States active partners in boosting India’s
MIS returns from RAs, the report containing data and analysis for last exports. So far two meetings of the council have taken place. The
three years is being increasingly used for informed decision making second meeting was held on 5.1.2017.
and mid-term review of the current foreign trade policy (2015-20). In
view of its usefulness and users’ demand, the MIS report is now being The State governments have been requested to develop their ex-
compiled on monthly basis since August 2017. Also another initiative port strategy, appoint export commissioners, address infrastructure
has been taken in bring out a Monthly Bulletin of Foreign Trade Sta- constraints restricting movement of goods, facilitate refund of
tistics since September 2017, which provides ready reference on export VAT/ Octroi/State level cess, and address other issues relating to
and import data of India on major commodities and major countries. various clearances etc. and build capacity of new exporters, in order
The soft form of all these reports is available in Directorate website in to promote exports. So far,17 States have prepared their exports
Statistical Report under Trade Data and Statistics Menu. strategy. ■

70 | Annual Report 2017-18 | Department of Commerce

 COMMERCIAL RELATION, TRADE
AGREEMENTS AND INTERNATIONAL
TRADE ORGANISATION

Department of Commerce | Annual Report 2017-18 | 71

I TRADE WITH ASIA Commission was held at New Delhi on 15th March, 2016.
ASEAN Region
India announced its ‘Look East Policy’ in 1991 with a view to Project Development Fund for Cambodia, Laos, Myanmar,
seeking greater engagement with East Asian countries. In order to Vietnam region
address the economic content of the ‘Look East Policy’, a continu- In order to catalyze investments from the Indian private sector
ous dialogue is maintained with ASEAN (Association of South East in the CLMV region, a proposal for establishment of a Project De-
Asian Nations) countries viz. Brunei Darussalam, Cambodia, In- velopment Fund which will, through separate Special Purpose Ve-
donesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thai- hicles (SPVs), set up manufacturing hubs in Cambodia, Myanmar,
land and Vietnam. Summit level engagements, Ministerial meetings Laos and Vietnam was approved on 31.08.2016. This is presently
and official level discussions are held in order to fulfill the Look East under implementation in the Department.
Policy agenda.
ASEAN TRADE
TRADE FRAMEWORK India’s trade with ASEAN countries was US$ 71.69 billion dur-
Agreements with ASEAN ing the year 2016-17 and US$ 30.74 billion during 2017-18 (April-
India and the ASEAN signed the Agreement on Trade in Goods August). Major destinations for India’s exports and imports in the
under the broader framework of Comprehensive Economic Coop- region are Singapore, Vietnam, Indonesia, Malaysia, and Thailand.
eration Agreement (CECA) between India and the ASEAN on 13th
August 2009. The Agreement became fully operational between all Major Commodities of Export & Import – ASEAN
the ASEAN Member States and India w.e.f 1st January, 2010. The principal commodities of export include Petroleum prod-
India and ASEAN Member countries have also signed an Agreement ucts, Buffalo meat, Ship, boat and floating structure, Marine prod-
on trade in Services and Investment. These Agreements came into ucts, Pearl, precious, semiprecious stones, Copper and products
effect from 1.7.2015. made of copper, Iron and steel, Spices, Organic chemicals, Drug
formulations, biological, Industrial Machinery for dairy etc, Ground-
India-Singapore Comprehensive Economic Cooperation nut, Electric machinery and equipment, Auto components/parts,
Agreement (CECA) Motor vehicle/cars,
First Comprehensive Economic Cooperation Agreement
(CECA) was signed with Singapore on 29th June, 2005 and became The principal commodities of import include Vegetable oils,
operational from 1st August, 2005. The 1st Review of India-Singa- Coal, coke and briquettes etc, Petroleum: crude, Computer hardware,
pore CECA was concluded on 1st October, 2007. The 2nd Review peripherals, Organic chemicals, Plastic raw materials, Telecom in-
of India-Singapore CECA is currently underway. struments, Consumer electronics, Pulses, Petroleum products, Cop-
per and products made of copper, Electronics components, Iron
India-Malaysia Comprehensive Economic Cooperation and steel, Electronics instruments and Natural rubber.
Agreement
A Comprehensive Economic Cooperation Agreement (CECA) II TRADE RELATIONS WITH COUNTRIES IN SOUTH
was signed with Malaysia on 18th February 2011 and became oper- ASIA AND IRAN
ational from 1st July 2011. Under the CECA, India and Malaysia South Asia comprises of Afghanistan, Bangladesh, Bhutan,
have offered commitments over and above the commitments offered India, Maldives, Nepal, Pakistan and Sri Lanka. India's trade with
by them under ASEAN -India Agreement on Trade in Goods. South Asia stood at USD 22.08 billion in 2016¬17 as against USD
21.59 billion in 2015-16, registering a growth of 2.26%. The total
India-Thailand Free Trade Agreement exports of India within South Asia Region for 2016-17 were valued
India and Thailand signed a Framework Agreement on 9.10.2003 at USD 19.22 billion and the total imports from other South Asian
for establishing an India-Thailand Free Trade Agreement. There is countries were USD 2.81 billion. India is the biggest trading partner
an Early Harvest Scheme under this Framework Agreement com- for Nepal and Bhutan while for India, Bangladesh is the largest trad-
prising 83 items of mutual interest for which both sides have agreed ing partner in South Asia, followed by Nepal, Sri Lanka, Pakistan,
to make tariff concessions in a phased manner with 100% reduction Bhutan, Afghanistan and Maldives. A remarkable feature of India's
by 1.9.2006. trade in South Asia is that it enjoys a substantial trade surplus with
all South Asian countries.
MYANMAR
India and Myanmar have a Joint Trade Committee (JTC) to look India's export basket to South Asia is quite diverse. In 2016-17,
into the bilateral economic relations at the Minister level. Six meet- the maximum share of exports was of engineering products, which
ings of India-Myanmar JTC have been held so far. The last JTC contributed around 33% of total exports to South Asia—mainly
Meeting was held with Myanmar on 27th June 2017 at New Delhi. transportation products—vehicles, aircraft etc., machinery (10% of
An India-Myanmar Border Trade Committee, Border Haat Commit- exports) and base metals (9.5% of exports). This is followed by tex-
tee and Joint Trade and Investment Forum are also in place. tiles and textile articles, which contributed 20% of the total exports
to South Asia-mainly raw material for further manufacturing for the
The Land Custom Station at Zokhawthar in Mizoram was inau- textile sector of South Asian countries which benefit from zero duty
gurated by Hon’ble CIM on 25th March 2015. Along with Moreh in exports to the developed world. Agricultural products such as veg-
Manipur, the two are the main trade points. India-Myanmar border etable products, animal products, animal and vegetable fats and pre-
trade has reached a significant milestone by switching over from pared foodstuffs, together accounted for 13% of the total exports.
barter trade to normal trade from 1.12.2015. Now trade at the border
is allowed on all commodities instead of only 62 items earlier. Agricultural products account for the major share of imports
from South Asia, contributing 31.8% of the total imports in 2016-
PHILIPPINES AND VIETNAM 17, out of which the largest share was of vegetable products- com-
India and Philippines have a Joint Working Group on Trade and prising mainly of edible fruits and nuts, coffee, tea and spices. The
Investment. 12 Meetings have been held so far. The 12th meeting other major sectors of import are textiles and textile products (21%
of JWG was held in New Delhi on 31st March 2016. India and Viet of imports), minerals (16% of imports) and engineering products
Nam have set up a Joint Trade Sub-Commission and three meetings (13% of imports)—mainly base metals. Unlike textile exports, the
have been held so far. The third meeting of the Joint Trade Sub- textile imports are diverse comprising of both raw material as well

72 | Annual Report 2017-18 | Department of Commerce

as finished products. held on 15th - 16th November 2016 at New Delhi, in which several
trade related issues were discussed. The next round of Commerce
AFGHANISTAN Secretary level talks is planned to be held by February-March 2018.
Under Strategic Partnership Agreement between Afghanistan &
India, a Joint Working Group (JWG) on Trade, Commerce and In- Exports to Bangladesh have been facilitated by identifying and
vestment functions between the Ministries of Commerce and Indus- resolving issues adversely them. Efforts were made to improve con-
tries of the two countries, at the level of Commerce Secretary, to nectivity, resulting in 24x7 operationalisation of Petrapole-Benapole
discuss the issues related to trade and economic co-operation be- Integrated Check post, which is the most important land border
tween the two countries. The second meeting of the JWG was held crossing point, wef 01.08.2017. Bangladesh has been persuaded to
on 29th -30th March 2017 in New Delhi wherein several connectivity remove discrepancies in imposition of Minimum Import Price vis-
related issues such transit of goods through Pakistan, establishment à-vis other countries, modify relevant notification to automatically
of air-freight corridor and bilateral motor vehicles agreement were extend SAFTA concessions, without need for annual extensions and
discussed, apart from other issues. requested to remove port restrictions, which is being actively con-
sidered.
The Air freight Corridor has been operationalized since June India and Bangladesh have established Border Haats to promote
2017 which has helped in facilitating bilateral trade. CWTOS has well-being of the people dwelling in remote areas by establishing
started training of Afghan Trade Officers to familiarise them with traditional system of marketing the local produce through local mar-
international trade regulation and world trading system and equip kets. The renewed MoU for establishment of Border Haats was
them to perform their respective functions in administration and signed in April 2017, which will facilitate further development of
government. Border Haats, in addition to the four currently operational Border
Haats. Efforts are being made to establish six more Border Haats,as
BANGLADESH already agreed between the two countries.
The Bilateral Trade Agreement between India and Bangladesh
provides for expansion of trade and economic cooperation but does BHUTAN
not prescribe any preferential tariffs for the imports of products The revised Trade Agreement between India and Bhutan, namely
into the other country. India has provided zero duty access to LDC Agreement on Trade, Commerce and Transit was signed in Thimphu
members of SAFTA for all tariff lines, except for 25 lines related to on 12th November 2016 for a period of ten years and it has become
liquor and tobacco. Bangladesh being a LDC enjoys preferential ac- effective from 29th July, 2017. In terms of the Agreement, there is
cess to Indian market under SAFTA. free trade between the two countries and no Basic Customs Duty is
levied on import of any product from Bhutan or export to Bhutan.
A Joint Working Group (JWG) for trade, at the level of Joint Further, the trade is carried out in Indian Rupees and Bhutanese cur-
Secretary, functions between India and Bangladesh for discussion rency (Ngultrums). The Agreement also provides transit facilities to
on trade related issues. The 10th meeting of the JWG was held in landlocked Bhutan to facilitate its trade with third countries and
New Delhi on 08th-09th June 2016 and the 11th meeting was held movement of goods from one part of Bhutan to another through
on 13th - 14th September 2017 at Dhaka. In addition to the JWG at Indian Territory.
the level of Joint Secretary, meetings are also held at the level of
Commerce Secretary. The last Commerce Secretary level talks were The trade and transit related issues between India and Bhutan

Country-wise trade figures for ASEAN Region

S. Country 2016-17 2017- 18 (Apr-Aug)
Export Import Total Trade Export Import Total Trade
1 BRUNEI 42.88 627.85 670.73 22.39 219.12 241.51
2 CAMBODIA 105.06 36.10 141.16 43.68 20.36 64.04
3 INDONESIA 3488.12 13427.99 16916.11 1384.30 6473.40 7857.70
4 LAO PD RP 25.72 207.38 233.10 7.90 101.99 109.89
5 MALAYSIA 5224.86 8933.59 14158.45 1984.01 3732.91 5716.92
6 MYANMAR 1107.89 1067.25 2175.14 345.50 464.71 810.21
7 PHILIPPINES 1482.52 494.62 1977.14 522.58 339.49 862.07
8 SINGAPORE 9564.58 7086.57 16651.15 3640.35 2886.21 6526.56
9 THAILAND 3133.44 5415.40 8548.84 1368.12 2710.04 4078.16
10 VIETNAM SO 6786.56 3320.56 10107.12 2744.15 1737.64 4481.79
C REP
Total 30961.62 40617.31 71578.93 12062.98 18685.87 30748.85
India's Total 275851.71 384355.55 660207.26 114949.41 182304.15 297253.56
% Share 11.22 10.57 10.84 10.49 10.25 10.34

Department of Commerce | Annual Report 2017-18 | 73

are discussed in the bilateral meeting on trade and transit at the level frame except for those items in the Negative List of each other.
of Commerce Secretary. The last meeting was held on 18th-19th Jan- India has provided duty-free access to almost all the lines, except a
uary 2017 at New Delhi. few lines on which 25% duty concessions are provided and on
around 417 products on which no concessions are given. Tariff rate
For facilitation of bilateral trade and on Bhutan's request, new quotas have been prescribed by India on import of apparel, tea, pep-
Land Customs Stations (LCSs) were notified and three existing LCSs per, desiccated coconut and vanaspati, bakery shortening and mar-
were upgraded to permanent LCSs from seasonal LCSs. Efforts have garine from Sri Lanka. Under ISLFTA, Sri Lanka has provided
been rnade to analyse and_resolve the_issues-affecting bilateral-and duty-free access for almost all the products except a few lines on
transit trade on account of the introduction of GST, as identified which some tariff is prescribed. In addition,
by Bhutan. Relevant steps have been taken, with the help of con-
cerned agencies, to facilitate exemption of GST on transit trade and Sri Lanka maintains a list of around 1220 products, on which no
on supply of services to Bhutan which involve payment in Indian tariff concessions have been provided under ISLFTA.
rupees.
The bilateral talks between the two countries take place at the
NEPAL level of Commerce Secretary. The 4th Commerce Secretary level
Bilateral trade between India and Nepal is governed by the India- talks were held on 21st December 2015 at New Delhi. During the
Nepal Treaty of Trade, which was last renewed on 27th October meeting, Sri Lanka proposed broader economic engagement be-
2016 for a further period of seven years. Under the Treaty, India has tween the two countries through a proposed Economic and Tech-
provided duty free access to almost all the products imported from nology Cooperation Agreement (ETCA).

Nepal, except few products relating to tobacco, perfumes and Six rounds of negotiations on the proposed ETCA have been
cosmetics and alcohol. However, India has applied tariff rate quotas completed. The proposed
on the import of four products- Vegetable fats, Acrylic yarn, Copper
products and Zinc Oxide from Nepal. ETCA covers trade in services, investment and economic, and
technology cooperation, in addition to the trade in goods. Text based
India also allows transit of third country goods destined to negotiations are being carried out on the Chapters covering trade in
Nepal and export of Nepalese goods to third counties through its goods, trade in services, Investment as well as economic and tech-
territory. The transit is governed by the India-Nepal Treaty of Tran- nology cooperation.
sit. Under the Treaty, the transit of goods takes place through des-
ignated routes under a defined procedure. India has allowed the use IRAN
of Vishakhapatnam port for traffic in transit for Nepal in addition Currently there is no bilateral/multilateral Trade Agreement with
to Kolkata/Haldia port. Iran. However, a Joint Working Group between the Ministry of
Commerce and Industry in India and the Ministry of Industry, Mine
As a bilateral mechanism to review the issues relating to bilateral & Trade in the Islamic Republic of Iran is functioning at the level
trade, transit and unauthorized trade related issues, an Inter-Gov- of Commerce Secretary to discuss the issues related to bilateral trade
ernmental Committee (IGC) functions at the level of Commerce between the two countries. First meeting of the JWG was held on
Secretaries of the two countries. Apart from IGC, an Inter-Govern- 6th -8th April 2015 in Tehran and the second meeting was held in
mental Sub-Committee (IGSC) also functions at the level of Joint New Delhi on 18th -19th November 2015.
Secretary. The last meeting of the IGC was held on 28-29 June, 2016
at New Delhi where both sides discuss various bilateral trade related In the first JWG meeting, India and Iran had agreed to com-
issues. The next meetings of the IGC and IGSC are planned in Feb- mence preliminary consultations for entering into a Preferential
ruary-March,2018. Trade Agreement (PTA). During the visit of the Prime Minister to
Iran in May 2016, it was agreed to conclude the PTA at an early date.
Both sides are working on several projects to improve trade in- The broad principles of the PTA are being worked out before com-
frastructure and connectivity, including development of 7 Integrated mencing negotiations on the text.
Check Posts (ICPs) on India — Nepal Border at Raxaul, Jogbani,
Sunauli, Panitanki, Rupaidiha, Gauri Pantha and Bhitamore. The India-Iran-Afghanistan Trilateral agreement (Chabahar
ICPs at Raxaul and Jogbani (only for cargo) are already operational. Agreement) was signed during the year in May 2016 in Tehran.
The main objective of the Agreement is to provide transport
Several efforts were made to enhance bilateral trade. Requests corridor for transport and transit of goods through Chabahar
from Nepal regarding market access to livestock products by desig- port for India, Iran and Afghanistan. Recently Chabahar port
nating new entry points and exemption from levy of countervailing has been inaugurated, which will provide an alternative route to
duty (CVD) on jute products have been fulfilled. Various issues af- Indian exports destined for Afghanistan and Central Asia, by-
fecting Indian exports in the nature of harmonisation of standards, passing Pakistan.
licensing requirements among others were identified for resolution
and the same are under consideration of Nepal. III TRADE WITH NORTH EAST ASIA
India’s trade with the North East Asia (hereafter NEA) region
Efforts have been made to analyse and resolve the issues affect- comprising People’s Republic of China, Hong Kong, Republic of
ing bilateral and transit trade on account of the introduction of Korea (South Korea), Japan, Taiwan, Democratic People’s Republic
GST, as identified by Nepal. Relevant steps have been taken, with of Korea (North Korea), Mongolia and Macao stood at US$ 129.6
the help of concerned agencies, to facilitate exemption of GST on billion during 2016-17, which is an increase of 3.74 % over the pre-
transit trade and on supply of services to Nepal which involve pay- vious year. Exports to the NEA region were of the order of US$
ment in Indian rupees 34.55 billion during 2016-17, registering a positive growth of 12%
over the last year. Imports from the region increased by 1% to US$
SRI LANKA 95.06 billion during 2016-17. The trade deficit with NEA countries
India-Sri Lanka Free Trade Agreement (ISFTA) has been in op- during 2016-17 has narrowed to US$ 60.52 billion from US$ 63.28
eration since 1st March, 2000. Under this Agreement, both countries billion in 2015-16. Trade with NEA countries from 2011-12 to 2016-
agreed to phase out trade tariffs from each other within a fixed time 17 is given in graph as under:

74 | Annual Report 2017-18 | Department of Commerce

 Trade with North East Asia Region Trade with major NEA Countries during 2016-17
(US$ million)

Trade data with NEA countries for 2016-17

(US$ million)

S.No.Country Export % Import % Total % Trade

Growth Growth trade Growth balance
1 China 10171.18 12.88 61281.57 -0.69 71452.75 1.04 -51110.39
2 Hong Kong 14047.24 16.17 8204.18 35.57 22251.42 22.64 5843.06
3 Korea RP 4241.42 20.40 12585.35 -3.54 16826.78 1.55 -8343.93
4 Japan 3845.73 -17.52 9754.64 -0.97 13600.37 -6.29 -5908.91
5 Taiwan 2183.64 53.14 3142.89 -6.30 5326.52 11.43 -959.25
6 Korea DPRP 44.84 -59.56 88.59 0.78 133.43 -32.88 -43.75
7 Mongolia 9.78 15.88 1.99 -51.93 11.77 -6.36 7.79
8 Macao 1.51 -23.35 7.91 -4.58 9.42 -8.19 -6.40
Total of NEA 34545.34 12.03 95067.12 1.02 129612.46 3.74 -60521.78
% share in India’s total 12.52 24.73 19.63 55.78

Commodity Composition with NEA region between India and Japan was signed on 16th February 2011 which
The commodity composition of India’s trade with the NEA re- came into force from 1st August 2011. Under the institutional mech-
gion has undergone many changes and has been driven by trade pol- anism of CEPA, fourth Joint Committee meeting at Secretary level
icy, movements in international prices, and the changing pattern of was held on 4th August 2017 in Tokyo. The Indian delegation for
domestic demand. Major items of export to the region include dia- the Joint Committee meeting was led by Ms. Rita Teaotia, Commerce
monds (cut or otherwise worked), silver and gold jewellery, mineral Secretary. The meetings of Sub-committee on Rules of Origin, Sub-
oils (other than crude), iron ores, cotton yarn, refined copper, un- committee on TBT/SPS measures, Sub-committee on Trade in serv-
wrought aluminium, ferro alloys, granite, frozen shrimps & prawn ices, Sub-committee on Improvement of Business Environment and
etc. Major items of import from the region include mobile phones Sub-committee on Movement of Natural Persons were also held
and their parts, solar cells, laptops, diamonds, precious stones other during 2017-18.
than diamonds, cultured pearls, parts of motor vehicles, polymers
of venyl chloride, electronic integrated circuits, unwrought silver, Recent Trade Related Activities
machinery items for power projects etc. H.E. Shinzo Abe, Prime Minister of Japan paid an official visit
to India on 13-14 September 2017 to hold discussions with Shri
Trade Agreements Narendra Modi, Prime Minister of India under the Special Strategic
India-Korea CEPA and Global Partnership between the two countries. 15 Agree-
A Comprehensive Economic Partnership Agreement (CEPA) ments/MoUs were signed during the visit. These include India-Japan
between India and Republic of Korea was signed on 7th August Investment Promotion Roadmap between DIPP and METI, Ex-
2009 which came into force from 1st January 2010. The two sides change of RoD on Civil Aviation Cooperation (Open Sky), MoC in
commenced negotiations for upgradation of CEPA in 2016. Third the field of Japanese Language Education in India among others.
round of negotiations was held on 21-22 September 2017 in Seoul.
Under the institutional mechanism of CEPA, third Joint Committee IV TRADE WITH NORTH AMERICA FREE TRADE
meeting at ministerial level was held on 23rd September 2017 in AGREEMENT (NAFTA)
Seoul. The Indian delegation for the Joint Committee meeting was In 1994, the North American Free Trade Agreement (NAFTA)
led by Shri Suresh Prabhu, Commerce & Industry Minister. came into effect, creating one of the world’s largest free trade zones
consisting of the United States of America (USA), Canada and Mex-
India-Japan CEPA ico. India has robust strategic partnership with the NAFTA Coun-
A Comprehensive Economic Partnership Agreement (CEPA) tries and bilateral relations have always remained closer, warm and

Department of Commerce | Annual Report 2017-18 | 75

 Trade data with NEA countries for 2016-17
(US$ million)
Country 2012-13 2013-14 2014-15 2015-16 2016-17
Exports 2,036.58 2,037.01 2,196.00 2,018.42 2,004.12
Canada Imports 2,800.22 3,148.25 3,749.42 4,234.03 4,131.52
Total Trade 4,836.80 5,185.26 5,945.42 6,252.45 6,135.64
Exports 1,628.24 2,227.44 2,861.55 2,865.16 3,460.98
Mexico Imports 4,037.62 3,672.43 3,393.15 2,283.19 2,944.52
Total Trade 5,665.86 5,899.87 6,254.70 5,148.35 6405.50
Exports 36,155.22 39,142.10 42,448.66 40,335.82 42,212.27
USA Imports 25,204.73 22,505.08 21,814.60 21,781.39 22,307.44
Total Trade 61,359.95 61,647.19 64,263.26 62,117.21 64,519.71
Total Trade with three 71,862.61 72,732.32 76,463.38 73,518.01 77,060.85
NAFTA Countries
Share of India’s trade with 9.08% 9.51% 10.08% 11.43% 11.67%
NAFTA Countries in the
total world trade

cordial. Regular high level visits are taking place with these coun- sectors. In 2015 the ‘Commercial Dialogue’ and ‘Strategic Dialogue’
tries and the leaders from both sides resolved to expand and deepen are merged to form ‘Strategic and Commercial Dialogue (S&CD)’
the strategic partnership and increasing free and fair trade. Bilateral and 1st India-US S&CD was held in September, 2015 at Washington
trade in goods and services have shown a remarkable growth over D.C and 2nd India-US S&CD was held in August, 2016 at New
the years. India has surplus trade in goods with USA and Mexico, Delhi. India-US Chief Executive Officers (CEOs) Forum forms an
while has trade deficit in so far Canada is concerned. The figures in organic link guiding the agenda for the Commercial Dialogue. To fa-
respect of India’s bilateral trade (exports and imports) in goods for cilitate better focus on trade and commercial relations, the Commer-
the last 5 years are shown in the table below. cial Dialogue has now been delinked from S&CD and restructured
to avoid duplication and overlap of subjects dealt under Trade Policy
India is also having surplus trade in services with NAFTA Forum and Commercial Dialogue.
Countries. In order to resolve trade issues of concern with the
three NAFTA countries, the following Institutional Mechanisms The first session of Commercial Dialogue was held in October,
are in place. 2017 at Washington D.C. Indian side was led by Minister for Com-
merce and Industry, Mr. Suresh Prabhu and from U.S. the Secretary
USA of Commerce, Mr. Wilbur Ross. Given impressive three-fold increase
There are primarily two institutional mechanisms for promotion in total U.S.-India trade since 2005, both sides affirmed the significant
of Trade and Investment between India and USA. strategic and economic importance of the U.S.-India relationship in
promoting joint economic growth, job creation, and prosperity. While
India-US Commercial Dialogue: The India – USA Commercial highlighting many areas of progress, both sides reiterated commit-
Dialogue (CD) was signed on March 23, 2000 as an institutional ment to make meaningful progress to unlock new trade and invest-
arrangement between USA Department of Commerce (US DoC) ment opportunities for U.S. and Indian businesses. U.S.-India noted
and Department of Commerce (DoC) facilitating trade and maxi- the growing commercial relationship between the two nations includ-
mizing investment opportunities across a broad range of economic ing cooperation in the areas of standards, ease of doing business, and

76 | Annual Report 2017-18 | Department of Commerce

travel and tourism. It was decided to take forward the positive out-
comes from holding best practices exchanges between the National
Institute of Standards and Technology (NIST), the Bureau of Indian
Standards (BIS), and India’s National Physical Laboratory (NPL). U.S.
took note and appreciated implementation of an ongoing series of
Ease of Doing Business webinars to introduce U.S. and Indian com-
panies to commercial opportunities in each other’s markets. In travel
and tourism, the successful outcomes from the U.S.-India Travel and
Tourism Partnership Year, including an Aviation Connectivity Round-
table held in last February were noted. Both India and U.S. reiterated
the commitment to holding the next U.S.-India CEO Forum meeting
in 2018 which could not be held in the current year.

India-US Trade Policy Forum: India-US Trade Policy Forum

(TPF), announced in July, 2005, is designed to expand bilateral trade
and investment relations between India and the United States. This
Forum has been instrumental in creating an institutional mechanism
to resolve a host of trade issues, amicably, between the two nations.
It has provided a good platform for interaction on market access to (CEPA), exploring the possibility of cooperation between support-
each other’s commodities, sort out procedural bottlenecks, discuss ing agencies, etc.
investment opportunities and pursue collaboration in the areas of
Intellectual Property Rights (IPRs). India-Canada Comprehensive Economic Policy Agreement
(CEPA): The launch of India-Canada CEPA negotiations an-
The 11th TPF meeting was held in October, 2017 at Washington nounced by PMs of both the countries in Seoul and formally
D.C. with its working groups on Trade and Market Access and In- launched in November 2010 at New Delhi, following the release of
tellectual Property. To bring in sharpness of focus and avoid duplic- the Canada-India Joint Study Report, in September 2010. Agreement
ity with Commercial Dialogue, appropriate restructuring was done covers Trade in Goods, Trade in Services, Rules of Origin, Sanitary
for the current round, focussing on issues with clear deliverables. and Phytosanitary Measures, Technical Barriers to Trade and other
Indian side was led by Minister for Commerce and Industry, Mr. areas of economic cooperation.
Suresh Prabhu and from the U.S. side Mr. Robert E. Lighthizer,
USTR led the delegation. Issues related to bilateral trade between Ten Rounds of Negotiations have been held till date, with the
the two countries and areas of mutual cooperation, and issues of last Round being held in New Delhi, India in August, 2017. Discus-
market access in agriculture and non-agricultural goods, services and sions were held under five chapters during the 10th Round and both
issues relating to Intellectual Property Rights (IPR) were discussed. sides expressed their strong commitment for taking forward the ne-
Both the countries resolved to work towards building strong trade gotiations for early conclusion.
and investment ties to realize mutual gains from the partnership.
MEXICO
CANADA India Mexico BHLG: A Memorandum of Understanding
India-Canada Trade Policy Consultations: Annual Trade Pol- (MOU) was signed between India and Mexico on 21st May, 2007 at
icy Consultations (TPCs) were formalized in October 2003 providing New Delhi by the then Minister of Commerce and Industry and
an effective platform to deal with trade barriers and explore new areas Minister of Economy, Mexico for the establishment of a Bilateral
of economic cooperation. The 7th Meeting of the India-Canada Trade High Level Group (BHLG) on Trade, Investment and Economic
Policy Consultations was held in October, 2010 in New Delhi at the Cooperation. The BHLG mainly include promoting bilateral coop-
level of the Commerce Secretary (India) and Deputy Minister of In- eration, maintaining liaison in the economic, commercial, technical
ternational trade (Canada). No Meetings has been held thereafter. and other related fields and information exchange. Under the BHLG
six Working Groups have been created – (i) Trade Promotion (ii) In-
India-Canada Annual Ministerial Dialogue: During the visit vestment Promotion (including infrastructure) (iii) Custom Cooper-
of Prime Minister to Canada in June, 2010 it was agreed for an annual ation (iv) Services Promotion (v) Tourism Promotion and (vi)
ministerial dialogue (AMD) on Trade and Investment between Industrial dialogue with private sector participation (Chemical-
Canada’s Minister of International Trade and India’s Minister of Com- Pharma, Textiles and Bio-fuels sectors).
merce and Industry and the first AMD was held at Ottawa in Septem-
ber, 2010. 4th India-Canada AMD was held on 13th Nov, 2017 at New The BHLG helped in engaging with Mexico on many issues con-
Delhi. The Indian Delegation was led by Shri. Suresh Prabhu, Minister cerning trade and possibilities for partnerships in promoting invest-
for Commerce and Industry while the Canadian side was headed by ment in sectors like telecom, IT, Pharmaceutical, Tourism, etc.
Mr. François-Philippe Champagne, Minister for International Trade. During 7th Joint Commission Meeting (JCM) held in the month of
June, 2017 both sides discussed trade and commercial issues under
The discussion covered outstanding trade and investment related ‘Sub-Commission on Economic and Trade Issues’, as a follow up to
issues and among other things, focussed on expanding bilateral trade the 4th India - Mexico BHLG held in 2016. Both sides reiterated
and having more B2B interface with constitution of CEO Forum for enhancing a closer cooperation between Invest India and
by Canada. Canada is an important partner of India in the NAFTA ProMexico to promote bilateral trade and investment flows, bilateral
region with a mutual trade of $ 6.1 billion which is much below the business promotion, SMEs cooperation and exchange of informa-
potential between the two robust economies, despite huge potential. tion in the areas of trade statistics and services.
Some of the important issues such as Canadian concerns on dero-
gation of pulses, Indian pending request for organic equivalence, V. TRADE WITH EUROPE
progress of Foreign Investment Promotion and Protection Agree- Europe consists of the following countries:
ment (FIPA) and Comprehensive Economic Partnership Agreement i. European Union (EU), comprising 28 countries1;

1 Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania,
Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and United Kingdom.

Department of Commerce | Annual Report 2017-18 | 77

ii. European Free Trade Association (EFTA) , comprising 4 coun- seven Joint Working Groups on agriculture and marine products,
tries; and textiles, steel, food processing industries, pharmaceuticals & bio-
iii. Other European countries of Albania, Bosnia-Herzegovina, technology, Customs Cooperation and technical barriers to trade
Macedonia, Union of Serbia & Montenegro and Turkey. (TBT)/sanitary and phyto-sanitary (SPS) issues are functioning. The
last meeting of India-EU Sub Commission on Trade was held on
During 2016-17, exports to European countries were US$ 53.24 121h July, 2017 at Brussels.
billion, accounting for 19.30% of India's total exports and imports
from European countries were US$ 61.45 billion, which was 15.99% INDIA-EU BTIA NEGOTIATIONS
of India's total imports. During the year, India's total trade with Eu- In September, 2005, the 6th India-EU Summit held in New
rope decreased by 0.25% to US$114.69 billion as compared to the Delhi decided to establish a High-Level Trade Group (HLTG) to ex-
previous year 2015-16, and exports increased by 5.76% to US$ plore ways and means to widen and broaden the economic relation-
53.24billion US$ but imports decreased by 4.93% to US$ 61.45 bil- ship and explore possibility of a trade and investment agreement,
lion. During the period April-Sep, 2017 India's trade with Europe viz., Broad-based bilateral Trade and Investment Agreement (BTIA).
increased by 14.20% to US$ 61.16 billion as compared to the corre- In pursuance of the recommendations of the HLTG to enter into
sponding period of the previous year, 2015-16, with exports having negotiations for the agreement, 16 rounds of negotiations had taken
increased by 8.96% to US$ 28.15 billion and imports having in- place between India and EU from 2007 till 2013, when EU withdrew
creased by 19.08% to US$ 33.02 billion. from the negotiations. In 2016, after EU showed interest, four
rounds of stock-taking meetings have taken place. In another meet-
EUROPEAN UNION (EU) ing of the Chief Negotiators held in Brussels on 13th July, 2017, in
EU is India's largest trading partner. Total trade with EU during which it was decided to discuss a framework to understand possible
the financial year 2016-17 was US$ 89.55 billion (bn) with exports outcomes of negotiations between the two sides.
worth US$ 47.20 bn and imports worth 42.36 bn. EU accounted for
about 13.56% of India's total trade during 2016-17. India's trade INDIA-EFTA TEPA NEGOTIATIONS
with EU increased by 1.31% during the period 2016-17 while exports EFTA Trade bloc consists of Switzerland, Norway, Iceland and
to EU increased by 6.07% but imports decreased by 3.51% as com- Liechtenstein. India and EFTA had initiated a dialogue on Trade and
pared to the previous year. During the period April-Sep, 2017, India's Economic Partnership Agreement (TEPA) in October, 2008. Nego-
trade with EU increased by 7.52% as compared to the corresponding tiations are held in 14 tracks/chapters viz., Government Procure-
period of the previous year with exports increased by 8.73% and im- ment, Dispute Settlement, Competition, Trade Facilitation,
ports increased by 6.21%. Investment, and Sustainable Development, SPS, TBT, Trade Reme-
dies, Trade in Goods, Trade in Service, Rules of Origin, Legal and
Important issues in India's trade with the EU are sanitary and Horizontal Provisions and Intellectual Property Rights which both
phyto-sanitary standards, technical barriers, complex system of sides committed to resolve in a time-bound manner. So far, 17
quota/tariff, anti-dumping/anti-subsidy measures against Indian rounds of negotiations have been held. The last round was held
products, etc. These issues have a bearing on market access for from 18th to 21st September, 2017 in New Delhi.
India's exports to the EU. These issues are regularly taken up in the
Joint Working Groups and the Sub-Commission on Trade. Issues af- Institutional Mechanism
fecting trade with individual European countries are also taken up India has established Institutional mechanism with several Eu-
at the bilateral fora in the form of Joint Commissions. ropean countries viz. UK, France, Spain, Italy, Portugal, Belgium-
Luxembourg, Switzerland, Czech Republic, Slovak Republic, Serbia,
India-EU bilateral relations are periodically reviewed at the high- Croatia, Slovenia, Austria„ Bulgaria, Bosnia & Herzegovina, Cyprus,
est official level by the India-EU Joint Commission. The 24th Ses- Finland, Greece, Romania and Turkey as well as the EU.
sion of India-EU Joint Commission Meeting was held on 14th July,
2017 at Brussels. Further, there are three Sub-Commissions on Joint Commission Meetings
Trade, Economic Cooperation and Development Cooperation and The details of Joint Commission meetings are follows:

2 Iceland, Liechtenstein, Norway and Switzerland

78 | Annual Report 2017-18 | Department of Commerce

Joint Commission Co-Chairs Venue, Date
15th India-Switzerland Joint Secretary, Department of Commerce and Ambassa- Berne,
Joint Commission on dor, Head of Bilateral Economic Relations Division and 25th October, 2016
Economic Cooperation State Secretariat for Economic Affairs (SECO), Federal De-
partment of Economic Affairs (FDEA) of Government of
Switzerland

11th meeting of India-UK Mrs. Nirmala Sitharaman, Hon’ble Minister for Commerce New Delhi,
Joint Economic and and Industry and Rt. Hon. Liam Fox, Secretary of State for 7th November, 2016
Trade Committee International Trade, UK

7th session of the India- Ms. Rita Teaotia, Commerce Secretary and Mr. George Ka- New Delhi,
Greece Joint Economic trougalos, Alternate Minister for Foreign Affairs of the Hel- 23rd November, 2016
Committee lenic Republic from the Hellenic side

3rd Session of India- Joint Secretary, Department of Commerce and State Sec- Video conference be-
Serbia Joint Economic retary in the Ministry of Foreign Affairs of the Republic of tween New Delhi and Bel-
Committee Serbia grade, 10th March, 2017

18th Session of the India- Ms. Rita Teaotia, Commerce Secretary and Mr. Cristian New Delhi,
Romania Joint Dima, Secretary of State, Ministry for Business Environ- 7th April, 2017
Committee for ment, Commerce and Entrepreneurship, Government of
Economic Cooperation Romania

18th Session of India- Joint Secretary, Department of Commerce and Director- Helsinki,
Finland Joint Economic General of the Department for the Americas and Asia, Min- 20th April, 2017
Committee istry for Foreign Affairs of Finland

9th Session of India- Joint Secretary, Department of Commerce and Director Bratislava,
Slovak Joint Economic General of Strategy Section, Ministry of Economy of the 21st April, 2017
Committee Slovak Republic

19th meeting of the Honble Minister of Commerce, Ms. Nirmala Sitharaman Rome, May,
India-Italy Joint and Carlo Calenda, Minister of Economic Development 11th-12th, 2017
Commission for
Economic Cooperation

15th Session of the Joint Joint Secretary, Department of Commerce; Director for Eu- Luxembourg,
Economic Commission ropean and International Economic Affairs, Ministry of 29th May, 2017
meeting between India Foreign and European Affairs from the Grand Duchy of
and Belgium Luxembourg and Deputy Director-general Bilateral Affairs,
Luxembourg Economic Federal Public Service Foreign Affairs from the Kingdom
Union (BLEU) of Belgium

4th Session of India- Joint Secretary, Department of Commerce and Deputy Lisbon,
Portugal Joint Economic Political Director of the Ministry of Foreign Affairs of 30th May, 2017
Commission Portugal

24th session of the EU- Joint Secretary, Department of Commerce and Managing Brussels,
India Joint Commission Director for Asia Pacific, European External Action Service 14th July, 2017

15th Session of the India- Joint Secretary, Department of Commerce and Vice Min- New Delhi,
Austria Joint ister, Federal Ministry of Science, Research and Economy 20th July, 2017
Commission on Republic of Austria
Economic Cooperation

10th Session of India- Joint Secretary, Department and Chief Adviser to the Min- New Delhi,
Croatia Joint ister of Economy, Entrepreneurship and Crafts, Govern- 8th November, 2017
Commission on ment of Croatia
Economic Cooperation

Department of Commerce | Annual Report 2017-18 | 79

Bilateral Meetings: 14.02.2017 in Croatia.
● Hon'ble Prime Minister had bilateral meeting with Ms. Doris
Leuthard, President of Swiss confederation on 31.08.2017 and ● Hon'ble Minister of State (Commerce & Industry) Shri C.R.
01.09.2017 in New Delhi. Chaudhury had bilateral meetings with:-
a) Mr Milos Zeman, President of the Czech Republic on
● Hon'ble Commerce & industry Minister had bilateral meetings 09.10.2017
with Mr Milan Hovorka, Czech Ambassador, New Delhi on b) Mr Jiri Havlicek (JHL), Minister of Industry and Trade
07.09.2017 in New Delhi. of the Czech Republic on 10.10.2017
c) Mr Peter Ziga, Minister of Economy, Slovak Republic
● The then Hon'ble Minister of State (Independent Charge) for on 10.10.2017
Commerce & Industry, Ms.Nirmala Sitharaman had bilateral d) Mr Milan Stech, President of the Senate of the Parlia-
meeting with :- ment on 11.10.2017
a) Ms. Anna Ekstrom, Minister for Upper Secondary
School and Adult Education and Training of Sweden on VI. Trade with Commonwealth of Independent States (CIS)
11.01.2017 The Commonwealth of Independent States (CIS) comprises the
b) Ms. Martina Dalic, Deputy Prime Minister and Minister Russian Federation, Armenia, Azerbaijan, Belarus, Georgia,
of the Economy, Entrepreneurship and Crafts, Govern- Moldova, Ukraine, Kazakhstan, Kyrgyzstan, Tajikistan, Turk-
ment of Croatia on 14.02.2017 in Zagreb, Croatia menistan and Uzbekistan (the last 5 countries jointly referred to as
c) Mr Predrag Stromar, Governor of Varazdin, Croatia on the Central Asian Republics). Bilateral trade with these countries is
14.02.2017 in Croatia. as shown in the graph below:
d) Mr. Dubravko Bilic Mayor of Ludbreg, Croatia on

Bilateral Merchandise trade with CIS region (US$ million)

Data Source: DGCI&S

Trade with CIS

Value in USD Million
Year Exports Imports Total trade Percentage Growth
of Total Trade
2014-2015 3,396.13 7,665.23 11,061.36 (-) 1.37

2015-2016 2,391.64 7,078.38 9,470.02 (-) 14.39

2016-2017 2,793.94 9,322.77 12,116.71 27.95

2017-2018 (April-Sept) 1,501.32 6,172.31 7,673.63 -

(Provisional)

Source : DGCI&S Kolkata

80 | Annual Report 2017-18 | Department of Commerce

 The CIS region had a share 1.01 percent in India’s exports and 2.43 per- was signed by Ministry of Surface Transport (now Ministry of Shipping)
cent in its imports during 2016-17. The Principal commodities of exports of India, Republic of Iran (Ministry of Road & Transportation) and
to the region include Drug, Pharmaceuticals & Fine Chemicals; IC Engines Russian Federation (Ministry of Transport and Ministry of Railways) on
and Parts; Tea; Aircraft, Spacecraft and Parts; Coffee; Iron and Steel; Auto 12.09.2000 at St. Petersburg, Russia. Now handled by Department of
Components/Parts; Marine Products; Tobacco Unmanufactured; RMG Commerce on the advice of MEA.
Cotton Including Accessories. Important items of imports to India from
this region are Pearl, Precious, Semiprecious Stones; Vegetable Oils; Petro- The route proposed in the Agreement was from India via sea to and
leum: Crude; Wheat; Fertilizers Manufactured; Coal, Coke and Briquittes through Iran, Caspian Sea and to Russian Federation and beyond and
etc.; Iron and Steel; Pulses; Inorganic Chemicals; and Petroleum Products. back. The transit movement is expected to be better and faster and also
cheaper and less time consuming.
Russian Federation: The Russian Federation, constituting a major
portion of the former USSR, continues to be India's most important Dry run study commenced on 24th July, 2014 on the following route:
trading partner in the region accounting for about 61.81% of India’s total ● Nhava Sheva (Mumbai) – Bandar Abbas (Iran)-Tehran-Bandar An-
trade with CIS region in 2016-2017. During 2017-18, following meetings zali (Iran) – Astrakhan (Russia);
were held to discuss various issues concerning bilateral cooperation:
● The 22nd Session of the Indo-Russian Inter-Governmental Com- ● Nhava Sheva (Mumbai) – Bandar Abbas (Iran) – Baku (Azerbaijan).
mission on Trade, Economic, Scientific, Technological and Cultural
Cooperation was held on 13th September, 2016 in New Delhi, Dry run has been completed by the Federation of Freight For-
India, under the Co-Chairmanship of H.E. Smt. Sushma Swaraj, warders' Associations in India (FFFAI) under MAI scheme of DoC.
Minister of External Affairs from the Indian side and Mr. D.O Ro- Final report on Dry Run has been accepted by this Department. The
gozin, Deputy Chairman of the Government of the Russian Fed- same has been sent to the Council Secretariat of INSTC headquartered
eration, from the Russian side. at Tehran with a request that the Council may share the Report with all
the member countries. The result of the Dry Run indicates that transit
● The 22nd Session of India-Russia Working Group on Trade & Eco- on the INSTC route is expected to be faster and cheaper over the tradi-
nomic Cooperation under the aegis of the Indo-Russian Inter-Gov- tional route.
ernmental Commission on Trade, Economic, Scientific,
Technological and Cultural Cooperation was held on 9th September, The 6th Meeting of Coordination Council of INSTC and 7th Expert
2016 in New Delhi, India, under the Co-Chairmanship of Shri. Sunil Groups meeting were held during 19th to 21st August, 2015 in New
Kumar, Joint Secretary, Department of Commerce from the Indian Delhi, India. The various issues for operationalization of INSTC i.e. Cus-
side and Mr. Evgeny Popov, Director of the Department of the tom Issues, Shipping Issues/Port Issues, Railways Issues, Tariff Issues,
Countries of Asia, Africa and Latin America, Ministry of Economic Common Documentation for INSTC Cargo, Insurance Issues, Banking
Development of the Russian Federation from the Russian side. Issues, Visa & other Issues, IT Issues including common updatation of
INSTC website, Focal Point were discussed during this meeting.
● The 23rd Session of the Indo-Russian Sub Group on Banking and
Financial matters was held on 01-03 May, 2017 at Udaipur, India. Dur- INSTC Member countries, particularly, India, Iran and Russia need
ing this meeting it was agreed to improve interbank co-operation and to ensure adequate movement of cargo on the INSTC route. To encour-
to have transparent and clear procedures. It was also decided to ex- age actual movement of cargo on this new route, the Government of
plore the possibilities of business through Indian and Russian Banks. Russia and Iran have to suitably revise the transport tariff (rail charges)
and the port handling charges and offer attractive discounts in the initial
Central Asian Republics period so as to make the new route cost competitive.
Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan,
constitute the five Central Asian Republics in the CIS region. Depart- The first meeting of the Expert of Custom authorities of Russia,
ment of Commerce is the nodal Department for the Inter-Governmental Azerbaijan, India, Kazakhstan, and Turkmenistan was already held at As-
Commission (IGC) with Kyrgyzstan, Tajikistan and Uzbekistan. During trakhan between 30th November to 3rd December,2015 and issues re-
2017-18, following meetings were held to discuss various issues concern- lated with custom and transit were discussed.
ing bilateral cooperation:
A preliminary meeting of the Experts of Custom Authorities was held
● The 9th Session of India-Tajikistan Joint Commission meeting on in Mumbai on 22nd September,2016 for deciding the Custom Cooperation
Trade, Economic, Scientific and Technical Cooperation was held on Agreement. The next meeting of Coordination Council will be in Iran.
16th June, 2017 in New Delhi under the Co-Chairmanship of Com-
merce Secretary. A meeting was also held on 2nd May, 2016 under the Chairpersonship of
Commerce Secretary to discuss the constraints and facilitation and measures
● The 6th Turkmenistan- India Joint Commission Meeting on Trade, need to be taken by different countries to popularize trade along INSTC route.
Economic, Scientific and Technical Cooperation was held on Au-
gust 14, 2017 in New Delhi, India, under the Chairmanship of Min- Union Cabinet has on 6th March, 2017 approved India’s accession
ister of External Affairs of India. to the Customs Convention on International Transport of Goods under
cover of TIR Carnets (TIR Convention) and for completion of neces-
Other CIS Countries sary procedures for ratification. The TIR Convention would become op-
Other six CIS countries are Armenia, Azerbaijan, Belarus, Georgia, erational by December, 2017. This will facilitate seamless movement of
Moldova and Ukraine. Ukraine is India's second largest trading partner container cargo from India to Russia with further reduction in transit
of the CIS region accounting for about 23.04 % of India’s total trade time and transportation costs.
with CIS region in 2016-17. Department of Commerce is the nodal De-
partment for the Inter-Governmental Commission (IGC) with Azerbai- Free Trade Agreement (FTA) with EAEU: India has completed all
jan. Department of Industrial Policy and Promotion is the nodal for procedural formalities required for commencing formal FTA negotia-
India-Belarus Inter-Governmental Commission (IGC). tions and ready to commence 1st round of FTA negotiations with mem-
ber-countries of the Eurasian Economic Union viz the Russian
MAJOR INTIATIVES IN CIS REGION Federation, Belarus, Kazakhstan, Kyrgyzstan and Armenia.
An International Agreement on North South Transport Corridor ● The 1st meeting of Joint Feasibility Study Group (JFSG) with EAEU

Department of Commerce | Annual Report 2017-18 | 81

 was held on 31st July, 2015 in Moscow under the co-chairmanship & Technical Cooperation under the Co-Chairmanship of Com-
of Joint Secretary, FT(CIS), Department of Commerce. The 2nd merce secretary.
meeting of Joint Feasibility Study Group (JFSG) on the EAEU-In-
dian Free Trade Agreement (FTA) was held on 19th September, 2016 ● India-Uzbekistan Inter Governmental Commission on Trade, Eco-
in Moscow, Russia. During this meeting JFSG report was finalized nomic, Scientific & Technological Cooperation under the Co-Chair-
and sent to Prime Minister Office for approval. It was agreed to ini- manship of Minister of State for Commerce & Industry.
tiate the FTA negotiations between the EAEU and its member states.
VI. TRADE WITH LATIN AMERICAN AND CARIBBEAN
● A Joint Statement between EaEU and the republic of India to com- COUNTRIES
mence negotiations for Free Trade Agreement was signed on 3rd India and the Latin America and Caribbean (LAC) region stand at
June, 2017. opposite ends of the globe yet their relations have always remained
JFSG for FTA with Georgia: A proposal was moved for setting up closer, warm and cordial. This region, comprised of 43 countries of
a JFSG (Joint Feasibility Study Group) for studying the scope of which 33 sovereign countries and 7 overseas territories, is endowed with
FTA with Georgia. immense supplies of natural resources such as fresh water, minerals and
arable land. India shares a common history of colonialism and struggle
● The joint statement between India and Georgia to Commence Joint for independence with the region. With some of the Caribbean nations,
Feasibility Study to explore the possibilities to have FTA between India shares a special bond of people of Indian origin, who form a valu-
both the countries has been signed on 11th April, 2017. able link of friendship and understanding between the two regions.

● The first meeting of the JFSG with Georgia was held on 1st May, The rapid and growing commercial relationship is testimony to the
2017 through video conference under the co-chairmanship of Joint fact that geographical distance is not a deterrent for the India-LAC rela-
Secretary, FT (CIS), Department of Commerce. The draft structure tionship. Over the years, India's ties with Latin America have expanded
of the Report (Chapterisation), contents of chapter, Nodal Points beyond trade and investment to cooperation in areas such as energy,
for Chapters, Time-line for different chapters etc. were discussed knowledge sharing as well as in multilateral fora such as G-20, BRICS,
during this meeting. WTO and IBSA (India, Brazil, South Africa).

● The second meeting of the Joint Feasibility Study Group (JFSG) Trade and Investment with the Latin American and Caribbean
on FTA between India and Georgia was held on 13th Septem- Countries
ber,2017 in New Delhi. In this both sides agreed to finalized the India’s relations with LAC region are underpinned by strong trade
Report and its recommendations and sign the protocol of comple- and investment links which have strengthened and deepened in a short
tion of the Joint Feasibility Study within the agreed time schedule span of time. Both regions have assiduously overcome the limitations
indicated in the Joint Statement singed on 11th April 2017. posed by geographical distance to build mutually rewarding bilateral part-
nerships that exemplify South-South Cooperation. There is tremendous
EXPORT INITIATIVES TO RUSSIA scope for future growth in trade volumes as both the regions are highly
In view of Office International des Epizooties (OIE) plus norms complementary in the energy and natural resources, pharmaceuticals,
insisted upon by the Russian Federation, India had not been able to ex- auto and services sectors. Diversification of trade and access to new mar-
port bovine meat products since long time. Indian side requested Russian kets are also a priority of both India and LAC countries.
side for lifting of the temporary restrictions on import of bovine meat
from 3 plants in UP as it is free from FMD and the same has already The total bilateral merchandise trade with the region excluding Mexico
been submitted from DAHDF to OIE for uploading on the site. (as Mexico is treated as part of NAFTA) increased from a modest US$ 9.07
billion in 2006-07 to US$ 24.52 billion in 2016-17 registering a growth of
Currently only 1 establishment is approved by FSVPS for export of 170.34%. Our bilateral trade with the LAC region constituted 3.71% of the
Bovine meat to Russia. Approval of the 6 more plants (4 in Uttar Pradesh India’s total global trade with export 2.62% and import 4.50 % during the
and 2 in Punjab) is awaited Russian side. same period. From LAC perspective, the fraction of trade with India rep-
resents only 2.74 per cent of global trade of LAC region during 2016.
Govt. of India has further identified TN, Punjab, Andhra Pradesh
and Maharashtra as FMD free areas and Russian Authorities may consider Among the LAC countries, Brazil, Venezuela, Argentina, Chile, Peru,
approval of establishments located in these areas. Also, a delegation from Colombia, Dominic Republic, Ecuador, Panama and Paraguay are our
FSVPS may also visit India for on-spot verification of FMD control pro- major trading partners as shown below:
gram and for re-inspection of these meat processing establishments.

Names of two approved dairy establishments are still showing with

Country-wise Total Trade - 2016-17: Top 10
a note “suspension of certification” on the official website of FSVPS trading partners of LAC region
which is restricting the export of Dairy / milk products to Russia. Russ-
ian side has been requested to update their website for removal of the
suspension note.

Inter-Governmental Commission/Joint Commission - with CIS

Countries
● India-Azerbaijan Inter Governmental Commission on Trade, Eco-
nomic, Scientific & Technological Cooperation under the Co-Chair-
manship of Minister of State for Commerce & Industry

● India-Kyrgyz Inter Governmental Commission on Trade, Eco-

nomic, Scientific & Technological Cooperation under the Co-Chair-
manship of Minister of State for Commerce & Industry

● India-Tajikistan Joint Commission on Trade, Economic, Scientific

82 | Annual Report 2017-18 | Department of Commerce

 India’s trade with LAC countries during the last 10 years, the current trends and top ten commodities of export/import
(for the last 2 years) are given below:

(Values in million US$)

Year India’s exports % growth India’s import % growth Balance Total trade
to LAC of exports from LAC of imports of trade
2007-08 5081.66 36.24 5368.62 0.53 -286.95 10450.28
2008-09 5513.04 8.49 8240.44 53.49 -2727.40 13753.48
2009-10 5614.40 1.84 9356.30 13.54 -3741.90 14970.70
2010-11 9324.48 66.08 13042.52 39.40 -3718.03 22367.00
2011-12 12276.85 31.66 16178.56 24.04 -3901.70 28455.41
2012-13 13518.03 10.11 27497.09 69.96 -13979.07 41015.12
2013 -14 10791.60 -20.17 28128.07 2.29 -17336.47 38919.68
2014-15 11528.43 6.83 26951.76 -4.18 -15423.33 38480.19
2015-16 7530.85 -34.68 17691.79 -34.36 -10160.94 25222.63
2016-17 7230.97 -3.98 17290.63 -2.27 -10059.67 24521.60
(Source: DGCI&S, Kolkata)

Current trends – April-August, 2017 (Values in million US$)

2016-17 2017-18(P) % Growth
Exp. Imp. Total Trade Bal. Exp. Imp. Total Trade Bal. Exp. Imp.
Trade Trade
2899.16 6263.11 9162.27 -3363.96 3455.93 8675.62 12131.55 -5219.68 19.20 38.52
(Source: DGCI&S, Kolkata)

Top ten commodities of India’s exports to LAC 2015-16 & 2016-17

(Values in million US$)
S.N. Commodity 2015-16 2016-17 % Growth % Share
2016-17
1 Motor Vehicle/ Cars 691.67 852.96 23.32 11.80
2 Drug Formulations, Biologicals 652.32 605.55 -7.17 8.37
3 Agro Chemicals 390.48 493.19 26.3 6.82
4 Manmade Yarn, Fabrics, Madeups 375 481.3 28.35 6.66
5 Two And Three Wheelers 433.12 351.73 -18.79 4.86
6 Iron And Steel 241.56 299.98 24.19 4.15
7 Auto Components/Parts 280.78 264.3 -5.87 3.66
8 Bulk Drugs, Drug Intermediates 234.12 236.83 1.16 3.28
9 Cotton Yarn 217.44 231.8 6.6 3.21
10 Dyes 195.94 198.43 1.27 2.74
Sum of top 10 Commodities 3712.43 4016.07 8.18 55.54
Sum of all Commodities 7530.69 7230.81 -3.98 100.00
Source : DGCI&S Kolkata

Department of Commerce | Annual Report 2017-18 | 83

 Top ten commodities of India's imports from LAC 2015-16 & 2016-17
(Values in million US$)
S.N. Commodity 2015-16 2016-17 % Growth % Share
2016-17
1 Petroleum: Crude 7771.78 7226.66 -7.01 41.80
2 Vegetable Oils 2920.55 2846.65 -2.53 16.46
3 Gold 1778.26 1634.19 -8.1 9.45
4 Bulk Minerals And Ores 2176.90 1541.63 -29.18 8.92
5 Sugar 604.71 1015.38 67.91 5.87
6 Ship, Boat And Floating Structures 126.44 435.7 244.59 2.52
7 Iron And Steel 335.9 278.36 -17.13 1.61
8 Other Wood And Wood Products 256.16 267.87 4.57 1.55
9 Petroleum Products 112.95 230.48 104.05 1.33
10 Coal, Coke and Briquittes Etc 45.65 198.9 335.75 1.15
Sum of top 10 Commodities 16129.3 15675.82 -2.81 90.66
Sum of all Commodities 17691.74 17290.59 -2.27 100
Source : DGCI&S Kolkata

India’s investments in LAC are concentrated in natural resource sec- ● Indo-Suriname Joint Commission
tors, pharmaceuticals, automobile parts, mining, hydrocarbons and ● Indo-Guyana Joint Commission
IT/ITES. While Indian investment in LAC has increased gradually over ● Indo-Venezuela Joint Commission
the years, LAC investment in India is still low. As our economies com- ● Indo- Trinidad Joint Commission
plement each other, efforts are underway to fully utilize the opportunities ● India- Brazil Trade Monitoring Mechanism (TMM)
that exist between us. ● India- Ecuador Joint Economic and Trade Committee (JETCO)
● India-Colombia Joint Business Development Cooperation Commit-
Focus: LAC Programme tee (JBCDC)
With the objective to further deepen India’s trade relations with LAC
region, an integrated programme “Focus LAC” was launched in Novem- Commercial Staff in the Indian Missions
ber, 1997 initially for a period of 5 years. This has been extended from There are 13 full-fledged Indian Missions (excluding Mexico) and
time to time. It was last extended upto March, 2019. The programme one Consulate in Sao Paulo, Brazil in LAC region. Department of Com-
aims at sensitizing the organizations viz. Export Promotion Councils, merce had sanctioned commercial posts Brazil, Venezuela, Argentina,
Chambers of Commerce & Industry, EXIM Bank, ECGC, etc. involved Chile, Colombia, Peru, Panama and Costa Rica to exclusively manage
in trade promotion efforts, granting various incentives to Indian ex- trade related matters and assist Indian exporters and importers interested
porters and launching of export promotion measures, focusing on the in the region. These posts are in addition to the existing 9 posts of Mar-
Latin American region with added emphasis on major trading partners keting Assistant in our LAC region.
of the region, focusing on the major product groups for enhancing
India’s exports to the Latin American region which include Textiles in- Sponsoring of Trade Delegations/Organising Seminars/Confer-
cluding ready-made garments, carpets and handicrafts, Engineering ences/Trade Fairs/Exhibitions
products and Computer Software, Chemical products including As part of the trade promotional activities, a number of events were or-
drugs/pharmaceuticals. ganized in the LAC region with the help of Apex bodies and Industry Cham-
bers. Some of these events include FIEE BRAZIL 2017, IPHEX: Peru,
Under this programme, incentives and export promotion measures FIHAV, Cuba, Hospitalar, Brazil, FEIPLASTIC, Brazil, Apparel Sourcing
have been designed. The Foreign Trade Policy (FTP) of 2015-2020 gives Show, Guatemala and Buyer Seller Meets in Chile, Ecuador and Peru.
special focus to the LAC region as part of our long term strategy to di-
versify our trade basket. Engagement with LAC Region-Institutional Mechanisms
India-Brazil Trade Monitoring Mechanism (TMM): This mech-
Institutional Mechanisms anism between India and Brazil serves as a forum to discuss and resolve
India has 12 institutional mechanisms with LAC countries to review all trade and investment related issues. As agreed during the 4th meeting
trade and investment linkages at the bilateral level. Bilateral Joint Eco- of India-Brazil Trade Monitoring Mechanism (TMM) held on 30th Sep-
nomic Commission meetings with Brazil and Venezuela are held at Ex- tember, 2016 in Brasilia, Brazil, both sides have finalized the Social Se-
ternal Affairs Minister level. The list of the Institutional Mechanisms curity Agreement and the agreement will be soon signed and
between India and countries of LAC Region is as under:- implemented. Other issues relating to collaboration in areas such as auto,
● Indo-Argentine Joint Commission food processing, leather and civil aviation are also being taken up.
● Indo-Argentine Joint Trade Committee
● Indo-Mexican Joint Commission India-Ecuador Joint Economic & Trade Committee (JETCO):
● Indo-Brazilian Commercial Council Within the framework of the Memorandum of Understanding on Eco-
● Indo-Cuban Joint Commission nomic Cooperation between India and Ecuador, signed in Quito, on the
● Indo-Cuban Trade Revival Committee 19 of April 2013, India-Ecuador have established a Joint Economic &

84 | Annual Report 2017-18 | Department of Commerce

 Visit of Hon’ble CIM to Cuba and Panama: A delegation led by
Hon’ble Commerce and Industry Minister (CIM) visited Cuba and from
28 October- 2nd November, 2017. During his visit, he held several bi-
lateral meetings with his counterparts in Cuba and Panama. He also held
separate bilateral meetings with his counterpart Trade Ministers of Haiti
and Barbados in Cuba with whom he discussed the possibilities of bilat-
eral cooperation in areas of mutual interest. CIM also inaugurated the
Indian Pavilion at FIHAV 2017 on 30th October 2017, accompanied by
the Cuban Energy Minister and First Vice Minister of Foreign Trade and
Investment, Antonio Carricarte Corona. Apart from sectoral meetings,
the FIEO business delegation held B2B meetings in Cuba and Panama
wherein CIM addressed the business gathering.

Business Meeting organized by FICCI and ProEcuador in Guyaquil, Ecuador Separate MoUs for cooperation in various fields were signed with
Cuba, Barbados, Guyana and Panama between Federation of Indian
Trade Committee (JETCO) on 9th October, 2015 with the objective to Export Organizations (FIEO) and the respective Chambers of these
promote trade, economic and technical cooperation on the basis of mu- countries.
tual advantage. The first meeting of JETCO was held on 17th May, 2017
in Guayaquil, Ecuador. Both sides held discussions on a range of trade
related issues and also agreed to explore the possibility of entering into
a preferential trade agreement.

India Colombia Joint Committee of Business Development

Cooperation (JCBDC):- India and Colombia signed an MOU on 30th

Hon’ble CIM with Juan Carlos Varela, President, Panama

Commerce Secretary addressing the business gathering in Colombia

April 2010 which constituted the Joint Committee of Business Devel-
opment Cooperation (JCBDC) to be led by the Commerce Secretary on
the Indian side and the Vice Minister for Entrepreneurial Development
on the Colombian side. So far, three meeting of JCBDC have been held.
The third meeting was held in Bogota, Colombia on 19th May, 2017.
During this meeting both sides held discussions on bilateral trade and
investments issues and areas of cooperation to enhance bilateral trade.
Apart from that both sides also agreed to explore the possibility to enter
into preferential trade agreement.
Hon’ble CIM with Dr. Pierre Marie Du Mény, Minister of
Visits Commerce and Industry of the Republic of Haiti

Dr. Pierre Marie Du Mény, current Minister of Commerce and In-

dustry of the Republic of Haiti, is a trained doctor, graduated from
Haiti’s State University.

Focus: LAC Programme

With the objective to further deepen India’s trade relations with LAC
region, an integrated programme “Focus LAC” was launched in Novem-
ber, 1997 initially for a period of 5 years. This has been extended from
time to time. It was last extended upto March, 2019. The programme
aims at sensitizing the organizations viz. Export Promotion Councils,
Chambers of Commerce & Industry, EXIM Bank, ECGC, etc. involved
in trade promotion efforts, granting various incentives to Indian ex-
porters and launching of export promotion measures, focusing on the
Latin American region with added emphasis on major trading partners
of the region, focusing on the major product groups for enhancing
India’s exports to the Latin American region which include Textiles in-
Inauguration of the India Pavilion in FIHAV 2017, Havana, Cuba

Department of Commerce | Annual Report 2017-18 | 85

cluding ready-made garments, carpets and handicrafts, Engineering (TORs) for the Trade Agreement were finalized on 8th March, 2017.
products and Computer Software, Chemical products including The 1st round of negotiations was held during 8-11th August, 2017
drugs/pharmaceuticals. in New Delhi.

Under this programme, incentives and export promotion measures Expansion of India-MERCOSUR PTA:- The existing PTA
have been designed. The Foreign Trade Policy (FTP) of 2015-2020 gives signed on January 25, 2004 and came into effect from 1st June, 2009 is
special focus to the LAC region as part of our long term strategy to di- being expanded as substantial scope exists for India and MERCOSUR
versify our trade basket. to explore complementarities and benefit from increased bilateral trade.

INDIA- MERCOSUR PTA India-Ecuador Trade Agreement: - As a follow up of first meet-

India signed a Preferential Trade Agreement (PTA) with the four ing of the Joint Economic and Trade Committee (JETCO) co-chaired
original members of MERCOSUR (Argentina, Brazil, Paraguay and by Commerce Secretary held in Ecuador on 17th May, 2017, both sides
Uruguay) on 25th January, 2004 with 5 annexes which came into opera- agreed to explore the possibility for entering into a Preferential Trade
tion from 1st June, 2009. In the existing PTA, India offered Margin of Agreement through a Joint Study.
Preference (MoP) on 450 tariff lines and MERCOSUR offered MoP on
452 tariff lines. The existing India-MERCOSUR PTA is being expanded India-Colombia Trade Agreement: - During the 3rd meeting of
as substantial scope exists for India and MERCOSUR to explore com- India Colombia Joint Committee on Business Development Cooperation
plementarities and benefit from increased bilateral trade. held in Bogota, Colombia on 19th May, 2017, both sides agreed to ex-
plore the potential framework to be adopted for a trade agreement. In a
Expansion of India-Chile PTA meeting held between Hon’ble CIM and a delegation led by Colombian
Minister of Commerce, Industry and Tourism on 8th November, 2017,
both sides have decided to explore the possibility of a PTA in Goods
and Services through a Joint Study.

Strategy for LAC:- In order to enhance trade and investment in

LAC region, Research of Information System (RIS) has been assigned a
study with a financial assistance of Rs.20.00 lakhs under MAI Scheme
of the Department .

Lines of Credit
EXIM Bank extends Lines of Credit (LOCs) to overseas financial
institutions, regional developments, banks, sovereign governments and
other entities overseas to enable buyers in those countries to import
goods and services from India on deferred credit terms. This financing
mechanism provides a safe mode of non-recourse financing option to
Indian exporters especially to SMEs and serves as an effective market
entry tool.
Exchange of Agreement of the Expanded India-Chile PTA As per the EXIM Bank, there are twenty-one operative lines of credit
As a follow up to the Framework Agreement signed on January to the banks/Governments in the LAC region during 2016-17.
20, 2005, India-Chile PTA was signed on March 8, 2006 which came
into effect from 17th August, 2007 in Chile and in India on 11.09.2007. ECGC Cover
Under the PTA, Indian and Chile offered Margin of Preference (MoP) The Export Credit Guarantee Corporation of India (ECGC) un-
on 178 and 296 tariff lines at 8-digit level respectively. The existing dertakes periodically a comprehensive review of the grading of the
India-Chile PTA has been expanded. The Agreement on Expansion countries based on the methodology of risk scoring. As per ECGC
of India-Chile PTA was signed in New Delhi on 6.9.2016 and came Country Risk and Cover Policy on LAC region (reviewed as on
into force with effect from 16.5.2017. 30.9.2017) seventeen (17) Latin American countries have been placed
in low risk categories of ‘A1’ and ‘A2’. Eighteen (18) of LAC coun-
Engagement with Pacific Alliance tries have been placed in moderate risk categories of ‘B1’ and ‘B2’.
Pacific Alliance, formed in the year 2013, is an important and Two (2) countries of LAC countries have been placed in high risk cat-
emerging trade block consisting of Mexico, Colombia, Peru and egory of ‘C1’. Only Venezuela has been placed in very high-risk cat-
Chile. Pacific Alliance had accorded “Observer Status” to India in egory of ‘D’. Details of cover are available at the website of ECGC.
February, 2014. As Observer Member of the Pacific Alliance India
participated in the Ministerial Meeting of Observer States of Pacific VII. Trade with Countries in Sub-Saharan Africa (SSA) Region
Alliance held on 2nd July, 2015 in Paracas, Peru where India showed Since Independence, India has had cordial and friendly trade rela-
its interest to engage with Pacific Alliance by opening a dialogue in tions with countries in Sub-Saharan Africa (SSA) Region, consisting of
the areas of Science & Technology, Education, Infrastructure, Envi- Eastern, Western, Central, and Southern Africa. India’s trade with SSA
ronment and SMEs. The last Ministerial Meeting of the Pacific Al- Region since 2012-2013 is given in the table below.
liance was held at Cali, Colombia during June 26-30, 2017. Our
Ambassador in Bogota, Colombia participated in the meeting.

On-going initiatives
India Peru Trade Agreement: A Joint Study Group (JSG) be-
tween India and Peru constituted to explore the possibility for enter-
ing into a trade agreement was signed by both sides on 20th October,
2016. After getting approval from Cabinet on 18th January, 2017, ne-
gotiations for concluding the agreement with Peru on trade in goods,
services and investment were commenced. The Terms of Reference

86 | Annual Report 2017-18 | Department of Commerce

 Top ten commodities of India's imports from LAC 2015-16 & 2016-17
(Value in US$ Million)
Year Export Import Total Trade Annual Growth
Rate-Total Trade (%)
2012-2013 23,461 34,387 57,848 2.15
2013-2014 25,785 31,518 57,303 -0.94
2014-2015 27,130 34,569 61,699 7.67
2015-2016 20,431.83 28,774.49 49,206.30 -20.25
2016-2017 18,722.06 25,915.52 44,637.57 -9.28
Apr-Nov. 2016-2017 12,113.65 15,901.79 28,015.44 -
Apr-Nov. 2017-2018 12,902.96 21,526.58 34,429.54 22.89
Source: DGCI&S Kolkata

Total bilateral trade with countries in SSA Region during 2017-18 etc., Electric machinery and equipment, Products of Iron and steel, plas-
(Apr-Nov) was US$ 34,429.54 million with exports amounting to US$ tic sheet, film, plts etc. were the major items of export during 2017-18
12,902.96 million and imports at US$ 21,526.58 million. (Apr-Nov). Bulk minerals and ores, Bulk minerals and ores, Pearl, Pre-
cious, Semiprecious stones, Coffee, Cotton raw including waste, Cocoa
Bilateral trade with West African countries was US$ 15,328.27 million products, Other commodities, Pulses, Lead and products made of led,
during 2017-18 (Apr-Nov.) as compared to US$ 12008.45 million during Other wood and wood products were the major items of import during
2016-17 (Apr-Nov). Rice (other than Basmoti), Drug formulations, Bi- 2017-18 (Apr-Nov).
ologicals, Cotton fabrics, Madeups etc., Motor vehicle/cars, petroleum
products, Industrial Machinery for dairy etc, two and three wheelers, India and SACU (Southern African Customs Union) Preferential
Manmade yarn, Fabrics, Madeups, Ship, Boat and Floating Struct, were Trade Agreement (PTA)
the major items of export during SACU consists of a group of 5 countries, namely, Botswana,
Lesotho, Namibia, Swaziland and South Africa. India and SACU (South-
2017-18 (Apr-Nov). Petroleum: Crude, Gold, Petroleum products, ern African Customs Union) are negotiating for a Preferential Trade
Cashew, Inorganic Chemicals, Cotton raw including waste, Bulk minerals Agreement (PTA). Till now, five rounds of negotiations have been held
and ores, other wood and wood products, Iron and steel, Aluminium, for negotiating the PTA.
Products of Aluminium were the major items of import during 2017-
18 (Apr-Nov). The following two Working Groups have been constituted for
negotiating the PTA:-
Bilateral trade with countries in Southern Africa was US$ 13319.32 a. Working Group on Market Access comprising of two subgroups,
million during 2017-18 (Apr-Nov) as compared to US$ 9827.72 million namely:
during 2016-17 (Apr-Nov). Petroleum products, Motor vehicle/cars, - Sub Group I responsible for market access for trade in
Drug formulations, Biologicals, Pearl, Precious, Semiprecious stones, goods
- Sub Group II responsible for Rules of Origin and Customs
Readymade cotton including accessories, Auto components/parts, Procedures.
Bulk drugs, Drug intermediates, Industrial Machinery for dairy etc., Prod- b. Working Group on Legal and Institutional Issues responsible for
ucts of iron and steel, Rice (other than basmoti) were the major items the legal vetting of the text of the PTA, Dispute Settlement, SPS
of export during 2017-18 (Apr-Nov). Coal, Coke and briquettes etc., Pe- and TBT measures and Safeguards and Trade Remedies.
troleum: crude, Pearl, Precious, Semiprecious stones, Copper and Prod-
ucts made of copper, Gold, Bulk minerals and ores, Pulp and waste Bilateral Cooperation
paper, Petroleum Products, Iron and Steel, Iron ore, IC Engines and The Fourth Session of the India-Tanzania Joint Trade Committee
parts, Other precious and base metals were the major items of import was held in New Delhi, India on 29th August, 2017. The Indian del-
during 2017-18 (Apr-Nov). egation was led by Hon’ble Ms. Nirmala Sitharaman, Minister of State
for Commerce & Industry (Independent charge), Government of India.
Bilateral trade with countries in East Africa was US$ 4739.89 million The Tanzanian delegation was led by Hon’ble Mr. Charles John Mwijage,
during 2017-18 (Apr-Nov) as compared to US$ 5,223.73 million during Minister for Industry, Trade and Investment, Government of the United
2016-17 (Apr-Nov). Petroleum products, Drug formulations, Biologicals, Republic of Tanzania. During the meeting, both sides stressed the need
Rice (other than basmoti), Iron and steel, Sugar, Industrial Machinery to enhance the bilateral trade between the two countries and further
for dairy etc., Motor vehicle/cars, Paper, paper board and product, Two agreed to enhance Sectoral Cooperation on Gemstone and Jewellery, Oil
and three wheelers were the major items of export during 2017-18 (Apr- and Natural Gas, Small and Medium Enterprises Development, Mining,
Nov). Gold, Pulses, Spices, Plywood and allied products, Pearl, Precious, Information, Communication and Technology, Railways, Maritime Co-
Semiprecious stones, Inorganic chemicals, other commodities, Copper operation, Agriculture etc.
and products made of copper, Cashew were the major items of import
during 2017-18 (Apr-Nov). Trade Agreement between the Government of the Republic of India
and the Government of the Federal Republic of Ethiopia has been signed
Bilateral trade with countries in Central Africa was US$ 1042.07 mil- on 5th October, 2017 during the state visit of the. The Union Cabinet has
lion during 2017-18 (Apr-Nov) as compared to US$ 955.54 million dur- accorded ex -post facto approval to the Agreement on 1st November, 2017.
ing 2016-17 (Apr-Nov). Drug formulations, Biologicals, Two and three
wheelers, Industrial Machinery for dairy etc., Cotton fabrics, madeups During the 12th CII-Exim Bank Conclave on India-Africa Project

Department of Commerce | Annual Report 2017-18 | 87

Partnership held in New Delhi 9-10 March, 2017 Dr. Ruhakana Rugunda, (8.67%) have registered negative growth.
Hon’ble Prime Minister of Uganda had requested Hon’ble CIM to or- ii) Other West Asia Region: India’s Top-10 export commodities to
ganise a similar conclave in Uganda. Hon’ble CIM had committed to this Region with share of consists of Petroleum Products
the request made by the Ugandan Prime Minister for organising the Con- (16.80%), Rice -Basmati (13.94%), Pearl, Precious, Semiprecious
clave. Accordingly, the CII-Exim Bank Regional Conclave on India and Stones (12.83%), Drug Formulations, Biologicals (3.13%), Buf-
East Africa “Partners in Development” is being organized in Kampala, falo Meat (2.53%), Bulk Drugs, Drug Intermediates (2.50%),
Uganda in 20th -21st November, 2017 at Kampala, Uganda. Manmade Yarn, Fabrics, Made-ups (2.35%), Rice (other than
basmati) (2.30), Residual Chemical and Allied Products (2.10%),
On 2.7.2009 Government of India decided to formally put on hold Products of Iron and Steel (1.86%).
India-Mauritius Comprehensive Economic Cooperation Partnership Agree- During 2016-17, Exports of Rice-Basmati (-0.17%), Pearl, Pre-
ment (CECPA) negotiations until Mauritius agreed to sign the India-Mauri- cious, Semiprecious Stones (-0.53%), Buffalo Meat (-10.25%)
tius Double Taxation Avoidance Convention (DTAC). DTAC has been Bulk Drugs, Drug Intermediates (-30.02%), Products of Iron
signed on 10th May, 2016. Thereafter an Indian delegation visited Mauritius and Steel (-37.03%) have registered negative growth.
in September, 2016 with the objective to have an exchange of views with iii) North Africa Region: India’s Top-10 export commodities to this
Mauritian Authorities and consider taking forward India-Mauritius Compre- Region with share of consists of Buffalo Meat (9.30%), Motor
hensive Economic Cooperation Partnership Agreement (CECPA). The 2nd Vehicle/Cars (7.80%), Manmade Yarn, Fabrics, Made-ups
Meeting of the India-Mauritius CECPA was held on 27-28th September, (5.05%), Drug Formulations, Biologicals (4.22%), Industrial.
2017 in New Delhi to finalise the Joint Study Group (JSG) Report. 3rd Machinery for Dairy Etc. (4.12%), Cotton Yarn (3.86%), Plastic
Meeting on India-Mauritius CECPA is scheduled to be held on 22-24th Jan- Raw Materials (3.76%), Sugar (3.50%), Bulk Drugs, Drug Inter-
uary, 2018 at Port Louis, Mauritius. mediates (3.38%), Electric Machinery and Equipment (3.27%).
During 2016-17, Exports of Buffalo Meat (-13.29%), Motor Ve-
VIII. TRADE WITH WEST ASIA & NORTH AFRICA (WANA) hicle/Cars (-6.41%), Manmade Yarn, Fabrics, Made-ups (-
Region 6.13%), Drug Formulations, Biologicals (-9.30%), Industrial.
The West Asia and North Africa (WANA) region comprises of 19 Machinery for Dairy Etc. (-0.17%), Cotton Yarn (-15.68%),
countries. These are: Sugar (-10.10%), Bulk Drugs, Drug Intermediates (-10.81%)
● Six Gulf Cooperation Council (GCC) countries (Bahrain, Kuwait, have registered negative growth.
Oman, Qatar, Saudi Arabia and United Arab Emirates),
India’s Top-5 Potential Commodities for Middle East
● Six West Asian countries (Iraq, Israel, Jordan, Lebanon, Yemen and Countries
Syria) and i) GCC Countries: India’s Top-5 potential commodities for this
region consists of: Petroleum Products, Jems and Jewellery
● Seven North African countries (Algeria, Egypt, Libya, Morocco, items (Articles of jewellery, Gold, Diamond etc.), Engineering
Sudan, Tunisia and South Sudan). Products (Vehicles, aircraft, vessels and associated transport
equipment, Electric conductors, Tugs and Pusher Craft etc.),
India’s total trade with WANA countries during 2016-17 was US$ Pharmaceutical Products (Medicaments consisting of mixed or
124.34 billion (18.83% of India’s total trade with the World) as compared unmixed products for therapeutic or prophylactic purposes),
to US$ 123.92 billion in 2015-16 (19.26% of India’s total trade with the and Rice (Semi-milled or wholly milled rice).
World). While India’s total exports to WANA countries in 2016-17 were ii) Other Middle East Countries: India’s Top-5 potential commodi-
US$ 51.68 billion and India’s imports were US$ 72.67 billion during the ties for this region consists of: Petroleum Products, Jems and
same period i.e. India is in a trade deficit vis-a-vis WANA countries. Jewellery items (Articles of jewellery, Gold, Diamonds, worked,
but not mounted or set etc.), Pharmaceutical Products (Medica-
India’s share of exports to WANA countries as a percentage of India’s ments consisting of mixed or unmixed products for therapeutic
total exports to the world was of the order of 18.73% in 2016-17. WANA or prophylactic purposes), and Rice (Semi-milled or wholly
region’s share in India’s total imports from the World accounted for milled rice), Cane or Beet Sugar, and Engineering Products (Ve-
18.91% in 2016-17. Our exports to WANA countries increased by 0.59%, hicles, aircraft, vessels and associated transport equipment, Parts
and our imports increased by 0.17% during 2016-17. and accessories, for tractors, motor vehicles etc.)
During the period from April-August 2017-18 (P) India’s total trade India’s top-10 Commodities of Import from WANA Region
with the WANA Region registered a growth of 7.78% over the corre- during 2016-17
sponding period April-August 2016-17. Exports decreased by 1.89% i) West Asia- GCC Region: India’s Top-10 import commodities
while imports increased by 15.07% for the same period. from this region with share of consists of Petroleum: Crude
(45.78%), Petroleum Product (18.78%), Pearl, Precious, Semi-
The United Arab Emirates (UAE) ranks first among the destinations for precious Stones (10.23%), Gold (5.91%), Organic Chemicals
India’s exports in the WANA region and among the GCC countries. The (4.65%), Plastic Raw Materials (3.50%), Aluminum, Products of
other major destinations in the WANA region include Saudi Arabia, Israel, Aluminum (1.74%), Fertilizers Manufactured (1.64%), Copper
Egypt and Oman. and Products Made of Copper (1.18%), Bulk Minerals and Ores
(0.70%).
India’s top-10 Commodities of Export to WANA Region During 2015-16, imports of Petroleum Products (-10.48%),
during 2016-17 Gold (-3.95%), Plastic Raw Materials (-0.42%), Fertilizers Man-
i) West Asia- GCC Region: India’s Top-10 export commodities to ufactured (-20.44%), Copper and Products Made of Copper (-
this Region with share of consists of Gold (14.24), Petroleum 10.50 have registered negative growth.
Products (13.45%), Gold and Other Precious Metal Jewellery ii) Other West Asia Region: India’s Top-10 import commodities
(12.93%), Pearl, Precious, Semiprecious Stones (5.45%), RMG from this region with share of consists of Petroleum: Crude
Manmade Fibres (4.80%), Rice-Basmati (3.50%), Ship, Boat and (81.89%), Pearl, Precious, Semiprecious Stones (4.44%), Fertil-
Floating Structure (3.32%), RMG Cotton Including Accessories izers Manufactured (2.70%), Inorganic Chemicals (2.27%), Fer-
(3.19%), Products of Iron and Steel (2.97%), RMG of Other tilizers Crude (1.19%), Dye Intermediates (1.14%), Organic
Textile Material (2.71%). Chemicals (0.96%), Fresh Fruits (0.83%), Telecom Instruments
During 2016-17, Exports of Petroleum Products (-11.72%), (0.49%), Plastic Raw Materials (0.46%).
Rice -Basmati (-12.23%), RMG Cotton Including Accessories

88 | Annual Report 2017-18 | Department of Commerce

 Bilateral trade between India and countries of WANA Region during FY 2015-2016 and FY 2016-17
US$ Millions

S. No. Country 2015-2016 2016-2017 % Growth

Exports Imports Total Trade Trd.Bal. Exports Imports Total Trade Trd.Bal. Exports Imports
1 ALGERIA 787.8 299.4 1087.2 488.4 841.9 605.1 1447.0 236.8 6.9 102.1
2 BAHARAIN 654.1 356.9 1011.0 297.2 471.7 290.7 762.4 181.0 -27.9 -18.6
3 EGYPT 2337.7 1221.2 3558.9 1116.5 2067.4 1163.8 3231.1 903.6 -11.6 -4.7
4 IRAQ 1004.4 10837.6 11842.0 -9833.2 1111.5 11707.9 12819.4 -10596.5 10.7 8.0
5 ISRAEL 2821.2 2095.3 4916.6 725.9 3087.2 1961.1 5048.3 1126.1 9.4 -6.4
6 JORDAN 499.8 853.1 1352.9 -353.4 522.4 828.2 1350.7 -305.8 4.5 -2.9
7 KUWAIT 1247.5 4969.7 6217.2 -3722.2 1498.0 4462.3 5960.3 -2964.3 20.1 -10.2
8 LEBANON 239.6 27.6 267.2 211.9 210.7 30.2 240.9 180.4 -12.1 9.4
9 LIBYA 122.6 8.9 131.4 113.7 120.1 7.5 127.5 112.6 -2.1 -15.9
10 MOROCCO 342.2 1077.6 1419.8 -735.4 373.9 792.9 1166.8 -419.0 9.3 -26.4
11 OMAN 2190.8 1674.7 3865.5 516.1 2728.3 1290.5 4018.8 1437.8 24.5 -22.9
12 QATAR 902.0 9022.2 9924.2 -8120.1 784.6 7646.2 8430.8 -6861.7 -13.0 -15.3
13 SAUDI ARAB 6394.5 20321.3 26715.8 -13926.9 5110.3 19972.4 25082.7 -14862.1 -20.1 -1.7
14 SUDAN 782.4 149.2 931.6 633.2 748.7 245.2 993.9 503.6 -4.3 64.3
15 SOUTH SUDAN 0.0 0.0 3.2 0.2 3.4 3.1
16 SYRIA 136.8 40.5 177.4 96.3 121.7 32.3 154.0 89.5 -11.0 -20.5
17 TUNISIA 222.4 136.5 358.9 85.9 255.4 114.8 370.2 140.6 14.9 -15.9
18 UAE 30290.0 19445.7 49735.7 10844.3 31175.5 21509.8 52685.3 9665.7 2.9 10.6
19 YEMEN 399.8 6.9 406.7 392.9 446.1 4.8 450.9 441.3 11.6 -30.1
Total of WANA 51375.5 72544.3 123919.8 -21168.8 51678.5 72665.9 124344.3 -20987.4 0.6 0.2

Department of Commerce | Annual Report 2017-18 | 89

 During 2016-17, imports of Fertilizers Manufactured (-17.95%), (comprising of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and
Inorganic Chemicals (-14.52%), Fertilizers Crude (-28.08%), UAE), negotiations commenced with GCC. Two rounds of negoti-
Dye Intermediates (-13.28%), Telecom Instruments (-20.96%), ations have been held so far in 2006 and 2008. Further rounds have
Plastic Raw Materials (-35.76%) have registered negative not been held in the last 9 years since GCC has deferred its negoti-
growth. ations with all countries and economic groups and is reviewing its
iii) North Africa Region: India’s Top-10 import commodities from negotiations with all countries and economic groups.
this region with share of consists of Petroleum: Crude
(44.42%), Inorganic Chemicals (22.47%), Fertilizers Crude Initiatives:
(10.18%), Fertilizers Manufactured (3.60%), Petroleum Products World Expo 2020, Dubai
(2.97%), Pulses (2.45%), Cotton Raw Including. Waste (2.05%), The proposal regarding India’s participation in the World Expo
Other Commodities (1.78%), Sesame Seeds (1.28%), Fresh 2020, scheduled to be held from 20th October, 2020 to 10th April,
Fruits (1.05%). 2021 in Dubai, UAE is under active consideration in the Depart-
During 2016-17, imports of Inorganic Chemicals (-29.18%), ment. The proposal includes: -
Fertilizers Crude (-24.08%), Petroleum Products (-47.25%), ● Constitution of a High Level Committee under the chairman-
Other Commodities (-19.29 have registered negative growth. ship of the Finance Minister Comprising States and various key
Ministries/Departments in order to ensure effective participa-
Institutional Arrangements tion of India in the said World Expo 2020.
Issues pertaining to trade and economic cooperation are regu- ● Selection/finalisation of theme and sectors of focus for India’s
larly reviewed in Bi-laterals, Joint Commission Meetings or Joint participation
Trade & Economic Committee Meetings. ● Finalisation on the scale of India’s participation and accordingly
the size of the India Pavilion to be ascertained
Apex trade bodies like CII, FICCI, FIEO, ASSOCHAM etc. ● Engaging States and other stakeholders for participation in the
sponsor business delegations to facilitate trade with India through Expo
the mechanism of Joint Business Council (JBC) ● Approval of key exhibits, road map and monitoring of the event
● Designating a Special Secretary/Addl Secretary Level Officer
The Joint Commissions being steered by Department of Com- as Commissioner General of India
merce are given below: ● Funding for India’s participation

List of JCM/JTECs Chaired by C&IM

Sl. No. Name of country Committee Chaired by Date of last Meeting Next Meeting
1. Algeria Joint Commission C&IM 25-26 May 2015, To be scheduled
Algiers
2. Syria Joint Commission C&IM 10th June 2010, To be scheduled
Damascus
3. Israel Joint Trade & C&IM 13-14, Jan., 2004, Not being
Economic Tev Aviv scheduled in view
Committee of FTA negotiations
with Israel
4. Oman Joint Commission C&IM 28-29, Oct, 2014, To be Scheduled
New Delhi
5. Morocco Joint Commission C&IM 25-26, May, 2017, -
Rabat
6. Jordan Trade and C&IM 04-05, July, 2017, -
Economic Joint New Delhi
Committee

Status of FTAs: India-Oman JCM

Two FTAs are under negotiations in WANA Division: 8th Session of India-Oman JCM is scheduled in 2018 at Muscat,
a) Free Trade Agreement (FTA) with Israel: Oman. 8th Session is co-chaired by Hon’ble CIM. Some of the is-
The eighth round of negotiations between India and Israel was sues likely to be discussed during the meeting are:
held in Israel from 24th to 26th November, 2013. Negotiations also
took place on trade in Goods, Rules of Origin, Customs Procedure, India’s total trade with Oman accounts for US$ 4,018.79 million
and Movement of Natural Persons. The offers exchanged by both in FY 2016-17. India would be interested in diversifying the export
sides earlier in Sept 2013 in Goods and Services were discussed. The basket to Oman for this DOC has identified potential commodities
benefit of the FTA is predominately in favour of Israel in the areas for enhancing trade with Oman
of Goods. Therefore, to have a balanced FTA, India is looking to
obtain reasonable concessions in the field of Services from Israel. Customs Tariff on Indian products exported to Oman is high
especially in case of chemical and pharma products. India is keen to
b) Free Trade Agreement (FTA) with GCC (Gulf Cooperation cooperate in the field of oil & gas and mutual participation in build-
Council) countries: ing Strategic Oil Reserves. Request the Omani side to share infor-
After obtaining the mandate from the Trade and Economic Re- mation on petro chemical projects which are in the stage of
lations Committee (TERC) for negotiating an FTA with the GCC conceptualization and are open for participation as joint venture.

90 | Annual Report 2017-18 | Department of Commerce

IX. INTERNATIONAL TRADE ORGANIZATIONS tions/prohibitions. Many developed countries are against agricultural
WTO Negotiations reform in these areas based on current WTO mandates and rules.
World Trade Organization In recent years, there have been concerted efforts to subject devel-
India is one of the founding members of the World Trade Or- oping countries with agricultural subsidies as low as USD 260 per
ganization (WTO) and believes that the multilateral trading system, farmer per annum to similar reduction commitments as developed
with its principles of consensus, inclusivity and transparency, is best countries with agricultural subsidies as high as USD 60000 per
suited to the interests of developing countries. farmer per annum.

Doha Round of trade negotiations are underway in the WTO India has been engaging actively in the WTO on the issue of
since the year 2001. After several years of negotiations, it was only agricultural subsidies and had made a joint submission with China
at the Ninth Ministerial Conference of the WTO in Bali in 2013 that to tackle the most trade-distorting form of agricultural support, re-
some outcomes were achieved on Agriculture, Development and ferred to as AMS (Aggregate Measurement of Support) mainly used
Trade Facilitation. by developed country members of the WTO. In contrast most de-
veloping country members have access only to a minimum entitle-
In line with its commitment to multilateralism, India has strongly ment (‘de minimis’), which is a major asymmetry in the rules on
supported taking forward issues under the Doha Round of trade ne- agricultural trade.
gotiations which began in 2001, in particular, the agreed ministerial
decisions emanating from the WTO Ministerial Conferences held in Special and Differential (S&D) treatment for developing coun-
Bali (2013) and Nairobi (2015). The Doha Development Agenda, tries is a very important part of the WTO’s mandate and the Doha
with its focus on development, was meant to address the concerns Development Agenda (DDA). Some countries are also seeking to
of developing countries and designed to ensure greater integration ensure that developing countries such as India, China, Brazil and In-
of these countries into the global trading system. donesia are moved out of the coverage of provisions for special and
differential treatment which, inter alia, allow developing countries
Eleventh Ministerial Conference of the WTO to enjoy concessions in agricultural subsidies and enable them to
The Eleventh Ministerial Conference of the WTO (‘MC11’) was provide subsidies on inputs in agriculture such as power, irrigation
held in Buenos Aires, Argentina from 10 to 13 December 2017. In and fertilizers. The developed countries say that such treatment
the run-up to the Conference, decisions were expected on a perma- should be confined only to LDCs. In the run up to MC11 there were
nent solution on the issue of public stockholding for food security stronger and more concerted efforts in this direction.
purposes and other agriculture issues. Some WTO member countries
were seeking outcomes on domestic regulations in services, disci- In the absence of consensus on a work programme proposed
plines on fisheries subsidies, E-commerce, Investment Facilitation on agriculture for the next two years, there was no outcome on agri-
and Micro, Medium and Small Enterprises (MSMEs). culture at MC11.

Permanent solution on public stockholding for food security Fisheries Subsidies

purposes The Doha Ministerial Declaration of November 2001 mandates
The Bali Ministerial Decision on public stockholding for food negotiations aimed at clarifying and improving the WTO disciplines
security purposes sought to address the concerns of developing on fisheries subsidies. The starting point for these negotiations was
countries by providing them with an interim mechanism (popularly primarily to curtail subsidies to the fisheries sector which lead to
termed as a ‘peace clause’) in terms of which WTO Members would degradation of the marine fishery resources, as over the years the
exercise due restraint in raising disputes under the relevant provi- marine fisheries stock has depleted as a result of unchecked support
sions of the WTO Agreement on Agriculture in respect of public granted by major fishing nations to their fishing fleets.
stockholding programmes for food security purposes even if coun-
tries exceeded their permissible subsidy limits. The Bali Ministerial The proposals in the WTO on this issue call for further discus-
Decision also included a commitment to find a permanent solution sions on fisheries subsidies disciplines aimed at achieving the UN
by 2017. Later, as a result of India’s efforts, the WTO’s General Sustainable Development Goal Target 14.6 by 2020, which calls for
Council (GC) adopted a decision on 27 November 2014 ensuring prohibiting certain forms of fisheries subsidies that contribute to
that the interim mechanism would be available in perpetuity until a overcapacity and overfishing, eliminating subsidies that contribute
permanent solution was agreed and adopted. The Ministerial Dec- to illegal, unreported and unregulated (IUU) fishing, and refraining
laration at the Nairobi Ministerial Conference in December 2015 from introducing new subsidies by 2020. Goal 14.6 also recognizes
took note of and welcomed the Bali and subsequent GC decisions. that appropriate and effective special and differential (S&D) treat-
ment for developing country and least developed country members
In accordance with the obligation placed on member countries should be an integral part of the WTO fisheries subsidies negotia-
by the Ministerial decisions at the Bali and Nairobi Ministerial Con- tions. For a developing country like India where a large number of
ferences, India and the G-33, as the key proponents, sought a per- artisanal, traditional and small resource poor fishermen depend on
manent solution at the Eleventh Ministerial Conference at Buenos fishing activity as a source of livelihood, appropriate special and dif-
Aires. While the proponents were naturally seeking a permanent so- ferential treatment provisions would need to be built in while fram-
lution that would be an improvement over the existing interim mech- ing disciplines.
anism, others sought stronger safeguards. In the absence of
consensus, a permanent solution could not be achieved. India’s pub- At the Buenos Aires MC-11, India engaged constructively in the
lic stockholding programmes, however, continue to be protected due Fisheries Subsidies negotiations where it supported developing com-
to the interim mechanism which is available in perpetuity. prehensively fisheries disciplines by 2019. This suggestion found
wide acceptance by member countries and emerged as an outcome
Other Agriculture Issues at the MC-11.
The Agriculture agenda of the ongoing WTO negotiations cov-
ers, inter alia, other issues such as agricultural subsidies, an agricul- Discussion on Domestic Regulations
tural Special Safeguard Mechanism (allowing developing countries The General Agreement on Trade in Services (GATS) and the
to raise tariffs to guard against import surges and price falls), cus- Decision on Domestic Regulation call upon WTO members to de-
toms duties on agricultural products and agricultural export restric- velop necessary disciplines to ensure that measures relating to qual-

Department of Commerce | Annual Report 2017-18 | 91

ification requirements and procedures, technical standards and li- existing mandates and decisions would remain valid and be carried
censing requirements and procedures do not constitute unnecessary forward. This ensures that work will go forward and the WTO would
barriers to trade in services. continue to work on issues such as the permanent solution on public
stockholding for food security purposes, agricultural subsidies and
Discussions on development of disciplines on domestic regula- other issues.
tions have been ongoing in the WTO in the Working Party on Do-
mestic Regulations (WPDR) since 2016. About 10 proposals were The Doha Round of multilateral trade negotiations at the WTO
merged into a consolidated text which was tabled as a Ministerial commenced in 2001 and remains unfinished. It aims to achieve re-
Document for discussions at MC11. India engaged constructively forms in the international trading system through lowering of trade
on the text and suggested incorporating commercially meaningful barriers and revision in trade rules, keeping development at its cen-
disciplines addressing the barriers faced by natural persons supplying tre. The Doha Development Agenda (DDA) covers about 20 areas
services, including qualification requirements & procedures and de- of trade including agriculture, market access for industrial products,
velopment issues consistent with the GATS mandate. As a way for- market access and regulations relating to services trade, trade-related
ward, India proposed a well-structured post MC11 Work Programme aspects of intellectual property rights, rules relating to anti-dumping
on services incorporating some elements of the Indian proposal for and subsidies and trade facilitation.
Trade Facilitation in Services, including those related to Mode 4, as
well as DR disciplines as per the Chair’s Reports of 2009 and 2011. Other WTO issues
As there was no consensus on these issues, no Ministerial Decision Duty Free Tariff Preference (DFTP) Scheme for Least Devel-
or Work Programme was agreed to on Domestic Regulations at oped Countries
MC11. India was the first developing country to extend Duty Free
Quota Free (DFQF) 3 access to the Least Developed Countries
New Issues (LDCs) in the year 2008, thereby fulfilling a key element of the
E-commerce WTO Hong Kong Ministerial Declaration of December, 2005.
At MC11 there was wide divergence of views on how to engage India’s DFQF scheme is called Duty Free Tariff Preferences (DFTP)
on E-commerce. India and a number of developing countries were of scheme.
the view that the existing 1998 work programme on E-commerce
should continue, while others desired a fast-track approach by formal- In order to ensure effective utilisation of the Scheme and to pro-
ising the dedicated discussion on the work programme under the Gen- vide optimum access to LDCs’ exports to India’s market, the Gov-
eral Council. In the end, MC11 broadly endorsed the Nairobi ernment of India has expanded the product coverage of the DFTP
Ministerial Decision on E-Commerce which seeks continuation of Scheme from 1st April 2014, and also simplified the procedures re-
work under the 1998 Work Programme (WT/L/274); to endeavour to lated to Rules of Origin in March, 2015. As per Customs Tariff No-
reinvigorate work; instruct the General Council to hold periodic re- tification No. 8/2014 dated 1st April, 2014, India provides duty free/
views in its sessions of July and December 2018 and July 2019 and re- preferential market access on 98.2% of India’s total 5205 tariff lines
port to the next session of the Ministerial Conference. Members agreed (at HS 6 digit level of classification). In fact, only 97 lines are in
to maintain the current practice of not imposing customs duties on India’s Exclusion list while 114 lines on margin of preference On
electronic transmissions until the next session in 2019 along with con- the rest of the lines duty free exports is allowed into India’s market.
tinuation of the moratorium on TRIPS non-violation complaints.
Moreover, certain procedural modifications to the Rules of Ori-
Other Issues gin of the DFTP Scheme were made vide customs non-tariff noti-
Draft Ministerial decisions by proponents on new issues like In- fication 29/2015-Cus(NT),dated 10th March, 2015.
vestment Facilitation, MSMEs, gender and trade, which lacked a
mandate or consensus, were not taken forward. On 27 July 2017, two least developed countries, Niger and
Guinea, were notified as beneficiaries to the DFTP Scheme4, bringing
However, as in the case of E-commerce and Domestic Regula- the total number of beneficiaries to 34, namely, Afghanistan,
tion in Services, the interested groups of proponent countries have Bangladesh, Benin, Burkina Faso, Burundi, Cambodia, Central
issued, respectively, Joint Statements proposing structured discus- African Republic, Chad, the Comoros, Eritrea, Ethiopia, the Gambia,
sions with the aim of developing a multilateral framework on invest- Guinea, Guinea Bissau, Haiti, the Lao People’s Democratic Republic,
ment facilitation and a comprehensive and strategic discussion on Lesotho, Liberia, Madagascar, Malawi, Mali, Mozambique, Myanmar,
MSMEs in the WTO. Niger, Rwanda, Senegal, Somalia, the Sudan, Timor-Leste, Togo,
Uganda, the United Republic of Tanzania, Yemen and Zambia.
While such groups have been formed by the proponents on var-
ious issues, they will have to first identify the linkages of some of DISPUTES
these issues with trade before bringing them into the WTO can even The following three disputes have been ongoing in the WTO
be considered. Moreover, any decision to launch negotiations on during 2017 -2018
such issues multilaterally would need to be agreed by all Members,
as per the Nairobi Ministerial Declaration. DS436: United States – Countervailing Measures on Certain
Hot-Rolled Carbon Steel Flat Products from India.
Ministerial Declaration The United States had levied anti-subsidy duty (Countervailing
A few members did not support the acknowledgment or reiter- Duty) against India’s exports of Steel products sometime in 2000.
ation of key underlying principles guiding the WTO and various India challenged the exorbitant anti-subsidy duty as the basis and
agreed mandates. As a result, Ministers could not arrive at an agreed the manner in which the duty was imposed was felt to be incompat-
Ministerial Declaration at the end of the Conference. ible with WTO law.

However, even in the absence of a Ministerial Declaration, the The WTO Dispute Settlement Body (“DSB”) ruled some issues

3 Note: Relevant information regarding India’s DFTP Scheme can be accessed at the link: http://commerce.gov.in/writereaddata/UploadedFile/
MOC_636434269763910839_international_tpp_DFTP.pdf
4 Vide customs notification no. 68/2017-dated 27th July, 2017

92 | Annual Report 2017-18 | Department of Commerce

in favour of India which required the United States to take corrective All these Working Groups have, since then, submitted their re-
action. However, even after the time provided to comply with the ports and based on these and further inputs from industry and pri-
ruling in this dispute, India considers that the United States’ com- vate stakeholders, the National Trade Facilitation Action Plan
pliance measure (which was to carry out legal proceedings to review (NTFAP) has been unveiled by the Finance Minister on 20th July,
the exorbitant anti-subsidy duty, among other steps) still does not 2017. The objective of the NFTAP is to ensure smooth implemen-
conform with WTO Law. Importantly, the United States did not tation of its Category A and Category B commitments. The NTFAP
amend the WTO incompatible provisions of its law which is of cen- lists out 76 action points along with timelines and lead agency (ies)
tral importance as per WTO law. Therefore, India initiated com- with mapping to our policy objectives and the concerned TFA Arti-
pliance proceedings against the United States. Consultations were cles. Our vision for conceptualising this Action Plan is to transform
held through Digital Video Conference (“DVC”) in the month of the trade ecosystem by reducing the time and cost of doing business.
July 2017. In fact, out of the 76 points in the Action Plan, 51 are TFA Plus
which goes beyond our commitments in WTO.
DS430: India – Measures Concerning the Importation of Cer-
tain Agricultural Products. Other issues/initiatives
The United States challenged India’s ban on imports of poultry Standards and technical regulations
and poultry products originating from the US which had declared Internationally tariffs have been going down, the overall global
occurrence of high/low-high pathogenic Avian Influenza strains. average import weighted tariff on industrial goods has gone down
The Panel and the Appellate Body of the DSB determined that to just around 4 per cent. With FTAs being negotiated among a large
India’s ban was not compatible, since imports from Avian Influenza number of countries, average global tariff rates will go down further,
free areas in the United States should be allowed as per WTO law. reducing the role of tariffs in market access. At the same time the
use of technical regulations (mandatory standards) has grown world-
India carried out its compliance, but the United States chose to wide along with the growth of a variety of conformity assessment
approach the DSB to pursue the matter further alleging that India’s procedures which have a vital impact on market access and global
compliance fell short of WTO law. The United States did not seek trade.
to assess the level of compliance, but instead requested the WTO
for retaliation for an amount of US$ 478 million for India’s pur- There is synergetic relation of standards and technical regula-
ported non- compliance. tions with trade.

India then sought to constitute the Panel to determine the level Standards and technical regulations are trade enhancing because
of compliance, since India’s stand is that after compliance has been standards reduce information asymmetries, signal quality to con-
carried out, retaliation should be calculated only after verifying if sumers and create a common language for potential trading partners,
the compliance measure complies with WTO law. Despite sequenc- thus reducing overall transactions costs. However, at the same time
ing issues in the WTO dispute settlement procedure, India has acted the concerns over the impact of standards and technical regulations
to ensure that the proper process be adhered to as far as possible, as non-tariff barriers (NTBs) in global trade are also well-docu-
by ensuring that compliance is determined as soon as possible, and mented.
therefore, to prevent unwarranted retaliatory measures.
Mandating standards on products and putting in place a proper
Currently, India and the United States are defending their respec- eco-system related to technical regulations, standards, metrology,
tive positions in the WTO, as both these proceedings are ongoing. conformity assessment and accreditation would help to prevent
flooding of the domestic market with unsafe imports, which ad-
DS518: India – Certain Measures of Imports of Iron and Steel versely affect consumers as well as domestic industry.
Products
Japan sought to initiate a dispute with India on the safeguard In the globalised marketplace following the creation of the
duty that was notified on certain steel products in March 2016. After World Trade Organization, a key challenge facing developing coun-
consultations in February 2017, Japan sought to invoke the WTO tries is the lack of domestic capacity to overcome technical barriers
dispute settlement mechanism in March 2017, citing that the proce- to trade and to comply with the requirements of agreements on san-
dures followed by India in imposing the safeguard duty were not in itary and phytosanitary conditions, which are now basic prerequisites
accordance with WTO law. for market access, embedded in the global trading system. The WTO
Agreement on Technical Barriers to Trade (TBT) and the Agreement
Currently, India is working on responding to the claims made by on Sanitary and Phytosanitary Measures (SPS) are two important
Japan before the Panel stage of the WTO dispute settlement mech- agreements in this area.
anism.
For the Indian industry to survive and thrive, it has to adopt
Trade Facilitation: global standards. The Ministries/regulators/state governments have
The WTO Trade Facilitation Agreement has come into force to also realize that their initiatives and schemes have to be built
in February 2017 after 1/3rd Members Countries of WTO has around global standards in order for them to succeed in their objec-
ratified it. India has already ratified the TFA in February 2016. tives. Moreover, by measuring up to standards and conformity as-
For domestic coordination and implementation of the TFA, a Na- sessment procedures, exports can also be increased both in volume
tional Committee on Trade facilitation was constituted in August as well as in value terms.
2016 under the Chairmanship of Cabinet Secretary. NCTF is a
three tiered body – NCTF as the apex body, Steering Committee Understanding the implications of standards in international
Jointly Chaired by Secretary, Revenue and Secretary, Commerce at trade is therefore very important from Central Government Min-
the mid-level and ad-hoc Working Groups at the lower level. The istries as well as State Governments’ perspective. Upgrading to in-
first meeting of the NCTF was held in October, 2016 and subse- ternational standards, making standards mandatory, creating requisite
quently Steering Committee Meeting was held wherein it was de- infrastructural facilities for testing, certification, trace back, packag-
cided to form 4 Working Groups namely with the objectives of ing and labelling as well as schemes for promoting adherence to in-
Outreach, Legislative changes, Time Release study and Infrastruc- ternational standards can go a long way in meeting challenges of
ture up-gradation. large number of SPS and TBT measures.

Department of Commerce | Annual Report 2017-18 | 93

Standards Conclave Promotion Council (SEPC), organized the third edition of the
The Department of Commerce, Government of India in col- Global Exhibition on Services (GES) from 17th – 20th April 2017
laboration with Confederation of Indian Industry (CII), Bureau of at India Expo Centre & Mart, Greater Noida.
Indian Standards (BIS) and National Accreditation Board for Cer-
tification Bodies (NABCB) and other knowledge partners organized Over 5000 B2B meetings were conducted during GES-2017. As
the 4th National Standards Conclave on May 1-2, 2017 in New many as 73 countries and 24 states participated at GES-2017. India
Delhi.The objective of the two-day Conclave was to bring aware- took the opportunity to highlight some of the fast emerging sectors
ness among Industry, Ministries/Departments concerned, State in services at this year’s edition of the mega event.
Governments, regulatory/standard setting and conformity assess-
ment bodies about the importance of “Standards” in the changing The focus sectors in the GES-2017 were Information Technol-
scenario of global trade. It highlighted the growing regulatory ogy and Telecom, Tourism & Hospitality, Media and Entertainment,
deficit in the country in the sectors that are otherwise tightly regu- Healthcare, Logistics, Environmental Services, Facility Management,
lated world over, like in industrial safety, public health etc. Gaining Exhibition & Event Services, Professional Services, Education,
experience from earlier national and regional conclaves, the time Banking & Financial Services, Skills, Next Gen Cities, Energy Serv-
was ripe this time for formulating a strategy for the country to ad- ices, Space, Start Ups / SME in Services & Wellness and in addition
dress the concern and vision for the regulatory deficit in the coun- new areas like Retail & E-Commerce, Railways and Sports Services.
try, hence a draft Indian National Strategy (INSS) was also
discussed in the conclave. GES has emerged as a major platform to showcase, engage and
collaborate on a global scale to promote India’s services strength.
Project for monitoring of draft SPS/TBT notifications The fourth edition of the GES-2018 is scheduled to be held from
One of the recommendations of the standards conclave was 15th-18th May, 2018 at the Bombay Exhibition Centre, Mumbai.
to improve preparedness to meet of importing countries regula-
tions. The SPS-TBT notifications of importing countries need to ‘ADVANTAGE HEALTH CARE INDIA’ (AHCI)
be analysed from various aspects namely, assessment of whether After the successful launch of the inaugural edition in 2015, the
these are based on international standards; trade impact assess- third edition of Advantage Health Care India 2017, an International
ment and whether less trade restrictive alternatives are available. Summit on Medical Value Travel, was jointly organized by Depart-
In this regard, the Department of Commerce has been success- ment of Commerce, Federation of Indian Chambers of Commerce
fully implementing a project for monitoring of SPS/TBT notifi- & Industry and Service Export Promotion Council from 12- 14 Oc-
cations of other countries through the Agricultural and tober, 2017 at Bengaluru International Exhibition Centre, Ben-
Processed Food Products Export Development Authority galuru, Karnataka. The objective of this international summit was
(APEDA) for SPS since 2010 and Export Inspection Council of to promote India as a Premier Global Healthcare Destination and
India (EIC) for TBT since 2014. As a result, India has been able to enable streamlined medical services exports from India.
to send its concerns and response effectively as can be seen from
the table below: AHCI-2017 brought together stakeholders from 73 countries.

Year SPS Notifications SPS Notifications TBT Notifications TBT Notifications

Issued Relevant Where Responses Issued Where Responses
For India Sent by India Sent by India
Jan to Dec 2010 1029 14 - -
Jan to Dec 2011 746 144 - -
Jan to Dec 2012 898 99 - -
Jan to Dec 2013 1012 128 - -
Jan to Dec 2014 1182 85 2242 30
Jan to Dec 2015 1289 115 1990 30
Jan to Dec 2016 1051 80 2319 51

India Standards Portal The Summit presented an opportunity to interact, network and col-
India Standards Portal was also launched during the 4th Na- laborate through the hosted buyer’s program, the exhibition, the
tional Standards Conclave. The Standards Portal is an online re- conference along with regional forums as well as the visits to some
source to provide updated information on India's Quality of the world class hospitals in Bengaluru. The exhibition had seen
infrastructure comprising prevailing systems for standardization, participation from all major hospital chains in India. Government
technical regulations, conformity assessment and support activities. of Karnataka participated as the Host state. The Summit also show-
Information on this portal has been structured to facilitate easy ac- cased the Medical devices and Electronics, Pharmaceutical compa-
cess to information both on the webpages of the portal and nies, Pharma machinery and packaging, and associated infrastructure
through links, to the different organizations responsible for provid- – medical tourism facilitators, Hotels, Airlines, Tour and travel com-
ing services in the relevant areas. panies.

Global Exhibition on Services (GES) ‘HIGHER EDUCATION SUMMIT’ (HES)

With an objective to provide global platform for increasing trade Ministry of Commerce and Industry jointly with Federation of
in Services, enhancing strategic cooperation and strengthening mul- Indian Chambers of Commerce & Industry (FICCI) and Service Ex-
tilateral relationships between all stake holders to explore new busi- port Promotion Council organised the 12th FICCI Higher Educa-
ness avenues, the Department of Commerce in association with tion Summit, a Global Conference, on November 10th-12th, 2016
Confederation of Indian Industry (CII) and the Services Export at Vigyan Bhavan, New Delhi. The theme of the Summit “Educa-

94 | Annual Report 2017-18 | Department of Commerce

tion for Tomorrow: Learn in India- Learn for the World”, aligned mit on 5-6, October, 2017 at New Delhi.
with the idea to project India as the most favoured Education des-
tination in the world. The aim of organizing this mega event is to The International Summit focused on opportunities and chal-
project India as an education hub. The event format includes large lenges which globalization of legal services is throwing up for Indian
exhibition and conference along with industry roundtables and Re- Legal Sector. The conference also focused on the proposed regula-
verse Buyer Seller Meets (RBSM). tory frame work and its financing for foreign legal professionals and
law firms, commercial issues in the movement of professionals etc.
In line with the government’s focus, summit deliberated on the
new education policy,vision for higher education in India that’s rel- Trade Agreements: Updated Status on Services
evant not just for India but the world and developing strategies to India has signed Comprehensive Bilateral Trade Agreements, in-
promote India as a Global Education Hub. In addition to the Con- cluding Trade in Services, with the Governments of Singapore,
ference there were about 180 exhibitors from top of the line Indian South Korea, Japan, and Malaysia. A Free Trade Agreement (FTA)
and international universities/ higher education Institutions show- in services and investment has been signed with the Association of
casing the products and programs. HES-2016 brought together South East Asian Nations (ASEAN) in September, 2014. It came
stakeholders from more than 55 countries and about 1100 delegates into effect from 1st July, 2015.
for the Summit.
India has since joined the Regional Comprehensive Economic
The next edition i.e, Higher Education Summit 2017, is sched- Partnership (RCEP) plurilateral negotiations. The RCEP is a pro-
uled to be held from 9th -11th November, 2017 at India Expo Cen- posed free trade agreement (FTA) which includes the 10 ASEAN
tre and Mart, Greater Noida. countries and its six FTA partners viz. Australia, China, India, Japan,
South Korea and New Zealand. The RCEP is the only mega-regional
International Business Summit: North East (India) CLMV FTA of which India is a part. India is also engaged in the bilateral
(ASEAN) FTA negotiations including Trade in Services with Canada, Israel,
This conference was organised jointly Ministry of Commerce Thailand, the EU, the European Free Trade Association (EFTA),
and Industry, Govt. of India with International Chamber for Service Australia, New Zealand, etc.
Industry (ICSI) and Service Export Promotion Council (SEPC) on
24th -25th March 2017 at Guwahati, Assam. The focus of the sum- India is also engaged in the bilateral FTA negotiations including
mit was “Higher Education and Herbal Health Sector” as follow-up Trade in services with Sri Lanka, Canada, Peru, Thailand, Australia,
conference of the Mega Event “Competitive Advantage of North New Zealand, Israel, the European Union (EU) and the European
East India”. Various representatives from Ministries, Cambodia, Free Trade Association (EFTA). India has restarted the CECPA ne-
Laos, Myanmar and Vietnam (CLMV) Embassies, North East Re- gotiations, including Trade in Services, with Mauritius. Meeting of
gion India Education, Skills, Herbal Health and other related depart- the two sides were held for finalising the JFSG Report. The India-
ments were present for the session. Eurasian Economic Union (EAEU) JFSG Report stands finalised
and the negotiations are due to start.
International Conference: North East India and ASEAN
calling Media Entertainment Industry for Cinematic Tourism India is also engaged in bilateral trade dialogues with the US
A joint initiative of Department of Commerce, Ministry of under the India-US Trade Policy Forum (TPF), with Australia under
Commerce and Industry, Govt. of India and International Chamber the India-Australia Joint Ministerial Commission (JMC), with China
for Service Industry (ICSI). The conference was held on 30th June under the India-China Working-Group on Services and with Brazil
2017 at Mumbai. The event created a platform for the entire Media under the India-Brazil Trade Monitoring Mechanism (TMM).
Entertainment Industry including Film Production Houses, Film
Makers, Radio, and TV- Ad Film Animation Industry, Events com- Economic and Social Commission for Asia & the Pacific
panies to interact and explore the business opportunities with Heads (ESCAP)
for NER(I) States with their Public Relations and Tourism Depart- India is one of the founding members of ESCAP, the regional
ments, NER(I) production houses, artistic, ASEAN representatives. development arm of the United Nations, which serve as the main
economic and social development centre for the United Nations in
International Conference: Strengthening Aviation Network Asia and Pacific. With a membership of 62 Governments, 58 of
Between North East Region (Indian) & BCLMV Countries: which are in the region, and a geographical scope that stretches from
Gateway to Services Exports Turkey in the west to the Pacific island nation of Kiribati in the east,
The Conference was organized by International Chamber for and from the Russian Federation in the north to New Zealand in the
Service Industry (ICSI) with strong support and initiative of the De- south, ESCAP is the most comprehensive of the United Nations
partment of Commerce, Ministry of Commerce and Industry, Govt. five regional commissions. It is also the largest United Nations body
of India as well as the Ministry of Civil Aviation and Ministry of serving the Asia-Pacific region.
Skill Development. The event was extremely well received by all sec-
tions of the Travel Industry with active participation from all sec- ESCAP seeks to overcome some of the region’s greatest chal-
tions – Domestic and International Airlines, Travel Companies, lenges. It carries out work in the following areas of Macroeconomic
Ground Handling companies, Aviation Training and Development Policy and Development, Statistics, Sub regional activities for devel-
organizations as well as Freight and Logistics firms, airlines, repre- opment, Trade and Investment, Transport, Environment and sus-
sentatives of State Governments, Ambassadors, Diplomats and tainable development, Information and Communications
other senior Aviation industry officials from airlines. Technology and Disaster Risk Reduction and Social Development
ESCAP focuses on issues that are most effectively addressed
7th Annual International Summit Transforming India-Oppor- through regional cooperation, including:
tunities & Challenges for the Legal Profession ● Issues that all or a group of countries in the region face, for
Indian Corporate Counsel Association (ICCA), a member of In- which it is necessary to learn from each other;
House Counsel Worldwide (ICW) with support from Department
of Commerce, Ministry of Commerce and Industry, Govt. of India, ● Issues that benefit from regional or multi-country involvement;
organised the “7th Annual International Summit Transforming
India- Opportunities & Challenges for the Legal Profession” Sum- ● Issues that are transboundary in nature, or that would benefit
from collaborative inter-country approaches;

Department of Commerce | Annual Report 2017-18 | 95

● Issues that are of a sensitive or emerging nature and require fur- ● promote and support specific sub-region priorities and pro-
ther advocacy and negotiation. grammes concentrating on the priority sectors of member
States within the sub-region;
Annual Session of ESCAP
The Commission meets annually at the Ministerial level to dis- ● operate as sub-regional nodes for knowledge management and
cuss and decide on important issues pertaining to inclusive and sus- networking;
tainable economic and social development in the region, to decide
● spearhead the delivery of technical assistance activities and act
on the recommendations of its subsidiary bodies and of the Exec-
as the Commission’s implementing arm in the sub-region;
utive Secretary, to review and endorse the proposed strategic frame-
work and programme of work, and to make any other decisions ● establish close working relations with United Nations country
required, in conformity with its terms of reference. terms with in the sub-regional and promote the coordination
of United Nations systems activities at the sub-regional level.
The 73rd Session of ESCAP was held in Bangkok, Thailand.
The 1st phase was held from 15-17 May 2017 and 2nd Phase was ● build strong partnerships and network with other relevant actors
held from 17-19 May, 2017. The theme topic for the Session was in the sub-region, including other sub-regional intergovernmen-
“Regional Cooperation for Sustainable Energy”. tal bodies, to promote sub-regional cooperation with a regional
framework.
India’s contribution to ESCAP
The delivery of ESCAP’s programmes is supported by the re- Kimberley Process Certification Scheme: -
gional institution and the sub-regional offices. India has worked in The Kimberley Process (KP is a joint government, industry and
close cooperation with ESCAP during the year. India has also com- civil society initiative to stem the flow of conflict diamonds (rough
mitted continued financial support to the following regional institu- diamonds used by rebel movements to finance wars against legiti-
tions of ESCAP: mate government). Kimberley Process Certification Scheme (KPCS)
● Asian and Pacific Centre for Transfer of Technology (APCTT), is an UN mandated (UNGA Resolution 55/56 of 2000 and UNSC
New Delhi, India: Resolution 1459(2003)) international certification scheme. It re-
quires each participant to impose internal control over production
● Asian and Pacific Training Centre for Information and Com- and trade of rough diamonds. Trading in rough diamonds with a
munication Technology for Development (APCICT), Incheon, non-participant is not allowed. All exports of rough diamonds have
Republic of Korea: to be accompanies by a valid KP Certificate stating that diamonds
are conflict free.
● Statistical Institute for Asia and the Pacific (SIAP), Chiba, Japan.
India is one of the founding members of KPCS. KPCS cur-
Sub Regional Office in India
rently has 54 participants, representing 81 countries with the Euro-
A new dimension was added in India’s partnership with UN-
pean Union and its Member States counting as single participant.
ESCAP by establishment of Sub-Regional Office (SRO) for South
All major diamond producing, trading and polishing centres are
and South West Asia in New Delhi with financial assistance of US$
members of KP. Civil Society and industry groups also actively par-
1,54,000 provided by Govt. of India in December, 2011. Out of this
ticipate in the KP. Chairmanship of KP is rotated on annual basis.
US$ 75000/- was a one-time grant and US$ 79000/- is recurring
The Vice Chair is selected at the annual “Plenary” meeting and be-
grant per annum as India’s contribution for the office.
comes Chair automatically the following year. The KPCS Chair
oversees the implementation of the KPCS, the operations of the
The main activities for SRO are to :
Working Groups and Committees, and General Administration.
● implement the Commission’s agenda at the sub-regional level
Australia is the Chair for the year 2017 and EU will be the Chair for
by serving as a link between sub-region and Commission head-
the year 2018. India was KP Chair in 2008. In 2018, India will take
quarters;
over the Vice Chairmanship and will be the Chair in 2019. ■

96 | Annual Report 2017-18 | Department of Commerce

EXPORT PROMOTION
MECHANISM
The Department of Commerce has undertaken a number
of export promotion measures and schemes to address the
short term and long term issues faced by the trade and
industry related to external sector. This chapter deals
with the initiatives of this Department covering the
Major Schemes, facilitation through Export Promotion
Councils (EPCs) and other major institutions

Department of Commerce | Annual Report 2017-18 | 97

MAJOR SCHEMES transaction cost on account of arbitrary and exorbitant charges by
INFRASTRUCTURE SUPPORT shipping lines, consolidators, freight forwarders and other service
The Department is entrusted with formulating and implement- providers such as collusive price fixing by the service providers at
ing the foreign trade policy and responsibilities relating to multilat- ports / airports and cartelization of the shipping liners resulting
eral and bilateral commercial relations, state trading, export in sharp cost escalation, congestion at various ports, lack of suit-
promotion measures, and development and regulation of certain ex- able infrastructure, poor planning and congestion at ports have
port oriented industries and commodities. It endeavors to provide been taken up at appropriate level by the Department of Com-
transport/logistic support to India’s foreign trade through coordi- merce from time to time.
nation and resolution of problems experienced by the trading com-
munity in carriage of goods by courier, sea, air, rail and road with TRADE INFRASTRUCTURE FOR EXPORT SCHEME
concerned Ministries & Departments. It seeks to encourage greater (TIES)
containerization, computerization of cargo clearance and electronic The TIES scheme is being implemented for a period of 3 years
data interchange, warehousing, setting up of Inland Container De- w.e.f. F.Y. 2017-18. The objective of this scheme is to enhance ex-
pots (ICDs), Container Freight Stations (CFSs) etc. so as to reduce port competitiveness by bridging gaps in export infrastructure, cre-
the time taken in delivery of cargo to its destination. ating focused export infrastructure, first mile and last mile
connectivity for export-oriented projects and addressing quality and
Department of Commerce is the nodal department for enabling certification measures. The main focus is to create appropriate in-
infrastructure development related to Inland Container Depots / frastructure for development and growth of exports through en-
Container Freight Stations (ICDs/ CFSs/ AFSs) by Govt/Individ- gagement of Central/State Agencies by extending assistance to
uals and coordinates resolution of inter departmental issues. The them. The Central Government assistance for infrastructure cre-
Inter- Ministerial Committee (IMC), under the Chairmanship of ation is in the form of grant in-aid, normally not more than the eq-
Special / Additional Secretary (Infrastructure Division), Department uity being put in by the implementing agency or 50% of the total
of Commerce acts as a Single Window Clearance for the proposals equity in the project. (In case of projects located in North Eastern
for setting up of Inland Container Depots / Container Freight Sta- States and Himalayan States including J&K, this grant can be upto
tions/Air Freight Stations (ICDs/CFSs/ AFSs). 80% of the total equity).

So far 326 Letters of Intent (LoIs) have been issued out of Total Scheme outlay is Rs. 600 Cr. with annual outlay of Rs. 200
which 236 projects (67-ICDs and 169-CFSs) are functional, 54 proj- cr. An outlay of Rs. 100 Cr has been provided under this scheme
ects (23-ICDs, 29-CFSs and 02-AFSs) are under implementation during the financial year 2017-18. Out of Rs. 100 Cr, a sum of Rs.
stage. During the period from 17-11-2016 to13-11-2017, four IMC 43.28 Cr. has been sanctioned/allocated to various central and state
meetings were held in which 07 proposals for issue of Letter of In- owned agencies towards 8 projects located in Andhra Pradesh, Kar-
tent (LOI) and 25 cases of extension of LOI have been approved. nataka, Kerala, Manipur, Tamil Nadu and Madhya Pradesh (as on
30.10.2017).
Infrastructure Division has made a portal for submission of on-
line application and its subsequent processing for setting up of ICD ENGAGEMENT OF STATES FOR EXPORT PROMOTION
/ CFS / AFS. The improved process ensures a speedier and more COUNCIL FOR TRADE PROMOTION AND DEVELOPMENT
transparent approval process. The approval for setting up of A Council for Trade Development and Promotion was notified
ICD/CFS/AFS is facilitated through an Inter-Ministerial Committee under the chairpersonship of the Union Commerce and Industry
(IMC) which consists of officials from Ministry of Commerce, Rail- Minister, in which the Trade & Industry Ministers of all the states
ways, Shipping, Revenue and Civil Aviation. are members along with the Secretaries of the Central
Ministries/Departments dealing with infrastructure and finance and
To improve the logistics performance in the States, this Depart- the apex industry associations. The 1st and 2nd meeting of the
ment has envisaged development of State-level Logistics Perform- Council was convened on the 8.1.16 and 5.1.17 respectively. the 3rd
ance Indicators on the lines of the Logistic Performance Index meeting of the Council is proposed to be held on 4th January, 2018
published by the World Bank. In this regard, work order to under- with the participation of all States/UTs.
take the development of Preliminary State-Level Export Logistics
Performance Indicators has already been awarded to M/s Deloitte The issues raised by the State Govts during the 1st and 2nd
Touche Tohmatsu India Private Limited. meeting were taken up with the concerned and attempts made to re-
solve them. The Council provides the states with a platform to ar-
Two high level committees, viz. the Standing Committee on Pro- ticulate their views on the Trade Policy.
motion of Exports by Sea (SCOPE-Shipping) and the Standing
Committee on promotion of Exports by Air (SCOPE-Air) are func- New Initiative - Joint Meetings with State Governments and
tioning under the aegis of Infrastructure Division, Department of Exporters
Commerce. The objective of these committees is to address poten- Under the initiative, Commerce Secretary leads a team of offi-
tial constraints in the smooth movement of international cargo and cials from Dept of Commerce, DGFT, Customs, CONCOR and
resolve problems of exporters concerning various departments re- concerned ministries to sensitize the states on the need to promote
lated to exports including Customs, Containerization, Air, Shipping trade related infrastructure and other issues. The meeting with the
& Railways. The meetings of these two Committees are normally State Government officials, jointly chaired by the Commerce Secre-
held every year. Since the year 2004, ten meetings of these commit- tary and the Chief Secretary of the State, deliberates on the DGCIS
tees have been held. In 2016-17, the 47th SCOPE (Shipping) & data on exports from the state, the issues related to local
55th SCOPE (Air) meetings were held on 18th April, 2017. The taxation/levies, power availability, road/rail connectivity etc as aired
stake holders have been requested to take Action on the issues con- by the local exporters/CHAs. The possible implications of the var-
cerning them. ious international agreements on the export basket of the State are
also discussed so that the States can plan the development of the
Besides the above, other important residual issues which are industry. During the interaction the state responds on their plan of
raised by the associations / organizations of exporters / importers action to tackle the various bottlenecks.
about reported difficulties being faced by shippers/ exporters
while importing / exporting consignments resulting in enhanced This meeting with state government is usually followed or pre-

98 | Annual Report 2017-18 | Department of Commerce

ceded by a meeting with the exporters/freight-forwarders/CHAs porting firms and, exporters dealing in multiple products. It also
from the state. The open house session focuses on bottlenecks being grants Certificates of Origin [Non-Preferential] required as proof
faced by exporters including logistics bottlenecks. This provides a of origin of goods. FIEO functions as a servicing agency to provide
forum for a large section of the exporting fraternity to interact di- integrated assistance to over 22,000 members comprising of export-
rectly with the Commerce Secretary and the heads of the local reg- ing firms holding recognition status granted by the Government,
ulatory departments to plan their expansions. The initiative by the Consultancy firms and Service providers.
Ministry of Commerce, Government of lndia provides the exporters
with an interactive platform to articulate the current problems being FIEO provides an e-platform to buyer/sellers through its huge
faced by them with the various regulatory agencies both at the centre network. It also organizes/ participates in Trade Fairs and Exhibi-
and state level. The interactive sessions are having a huge participa- tions across the globe, particularly in untapped countries. FIEO
tion as the exporters of the state have this exclusive platform to dis- has signed over 90 MOUs with leading Chambers across the globe
cuss specific issues. to provide commercial information and marketing support to its
members.
As part of this, Commerce Secretary has convened such joint
meetings in Madhya Pradesh, Maharashtra, Tamil Nadu, Gujarat, Ra- MARKET ACCESS INITIATIVE (MAI) SCHEME
jasthan, combined meeting of all the North Eastern States, Andhra Market Access Initiative (MAI) Scheme is a Plan scheme formu-
Pradesh, Telangana, Karnataka, Chhattisgarh, Odisha, Uttar Pradesh, lated to act as a catalyst to promote India’s exports on a sustained
West Bengal, Kerala, Himachal Pradesh, Punjab and Haryana. basis. Under the scheme, assistance is provided to Export Promotion
Councils, Commodity Boards and Apex Trade Bodies. There are
State Specific Export Strategies provisions for supporting individual exporters (for product registra-
State Governments are being encouraged to formulate state spe- tion and testing charges for engineering/Pharmaceuticals products
cific export strategies to develop and identify items with export po- abroad). The scheme was last revised in August, 2014. The broad
tential and promotion thereof. The States have also been requested objectives of such funding under MAI are:
to include promotion of organic cultivation, promotion of standards ● Display and promotion of India’s capabilities as provider of
& certification, promotion of services exports and improvement in world class goods and services.
export infrastructure & logistics as an integral part of their export ● Project India as an attractive investment/sourcing destina-
strategy. tion.
● Create a strong Brand Image for India.
Status of Development of Export Strategy by the State ● Facilitate exporters /Industry Bodies to participate in major
Government events abroad in identified markets to create an impact of
So far seventeen States namely Assam, Arunachal Pradesh, Indian Goods and Services.
Chhattisgarh, Gujarat, Jammu & Kashmir, Karnataka, Manipur, ● Facilitate exporters to get exposure to new/ potential mar-
Odisha, Rajasthan, Tripura, Tamil Nadu, Telangana, Haryana, Hi- kets and access information on global trade.
machal Pradesh, Uttar Pradesh, Puducherry and Uttarakhand have
sent their export strategy. Export Strategy of 6 more States viz. Assistance under MAI Scheme is granted through designated
Andhra Pradesh, Odisha(revision), Mizoram, Nagaland, Meghalaya Trade Organization for various activities covered under the Scheme.
and Chandigarh is being prepared by FIEO under MAI Scheme of The approval process of proposals involve scrutiny through Com-
this Department. Some of the remaining states have engaged organ- mittee empowered under the Scheme.
isations like IIFT etc for preparing export strategy.
During the year 2017-18, 246 projects have been approved for
Status of Appointment of an Export Commissioner receiving assistance under the scheme.
For coordination of all export related activities by the State Gov-
ernments: So far twenty-eight states namely Andhra Pradesh, Maha-
Year wise Status of MAI Allocation/Releases
rashtra, Mizoram, Manipur, Punjab, Puducherry, Karnataka,
(Rs in Crore)
Jharkhand, Jammu & Kashmir, Kerala, Uttar Pradesh, Haryana,
Delhi, Tamil Nadu Tripura, Telangana, Nagaland, Himachal Pradesh, Year Outlay Expenditure@
Sikkim, Odisha, Madhya Pradesh, Assam, West Bengal, Goa, Bihar,
Chhattisgarh, Gujarat and Rajasthan have intimated appointment of
2007-08 45.00 44.99
Export Commissioners 2008-09 50.00 49.99

FEDERATION OF INDIAN EXPORT ORGANISATIONS

2009-10 64.00 64.99
(FIEO) 2010-11 110.00 110.00
FIEO was set up in 1965, as an Apex Body of Export Promo-
tion Organizations. It is registered under the Societies Registration 2011-12 150.00 150.00
Act of 1860 with Headquarters in Delhi. It is identified as an Export 2012-13 125.00 125.00
Promotion Council under Appendix 2T of Foreign Trade Policy
2015-2020. It has 17 offices across the country covering all the Met- 2013-14 179.99 179.99
ros and also cities like Kanpur, Ludhiana, Guwahati, Ranchi, Indore 2014-15 199.99 199.99
etc. FIEO has been functioning as a platform for interaction be-
tween exporters and policy makers. As an apex EPC, FIEO is in- 2015-16 224.99 224.99
strumental in channelizing the efforts of Indian exporting 2016-17 220.51 200.51
community cutting across various commodities and services. It is an
ISO 9001-2008 certified Organization. 2017-18 203.49 144.20
(as on 14.11.2017)
As an apex organization for Export Promotion, FIEO Managing
Committee consists of representatives of EPCs and Commodity @ Expenditure indicates the total funds released for events /studies
Boards, APEDA, MPEDA etc. In accordance Foreign Trade Policy, approved in the previous year(s) and also advance released for such proposals/studies
FIEO is designated as Registering Authority for status holder ex- in succeeding year.

Department of Commerce | Annual Report 2017-18 | 99

 Major Events supported under MAI support during 2017-18
S. No. Region Council Date
1 Textile India, Gujarat All Textile EPCs 30 June, 2017- 3rd July, 2017
2 Global Exhibition on Service SEPC/CII April, 2017
3 Astana Expo, 2017, Kazakhstan ITPO 10 June, 2017-10 Sept, 2017
4 Advantage Health Care, Bengaluru FICCI/EEPC/SEPC October, 2017
5 IPHEX, 2016, Hyderabad Pharmexcil 26-28th April, 2017
6 India International Jewellery Show, Mumbai GJEPC July, 2017

ADVISORY BODY key export sectors in overseas trade fairs and exhibitions in 2017.
Board of Trade (BOT) The highlights of some key events across the sectors are as follows:
The Board of Trade (BOT) was reconstituted vide Trade Notice
No.21 dated 23.03.2016 as per mandate given under Para 300 of For- Leather: Expo Peru 2-4th Aug 17 & Buyer Seller Meet at
eign Trade Policy Statement 2015-2020. The objective of BOT is to Santiago, Chile 7-8th Aug 2017:- IBEF and Council for Leather
have continuous discussion and consultation with trade and industry. Exports (CLE) launched the Brand India Leather campaign in the
The Board of Trade would, inter-alia, advise the Government on Latin American market by participating at Expo Peru from 2nd to
policy measures related to Foreign Trade Policy in order to achieve 4th Aug 2017, at LIMA- PERU and hosting a buyer seller meet on
the objective of boosting India’s trade. 7th & 8th Aug 2017 at Santiago-Chile. Two press conferences on
the Indian Leather Sector were also held on 3rd and 7th August 2017
The following are the terms of references of Board of Trade: at Peru and Santiago respectively. The media coverage extended over
i) To advise Government on Policy measures for preparation and 10 days, in leading publications like Gestión, El Comercio, La Re-
implementation of both short and long term plans for increasing publica, Correo, Expreso, Las ultimas, La Estrella across both the
exports in the light of emerging national and international eco- countries.
nomic scenarios;
ii) To review export performance of various sectors, identify con- Textiles: India Trend Fair, Tokyo, 27-29 September,
straints and suggest industry specific measures to optimize ex- 2017:- IBEF initiated branding for the textile sector in Japan by
port earnings; supporting India Trend Fair, Tokyo, Japan organised by JIPPA
iii) To examine existing institutional framework for imports and ex- (Japan India Industry Promotion Association) during September
ports and suggest practical measures for further streamlining to 27-29, 2017 at Belle Salle Shibuya Garden. More than 80 ex-
achieve desired objectives; hibitors participated from The Apparel Export Promotion
iv) To review policy instruments and procedure for imports and ex- Council (AEPC), and Handloom Export Promotion Council
ports and suggest steps to rationalize those for optimum use; (HEPC). IBEF organised a press conference and a fashion show
and displaying the innovative creations of Indian companies and
v) To examine issues which are considered relevant for promotion showcasing Indian textiles and fabrics being incorporated for
of India’s trade and for strengthening international competitive- Japanese attire and clothing. The event was covered by Sen I
ness of Indian goods and services. News, Senken Shinbun, Asia Textile Business News and many
more publications.
Second Meeting of the reconstituted Board of Trade was held
on 20.06.2017. Commerce & Industry Minister during the meeting Agri-products: ANUGA, Cologne Germany, October 5-9,
has outlined that the export scenario has made a turnaround and 2017:- IBEF was branding partner for India at ANUGA, Cologne,
shown positive growth during the last 8 months as a result of several 2017, where India was the partner country. With the tagline – ‘One
initiatives taken by the Department of Commerce; the productive of the world’s fastest growing food economies’, IBEF’s branding,
outcome of the Trade Facilitation Agreement where India has been which included venue and outdoor advertising, knowledge kits and
able to smoothen out several trade barriers affecting exports; the digital campaign, highlighted the opportunities that India presented
Department of Commerce has been in continuous interaction with across the value chain of the food sector. The digital marketing cam-
the Department of Revenue in sorting out several issues of ex- paign for ANUGA generated 17,955,585 impressions and 62,588
porters relating to GST. visits to the ANUGA web page created by IBEF.

The issues raised by the exporters and organizations during the Engineering: MSV Brno, Czech Republic, 9-13, October,
meeting were discussed. Record of Discussion (ROD) was circulated 2017:- The International Engineering Fair (MSV) is the leading in-
to concerned Ministries /Departments /Organizations for necessary dustrial trade fair in Central Europe with annual participation reach-
action. ing more than 1,500 exhibitors and 75,000 visitors from 59
countries worldwide. India participated as a Partner Country at
INDIA BRAND EQUITY FOUNDATION (IBEF) MSV Brno 2017. The Indian delegation comprising of approxi-
India Brand Equity Foundation (IBEF) is a Trust established by mately 100 private companies, PSUs, various states (Jharkhand, Kar-
the Department of Commerce, Ministry of Commerce and Industry, nataka) and other government departments and bodies (Ministry
Government of India. IBEF’s primary objective is to promote and of Steel, National Institute of Design) was led by Minister of State
create international awareness of the Brand India label in markets for Commerce & Industry Mr C R Chaudhary. IBEF undertook
overseas and to facilitate the dissemination of knowledge of Indian branding and publicity for India’s participation including the venue,
products and services. Towards this objective, IBEF works closely city, newspaper advertising, digital branding and PR. The branding
with stakeholders across government and industry. campaign designed as part of the umbrella theme titled ‘India: En-
gineered to Excel’ was appreciated by both domestic and foreign
IBEF has further expanded on its branding activities to support visitors alike.

100 | Annual Report 2017-18 | Department of Commerce

 Pharma: CPhI Worldwide, Frankfurt 24-26, October, 2017:- labour, almost entirely in the unorganized sector.
IBEF with the support of Ministry of Commerce and in association
with Pharmexcil has been carrying out Brand India Pharma Cam- During the year 2017-18, the Gem and Jewellery Export Promo-
paign in the European market using the platform of CPhI World- tion Council (GJEPC) participated in the following events/exhibi-
wide through venue branding, thought leadership programme, media tions in India and abroad:-
engagement and digital media campaign over the past five years.The ● Vicenza Oro Winter 2017, in Vicenza Italy from 20th to 25th
interesting aspect of the engagement this year at CPhI Worldwide, January, 2017
2017 included the thought leadership programme which focused on
the seminar on India’s Contribution to Global Healthcare: A per- ● Antwerp International Diamond Fair, 2017 Belgium 29th to 31st
spective on Affordability, Accessibility and Efficacy. It included lead- January, 2017.
ing analysts of the Indian pharma sector discussing the recent trends
and achievements of the Indian pharma sector. It was extensively ● India Diamond Week 2017 in Guangzhou, China from 20th to
covered in the event’s show daily. 22nd February, 2017.

● Hong Kong International Diamond, Gem & Pearl Show 2017

IBEF Knowledge Centre:- IBEF website www.ibef.org has 28th Feb- 4th March, 2017.
emerged as a credible source of information on Indian business and
economy. The website crossed 400,000 visitors per month in 2017. ● Hong Kong International Jewellery Show 2017 in Hong Kong
from 2nd to 6th March, 2017.
Online Brand Campaign for Tea Coffee Spices:- IBEF under
the direction of the Department of Commerce executed a 6-month ● Basel World 2017 in Basel, Switzerland from 23rd to 30th March,
online campaign for tea, coffee and spices in collaboration with Tea 2017.
Board, Coffee Board and Spices Board respectively. The campaign
was successful in driving huge traction for the three sectors on social ● CARATS+ 2017 in Antwerp, Belgium from 7th to 9th May 2017
media - with total engagement reaching 1.85 crore. Sector-wise
● India SAARC Middle East BSM 2017 in New Delhi, India from
achievements are as follows:
14th to 16th May, 2017.

Sector Reach Engagement ● JCK Las Vegas Show 2017 in Las Vegas, USA from 5th to 8th
June, 2017.
Tea 18.4 crore 63.6 lakh
● Singapore International Jewellery Expo 2017 in Singapore from
Coffee 10.5 crore 48.72 lakh
13th to 16th July, 2017.
Spices 13.68 crore 72.99 lakh
● International Jewellery Fair 2017 in Sydney, Australia from 26th
to 28th August, 2017
EXPORT PROMOTION COUNCILS (EPCS) ● Vicenza Oro Fall 2017 in Vicenza, Italy from 23rd to 27th Sep-
Export promotion councils (EPC) are trade promotion industry tember, 2017.
bodies generally created under the erstwhile Section 25 of the Com-
panies Act 1956 (company not for profit) and are companies pro- In addition to above, GJEPC organized the following activities
moted by the Department of Commerce, to augment international in 2017-18:-
trade. A merchandise EPC typically caters to exporters of the cate- ● Signature IIJS & IGJME 2017 from 6th to 9th February, 2017
gory of products allocated to them by Government. Some of them at Mumbai
(e.g Services EPC) draw their legal status from the Societies Act.
● Banking Seminar “Diamond Financing New opportunities New
EPCs by their mandate provide a host of services to overseas Realities 2017”’on 6th February, 2017 at Mumbai
buyers to facilitate their procurement of goods from India. EPCs
act as link between Indian exporters and foreign buyers and facilitate ● 50th Year Celebrations of it’s existence on 19th March, 2017
for activities like identifying suitable suppliers in India, conforming wherein the Hon’ble PM addressed the gathering through Video
to buyer’s needs, arranging visits of overseas buyers, facilitating ex- Conference
ploratory missions and delegations to India, providing supplier’s pro-
● 43rd India Gem & Jewellery Awards 2016 (IGJA2016)’ in Mum-
file, assisting in establishing collaborations for the third country
bai on 18th March, 2017
exports, creating awareness amongst overseas buyers on Indian’s
technical expertise and supply capability, acquainting overseas buyers ● International Diamond Conference – Mines to Market on 19th
with business climate and policies prevailing in India, helping in am- and 20th March, 2017
icable settlement of trade dispute, remove operational constraints,
etc. For this purpose, regular interaction with Government agencies ● A memorandum of Co-Operation between GJEPC & ALROSA
in India and abroad is part of an EPC’s role. signed on 1st June, 2017 in the gracious presence of Hon’ble
PM of India and Hon’ble President of Russia at SPIEF 2017
GEM & JEWELLERY EXPORT PROMOTION COUNCIL held at St. Petersburg
(GJEPC)
The Gem and Jewellery Export Promotion Council (GJEPC), ● 34th edition of India International Jewellery Show (IIJS 2017)
the apex trade body of the Indian gem & jewellery industry has com- from 27th to 31st July, 2017 at Mumbai
pleted 51 glorious years of its existence this year. It has approxi-
mately 6380 Members as on 26th October, 2017. The gems and Special Notified Zone for consignment import of rough
jewellery manufacturing sector is India’s leading foreign exchange diamonds:-
earning Sector. Exports of gems and jewellery from India during The Indian diamond industry is import sensitive and con-
the fiscal year 2016-2017 registered a performance of US$ 43,412.76 stantly requires to procure its primary raw material – rough dia-
million registering growth of 10.5%. This sector contributes to monds – from overseas diamond mining companies. With an
about 15.74% of the country’s total merchandise exports. It consists objective to facilitate constant supply for rough diamonds and to
of large number of SME units, employing skilled and semi-skilled make India an International diamond trading hub, the India Dia-

Department of Commerce | Annual Report 2017-18 | 101

mond Trading Centre – Special Notified Zone (IDTC-SNZ) has
been established at Bharat Diamond Bourse, Mumbai. Requisite S.No. Events
policy framework for operationalizing the SNZ has been put in 01 88th Expo Riva Such, Garda Fair Italy, June
place by the Government and viewing operations by foreign min- 10-13, 2017
ing companies at the SNZ have started. Total viewings done at 02 Buyer Seller Meet in Chile & Peru,
IDTC since its inception till September, 2017 were 49 (359 days) Peru- Aug 2-4, 2017 and Chile- 7-8, 2017
and diamonds displayed were 55,27,606 carat, i.e. worth US$
925.61 million. 03 19th Shoes & Leather Fair, Ho Chi Minh
City, Vietnam July 12-14, 2017
COUNCIL FOR LEATHER EXPORTS (CLE) 04 Magic Show, Las Vegas, USA, August 13-16, 2017
The Leather Industry holds a prominent place in the Indian 05 Spoga Horse fair, Cologne, Germany, Sep-
economy and it is among the top ten foreign exchange earners for tember 3-5, 2017
the country. With an annual turnover of over US$ 12 billion, the ex- 06 Fashion World Tokyo Fair, Japan, October
port of leather and leather products increased manifold over the past 11-13, 2017
decades and touched US$ 5.67 billion during 2016-17, recording a
Cumulative Annual Growth Rate of about 3.09% (5 years). The 07 India Leather Days, Germany, November
Leather industry is an employment intensive sector, providing job
08-09, 2017
to about 3.09 million people, mostly from the weaker sections of 08 89th Expo Riva Such, Garda Fair Italy Jan-
the society. Women constitute 30% of those employed in the leather uary 13-16, 2018
sector. The Indian leather sector has many distinctions namely (a) 09 Designers Fair , Chennai - February 1-3, 2018
India is the second largest producer of footwear and leather gar- 10 Magic Show, Las Vegas, USA - February 14-
ments in the world,(b) Second largest Exporter of leather garments, 16, 2018
(c) Fifth largest exporter of Leather goods, (d) contributor of
12.95% of World’s leather production.
11 Buyer Seller Meet in South Africa - March
12-13, 2018
Export Performance 12 Fashion Access Fair, Hong Kong - March 14-
India’s export of leather and leather products has increased from 16, 2018
US$ 5015.41 million in 2012-13 to US$ 5665.91 million during 2016- 13 India Leather Show in Spain - March 20-21, 2018
17, recording a cumulative annual growth rate of about 3.09% (5 14 MM&T – Materials Manufacturing & Tech-
years). nology Fair, Hong Kong - March- 14-16, 2018
Statement showing India’s Export of Leather and Leather prod-
15 BSM in Dubai Dec 2017
ucts for five years is shown below: 16 MOS Shoes, Moscow , Russia, March 2018

Value in US$ Mn
Category 2012-13 2013-14 2014-15 2015-16 2016-17
Finished Leather 1093.73 1284.71 1329.05 1046.45 888.89
Footwear 2066.91 2557.66 2945.58 2739.06 2775.77
Leather Garments 563.54 596.15 604.25 553.11 536.57
Leather Goods 1180.82 1353.91 1453.26 1370.04 1321.61
Saddlery & Harness 110.41 145.54 162.70 146.38 143.08
Total 5015.41 5937.97 6494.84 5855.06 5665.91
% Growth 2.91% 18.39% 9.37% -9.84% -3.23%
Source : DGCI&S Kolkata

Current Export Trends April-Aug 2016-17. The major items of import are raw hides/skins
During the period from April-August 2016-17 vs April-August and finished leather contributing to 50% of total imports which are
2017-18, India’s export of leather and leather products has slightly used as raw materials in manufacturing value added leather products
declined from US$ 2456.28 mn to US$ 2452.92 mn, recording a neg- and footwear.
ative growth of -0.14%.
Policy Support Measures:
However, the Council had organized various export promotional In order to promote Green Tanning, the Union Budget 2017-18
events abroad which resulted in bringing down the negative growth announced the reduction of Basic Customs Duty on Vegetable Tan-
from -9.84% in 2015-16 to -3.23% in 2016-17 and further reduced ning Extracts namely Wattle extract [3201 20 00] and Myrobalan fruit
to -0.14% during April-August 2017-18. extract [3201 90 20] from 7.5% to 2.5%.

The exports to major European countries like Germany, France, Marketing assistance under MAIS 2017-18 :
Netherlands and markets like Russia, China, Canada, South Africa The following 16 events have been approved under MAIS 2017-
have shown positive growth during April-August 2017-18. 18 with the funding assistance of Rs. 1220.32 lakhs.

Import Infrastructure Projects in Export Clusters under ASIDE

The import of leather and leather products during April-August Scheme:
2017-18 has increased to US$ 573.95 mn from US$ 531.02 mn in The Council for Leather Exports has been notified as a Central

102 | Annual Report 2017-18 | Department of Commerce

Agency for implementing Infrastructure projects relating to activities/events where CHEMEXCIL had participated/organized
Leather Sector across the country with financial assistance from from April 2017 to October 2017:
the Department of Commerce (DOC) under erstwhile ASIDE
Scheme as well as from the State Government. The Council has S.No. Foreign Events
implemented a number of projects under ASIDE scheme in vari-
ous leather clusters.
1 Indian Pavilion In 17th China International
Dye Industry Pigments And Textile Chemi-
The following are the details of the ongoing projects currently cals Exhibition 2017 held at Shanghai,
under implementation: China from 12-14 April, 2017.
● Trade Centre, Agra, Uttar Pradesh with a financial outlay of Rs.
2 Indian Pavilion In 7th Chemspec Europe
2173.83 lakhs is nearing completion.
● Testing Lab & Design Studio, Agra, with a financial outlay of
2017 held at Munich, Germany on 31st May,
Rs.1314.65 lakhs (STATE ASIDE funded by Govt. of Uttar 2017-1st June 2017.
Pradesh) 3 2nd Agri Business Global Trade Summit
● Common Facility Centre (CFC) at Melvisharam, Tamil Nadu
2017 held at USA from 8th -10th August,
with a financial outlay of Rs.2468.07 lakhs
● Creation of Additional 1 MLD Capacity of ZLD System in
2017.
RANITEC CETP, Tamil Nadu with a financial outlay of 4 Indian Chemicals and Cosmetics Exhibi-
Rs.1773.15 lakhs tion held at Bangladesh on 8th-9th Octo-
● Creation of Additional 596 KLD Capacity System in MAD-
ber, 2017.
HAVARAM CETP, Tamil Nadu, with a financial outlay of
Rs.1308.12 lakhs
● Creation of Additional 750 KLD Capacity of ZLD System in S.No. National Events
VISHTEC CETP, Tamil Nadu, with a financial outlay of
Rs.1864 lakhs. 1 Seminar on “GST trade Awareness” in As-
sociation with Service Tax Department at
BASIC CHEMICALS, COSMETICS & DYES EXPORT PRO- Mumbai on 9th May, 2017.
MOTION COUNCIL (CHEMEXCIL)
Basic Chemicals, Cosmetics & Dyes Export promotion Council, 2 Seminar on “GST trade Awareness” in As-
popularly known as CHEMEXCIL was set up by the Ministry of sociation with Service Tax Department at
Commerce & Industry, Government of India in the year 1963 in Ahmedabad on 9th June, 2017
Mumbai with the objective of promoting export of Dyes and Dye
3 Seminar on "Export/ Import under GST
Intermediate, Basic Inorganic, Organic Chemicals including Agro
Chemicals, Cosmetics, Soaps, Detergents, Toiletries & Essential Oils
Regime" at Bengaluru on 14th July, 2017
and Castor Oil from India to various countries abroad. 4 Seminar on "Export/ Import under GST
Regime" at Ahmedabad on 25th July, 2017
The main roles of CHEMEXCIL are as follows:
● Maintains liaison with Government authorities to convey the re- 5 Seminar on "Export/ Import under GST
quirements of chemical industry/ exporters and ensure suitable Regime" at Mumbai on 26th July 2017.
Foreign Trade Policy framework and budgetary support for
boosting exports. 6 Seminar on GST region at New Delhi on 3rd
● Overcoming Export Constraints and operational bottlenecks. August, 2017
● Undertake direct export promotions such as trade delegation to
various countries and participating in an international exhibition. Reach:
● Organizes Reverse Buyer - Seller meets & Hosting foreign dele- REACH (registration, Evaluation, Authorisation and Restriction
gations. of Chemicals ) is the European Union law to ensure the safe use of
● Provides market information and statistical support. chemicals. REACH applies to legal entities established in EEA (Eu-
● Represents issues of member-exporters related to Directorate ropean Economic Area), total 31 countries (EU (28) + Norway, Ice-
General of Foreign Trade, Customs/Central Excise, Duty Draw- land and Liechtenstein). CHEMEXCIL was appointed as the Nodal
back, Banking, ECGC, etc. Agency and a one stop center for compliance of REACH (Registra-
● Assists the exporters in understanding the changes in export tion, Evaluation, Authorization and Restriction of Chemicals) by the
policies and procedures. Ministry of Commerce & Industry.
● As a Capacity Building Initiative, conducts seminars/workshops
to keep exporters abreast of latest developments in Export Chemexcil has formed REACH Committee to address the issues
Credit Risk management, Policy/procedures matters, Govern- related to REACH by members to “Only Representatives” and Eu-
ment schemes, etc. ropean Chemical Agency (ECHA). Chemexcil appointed two “Only
● Issues visa recommendations, Certificate of Origin, letters for Representatives” for the benefit of its members for compliances of
renewal of Central Excise Bond etc. to the member exporters. REACH Pre- registration and registration of member’s substances
in EU viz. Sustainability Support Services – Sweden / ‘REACH Sup-
Export Performance: port’ in Nagpur and REACH Law – Finland (‘Dynamic Orbits’ in
CHEMEXCIL’s exports during the year 2016-17 were US$ New Delhi).
12151 Million. The export performance of CHEMEXCIL for the
period April-August, 2017 is US$ 5779 Million which registers THE PLASTICS EXPORT PROMOTION COUNCIL
growth of 22% as compared with the exports for the period April- (PLEXCONCIL)
August, 2016. The Plastics Export Promotion Council (popularly known as
PLEXCONCIL) was established in 1955 by the Ministry of Commerce
Export Promotional Activities: & Industry, Department of Commerce, Government of India with the
Given below are the details of Export Promotional objective of promoting exports of plastic products from India.

Department of Commerce | Annual Report 2017-18 | 103

 PLEXCONCIL represents the exporting community in the In- face between the government and the members regarding trade
dian Plastics industry which manufactures/ trades in a wide spec- and policy related matters
trum of plastic items ranging from plastic raw materials/polymers ● Forum for Trade related Issues: Acts as a forum for representa-
to semi-finished/ finished goods servicing various user segments tion of the trade related issues and acts as a liaison between the
like the plastic processing sector, packaging sector, engineering sec- exporting community and the government, policy planners,
tor, industrial users (white goods, automotive, agriculture etc). In ad- quasi government organizations
dition, human hair and products thereof are also the mandate of the ● Liaisons with Diplomatic Missions: Liaisons with Indian Diplo-
council. The council has its headquarters at Mumbai with regional matic Missions abroad and Foreign Diplomatic Missions in India
offices in Kolkata, Chennai and New Delhi. The total membership for promotion of business events and other activities. CAPEXIL
of PLEXCONCIL as on 31st March 2017 stood at 2,489. The Com- is an ardent advocate of exporters to the Government and the pri-
mittee of Administration comprises of 29 members (12 from West- mary focus is to provide export assistance to its member exporters.
ern region; 7 from Southern region, 5 from Northern region and 5 ● Preparation of Market Reports & Analysis of Trends: Prepara-
from Eastern region). tion of relevant market reports, analysis of Indian export trend
across country, product or other parameters and valuable re-
The council acts as an interface between its members and the source of global trade data.
Government/other agencies. It also organizes trade fairs, buyer-
seller meets and other events in India/overseas/arranging work- Export Performance
shops, seminars/workshops etc for members. ● During the year 2016-17, CAPEXIL’s overall exports have
reached US$ 14712.59 Million thereby estimating a growth of
Export performance 12.46% as compared to the corresponding period of 2015-16.
The exports during 2016-17 were 7557.68 US$ Million and as ● The export performance of CAPEXIL for the period April-Septem-
compared with last year, there is a negative growth of 1.04%. How- ber, 2017 is US$ 8381.58 Million which registers growth of 19.13%
ever, the export of plastic products and human hair from India dur- as compared with the exports for the period April-August, 2016.
ing April – August 2017 stood at US$ 2,857.99 million as against ● Top ten export destinations of all merchandise of CAPEXIL
US$ 2,648.62 million in the corresponding period of last year (April are China, USA, Korea, United Arab Emirates, Germany, U.K.,
– August, 2016) thereby recording a growth of 8.00% in the 1st Bangladesh, Saudi Arabia, Malaysia, and Sri Lanka.
quarter of 2017-18.
Export Promotion Measures
Export Promotion measures CAPEXIL has organized/participated in the following events
PLEXCONCIL participated/organized the following events abroad as a measure of export promotion:
during the period April 2017 to August 2017 under the Market Ac- ● Abu Dhabi Intl. Book Fair, Abu Dhabi, UAE during 26/04 to
cess Initiative (MAI) scheme: 02/05/2017 On Self Financing Basis
● Beijing Intl. Book Fair, Beijing, China during 23/08 to
S.No. Name of the Event – Exhibition/BSMs 27/08/2017 with 14 participants On Self Financing Basis.
● The Flooring Show’2017 at Harrogate & B2B Meets in UK &
1 FEIPLASTIC 2017 Exhibition held at Sao Netherlands during 17th to 22nd September, 2017 with 29 par-
Paulo, Brazil between 3rd – 7th April 2017 ticipants companies under approved MAI Plan for the year
2 COMPLAST Myanmar 2017 Exhibition held Scheme 2017-18.
at Yangon, Myanmar between 27th – 29th
April 2017 Other Export Promotional Activities: During the year 2016-
17 CAPEXIL had issued various certificates as part of an export fa-
3 COMPLAST Kenya 2017 Exhibition held at cilitation exercise for members of Capexil:
Nairobi, Kenya between 8th – 10th June
2017

For Export of river

In addition to the above, PLEXCONCIL also organized semi- 258 NOCs.
sand and stone aggre-
nars on implications of Goods & Services Tax (GST) and on other
subjects of export interest in different cities of India.
gate to Maldives

For Animal By Products 380 Health Certificates

CHEMICAL & ALLIED PRODUCTS EXPORT PROMO-
TION COUNCIL (CAPEXIL) and Ossein & Gelatine
7 Veterinary
CAPEXIL, a premier Export Promotion Council, an ISO Export
Certificates
9001:2008 certified organization in India was set up in 1958 by the
Ministry of Commerce & Industry, Government of India to facilitate 59 Plant Approval
the export of chemical-based and allied products. This mega organi- Certificates (including
zation has now close to 4000 members across India who are exporters renewal, etc.)
of 16 broad product genres and represent the best in their fields.
330 Shipment
Capexil endeavors to offer a full range of services by way of:- Clearance Certificates
● Exporter's HUB: Information gateway and helping hand for ex-
porters. For export of Swan 248 Swan Timber
● Dissemination of trade inquiries: Capexil can help the sourcing
Timber Contract Certificate.
needs of an importer anywhere in the world, and also the selling
needs of Indian exporters.
19 Visa recommenda-
● Quality Service: Access to most competent officers dedicated to
Others tion letters to various
quality service
● Interface for trade and policy related matters: Acts as an inter- embassies

104 | Annual Report 2017-18 | Department of Commerce

Initiatives imports of the country, exports and imports of their members,
To keep up with the Government of India initiative for Digital as well as other relevant international trade data
India and keeping in view the difficulties faced by the exporters,
Capexil decided to introduce an online system: Export Performance
● SHEFEXIL’s exports during 2016-17 stood at US$ 1571.91 Mil-

For issuance of The details of all Approved Plants lion. The export performance of SHEFEXIL for the period
April-July, 2017 is US$ 615.95 Million which registers a growth
Plant Approval and Certificates issued by Capexil
of 26.04% in Value as compared with the exports for the period
Certificate, are displayed on this website
April-July, 2016.
Shipment https://www.capexilcertifications.i
● SHEFEXIL’s exports too have been impacted by the global
Clearance n which can be used by officers of slowdown and lower world demand, though in volume terms its
Certificate and the Animal Quarantine and Certi- performance has shown an uptrend. Council’s export perform-
Health fication Service (AQCS) and Ex- ance would keep pace with the positive momentum, going by
Certificate etc, port Inspection Council of India the export trends in the first quarter of 2017-18.
for products of (EIC) for verification of the status
animal origin of the Approved Plants and the Export Promotion Measures
details of the Health Certificate Action was taken for smoothly carrying out the process of se-
before signing. The online details lection of a suitable research organization for conducting a Toxicity
can also be used by the Indian Study on Food Grade Shellac (E 904) for export to EU region. SHE-
Customs at the Indian ports of FEXIL is in the process of identifying a suitable agency competent
shipment to confirm the authen- for undertaking the study. Once the final approval for the Toxicology
ticity of Shipment Clearance Cer- study MAI proposal is obtained, the study will be awarded to the
tificates issued by Capexil. Port identified lab.
Health Authorities at the destina-
tion ports can also verify and con- Research & Product Development of Hydrolysed Guar for di-
etary fibre use, Cationic Guar for personal care use, Hydroxypropyl
firm the Authenticity of Health
Guar for construction, personal care, oil field users, odourless and
Certificates.
tasteless Guar for use in food, removal of odour of Guar meal and
use as a protein supplement for human consumption, etc. is being
done. For this, the Council is in process of identifying an agency
For member- The beta launch of our Member- suitable for conducting the Guar Gum Study.
ship related ship Automation web application
services can be seen at https://member- A Task Force has been constituted in Department of Commerce
ship.capexil.org for better serv- for identifying minor forest products which required significant at-
ices to our bona fide members. tention both in promotional activities as well as by way of back-end
support in terms of cultivation practices, productivity, packaging and
marketing, etc. Such products by value addition and promotion can
CAPEXIL has launched new website development akin to that boost export to great levels and India can create a brand name in
of IBEF as per advice of Ministry of Commerce & Industry Govt. exports of such products. SHEFEXIL has made a detailed analysis
of India which can be seen at http://capexil.org/ of 25 items of Medicinal plants having export potential in India as
well as in overseas market and same has been identified in consulta-
SHELLAC AND FOREST PRODUCTS EXPORT PROMO- tion with the National Medicinal Plant Board (NMPB), New Delhi.
TION COUNCIL (SHEFEXIL) Comprehensive strategy for promoting production, processing and
SHEFEXIL was formerly known as the Shellac Export Promo- value addition of identified 25 medicinal plants has been made &
tion Council, which had been working in partnership with the indus- special focus has been given for promotion of the short-list of 7
try since 1957 as the catalysing agency for the long-term development medicinal herbs: Senna (Senna alexandrina), Galangal Rhizomes
and export promotion of shellac and lac-based products. The objec- (Kaempferia galangal), Periwinkle (Vinca rosea), Stevia (Stevia re-
tive of the council is to realise the full potential of India’s Non-timber baudiana), Neem (Azadirachta indica), lsobgul (Plantago ovate),
Forest Produces (NTFP) exports through collective action, create a Sweet flag rhizome (Acorus calamus). It was decided that Shefexil
global brand for Indian NTFP, etc. Shellac Export Promotion Coun- will prepare the work programme for enhancing the exports of the
cil is the Nodal EPC for Non-Timber Forest Produce. Major prod- identified medicinal plants at the earliest for being examined by this
ucts Groups under SHEFEXIL are Non-timber Forest Produces Task Force which is in progress.
(NTFPs) and their added variants and Guar Gum. Other steps to be taken to enhance SHEFEXIL exports would
be as follows:
The main roles of SHEFEXIL are as follows: ● Achieving desired market shares in Focus Market countries
● To provide commercially useful information and assistance to ● Establish vertical linkages to enhance productivity, improve qual-
the members in developing and increasing their exports ity, etc.
● To offer professional advice to their members in areas such as ● Focus on value additions
technology upgradation, quality, and design improvement, stan- ● Development of Brand India for sustainable market impact
dards and specifications, product development, innovation etc.
● To organize visits of delegations of its members abroad to ex- SPORTS GOODS EXPORT PROMOTION COUNCIL
plore overseas market opportunities and interaction with ex- (SGEPC)
porters aboard Sports Goods Export Promotion Council (SGEPC) is working for
● To organize participation in trade fairs, exhibitions and buyer- the promotion of India’s exports of sports goods & toys. The Sports
seller meets in India and abroad Goods Export Promotion Council has been able to register growth in
● To promote interaction between the exporting community and export of sports Goods and Toys from India at a steady pace. This
the government both at the central and state levels year members of SGEPC exported goods to 140 countries. Exports
● To build a statistical base and provide data on the exports and of Sports Goods and Toys during the year under reporting have regis-

Department of Commerce | Annual Report 2017-18 | 105

tered an increase from Rs. 1024.56 Crores to Rs. 1095.33 Crores show- project exporters to secure, facilitate and execute projects overseas
ing an overall growth of 6.91% over the previous year. The top ten within the framework of the Foreign Trade Policy of Government
destinations for export of sports Goods and Toys are UK, Australia, of India and in line with the guidelines prescribed by the Reserve
USA, Germany, South Africa, France, New Zealand, Canada, Nether- Bank of India for undertaking overseas projects as detailed in their
land and Malaysia. Top ten items of the sector being exported are In- Memorandum PEM (Project Exports Manual).
flatable Balls & Accessories, Nets, General Exercise Equipment,
Boxing equipments, Toys and Games, Protective Equipment, Cricket Its aim is to contribute to the economic development world-wide
Equipment, Sports Wear, Carrom Boards and Hammock . by helping project exporters, both in the private and public sector,
to execute projects overseas by employing the best technologies and
Export Promotion Activities for 2017-18 use Indian project construction items.
● Reverse Buyer Seller Meet at Kids India Mumbai (20th to 22nd
September, 2017) Besides, PROJECT EPC also co-ordinates the promotion of
● ISPO Munich 2018 (28th to 31st January, 2018) economic co-operation between indian project exporters and for-
● Spielwarenmesse International Toy Fair 2018 ( 31st January -4th eign companies by assisting in the formation of consortia or joint
February, 2018) ventures to facilitate bidding for executing large projects, and by
promoting technology transfer especially in sophisticated technol-
TELECOM EQUIPMENT AND SERVICES EXPORT PRO- ogy fields which would encourage Indian companies to jointly bid
MOTION COUNCIL (TEPC) for mega projects. It also co-ordinates with the Government to seek
Telecom Equipment and Services Export Promotion Council necessary rectifications in policies or procedures (in the regulatory
(TEPC) has been set up by the Government of India to promote framework) which would tend to allure Indian project exporters not
and develop export of telecom equipment and services from India. only to undertake overseas projects but would also lead to making
The Council caters to the complete Telecom Ecosystem including their bids more competitive and successful. PROJECT EPC not
Telecom Hardware Manufacturers, Telecom Service Providers, Tele- only has strategic alliance with various trade bodies in India and
com Software Vendors and Consultants. abroad (including Indian missions abroad and foreign missions in
India) but also continues to enlarge its sphere of such alliances with
VISION OF TEPC a view to enhancing project exports as well as export of project
● TEPC shall continue to promote telecom exports from India construction items.
● Promote and accentuate Telecom Exports from India.
● Create a healthy environment for growth of Telecom Ecosystem The overall management of the Council rests with the Working
including Manufacturing & Services Sector in India. Committee which has as members senior officials from Department
● Encourage both private and overseas Investments in India under of Commerce apart from representatives from Export Import Bank
Foreign Direct Investment. of India, Export Credit Guarantee Corporation of India, Reserve
● Encourage Strategic Alliances, MOUs, and technical/Financial Bank of India and construction industry.
collaborations to boost trade.
● Support local IPRs & R&D activities for Design in India and During the last five years’ performance of project export sector
making of World Class telecom products. has been as follows:

TEPC PARTICIPATION IN EVENTS Year 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
TEPC on regular basis organized various structured promotional (Apr-Sept)
events so as to create awareness on the capability of Indian telecom
Value 1856.57 4436.19 5493.04 5014.898 8226.9 1900.82
exports. The various promotional activities carried out on a regular
US$ Mln
basis are product & services specific delegation to selected countries,
exclusive Indian TEPC Exhibition, country participation in Special- The growth in 2016-17 was 64.04% (in terms of USD).
ized Trade Fairs, Catalogue Show, Buyer-Seller Meets, Product Spe-
cific Seminars and Conferences - both in India and abroad. ELECTRONIC AND COMPUTER SOFTWARE EXPORT
PROMOTION COUNCIL (ESC)
EVENTS ORGANIZED BY TEPC Electronics and Computer Software Export Promotion Council
● INDO AFRICA ICT EXPO 2017: 6TH– 7TH SEPTEMBER: (ESC) is mandated to promote India’s exports of Electronics, Tele-
LAGOS: NIGERIA com, Computer Software and IT Enabled Services. ESC offers a var-
● INDIA MOBILE CONGRESS 2017: 27TH-29TH SEPTEM- ied set of services to its members for accelerating exports. The ESC
BER 2017: NEW DELHI is an Autonomous Society under control of Ministry of Electronics
● GITEX TECHNOLOGY WEEK 2017: 8th -12th OCTOBER and Information Technology (MeitY).
2017: DUBAI
Some of the services of ESC are as follows:
Target of TEPC ● Facilitates participation in Global Trade Shows/ Expositions and
TEPC envisages meeting the following targets: - Conferences
● Exports including mobile handsets are likely to reach over $20 ● Undertakes Market Research/ Studies and publicity Campaigns
billion over next 5 years. in overseas markets
● Domestic telecom products growth of over 20% CAGR likely ● ESC facilitates business interface between Indian and foreign
over next 5 years. companies through Buyers - Seller Meets, and locates new busi-
● Employment generation (direct and in-direct) of 5 million. ness partners for Indian electronics, computer software and IT
● Major domestic telecom needs are targeted to be met by prod- companies
ucts manufactured in India in coming years. ● For facilitating foreign trade, ESC provides on-line facility for
● At least a few IPR- driven Indian product companies with global Data Search
success would become billion dollar companies by 2020.
During the period April 2016-2017, export of Electronics is es-
PROJECT EXPORTS PROMOTION COUNCIL (PEPC) timated to be US$ 5686 million and software export is estimated to
Project EPC acts as an apex co-ordinating agency for the Indian have reached to a level of US$ 1110 billion. During the period April

106 | Annual Report 2017-18 | Department of Commerce

to September 2017, export of Electronics is estimated to have neering exports from India gained 11.3% growth and rose to US$
reached US$ 2917 million and that of Software has reached to an 65.23 billion from US$58.59 billion during the previous fiscal year.
estimated value of US$ 56.50 billion. Continuing with the growth trends, the current financial year re-
flected not just the strong momentum in sustaining the growth in
PARTICIPATION IN GLOBAL EXPOSITIONS: engineering exports, it also smoothly sailed with structural reforms
● ICT Expo, 13-16 April 2017, Hong Kong introduced by the Government in the month of October 2017 viz.
● International SME Innovation and Technology Fair 2017, 10-16 Goods and Services Tax (GST).
May 2017, Mauritius
● China Nanjing International Software Product and Information In fact, Indian engineering exports continued its growth run for
Service Trade Fair, 07-10 September 2017, Nanjing, China the 15th straight month to October 2017 albeit with a slower year-
● Mobile World Congress, 12-14 September 2017, USA on-year growth of 11.60 percent as against 44.65 percent in Septem-
● Softwave 2017, 14-16 September 2017, Seoul, South Korea ber 2017 and 19.09 percent in August 2017.
● Business Alliance Meet, 25-26 September 2017, Bulgaria
● Gitex - Dubai, 08-12 October 2017, Dubai, UAE Overseas shipment of India's engineering products was recorded
at US$ 5728.95 million during October 2017 as against US$ 5133.58
EVENTS TO BE ORGANISED: million in the same month last year.
● Messe Nagoya, 08-11 November 2017, Nagoya, Japan
● Japan IT Week 2017, 08-10 November 2017, Tokyo, Japan Cumulative growth of India's engineering export during April-
● India Electronics & Software Expo 2018 (INDIASOFT - India October 2017-18 also slowed down marginally to 19.42 percent on
Electronics Expo and GLOBALSOFT) 24-25 January 2018, a year-on-year basis from 20.75 percent during April-September
Karnataka, India 2017-18. Engineering exports during April - October 2017-18 was
● Source India Iran, February 2018, Iran recorded at US$ 41,994.64 million as against US$ 35,166.67 million
● Mobile World Congress, 27 February - 02 March 2018, during the same period last fiscal.
Barcelona, Spain
● Source India Argentina, March 2018 Out of 33 engineering panels, 20 panels recorded growth in ex-
● Source India Nigeria, March 2018 ports in October 2017 over the same month last year. The panels
which registered a high growth rate of exports during April-Oct
EEPC INDIA LTD 2017-18 vis-à-vis April-Oct 2016-17 were Lead and Products
EEPC India is the premier trade and investment promotion or- (139.11%), Zinc & Products (137.48%), Iron & Steel (58.33%), Cop-
ganization in India. It is sponsored by the Ministry of Commerce & per & Products (52.06%), Aluminum & Products (51.77%), Railway
Industry, Government of India and caters to the Indian engineering and Transport Equipments (49.7%), Pumps (30.5%), Other Con-
sector. As an advisory body it actively contributes to the policies of struction Machinery ( 28.2%) and Electrical Machinery and Equip-
Government of India and acts as an interface between the engineer- ment ( 23.9%.).
ing industry and the Government. Set up in 1955, EEPC India now
has a membership base of nearly 13,000 out of whom 60% are Major Initiatives for Increasing Engineering Exports
SMEs. EEPC India facilitates sourcing from India and boosts the In order to provide boost to the engineering exports and arrest
SMEs to raise their standard at par with the international best prac- decline / stagnancy among the export of major engineering panels,
tices. It also encourages the SMEs to integrate their business to the EEPC India under the various initiatives, is proactively seeking con-
global value chain. Keeping ‘Engineering the Future’ as the motto, sultations with different stakeholders like as Ministry of Heavy In-
EEPC India serves as the reference point for the Indian engineering dustry & Public Enterprises, Ministry of Micro Medium and Small
industry and the international business community in its efforts to- Enterprises, Ministry of Steel, Ministry of Shipping, Ministry of
wards establishing India as a major engineering hub in the future. Mines, Ministry of New and Renewable Energy, Ministry of Science
and Technology, etc., and National, Regional and sector specific in-
Export Promotion Initiatives of EEPC India dustry associations, and other trade promotion bodies.
EEPC India organizes a large number of promotional activities
such as buyer-seller meets (BSM) – both in India and abroad, over- ‘Brand India Engineering’ Initiative for global brand
seas trade fairs/exhibitions, and India pavilion/information booths promotion of Indian Engineering goods
in selected overseas exhibitions to demonstrate the capabilities of To accelerate exports by enhancing brand image of ‘Made in
Indian engineering industry and to provide the overseas buyers with India’ engineering quality and capabilities of Indian engineering
true value as propagated by Brand India. India Engineering Exhibi- products and services, EEPC India under the aegis of the Depart-
tion (INDEE) is EEPC India’s own brand and is one of the largest ment of Commerce is undertaking Brand India Engineering initia-
expositions of engineering in the world. This has been happening tive since 2014. The initiative, implemented in support with IBEF
for the last few decades and is established as the largest and most (Indian Brand Equity Foundation), has identified Pumps & Valves,
important showcase for Indian engineering. To encourage building Electrical Machineries, Equipments and Components, Equipments
global partnerships with India, EEPC India organizes International and Power Products, Medical Devices & Pharmaceutical Machineries
Engineering Sourcing Show (IESS), the largest display of engineer- for further expansion. In future, the council proposes to expand the
ing products and services every year. This is recognized as the only ambit into the Textile Machinery & Equipments, Machine Tools and
engineering sourcing event in India – showcasing the latest technolo- Defence & Security sector.
gies and a preferred meeting place for global buyers & sellers. This
show is also important to encourage foreign investments in line with Initiative for Technological Upgradation for boosting
the newly initiated “Make in India” campaign, by Government of Engineering Exports
India. Extending its regular agenda, EEPC India publishes several Low value addition and low quality have been identified as the
reports/studies to make the members aware about the international key reasons that are contributing towards making Indian products
trends and opportunities in order to enhance their global footprints. highly uncompetitive in the international market, and leading to
highly unsustainable growth in exports. In the light of the above,
Engineering Export Scenario the Department of Commerce (DoC), Ministry of Commerce and
Engineering exports have achieved a Compound Annual Growth Industry has undertaken the initiative of Technological Upgradation
Rate (CAGR) of 2.01% from 2011-12 to 2016-17. In 2016-17, engi- for boosting engineering exports.

Department of Commerce | Annual Report 2017-18 | 107

 The initiative aims to facilitate upgradation of technologies for launched under series of campaigns across different engineering
products which have huge export potential, through partnership and clusters.
collaborations with R&D labs and the Government. The DoC, in
consultation with EEPC India has identified 98 focus products Promotional Events
which have revealed significant potential for increasing India’s export EEPC India was the lead agency for Partner Country India at
share in the Global market. The initiative aims to sensitize the in- MSV Brno 2017 - the largest trade and industrial fair of Czech Re-
dustry about various Government schemes available for technology public held in Brno from October 09-13, 2017
upgradation, and implementing the technology development initia-
tives in consultation with the industry requirements in a cluster based The success of EEPC India in marketing Brand India Engineer-
approach. ing overseas is evident from the omnipresence of the Council in all
Internationally acclaimed engineering shows: including EMO – the
EEPC India inaugurated its first Technology Centre in Banga- leading international Metal Working trade show; Subcon - World’s
lore. The launch of its second Technology Centre in Kolkata is ex- leading Subcontracting trade show for Industrial machinery and
pected in near future. Further, it plans to open such centres in its all equipment, Automechanika, Middle East – Leading Show for Auto-
the major Offices in New Delhi, Mumbai, Chennai, Ahmedabad, motive and Aftermarket Technologies, Hannover Messe 2017, Inno-
Hyderabad and Jallandhar. The effort for Digitization of Technology prom 2017 and several shows on niche sectors such as Technosalud
resources for value addition services to the members of the council 2017, Peru, Hong Kong International Medical Devices Fair etc
is afoot. The Digital Compendium of Schemes by Government of
India for Technology Upgradation and Directory of Available Tech- India Engineering Exhibition (INDEE) shows which has organ-
nologies by Academia R&D labs are expected to be completed ized 37 editions, covered 26 countries and 5 continents in three
within current financial year. decades is one of the largest expositions of engineering in the world,
like INDEE Bangladesh in the current financial year. IESS is enter-
List of Technology Meets organized since the Year 2016-17 ing into its 7th edition in 2018 - the largest display of engineering
along with the targeted focus products products and services every year have gained immense popularity
and is much awaited by both domestic and overseas participants.
● Kolkata, 26 April 2016 (Foundry, Castings, Forgings, Engineer-
ing Equipments) India is emerging as reliable supplier of Medical Device, Equip-
● Rajkot, 3 June 2016 (Castings, Forgings, Machine Tools, Electric ments & Pharma Machinery. Medical Device is the sunrise industry
Motors, Diesel Engine) in India registering a CAGR of 15%. Medical tourism is another
● Raipur, 17 June 2016 (Steel Re rolling, Castings & Metal Fabri- niche segment in the Medical Device sector which is putting India
cation.) in front on the global map. Against this backdrop, EEPC India or-
● Aurangabad, 4 July 2016 (Electrical Machineries and transport ganised RBSM with overseas sponsored buyers and potential domes-
equipments) tic engineering exporters
● Hubli 29 July 2016 (Preparatory Meet held on Hubli 16th July
2016) (Industrial Valves, Castings and other engineering equip- EEPC India alongwith Department of Heavy Industry, Govt.
ments) of India organized the 4th meeting of Indo-Czech Joint Working
● Bangalore 12 August 2016 (Electronics, Electric Motors, Indus- Group on Advanced Manufacturing and Heavy Engineering from
trial Machineries, Engineering Equipments) 3rd to 6th October, 2016 in Brno, Czech Republic. The visit of the
● Jalandhar 26 August 2016 (Hand Tools, Fasteners, Agriculture delegation discussed areas of cooperation in the Heavy Engineering
and Farm implements, auto parts and General Engineering and Advanced Manufacturing sectors particularly business coopera-
Equipments) tion in mining machinery, material handling segment, steel plant
● Aurangabad, 18 November 2016 (Forging, Automobile and Au- equipment, machine tool and railways.
tomotive components, Electronics goods)
● Bhilai, 15 December 2016 (Follow up for Raipur Meet of 17th Action Plan
June 2016) As part of strategy to scale up engineering sector exports, action
● Bangalore (at IISc) 10 January 2017, (Valve Sector) points have been identified in this Department and EEPC was man-
● Bhilai, 04th February 2017 (Metal Fabrication & Casting) dated to evolve an action plan to implement each of them with time-
● Ghaziabad, 17 February 2017 (Mechanical Engineering Equip- frame. Initiatives are being taken by the Department to implement
ments) both short and long term action plan in coordination with EEPC
● Belgaum, 23rd February 2017 (Foundry) and other stakeholder agencies and Departments.
● Bangalore, 24th February 2017 (Machine Tools & Accessories)
● Vadodara, 02nd March 2017 (Electric Motors, Follow up meet) THE CASHEW EXPORT PROMOTION COUNCIL OF
● Rajkot, 03rd March 2017 (Valves, Diesel Engines) INDIA
● Ghaziabad, 07 March 2017 (Follow Up Meet of R&D Meet The Cashew Export Promotion Council of India was established
Ghaziabad) by the Government of India in the year 1955, with the active co-op-
● Vadodara, 24th July 2017 (Follow up Meet for Electric Motors) eration of the cashew processing industry with the object of pro-
● Chennai, 25th July 2017 (Forging Process Technologies) moting exports of cashew kernels, cashewnut shell liquid and allied
● Coimbatore, 2 August 2017 (Industrial Valves) products from India. By its very set-up, the Council provides the
● Bhopal, 22 September 2017 (Electrical & Machining Tech- necessary institutional framework for performing the different func-
nologies) tions that serve to intensify and promote exports of cashew kernels,
cashewnut shell liquid and allied products.
Initiative for sensitizing industry on importance of Quality
Standards and International accreditations for Indian The Council undertakes detailed studies and collects trade in-
Engineering Products formation and other particulars relating to the market potential of
EEPC India has launched the awareness campaigns in order to cashews and makes them available to the exporters. It also deals
sensitize the industry on importance of Quality Standards and In- with the trade enquiries received from various parties and passes
ternational accreditations in partnership with NABCB (National Ac- them on to its members. The global trade information on cashew
creditation Board for Certification Bodies). The initiative is being and cashew products is updated on a continuous basis.

108 | Annual Report 2017-18 | Department of Commerce

 The Council sponsors Trade Delegations and Study Teams from edible oils, oilcakes and other products under its purview. The Coun-
time to time for on-the spot study of various markets abroad. These cil works towards improvement of yield and quality of oilseeds being
teams submit their reports on their return, on the markets visited, produced in India so as to match the requirement in global markets.
its potential and trends which serve as reference material and also
provide the basis for necessary follow-up action. The market infor- The Council places higher emphasis on development of oilseeds,
mation collected by these teams/delegations is disseminated to the edible oils, oilcakes and other products under its purview. The Coun-
trade/industry. cil works towards improvement of yield and quality of oilseeds being
produced in India so as to match the requirement in global markets.
The Council participates in specialized International Food Fairs
and Exhibitions and general fairs abroad directly as well as through The Council also organizes workshops for promotion of Good
the Trade Promotion Organizations of Government of India. As Agricultural Practices (GAP) amongst Indian farmers and training
the Council represents the whole industry, it arranges display of sessions for processing units for adoption of HACCP and Good
products received from the members. The enquiries received are Manufacturing Practices (GMP).
circulated amongst the members for their contacting the parties
abroad for business negotiations. Regional Meetings at various parts in India are also organized so
as to strengthen supply-chain and create awareness regarding the
In addition to the above the Council also undertakes publicity quality issues amongst stakeholders in the trade and industry such
abroad with a view to projecting the 'Product Image' which serves as exporters, processors, traders, brokers and service providers in
to focus attention on the high quality and superiority of Indian oilseeds and oils sector.
Cashews.
Export Promotion Measures (2017-18):
The Council has sponsored many research projects for improve- a. Regional Meeting:
ment of packaging, developing new products out of cashew, etc. in With the objective of development and promotion of exports
association with reputed research institutes like Indian Institute of of sesame seed from India, Council organized workshop on Capacity
Packaging, Central Food Technological Research Institute, Regional Building Program in Gwalior on 27.08.2017 to make various stake-
Research Laboratories, etc.. holders comprising exporters, processors, traders and brokers aware
about export of sesame seed to EU and non-EU countries, quality
The CEPC Laboratory and Technical Division at Kollam serves issues, trade issues, Good Manufacturing Practices (GAP), pesticides
the food processing industry in general and cashew processing in- issue and GST.
dustry in particular in analyzing, testing, training and rendering ad-
vice on technical matters. b. Participation in international trade fairs and conferences:
The council has actively participated in the following interna-
Export Performance of Cashew Kernels tional trade fairs and conferences
The export earnings from cashew and allied products during the ● Sesame Seed Conference, China (I):
year 2016-2017 were Rs.5,213.00 crores (US$ 778 Million). The ● Groundnut and Sesame Seed Conference, Zhengzhou, China
UAE,USA, Saudi Arabia, Japan and Netherlands were top 5 markets (II):
for Indian cashew kernel during 2016-17. On a regional basis , ex- ● Buyer Seller Meet (BSM), China:
port to the Middle East was 39%, American Zone, 22%, in Euro- ● World Food Moscow 2017 (WFM 2017) :
pean Zone, 22% and South East & Far East Zone 15% of India’s
total export. Annual Trade Meet 2017 at Mahabaleshwar, Maharashtra:
The Council is gearing up to organize its Annual Trade Meet
The total export of cashew kernels from India during 2016-17 and Award Function to be held at “Hotel Dreamland”, Maha-
was 82,000 Metric Tonnes valued at Rs.5169 crores the export of baleshwar, Maharashtra during 10-12th November, 2017. On this
Cashew Nut Shell Liquid (CSNL)/Cardanol was 11,000 Metric occasion the Council would be unveiling its Souvenir 2017 con-
Tonnes valued at Rs. 44 crores. taining advertisements, contact details of members, informative
articles, etc.
Domestic production and Import of Raw Cashewnut
India continued to be the largest producers of raw Cashewnuts Conference on Pulses, Oilseeds and Spices, Ethiopia:
in the world. The production of raw Cashewnuts in India during Council has been invited by Ethiopian Pulses, Oilseeds and
2016-17 7,80,000 was Metric Tonnes as against the estimated pro- Spices Processors exporters association (EPOSPEA) to be a distin-
duction of 6,70,300 Metric Tonnes during 2015-16. guished speaker during 7th International Conference on Pulses, Oil
seeds and Spices” to be held during 22-23rd November, 2017 at
The total raw Cashewnut imported into India during 2016-17 Addis Ababa, Ethiopia. The Council would make an excellent pres-
was 7,70,000 Metric Tonnes compared to the import of 9,58,339 entation aimed at promoting exports of Sesame seeds from India.
Metric Tonnes during 2015-16.
Field based Oilseed Crop Survey:
INDIAN OILSEEDS AND PRODUCE EXPORT PROMO- IOPEPC is undertaking scientific field based groundnut and
TION COUNCIL (IOPEPC) sesame crop survey during Kharif, 2017. The survey is being con-
IOPEPC is mandated for the development and promotion of ducted under the supervision of agricultural scientists from the re-
exports of oilseeds, oils and oilcakes, Indian Oilseeds and Produce spective state Agriculture universities who have deep knowledge and
Export Promotion Council (IOPEPC), erstwhile known as IOPEA, understanding of oilseed crops. The scientific approach to the crop
has been catering to the needs of exporters since last six decades. survey provides unbiased and objective assessment of the crop both
Besides focusing on exports, the Council also works towards in terms of production and quality of crop thereby giving quite re-
strengthening of domestic supply chain by encouraging farmers, liable figures.
shellers, processors, surveyors and exporters to enhance the quality
of oilseeds in India. The council is headed by a Chairman. The reliable crop estimates help the exporters to chalk out their
appropriate strategies for supply contracts and price quotes. The sur-
The Council places higher emphasis on development of oilseeds, vey is being undertaken in major six groundnut producing states i.e

Department of Commerce | Annual Report 2017-18 | 109

Gujarat, Andhra Pradesh, Rajasthan, Karnataka, Tamil Nadu and b) Reducing dependency on import of APIs:
Maharashtra and four major sesame producing states i.e Gujarat, Ra- Continuing the efforts to reduce dependency on import of APIs
jasthan, Madhya Pradesh and Uttar Pradesh. and to make Indian API industry self-reliant,the Department of
Commerce held series of consultations with the stakeholders to for-
PHARMACEUTICALS EXPORT PROMOTION COUNCIL mulate policies / road map. Pharmexcil also organized several con-
(PHARMEXCIL) sultative meetings on this subject. A policy for APIs sector, as part
Indian Pharma, a highly knowledge based industry, is growing of National Pharmaceutical Policy is under finalization in the De-
steadily and is playing a major role in the Indian economy. During partment of Pharmaceuticals.
2016-17. The Indian pharma exports contributed to the extent of
Rs.1,12,915 crore.The Indian pharma is one of the few sectors in c) Track & Trace system for exports:
India that has registered positive growth continuously in spite of Track & Trace System for pharma exports is being implemented
global economic downward trend. Over 55% of our pharma ex- successfully. Considering the genuine concerns of Small Scale Ex-
ports are to highly regulated markets. India accounts for about 37% porters, exemption from maintenance of parent-child relation and
of Drug Master Files filed with US FDA (3980 DMFs and 3600 uploading the data on DAVA portal was given to SMEs up to
ANDAs), which is highest outside the USA. India has been accred- 31.3.2017. With effect from 1.4.2017, it is mandatory for all the ex-
ited with approximately 1,300 CEPs, more than 1300 TGA approvals porters, including Small scale exporters, to carry a specific barcod-
and 600 sites approved by the USFDA. ing on secondary, tertiary packing to maintain Parent-child relation
and to upload data on DAVA portal. Seminars / workshops are
India’s Pharmaceuticals manufacturing picked up momentum in being organized by NIC, GS1 and Pharmexcil, periodically, to clar-
1970s as a result of various introduction of drug policies of the gov- ify the queries of exporters and to ensure smooth functioning of
ernment which favoured domestic manufacturing sector where in- the system.
digenous technology was used. The country soon became not only
self-sufficient but also an exporter of pharma products. India’s Major Export promotional activities undertaken by Phrmexcil
pharmaceutical industry is highly developed and sources its own bulk in 2016-17:
drugs & intermediates for most of its formulations barring some IPHEX 2016
imports from China. 4th Edition of IPHEX was organized by Pharmexci during 27-
29th April 2016. Over 350 Indian Exhibitors, 550 overseas delegates
India is considered as Global Pharmacy of generic drugs and participated in the event. About 7,000 Indian visitors also attended
has a distinction of providing quality healthcare at an affordable the event and interacted with the exhibitors.
cost. India has proven international quality standard capabilities as
measured by number of ANDA approvals, DMF filings, USFDA / IPHEX LATAM
UK MHRA approved manufacturing facilities / bio equivalence cen- Pharmexcil organized its own expo in Latin American region,
ters etc. These are considered as key indicators to measure the ca- with its brand IPHEX Latom in Peru in August 2016. About 40 In-
pabilities of any national pharma sector. India exports APIs, dian companies exhibited. With the help of pharma associations
intermediates, Pharmaceutical formulations, bio-pharmaceuticals, and Embassies, local pharma companies were invited to visit the
Clinical Services, medical devices, surgical, herbals, Nutraceuticals, event and interact with the exhibitors
Ayurvedia, Homeo, Unani products, veterinary drugs etc. to almost
all the countries in the world. RBSM focused for APIs
With a view to promote exports of Indian APIs, an RBSM fo-
Salient features of export trends: cused for API exporters was organized in Hyderabad during 23-25th
● 4th in the world in terms of production volumes. September 2016. About 90 overseas delegates were invited and or-
● 17th in terms of export value of bulk actives and dosage forms. ganized B2B meetingsorganized. Over 250 Indian delegates partic-
● Over 55% exports of India are to highly regulated markets. ipated and had business meetings with the overseas delegates.
● USA (27%) the largest exports destination followed by EU
(18%). CPhI India
● One of the Largest exporter of formulations . Council, for the 10th time, organized Pharmexcil Pavilion in
CPhI India during 21-23rd November 2016. 89 Indian companies
Huge market opportunity is emerging for Indian manufacturers. participated in the Pavilion.
Further, the prospects of India as outsourcing destination for
CRAMS, Clinical research, biotechnology, bio-informatics etc., is Arab Health
emerging stronger due to skill, cost and delivery advantages. For the 11th consecutive time, Pharmexcil organized India Pavil-
ion at Arab Health in Dubai in Jan 2017. 54 Indian companies, deal-
Initiative taken by DOC for promotion of pharma exports ing in pharmaceuticals, nutraceuticals, surgical products etc.,
a) Brand India Pharma Project: participated in the pavilion
Brand India Pharma Project, launched in 2012, is continued in
2016-17 also to promote Indian pharma products in the international IPHEX Africa
markets. Pharmexcil, with the support of IBEF, has undertaken brand The 2nd edition of IPHEX Africa was held in Ethiopia during
promotion activities in Arab Health held at Dubai, IPHEX Africa, 20-21st February 2017. With the support of the Department of
held in Ethiopia, CPhI World Wide, CPhI Japan. Branding activities Commerce and IBEF, Brand India pharma project was promoted in
in Arab Health and IPHEX Africa have created positive impact. this event. Over 40 Indian companies participated. ■

110 | Annual Report 2017-18 | Department of Commerce

CENTRES OF EXPORT
PRODUCTION -
SEZs & EOUs

Department of Commerce | Annual Report 2017-18 | 111

SPECIAL ECONOMIC ZONES (SEZs) plify the procedure;
The Special Economic Zones Policy was announced in April ● SEZ Authority Rules, 2009 has been made for the smooth func-
2000 with the objective of making the Special Economic Zones an tioning of zones and SEZ Authority has been set up accord-
engine for economic growth, supported by quality infrastructure ingly.
and an attractive fiscal package both at the Central and State level ● Routing proposal for setting up of SEZ through Development
with a single window clearance. The SEZ concept recognizes the Commissioner, to facilitate developers and for better adminis-
issues related to holistic economic development and provides for trative efficiency.
development of self-sustaining Industrial Townships so that the in- ● Including all the existing legislation/rules for generation, trans-
creased economic activity does not create pressure on the existing mission and distribution of power. Prescribing a time limit of
infrastructure. 10 years for constructing the minimum built up area prescribed
under Rule 5.
Special Economic Zones Act, 2005 and Special Economic ● Adding a new provision that once SEZ is notified and becomes
Zones Rules, 2006 operational, the validity of Letter of Approval will continue as
Asia’s first EPZ was set up in Kandla in 1965. Seven more zones long as the SEZ remains notified.
were set up thereafter. However, the zones were not able to emerge ● Prescribing various forms and procedure for smooth
as effective instruments for export promotion on account of the functioning.
multiplicity of controls and clearances, the absence of world-class ● Making it mandatory to all the developers and units to use the
infrastructure and an unstable fiscal regime. While correcting the online system for better monitoring as also better facilitation in
shortcomings of the EPZ model, some new features were incorpo- respect of the users.
rated in the Special Economic Zones (SEZs) Policy announced in ● Classifying Cities of the country.
April 2000. ● Promoting IT/ITES SEZs in smaller cities of the country.
● Allowing setting up of FTWZs without any minimum area re-
To instill confidence in investors and signal the Government’s quirement in the existing SEZs.
commitment to a stable SEZ policy regime and with a view to impart ● Paving way for import of prohibited items by a unit in a Special
stability to the SEZ regime and thereby generating greater economic Economic Zone or Developer of the Special Economic Zone
activity and employment through the establishment of SEZs, a com- from a place outside India to the Special Economic Zone with
prehensive Special Economic Zones Act, 2005, was passed by Par- prior approval of the Board of Approval.
liament in May, 2005. The Act received Presidential assent on the ● Amending Annexure-II of Special Economic Zone Rules, 2006
23rd of June, 2005. The SEZ Act, 2005, supported by SEZ Rules, to substitute the term “Apparel” mentioned is column (3) against
came into effect on 10th February, 2006, providing simplification of Serial Number 3 of the Annexure by the words “Textiles and
procedures and single window clearance on matters relating to Cen- Articles of Textiles”.
tral and State governments. As a result of this Act and Rules coming ● Enabling Board of Approval to extend validity of Letter of Per-
into force, it was envisaged that the SEZs would attract a large flow mission of unit beyond 4th year.
of foreign and domestic investment in infrastructure and production ● Making validity of Letter of Approval of a
capacity leading to generation of additional economic activity and co-developer of SEZ co-terminus with that of the developer.
creation of employment opportunities. ● The following amendment to the SEZ Rules, 2006 were notified
● The main objectives of the SEZ Act are: on 12th August, 2013:-
● Generation of additional economic activity; ❖ Minimum Land Area Requirements for setting up of
● Promotion of exports of goods and services; SEZs in various categories has been reduced by half.
● Promotion of investment from domestic and foreign sources;
❖ To allow greater flexibility and address the intermediate
● Creation of employment opportunities; and size land tracts falling between different categories,
● Development of infrastructure facilities. Graded Scale for Minimum Land Criteria has been in-
troduced.
Amendments in the SEZ Rules, 2006
❖ Sectoral broad-banding provisions have been introduced
The following important amendments have been made to the for categories of sectors to encompass similar/related
SEZ Rules, 2006: areas.
● Prescribing minimum built up area for Bio-technology and Gem
❖ IT and ITES SEZs – Minimum land requirement criteria
& Jewellery Sectors;
has been Dispensed with.
● Prescribing minimum processing area for Free Trade Warehous-
ing Zone (FTWZ); ❖ Transfer of Assets by SEZ Units upon their exit.
● Inclusion of specific provisions regarding grant of in-principle ❖ Vacancy Norms clarified.
approval and its extension;
● Providing for a lease period of not less than five years as against
● Notification of Dual use of infrastructure in NPA issued and
the earlier provision of lease period being co-terminus with the published on 02/01/2015. This would facilitate creation of so-
validity of Letter of Approval; cial and commercial infrastructure and other facilities in Non-
● Stipulating the Upper limit of the area required for multi product
Processing Area of SEZs.
SEZs at 5000 hectares, with the State Governments having the ● Guidelines issued for setting up of the first International Finan-
option to prescribe a lower limit; cial Services Centre (IFSC) in SEZs vide notification dated
● Revising the minimum processing area uniformly at 50% for
08/04/2015.
multi- product SEZs as well as sector specific SEZs; ● Annexure-II of Special Economic Zones Rules, 2006 has been
● Type of land to be mentioned in the application form of SEZ;
partially amended to substitute the figures and word “38
● Reimbursement of duty in lieu of drawback for supply of goods
hectares” in serial number 3, in column (4) by the figures and
to SEZ developers against Indian rupees; word “20 hectares” vide notification dated 16/07/2015.
● Term “vacant land” defined for the purpose of SEZs;
● In supersession of all previous guidelines Power Guidelines for
● Clubbing of contiguous existing notified Special Economic
power Generation, Transmission and Distribution in Special
Zones notwithstanding that the total area of resultant Special Economic Zones (SEZs) has been issued on 16th February,
Economic Zones exceeds 5000 hectares 2016.
● A number of other amendments to delegate powers and to sim-
● Notification of amendment for insertion of Rule 47(5) and Rule
79 in SEZ Rules, 2006 issued and published on 8th August,

112 | Annual Report 2017-18 | Department of Commerce

 2016. This issued in order to incorporate provisions for Audit, Current status of approvals for setting up of Special Economic
Demand, Refund, Adjudication, Review and Appeal in SEZ Zones
Rules, 2006 & for better administrative efficiency and to take ef- Seven Export Processing Zones set up by the Central Govern-
fective steps for implementation of the approved proposals. ment at Kandla (Gujarat), Santa Cruz (Maharashtra), Cochin (Ker-
● Notification in respect of amendment for insertion of new Rule ala), Noida (U.P.), Chennai (Tamil Nadu), Falta (West Bengal) and
2(1)(zg) and 22(1)(v) in the principle Rule of SEZ Rules, 2006 Visakhapatnam (Andhra Pradesh), were converted to SEZs on an-
has been issued in order to empower the Export Promotion nouncement of the SEZ Policy. Another EPZ set up in the private
Council for EOUs and SEZs (EPCES) to issue Registration sector in Surat was also converted to an SEZ. In addition to these,
Cum Membership Certificate to SEZ Developers, Co-developers 11 more SEZs were set up by the State Governments/private sector
and Units under SEZ Rules, 2006. during the period 2000-2005 in the States of West Bengal (2), Gu-
● Notification in respect of amendment notifying the investigating jarat (2), Madhya Pradesh (1), Uttar Pradesh (1), Rajasthan (1) and
agencies under section 20,21 and 22 of the SEZ Act, 2005 has Tamil Nadu (4). After the coming into force of the SEZ Act, 2005
been issued. on 10th February 2006, 423 formal approvals have been granted for
● Instruction No. 85 issued allowing of authorized employees of setting up of Special Economic Zones, out of which 354 SEZs have
IT/ITES units in SEZ to Work from Home or place outside the been notified and are in various stages of operation. A total of 222
SEZ unit. SEZs are exporting.
● Instruction No. 86 issued for amendment to instruction No. 9
regarding procedure for reimbursement of Duty (RoD) in lieu While there is some concentration in certain states, the fact that
of drawback for supply of goods to SEZ Developers against In- the approved SEZs are spread over 19 States and 3 Union Territories
dian Rupees. indicates that these are not confined to any particular region. State-
● Notification of amending time limit for filing of Annual Per- wise distribution of SEZs as on 09.10.2017 is in Table 7.1. The total
formance Reports by SEZ units has been issued. land area involved in the formally approved SEZs including notified
SEZs is around 50208.11 Ha.

Table: 7.1
State-wise Distribution of approved Special Economic Zone (As on 09.10.2017)
States/UTs Formal In-principle Notified SEZs Exporting SEZs (Central
Approvals approvals Govt. + State Govt./Pvt.
SEZs + notified SEZs
under the SEZ Act, 2005)
Andhra Pradesh 29 4 25 20
Chandigarh 2 0 2 2
Chhattisgarh 2 1 1 1
Delhi 2 0 0 0
Goa 7 0 3 0
Gujarat 28 4 24 19
Haryana 24 3 20 7
Jharkhand 1 0 1 0
Karnataka 62 0 51 26
Kerala 29 0 25 19
Madhya Pradesh 10 0 5 4
Maharashtra 57 11 50 28
Manipur 1 0 1 0
Nagaland 2 0 2 0
Odisha 7 0 5 4
Puducherry 1 1 0 0
Punjab 5 0 3 3
Rajasthan 9 1 8 4
Tamil Nadu 50 3 47 36
Telangana 64 0 57 30
Uttar Pradesh 24 1 19 12
West Bengal 7 2 5 7
GRAND TOTAL 423 31 354 222

Source: Department of Commerce

Department of Commerce | Annual Report 2017-18 | 113

 The six major sectors of IT/ITES, Hardware etc., Textiles and of the total formal approvals followed by Multi-product SEZs. More
Apparel (including Wool), Pharma and Chemicals, Biotech, Engineer- than one third of the 423 formal approvals issued so far have reached
ing and Multi-products account for bulk (84%) of the SEZ formal the stage of notified SEZs.
approvals granted so far. IT/ITES/Electronic Hardware/Semicon-
ductor is the single most important segment accounting for about 58% Sector-wise details of SEZs is as in the following diagram:

Table: 7.2
Sector-wise Distribution of SEZs in India
(Number & Percentage of Operational SEZs (222) as on 30.06.2017)

Employment, Investment and Exports in SEZ Export Performance

The details of employment and investment generated in the The exports from SEZs as on 30th June, 2017 i.e. in the first
Special Economic Zones are given in Box 7.1 and Box 7.2. quarter of the current financial year 2017-18, has been to the tune
of Rs.1,35,248 crore approximately. Exports from the functioning
Special Economic Zones during the last seven years and current year
Box 7.1 are in Table 7.3.
Direct Employment in Special
Economic Zones (As on 30.06.2017) Table: 7.3
Exports from the functioning SEZs during
● SEZs in India provide direct employment to the last eight years and current year
over 17,78,851 persons;
Year Value Increase (%)
● The incremental employment generated by the (Rs. Crore) (Over previous year)
SEZs in the short span of time since the SEZ Act
came into force in February 2006, is of the 2009-2010 2,20,711 121.40
order of 16,44,147 persons. 2010-2011 3,15,868 43.11
2011-2012 3,64,478 15.39
2012-2013 476159 31.00
Box 7.2
2013-2014 494077 4.00
Investment in Special Economic Zones
2014-2015 463770 -6.13%
● The total investment in the SEZ is Rs.4,33,142
crore. 2015-2016 467337 -0.77%

● The incremental investment in the Special Eco- 2016-2017 523637 12.05%

nomic Zones notified under the SEZ Act, 2005 2017-2018 135248 15.39%
is Rs.4,05,690 crore since the coming into force (as on 30.06.2017)
of the SEZ Act in February, 2006.
Source: Department of Commerce (SEZ Division)

114 | Annual Report 2017-18 | Department of Commerce

SEZ Policy Reform Initiative Parks (BTPs). Hence the scheme is for EOU/STP/EHTP/BTP and is
While above achievements are in no way insignificant, a com- referred in common parlance as EOU Scheme.
prehensive analytical assessment of the performance of the sector
has highlighted the need that certain aspects of the SEZ Policy and As on September 30, 2017, 1832 units are in operation under the
Operational framework perhaps require a re-look with a view to pos- EOU Scheme. State-wise distribution of EOUs is given in table below:
sible reform in order to ensure that the laid down objectives of the
SEZ Policy are better achieved. State-wise distribution of functional EOUs

The geographical dispersion of the SEZs is mainly limited to States/UTs Functional EOUs as on
seven States, Andhra Pradesh, Gujarat, Karnataka, Kerala, Maha- 30.09.2017
rashtra, Tamil Nadu and Telangana. These States account for the
Andhra Pradesh 76
nearly 75% of the SEZs established so far. Further, most of the es-
tablished SEZs, Particularly, IT/ ITES SEZs have come up in and Telangana 165
around major urban centres. The sectoral dispersion of the SEZs West Bengal 45
also indicates that manufacturing SEZs are not markedly visible.
With the availability of land becoming increasingly difficult, setting
Jharkhand 2
up of multi product SEZ becomes more challenging as it required Orissa 1
minimum 1000 hectares of contiguous and vacant land. The opera- Meghalaya 1
tional issues relating to FTWZs, procedure for refund of CST, serv-
ice tax etc., also need further elaboration. Gujarat 177
Kerala 83
In order to address these concerns, inputs have been received
Karnataka 376
from the stakeholders after meetings with the Principal Secretaries
(Industries) of the State Governments, and by organizing outreach Tamil Nadu 416
seminars under the auspices of the Zonal DCs. Inputs have also Pondicherry 12
been received from trade associations like NASSCOM, AS-
SOCHAM, Federation of Indian Chambers and CII etc. Further ac-
Maharashtra 225
tion in this regard is in progress. Goa, Daman & Diu 37
Dadra & Nagar Haveli 16
In short span of about ten years since SEZs Act and Rules were
notified in February, 2006, formal approvals have been granted for set- Delhi 12
ting up of 423 SEZs out of which 354 have been notified. Out of the Haryana 55
total employment provided to 17,78,851 persons in SEZs as a whole Uttar Pradesh 55
16,44,147 persons is incremental employment generated after February,
2006 when the SEZ Act has come into force. This is apart from mil- Punjab 7
lions of man days of employment generated by the developers for in- Rajasthan 55
frastructure activities. Physical exports from the SEZs has increased
Himachal Pradesh 4
from Rs.4,67,337 crore in 2015-16 to Rs.5,23,637 crore in 2016-17, reg-
istering a growth of 12.05%. The total physical exports from SEZs as Jammu & Kashmir 2
on 30th June, 2017 i.e. in the first quarter of the current financial year Chandigarh 2
2017-18, has been to the tune of Rs.1,35,248 crore approximately. The
total investment in SEZs till 30th June, 2017 is Rs.4,33,142 crore ap- Uttrakhand 1
proximately, including Rs.4,05,690 crore in the newly notified SEZs set Madhya Pradesh 7
up after SEZ Act, 2005. A total of 222 SEZs are exporting at present. Total 1832
Out of this 129 are IT/ITES, 23 Multi product and 70 other sector
specific SEZs. There are a total of 4,643 units setup in the SEZs.
Export Performance by EOUs
EXPORT ORIENTED UNITS (EOUs) (Rs. In Crores)
The Export Oriented Units (EOUs) scheme was introduced in
early 1981, primarily to boost exports by creating additional produc- Year EOUs Exports
tion capacity. It was introduced as a complementary scheme to the
Free Trade Zones/Export Processing Zone (EPZ) Scheme intro-
2012-13 92089.80
duced in the sixties, which had not attracted many units due to loca- 2013-14 82072.71
tional restrictions. It adopts the same production regime as SEZs 2014-15 98803.29
(erstwhile EPZs) but offers a wide option in locations.
2015-16 97493.23
Units undertaking to export their entire production of goods 2016-17* 74771.89
and services, except permissible sales in the DTA, as per the Ex-
2017-18* 36591.90
port-Import Policy are referred to as export oriented units (EOUs).
(upto 30.09.2017)
The EOUs function under the administrative control of the con-
cerned Development Commissioner of Special Economic Zone i.e., *Note: Provisional as APRs & QPRs from some of the units
under the Department of Commerce, Government of India. are yet to be received.

The EOUs are governed by the provisions of Chapter 6 of the For- Exports during 2017-18 (upto 30.09.2017) from EOUs are of
eign Trade Policy (FTP) and its procedures, as contained in the Handbook the order of Rs. 36591.90 crore as compared to the export of Rs.
of Procedures (HBP). Provisions of the said Chapter 6 and its procedures 74771.89 crore during 2016-17. EOUs are mainly concentrated in
have also been made applicable to the Electronics Hardware Technology textiles and yarn, food processing, Gems & jewellery, computer soft-
parks (EHTPs), Software Technology Parks (STPs) and Biotechnology ware, electronics, chemicals, plastics, granites and minerals/ores. ■

Department of Commerce | Annual Report 2017-18 | 115

 SPECIALIZED AGENCIES
The Department of Commerce operates a number of Commodity
Boards, Development Authorities, Institutional Trade Facilitation
and Public Sector Corporations that are specialized agencies,
looking after specific sectors

116 | Annual Report 2017-18 | Department of Commerce

PLANTATIONS SECTOR online fertiliser recommendation system for rubber growers to
The Plantation Sector comprising Tea, Spices, Coffee & Rubber, get fertiliser recommendation for any rubber growing location
is important to India’s economy as it gives livelihood to large number in South India.
of people in the industry and its ancillary activities and the protec- ● A new Laboratory block to house the Advanced Centre for Mo-
tion it offers to the historical, cultural and ecological uniqueness of lecular Biology and Biotechnology inaugurated by the Com-
the regions where they are grown. It is the key sector for environ- merce Secretary to mark the Diamond Jubilee of RRII in March
mentally sustainable development, concentrated mostly in ecologi- 2017.
cally fragile regions. Trade and exports of the commodities has been ● Rubber Board launched skill development project of “Recogni-
growing steadily, increased value realization per unit, through pro- tion on Prior Learning” Programme under the Pradhan Mantri
cessing and packaging, niche marketing and organic products are in Kaushal Vikas Yojana (PMKVY) scheme to address the skill gap
focus. Following significant steps have been made during the current and shortage of skilled manpower through re-skilling/up-
year: skilling programmes in rubber plantation and industrial sector.
● E-Spice Bazaar, a digital platform initiated in association with ● Plant Protection Code (PPC) for cultivation and manufacture of
Department of Electronics and Information Technology quality tea introduced in all tea gardens which mandates the pro-
(DeitY) to ensure total traceability of farms and better price re- ducers/manufacturers to provide undertakings about the quality
alisation to spice farmers. of tea manufactured and supplied by them. PPC version 9.0 has
● Spices Board, with the objective to brand and showcase the au- been released recently.
thenticity and quality of spices and its value added products, has
set up signature stalls under the name “Spices India” at Kochi TEA BOARD
and Delhi. India is the largest producer and consumer of black tea in
● Spices Board initiated the process of formation of Spices the world. Tea is grown in 15 States in India, of which Assam,
Farmer Producer Companies (SFPC) in order to empower small West Bengal, Tamil Nadu and Kerala account for about 97% of
and marginal spice growers for better price realisation. the total tea production. The traditional States where tea is
● Buyer-Seller Meets has organised at Guwahati, Itanagar, Kota, grown to a small extent are Tripura, Himachal Pradesh, Uttarak-
Hyderabad, Vijayawada and Unjha during 2017 for facilitating hand, Bihar and Karnataka. The non-traditional States that have
direct interaction between spice buyers and sellers to create an entered the tea map of India in the recent years include
effective market linkage between the two ends of the supply Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland
chain. and Sikkim. The teas originating from Darjeeling, Assam, Nil-
● The coffee cupping session of “Flavour of India-Fine cup giris and Kangra are well known for their distinctive quality the
Award Competition 2017” was organized on 11th & 12th June world over. On an average 18% of the total production is ex-
2017 to the “SCAE’s World of Coffee Conference 2017 at Bu- ported and balance 82% is consumed within the country. Besides
dapest, Hungary. bringing in valuable foreign exchange, tea industry is one of the
● In line with the ambitious initiative of Government of India, important sources for revenue for the tea growing states. The
the Coffee Board introduced the Soil Health Cards programme most significant feature of the industry is its ability to provide
and issued 6550 Soil Health Cards on pilot scale. The soil health direct employment to more than a million workers, of which a
cards enable judicious use of fertilizers, correct nutrient defi- sizeable number are women. Additionally, more than six million
ciencies and maintain the soil health for achieving sustainable people derive their livelihood from ancillary activities associated
yield. with the industry.
● An exclusive web portal www.indiacoffeesoils.net named KSHE-
MAM (Kaapi Soil Health Monitoring and Management) has Production: The cumulative tea production during 2017-18 (Apr-
been launched for benefit of the coffee growers. Aug) is arrived at 677.81M.Kgs., increased by 50.32M.Kgs (8.02%)
● Rubber Board released cold resistant clone RRII 2018 for NE as compared to its corresponding period. Both North India and
(exclusive clone for NE). South India production increased by 27.75M.Kgs (5.21%)
● Board developed Rubber Soil Information System (RubSIS), an and22.57M.Kgs., (23.89%) respectively during the current period.

Production of Tea in India during last two financial years (in million kgs)

Year North India South India All India

2015-16 1008.56 224.58 1233.14
2016-17 1043.11 207.38 1250.49
(Source: Tea Board)

Production of tea in India (M Kgs)

Department of Commerce | Annual Report 2017-18 | 117

 Exports: During 2017-18 (Apr-Aug), the provisional tea exports stood at 82.72M.Kgs., with FOB value of Rs. 1636.93Crs., as compared
to 82.37M.Kgs., and FOB value of Rs. 1707.87Crs., of corresponding period. During the current period, value realization in US$ is 254.26
Millions as against US$ 254.94 Millions.

Exports of tea from India during the last two financial years
Year Quantity Value Unit Price Value Unit Price
(M.Kgs) (Rs.Crs) (Rs/Kg) (M US$) ($/Kg)
2015 -16 232.92 4493.10 192.90 686.67 2.95
2016-17 227.63 4632.50 203.51 690.73 3.03
(Source: Tea Board)

Increase of tea exports were registered mainly to Iran, UAE, mechanisation, new planting in organised and small holdings, col-
Egypt, U.K., Kazakhstan, Sri Lanka and China. lectivisation of small growers by way of Self Help Groups/producer
groups, training, demonstration, study tours, modernisation of tea
Imports: During current financial year 2017-18 (Apr-Aug), pro- processing factories, value addition, quality certification, incentivi-
visional imports stood at 8.30 M.Kgs., with CIF value of Rs. 124.35 sation of production of orthodox and green teas and welfare meas-
Crs., as compared to 10.42 M.Kgs., and CIF value of Rs. 135.07 Crs., ures for workers.
of corresponding period. During the current period, the import
value in US$ is 19.32 Million as against US$ 20.16 Million. The physical achievements during 2017-18 till 30.09.2017 for the
major components is as under
Prices: During the financial year 2017-18 (Apr-Aug), the All
India auction prices decreased by Rs. 3.52 (2.51%) per Kg. compared Component Activities Target for Achievement
to the corresponding period of last year. Both North India and 2017-18 till 30.09.2017
South India auction prices were decreased by Rs. 0.13 (0.08%) per
Kg., and by Rs. 8.36 (8.23%) per Kg, respectively. PDS Replanting & 2700 511.84
Replacement
Planting (Ha.)
Average Prices of Tea per kg
sold in Public auctions Rejuvenation 800 58.18
(Rs/Kg) pruning (ha.)

Period North India South India All India New Planting (Ha.) --- 51.50

2015-16 142.91 85.64 127.62 Irrigation (ha.) 8500 58.17

2016-17 141.37 106.12 133.51 Field Mechanisation 35 14

(No.)
(Source: Tea Board)
QUPD Factory 2 1
Modernization (units)
Tea Development: One of the important functions assigned to
Tea Board under the Tea Act includes formulation and implementa- Value Addition (units) 5 4
tion of development schemes aimed at increasing tea production Quality certification 100 --
and productivity of plantations, modernization of tea processing, (units)
packaging and value addition facilities and encouraging co-operative
efforts amongst small tea growers. Financial assistance for the above Orthodox Production 60 20
activities is extended through Plan schemes approved for implemen- Subsidy ( m.kg.)
tation. Activities supported include uprooting and replanting/reju-
venation of old aged tea bushes, creation of irrigation facilities, field
(Source: Tea Board)

118 | Annual Report 2017-18 | Department of Commerce

 Small Grower Development Directorate: The Small Grower De- important buyers to discuss about possible facilitation of tea
velopment Directorate is catering exclusively to the needs of the trade between Indian exporters and Chilean importers. Meeting
small tea growers through offices set up in the areas of major small was held at the Santiago Chamber of Commerce with an agenda
grower concentrations in the tea growing States. One of the major of requesting for their support in furthering of Indo-Chilean
activities being undertaken by the Directorate is carrying out work- Tea trade. They also promised help and suggested that promi-
shops and training for the small tea growers on the best field prac- nent Chilean buyers may be invited for a tour to the tea estates
tices, organic farming, collectivisation for moving up the value chain of India and where the business meetings and partnership talks
etc. Study tours are also organised for the small growers to help them may be held. A buyer-seller meet was organized for the interac-
gain exposure and adopt the better practices and enterprise being tion and possible business deals between Indian exporters and
followed. A total of 935 workshops / trainings were conducted for Chilean importers. A promotional film on Indian tea showcasing
small tea growers involving 18,658 beneficiaries during FY 2017-18 the different types of teas and the gardens was shown to the au-
till 30th September 2017. dience which was followed by a tea tasting session for some se-
lect Indian teas.
Labour Welfare: Supporting welfare measures for securing better ● Participation in “World Food Moscow 2017”: Over the last 20
working conditions and improvement of amenities and incentives years, World Food Moscow has grown to become a major meet-
for workers and their dependants is one of the major objectives and ing place for the food and drinks industry and a vibrant source
functions of the Tea Board, as mandated in the Tea Act 1953. A sum of products for the Russian market. Tea Board participated in
of Rs. 2.63 crs was extended as financial assistance to disabled per- this renowned trade exhibition by organizing an India Tea Pavil-
sons dependent on tea garden workers/ Special cases of heart and ion with the biggest quantum of space ever taken. Sixteen
cancer patients, medical equipments, educational stipend, Uniform/ prominent exporters participated in the exhibition through Tea
Book grant etc /Nehru Award, organizing Bharat Scouts Guides ac- Board of India pavilion. The number of trade inquires was very
tivities, vocational Training for workers in acquiring new skills under encouraging. Maximum trade inquires were for by Assam fol-
this scheme. lowed by Darjeeling Tea.

Other major initiatives on Tea Development A Buyers-Sellers Meet was organised where all major Tea Com-
● An exercise for the enumeration of small growers and providing panies, Retail Chains, Moscow Food City Representatives, Foreign
them with smart cards is under progress. Till now, 159695 grow- Diplomats and Government Representation were present. The event
ers have been enumerated and 110857 cards have been issued. proved to be immensely useful in business networking amongst the
● A Seminar on the "Impact of Climate Change on Tea and Ame- exporters and the importers from the CIS Region.
liorative Measures" was organised by Tea Board of India and
Tea Garden Atlas was released. ‘Tea Garden Atlas - Based on ● Participation in “Anuga 2017” in Cologne, Germany: Six ex-
Remote Sensing Data’ is one of the outcome under Tea GIS- porters co-exhibited flavoured and blended tea ranges under the
MIS project of all tea growing areas of entire North Bengal and company brands in various packet sizes. Liquid tea sampling was
Assam using high resolution satellite data. undertaken. The salient outcome of the participation was the
generation of a number of business leads and exploration of
Tea Promotion: One of the main functions of the Tea Board business opportunities by the six exporters as a corollary to in-
is to carry out promotional activities aimed at making India the lead- tense deliberations with their potential buyers.
ing supplier of quality tea in the global market through increasing
awareness of the many varieties of Indian teas with an objective to An all-encompassing “India branding exercise” covering
increasing market share of Indian teas in the targeted markets and processed food, tea, coffee, rice, dairy items etc was undertaken by
also increasing domestic consumption. Focused attention was given IBEF marking this occasion.
to selected countries, where there is higher potential for increasing
export. The following are the salient achievements achieved till date: Initiatives on Tea Park: The idea behind setting up a “Tea Park”
is to promote India as an Investment destination and to establish
● Trade facilitation measures: Various trade related issues with Iran India as a manufacturing hub by attracting the global tea brands to
such as GMP registration & its renewal for export, the issue of India to meet their warehousing, blending, packaging & labelling re-
non-release of INR by the Central Bank of Iran (CBI) to the quirements in India as the country has a huge potential of work-
L/C issuing banks in Iran, inclusion of the Iranian Consulates force, infrastructure, raw material and other facilities. Setting up an
in Mumbai & Hyderabad in addition that in New Delhi for le- integrated Tea Park with infrastructure for common facilities for use
galisation of documents were addressed in an effective and fruit- on cost basis at suitable locations along the lines of “Dubai Multi-
ful manner in active collaboration with the Indian Embassy in modal Commodity Centre (DMCC) Tea Centre, Jebel Ali Free Zone,
Tehran Dubai” has been accorded due emphasis. These facilities may also
● Participation in -“Summer Fancy Food Show New York” June be availed of by the Indian exporters at reasonable prices to cater
25-27, 2017: Tea Board India participated along with 12 ex- to the export markets in a fruitful manner in order to earn better
porters and tea sampling of select Indian teas (Darjeeling black, unit export price realization. As a feasible location in the Eastern
Darjeeling Green, Assam, Niigiri, Masala Chai and Sikkim) was region the area near Dhamra Port, Odisha has been identified and
done. The delegation also comprised 9 other exporting tea com- the following are the steps initiated till date:
panies and other stakeholders. A buyer seller interaction was
jointly organized by Tea Board India, Consulate of India, New o Concept note on the project has been prepared
York and US Tea Association and a tea tasting session was or- o Exploratory visits have been undertaken by Tea Board officials
ganized and industry members to the port to examine the facilities on-site
● Tea Trade delegation to Chile: A delegation comprising 21 stake- o Efforts are underway to constitute a committee comprising In-
holders of the Indian Tea Industry was mounted to Chile during dustry members, Tea Board officials, shipping lines, Concor of-
June 29-30, 2017. Chile is a tea market of about 21 m kg but In- ficial etc with suitable terms & references for undertaking a
dian tea is insignificant here. The major suppliers are Argentina feasibility study about the possible use of the facilities by the
and Sri Lanka. It was hence thought prudent to mount a dele- Industry.
gation to Chile with a view to explore the potential of export
of Indian teas to Chile. A number of meetings were held with Research: Tea Board of India has been extending research sup-

Department of Commerce | Annual Report 2017-18 | 119

port for the Indian tea industry, mainly through tea research insti- 2.5% and 5% exhibited varied degree of motality ranging from
tutes, namely, Darjeeling Tea Research and Development Centre 52 to 100% of adult red spider mites within 96 hours of treat-
(DTR&DC), Tea Research Association (TRA), Jorhat, Assam and ment. Similarly, average number of eggs laid on the treated leaves
United Planters’ Association of Southern India – Tea Research of tea with the above doses ranged from 51 to 0 after 96 hrs. of
Foundation (UPASI-TRF), Valparai, Tamil Nadu and Quality Con- treatment whereas the same for untreated control was 73.
trol Laboratory (QCL),Siliguri. Tea Board prioritizes the areas of tea ● Quality Control Laboratory received accreditation for additional
research based on the needs of stakeholders and ensure that the re- 20 parameters (7 pesticide residue, 4 heavy metal residue,9 quality
search outcomes are disseminated to the stakeholders. TRA and parmeters ) apart from 13 NABL accrediated FSSAI parameter .
UPASI-TRF are disseminating extension services through the net-
work of their advisory centres in different tea plantation areas in Regulatory Issues and Technological Support: Research Direc-
their respective zones. These institutes are carrying out basic as well torate of Tea Board has been pursuing regulatory issues of tea on
as applied research. Tea Board is providing grants-in-aid to both fixation of MRL of pesticide residue, nature identical flavour, staple
TRA and UPASI-TRF towards a part of their administrative expen- pin in tea bags issue etc with the FSSAI. It is also trying to showcase
diture on certain identified items the propargite and anthroquinone issue at 11th JWG of Indo EU
SPS TBT meeting . This division has also rendered support for
During the year under review, more emphasis was given to research knowledge dissemination to stakeholders on non tariff barrier and
on plant improvement for mechanization, development of stress tol- quality of tea during seminar/workshop.
erant tea cultivars, genome sequencing, and mechanization of opera-
tions like pruning and plucking and quality aspects of tea. Emphasis ● MRL Fixation: 2 GAP data of pesticides were submitted to
was given to various regulatory aspects like MRL of pesticides, imple- CIB&RC and FSSAI for revision of MRLs
mentation of Plant Protection Code (PPC) etc. in order to comply with ● Reply to Draft notification by FSSAI on pesticide residue along
both the national and international regulatory standards. with scientific rationale was submitted by Tea Board in consul-
tation with stake holders
The following activities/achievements made in the field of Re- ● Plant Protection Code: Tea Board of India has a comprehensive
search till September, 2017are furnished below: guideline for safe usage of Plant Protection Formulations (PPFs)
in the tea plantations in India called “Plant Protection Code”
● In TRA - Kawasaki Project on Mechanical Harvesting results in- for the Indian tea industry. Plant Protection Code Ver 9.0 has
dicated that, continuous machine and shear plucking yielded been released recently.
4.5% and 1.6% less crop than hand plucking. However, where ● FAO IGG on Tea Inter- sessional meeting was held in Colombo,
machine plucking was restricted to July to September, 4% in- Sri Lanka during 12-13 August 2017 where Tea Board partici-
crease in yield was recorded in the machine plucked plots over pated. There was sharing and exchange of scientific information
hand plucking. In july, shear plucking (July-September) produced between tea producing /importing countries and research insti-
highest percentage (23%) of broken and cut leaves followed by tutes related to pesticide residue, tea trade and quality, climate
continuous machine plucking (22%) and continuous shear pluck- change etc.
ing (19%). It was also found that light pruned bushes sprayed ● SPS TBT issues: 72 responses were sent to SPS TBT notifica-
with 2% Urea after each round of mechanized harvesting, tions issued by different countries.
brought about 19% increase in cumulative yield .
● At TRA to promote research in development of drought resist- COFFEE
ant tea through genetic and bioengineering, Molecular charac- Coffee is cultivated in an area of around 4.49 lakh hectares pre-
terization of nine germplasms selected from Germplasm dominantly in the traditional areas covering the States of Karnataka,
Reserve Block No II (NBA) with TV1, TV20, TV25 as control Kerala and Tamil Nadu, which contribute to around 97 percent of
under the In house project (Screening of genotypes for drought the total production. Coffee is also cultivated to some extent in Non-
tolerance - Plant Physiology and Breeding) are being done. DNA Traditional Areas of Andhra Pradesh and Odisha and to a lesser ex-
was extracted from the 9 samples along with TV1, TV20 and tent in the North Eastern States viz., Assam, Arunachal Pradesh,
TV25 as control. 2 highly polymorphic ISSR primers were used Meghalaya, Mizoram, Tripura, Nagaland and Manipur with main em-
to screen the germplasms for drought tolerance. Further, stan- phasis on tribal development and afforestation. There are about 3.53
dardization of another 6 ISSR primers for screening is being lakh coffee holdings in the country, of which around 3.50 lakh hold-
carried out. ings (99%) constitute the small growers category (up to 10 hectares
● Studies were also conducted at TRA on expression of genes by holding) and the balance 1% of the total holdings fall under the large
putting water stress conditions. RNA was extracted and cDNA grower category with holding size of more than 10 hectares.
prepared from 10 clones (TV21, TV26, T.3/3, TV25, TV7, Vim-
tal, CP1, Koomsong 29, Panitola 126 and Hatikhuli 311). cDNA Coffee Production: The final crop estimates for 2016-17 have
prepared from previously extracted 4 control and stress samples been placed at 3,12,000 MT consisting of 95,000 MT of Arabica and
(Koom 29 and TV7) were subjected to quantitative RT-PCR 2,17,000 MT of Robusta. The post-blossom crop estimates for the
using the primer pair for catalase gene and difference in expres- year 2017-18 have been placed at 3,50,400 MT comprising of
sion was observed between control and stress samples. 1,03,100 MT of Arabica and 2,47,300 MT of Robusta.
● At Upasi –TRF under the project on “Incorporation of non-
chemical methods”, 30 pheromone traps were fixed in one of Productivity: Based on the estimated crop production for the
the estates of Anamallais for the control of Tea Mosquito Bug year 2016-17, the overall productivity of coffee was 761 kg/ha. The
(TMB) . A total of 240 TMB trapped during the month.Forty productivity for Arabica was 786 kg/ha and for Robusta, it was 1012
five kairomone traps were installed in ICM (integrated crop kg/ha. As far as the traditional area is concerned, the overall pro-
management ) block for shot hole borer control and a total of ductivity for 2016-17 was 874 kg/ha with the productivity of Arabica
309 SHB Shot hole borer trapped during the month. being 643 kg/ha and that of Robusta being 1016 kg/ha.
● A new sponsored field experiment on SAMARTHA (ie. Mixture
of humic acid, amino acids, seaweed extracts and triacontanol) Export of Coffee: Coffee is primarily an Export Oriented
was initiated in one of the member estates of Anamallais to Commodity and presently 75% of Coffee is being exported while
study its influence on crop productivity in tea. balance is being consumed domestically. During the year 2017-18
● At DTR&DC ethanol extract of Artimesia @ 0.25%, 0.5%, 1.0%, (up to 30.09.2017), India has exported 2,08,175 MT of coffee valued

120 | Annual Report 2017-18 | Department of Commerce

at Rs.3346.35 crores, as against the export target of 3,20,000 MTs India is organizing Flavour of India - The Fine Cup Award Cupping
for 2017-18. Competition every year with an objective of promoting production
of fine quality coffees. This has been successful in showcasing the
Export of Value Added Coffee: During 2017-18 (up to fine coffees from India in the International market.
30.09.2017), the total quantity of value added coffee exported has
reached 54,689 MT valued at Rs. 965.52 crores. The final cupping session of “Flavour of India-Fine cup Award
Competition 2017” was organized on 11th and 12th June, 2017 to
Export Promotion Measures: The export promotion scheme the “SCAE’s World of Coffee Conference 2017 at Budapest, Hun-
is formulated to boost the export of coffee includes providing in- gary. In the final cupping session of Flavour of India, a team of 9
centives @ Rs.3/kg for export of value added coffee in retail packs International Jury members participated and assessed the coffee
as “India Brand” and providing incentives @ Rs.2/kg for export of samples which had reached the final stage of cupping competition.
high value green coffee to the far-off destinations viz., USA, Canada,
Japan, Australia, New Zealand, South Korea, Finland and Norway. The Fine Cup Award for Flavour of India - - Cupping Compe-
During 2017-18 (as on September 2017), the Board has participated tition 2017 was won by M/s Gowri Estate, Yercaud for best Arabica;
in 7 overseas exhibitions and organized 1 Buyer seller meets. Poabs Estates (P) Ltd., Palakkad for best Specialty Arabica, Chu-
rakulam Coffee Estate, Vandiperiyar for best Robusta and Badra
Flavor of India- Fine Cup Award–2017: The Coffee Board of Kerkiecoondah Estate for best Specialty Robusta.

Events of Flavour of India Fine Cup Award- Cupping Competition – 2017

1-3 :- Physical evaluation of green coffee samples at Coffee Board, Bengaluru
4 :- Pre Jury Cupping at Coffee Quality Division, Coffee Board, Bengaluru
5-6 :- National Jury Cupping at Coffee Quality Division, Coffee Board, Bengaluru
7-8 :- International Jury Cupping at Hotel Expo Congress, Budapest, Hungary

Department of Commerce | Annual Report 2017-18 | 121

 Domestic Promotion: It is evident that for achieving long term sus- tolerance to white stem borer has been identified based on field in-
tainability in the coffee sector in India, growth of robust domestic mar- fested data and systematic bioassays.
ket is important. Besides creating value in the sector, a robust demand ● As occurrence of Giant African Snail (GAS) has been reported in
helps to create a buffer for the producers against international price some coffee plantations, extensive survey and awareness programmes
fluctuations. have been conducted covering different coffee tracts to check the
spread of the snail.
In this context, the Board has taken several steps/programmes for ● Fifteen extended trial plots established with three promising Arabica
supporting the domestic market development of coffee, by spreading genotypes viz., S.4814, S.4817 and S.5146 which have superior char-
awareness about coffee / consumption of pure coffee through generic acters like highest tolerance to coffee leaf rust disease, high yield
mass media campaigns like TV campaigns and Print media campaigns, and good quality and the field performance has been monitored in
in the form of booklets, journals, educating the consuming public on different locations.
the positive health aspects of coffee in reputed magazines. During 2017- ● The activity of production of Robusta clonal material has been con-
18 up to September, 2017, Board participated in 9 reputed domestic ex- tinued with focus on on-farm production of clones in order to im-
hibitions, against the target of 24 events to promote coffee as a beverage prove productivity in Robusta. Supplied about 53,000 clones of elite
in the non-conventional coffee drinking areas. Robusta material for the growers for raising wood gardens for fur-
ther multiplication. On-farm production of clones has been initi-
Initiatives to promote Entrepreneurship: The Board conducts ated in 10 locations and a total of 16 field demonstrations of the
training programmes for capacity building of stakeholders and entre- technology were organized covering Karnataka and Kerala Regions.
preneurs in roasting & brewing of coffee through Kaapi Shastra Train- ● In line with the ambitious initiative of Government of India, the
ing Programmes–which are 5 day training workshops. During 2017-18, Coffee Board introduced the Soil Health Cards programme and is-
up to September 2017, 8 programmes benefitting 154 participants have sued 6550 Soil Health Cards on pilot scale. The soil health cards
been organized. A one year Post Graduate Diploma in Coffee Quality enable judicious use of fertilizers, correct nutrient deficiencies and
Management certificate programme is being conducted by the Coffee maintain the soil health for achieving sustainable yield.
Board. This Diploma helps in developing professional manpower in the ● An exclusive web portal www.indiacoffeesoils.net named KSHE-
area of Coffee Quality Evaluation. During the current year, 12 students MAM (Kappi Soil Health Monitoring and Management) has been
have enrolled for the programme. launched for benefit of the coffee growers.

Prices: Coffee prices in India are largely influenced by the New Activities undertaken in North Eastern region: The Coffee Board
York Exchange (NYBOT) renamed as ICE for Arabicas and London continued its efforts to promote coffee cultivation in the North Eastern
Exchange (LIFFE) for Robustas. The international coffee prices are States with main emphasis on tribal development and afforestation. The
volatile and have a tendency to fluctuate. After prolonged coffee crisis present area under coffee (2016-17) in North Eastern Region is 7501 ha
which prevailed from 2000 to 2004, the international coffee prices comprising of 5904 ha of Arabica and 1598 ha of Robusta with 10486
started recovering from 2005 onwards. The improvement in ICO in- Coffee holdings. Though the rainfall spread in NER is not a limiting factor
dicator prices was more significant from 2009 onwards reaching a for coffee cultivation, the low temperature in winter months does not
record high of US cents 300.12 per lb for Arabica coffee in April 2011 help to improve productivity. The coffee production in the entire NER
and US cents 121.98 per lb for Robusta coffee in May 2011. The inter- continued to be low on account of various factors including nonuse of
national coffee prices have, however, shown a mixed trend since then. recommended inputs, non maintenance and low plant density etc.

During 2017-18 (Apr-Oct), the coffee prices at the global level have RUBBER BOARD
shown downward trend but maintained the trend of 2016-17 with av- The Rubber Board is a statutory body constituted under Section (4)
erage price of US cents 147.92 per lb for Arabica coffee and US cents of the Rubber Act, 1947 and functioning under the administrative con-
101.56 per lb for Robusta coffee. trol of the Ministry of Commerce and Industry. The Board undertakes
research, development, extension, training and regulatory activities re-
Research: lated to natural rubber (NR). The Board also collects statistics on rub-
● Research on effective interventions for white stem borer manage- ber, promotes marketing of rubber and undertakes labour welfare
ment has been given the priority and collaborative initiatives with activities in unorganised plantations.
other national research institutions have been continued. In the joint
programme with Indian Institute of Science, Bengaluru, (IISc), a Production: India currently occupies the sixth position in the global
tool using ultrasound sensing has been developed and validated with ranking in terms of production of NR by contributing 5% of the global
X ray imaging. Promising leads have been obtained with Ritec system output. Rubber cultivation covered a total area of 818,000 hectare in the
with 1MHz transformers coupled with X-ray imaging for identifica- country at the end of 2016-17. From 445,000 ha tapped area, the country
tion of the pest. produced 691,000 tonnes of NR during 2016-17, an increase of 23%
● The Ecology and Ethology of Coffee White Stem Borer has been from 562,000 tonnes a year ago. Production of NR during April to Sep-
validated in the collaborative studies with National Centre for Bio- tember 2017 is provisionally estimated at 321,000 tonnes, an increase of
logical Sciences (NCBS), Bengaluru. The differential responses of 5.2% from the same period a year ago. Share of untapped area declined
the pest toward Arabica and Robusta plants have been established. to 24% in 2016-17 from 30% in 2015-16 and average annual productivity
● CCRI conducted extensive field trials with new silica based chemical gone up to 1,553 kg per ha from 1,437 kg per ha. The growth in pro-
molecules supplied by the M/s Tata chemicals Innovation Center, duction is attributed to measures taken by the Board to increase produc-
Pune and established that the performance of CCS03 Plus against tion and productivity, relatively high rubber prices and continuation of
Coffee White Stem Borer which is on par with earlier recommen- Rubber Production Incentive Scheme (RPIS) of Government of Kerala
dation of 10% lime coating of the stems. for ensuring a price of Rs 150 per kg etc. The North East continued to
● The promising leads obtained in stem wrapping trials have been fur- increase its significance in the country’s NR sector by accounting for
ther taken forward and a non- woven fabric material has been intro- 23% of the total area and under rubber 13% of the production during
duced in place of gunny strips to improve the longevity of 2016-17.
protection against the pest in field conditions and also to economize
the cost. Consumption: In terms of consumption of NR, India stands sec-
● A significant lead in breeding for white stem borer tolerance has ond by accounting for 8.2% of the global demand. Rubber products
been achieved and S.4595 an interspecific hybrid manifesting field manufacturing industry in the country consumed 10.44 lakh tonnes of

122 | Annual Report 2017-18 | Department of Commerce

NR during 2016-17, a growth of 5% over the previous year (6.6% to September.
growth in auto-tyre manufacturing sector and 1.8% in general rubber
goods sector). NR consumption provisionally estimated for April to Market and Prices Trends: From the end of November 2016,
September 2017 is 527,380 tonnes, an increase of 1.8% from the same rubber prices improved owing to a host of factors like uptrend move-
period a year ago. ment in crude oil prices, improved US economic outlook, supply con-
cerns due to repeated floods in South Thailand, strengthening of the
Import and Export: Import of NR had been consistently increas- US Dollar against China’s Yuan and Japan’s Yen etc. However, inter-
ing from 2008-09 reaching 458,374 tonne in 2015-16. However, in 2016- national and domestic NR prices were at relatively lower levels from
17, import of NR had declined for the first time by 7% to 426,188 April 2017 mainly due to recovery in supply from Thailand, fall in
tonne. During April to September 2017, the country is estimated to have crude oil prices and downward trends in TOCOM and Shanghai fu-
imported a total quantity of 224,793 tonnes of NR, a decline of 10.2% tures. July 2017 witnessed a short lived recovery in domestic rubber
as compared to 250,416 tonnes imported during the same period a year prices but prices retreated towards the end of the month. Thereafter,
ago. India exported 20,920 tonnes of natural rubber during 2016-17. the NR prices in the domestic market remained more or less sideways
A total quantity of 4,175 tonnes was exported April to September 2017, with some degree of volatility. By June 2017, domestic rubber prices
as against 525 tonnes exported during the same period a year ago. went above international prices after remaining below from Novem-
ber 2016. Table 2 shows the monthly average prices of comparable
Table 1 summarizes the trends in key parameters of the Indian grades of RSS (Ribbed Smoked Sheet) in domestic and international
NR sector during the last three years and during the year 2017–18 up markets.

Key Performance of Natural Rubber Sector

Production Consumption
Quantity growth (%) Quantity growth (%) Import Export
(Tonnes) (Tonnes) (Tonnes) (Tonnes)
2014-15 645,000 -16.7 1020,910 4.0 442,130 1,002
2015-16 562,000 -12.9 994,415 -2.6 458,374 865
2016-17 691,000 23.0 1044,075 5.0 426,188 20,920
Apr-Sept 2017 321,000 527,380 224,793 4,175
(provisional)

Table 2: Monthly Average Prices in Domestic and International markets ( /kg)

2016-17 2017-18
Months Domestic price International price Domestic price International price
(RSS-4 at Kottayam) (RSS-3 at Bangkok) (RSS-4 at Kottayam) (RSS-3 at Bangkok)
April 130.62 114.16 143.39 146.25
May 130.76 112.31 130.73 141.65
June 133.75 105.56 122.38 116.27
July 141.77 117.88 133.00 113.15
August 138.50 113.05 130.63 117.75
September 121.42 108.14 134.24 119.77
October 116.92 112.53
November 122.14 126.77
December 133.70 151.05
January 146.66 176.54
February 159.42 184.51
March 150.24 158.89
Average 135.49 131.78

Department of Commerce | Annual Report 2017-18 | 123

 Research: Rubber Research Institute of India (RRII) and its Re- International Cooperation: India was represented in the fol-
gional Research Stations located in various rubber-growing states of lowing inter-governmental events on rubber during April to Septem-
the country has made remarkable progress in the following areas of ber 2017.
research: 1. International Seminar on NR in Roads, 27-28 April 2017,
● Provided testing facility and consultancy/advisory services to Melaka, Malaysia
NR sector. 2. 4th Meeting of ANRPC Expert Group on NR Price Stabilisation
at Hat Yai, Thailand, 23-25 May 2017.
● Task Force on Corynespora leaf disease completed assessment in 3. IRRDB Workshop on Rubber Genomics and Molecular Ge-
the disease prone Kasaragod region in Kerala and South Kan- nomics, Rubber Research Centre of CATAS in Haikou, China,
nada region in Karnataka. It is observed that the disease severity 26-30 September 2017
was less compared to previous year and was more in clone RRII 4. IRRDB Workshop on Rubber Genomics and Molecular Ge-
105 and less in clones RRII 414 & RRII 430. nomics, Rubber Research Centre of CATAS in Haikou, China,
26-30 September 2017
● Analysed the suitability analysis of rubber cultivation in different
LWE states. Out of a total of 285 districts analysed, 29, 75 and New Initiatives:
145 districts could be classified under the <10, <20 and <30%
● Online fertiliser recommendation and Android App (Rub-
favourability respectively, from the minimum climatic factors re-
SIS): This highly useful online fertiliser recommendation system
quired for rubber cultivation.
for rubber growers is available in Rubber Board website and also
● Received 45 lakh funding from Department of Science and as an Android App for use on mobile phones. Hon’ble Minister
Technology (DST), Government of India for the project titled of Commerce & Industry, Smt Nirmala Sitaraman launched
“Quantitative Trait Loci (QTL) Mapping for Analysing Genetic Deter- RubSIS in January 2017 at Delhi. This is the first time such a
minism of Disease Resistance and Development of DNA Marker Based system is developed for rubber anywhere in the world or for any
Selection Tools for Resistance Breeding in Rubber Trees”. crop in India.

● International Clone Museum: Between 2014 and 2016, 44

Central quality control lab and Central wood testing Lab
high yielding disease tolerant hybrid clones from 11 different
(NABL Accredited): Latex, dry rubber, water, effluent and chem-
countries were imported under the multilateral clone exchange
icals were analysed and provided test reports to the clients. Central
programme of the International Rubber Research and Develop-
quality control lab conducted 21 inspections from April to Septem-
ment Board (IRRDB) and a Clone Museum was established at
ber 2017 and cleared 2.09 lakh tonnes of imported NR through
RRII. This was opened by Smt Rita Teaotia, Commerce Secre-
2,040 NOCs. Central wood testing lab provided the Consultancy
tary in March 2017.
services for accreditation of NABL certification.
● Advanced Centre for Molecular Biology and Biotechnology:
Development, Extension and Training: The Rubber Produc- A new laboratory block to house the Advanced Centre for Mo-
tion Department of the Board effectively facilitates transfer of tech- lecular Biology and Biotechnology was inaugurated by Smt Rita
nology at the grassroots level, for which the Board has a well-knit Teaotia, Commerce Secretary to mark the Diamond Jubilee of
extension network comprised of 158 Field Stations functioning at RRII in March 2017.
the village level and monitored by 46 Regional Offices. Activities un-
dertaken included generation and distribution of good quality plant- ● GM Rubber: Permission was granted by Assam Government to
ing materials, technology-transfer by organizing trainings and mass take up field trials with GM rubber in the state.
campaigns, formation of Rubber Producers Societies (RPS) and Self
Help Groups (SHG) of small farmers, maintenance of already raised ● Rubber Board’s Annual Mass Contact Programme for 2017
block plantations benefiting SC/ST communities in association with “Total Plantation Excellence” was conducted focusing on a
the state governments concerned and strengthening of infrastruc- package of cultural practices that can improve profitability of
ture for processing by setting up community processing centres. rubber cultivation by enhancing productivity, reducing cost of
production and improving quality. 811 meetings were organised
Rubber Training Institute (RTI): The Rubber Training Insti- benefitting around 50,000 rubber growers.
tute (RTI) designed and organized various training programmes to
● National Rubber Conference on Rubber Products Manu-
address changing needs of farmers, processors, product manufac-
facturing: A two-day National Rubber Conference was con-
turers, leaders of RPS, students and officials of the Rubber Board.
ducted by Rubber Board in association with Kerala State
RTI organized 136 training programmes benefiting 2,207 partici-
Industrial Development Corporation (KSIDC) on 28 and 29 July
pants during April to September 2017.
2017 at RRII, Kottayam with the theme “Rubber Products Man-
ufacturing: Synergizing Competencies”. The Conference was at-
Labour Welfare Scheme: The Board disbursed a total amount
tended by about 200 delegates from different parts of the
of ` 57.87 lakh to 7,987 beneficiaries under various Labour Welfare
country, representing various sectors of the rubber industry
Schemes implemented during the period April to September 2017.
value chain, including the defence sector.
Cess: Clause (b) of Sub-section (1) of Section 9 and Section ● The Board constituted a Committee on Quality of Smallholder
12 of the Rubber Act relating to cess on rubber were repealed by Sheet Rubber (CQSSR). Three working groups were formed
the Taxation Laws (Amendment) Act, 2017 and hence there is no under the Committee to deal with issues pertaining to quality
cess on rubber with effect from 1st of July, the date of introduction sheet rubber, traceability and branding and skill development.
of GST. The GST rate for NR is 5%. Cess was collected for the
April-June quarter of 2017. The Board has collected an estimated ● The Board obtained the NABL accreditation for Central Wood
amount of ` 86.50 crore towards cess on natural rubber until Sep- Testing Laboratory to continue for the year 2017–18 (up to June
tember 2017 against ` 80.00 crore targeted up to June 2017. In ad- 2018) after successful completion of desktop surveillance audit
dition, an amount of ` 0.17 crore was collected during April to conducted by NABL authorities.
September 2017 towards interest on delayed payments of cess. At
the end of September 2017, there are 3,955 licenced manufacturers, ● The Board conducted GST awareness campaigns for the benefit
7,933 licenced dealers and 107 licenced processors. of stakeholders in rubber sector at Kottayam, Nilambur and

124 | Annual Report 2017-18 | Department of Commerce

 Chadayamangalam during May/June 2017. The Board also or- an all time record in both volume and earnings. During 2016-17, a
ganized a workshop on “GST (Goods and Service Tax) and its total of 9,47,790 tons of spices and spice products valued
implications on RPS sector”. Rs.17664.61 crore (US$2633.30 Million) has been exported from the
country as against 8,43,255 tons valued Rs.16238.23 crore (US$
● Skill Development Programme under PMKVY Scheme: 2482.83 Million) in 2015-16 registering an increase of 12% in vol-
Rubber Board launched Skill Development Project of “Recog- ume, 9% in rupee terms and 6% in dollar terms of value.
nition on Prior Learning” Programme under the Pradhan Mantri
Kaushal Vikas Yojana (PMKVY) scheme to address the skill gap During April-June 2017 a total of 3,06,990 tonnes of spices and
and shortage of skilled manpower through re-skilling/up- spice products valued Rs.4589.14 crores (US$711.20 Million) has
skilling programmes in rubber plantation and industrial sector. been exported from the country as against 2,27,938 tonnes valued
From April to September 2017, 555 batches were trained at var- Rs. 4482.13 crores (US$ 670.17 Million) in April-June 2016 register-
ious Regional Offices (ROs) of the Board in Kerala, Tripura, ing an increase of 35% in volume and 2% in rupee terms and 6%
Tamil Nadu, Karnataka & Assam benefitting 17,483 latex har- in dollar terms of value.
vest/ processing technicians.
Import: India imports spices mainly pepper, turmeric, ginger for
● Mobile App: The Board developed a Mobile App as part of its
the value addition for re-export and spices items such as clove, cassia,
e-governance initiatives with four features.
star anise, poppy seed, etc. for use of domestic consumption due to
i. Alerts: Latest developments such as announcements of pro-
insufficient production in India. The import of spices during 2016-
grammes, schemes, campaigns, labour welfare measures, train-
17 was 203,225 tones valued at Rs.4606.93 crore (US$ 686.78 million).
ings, disease identification and prevention etc.
ii. Market Price: To get the rubber prices in Indian as well as inter-
Cardamom Production: During 2016-17, the estimated produc-
national markets.
tion of Cardamom Small in India is 19,625 MT as against 23,890
iii. Cultural Advisories: Monthly agricultural operation for different
MT during 2015-16 registering a decline of 17.85 % which is mainly
areas in the country.
attributed to the drought/long dry spell coupled with high temper-
iv. Contact details: Location of the nearest offices and facilities
ature prevailed in the cardamom growing areas particularly in Idukki
District of Kerala. During 2016-17, the estimated production of
Convergence Programmes: Efforts were made to formulate
Cardamom Large in India is 5623 MT as against 5315 MT during
and implement convergence projects in association with state gov-
2015-16 registering an increase of 5.79% in production due to im-
ernments. Some of the projects already under implementation are
plementation of development schemes for large cardamom by Board
as follows:
and favourable climatic conditions.
● Intercropping of fruits and vegetables in young rubber planta-
tions and Tappers Bank under Kudumbasree project for women Plan Schemes
empowerment in Kerala. Export Oriented Production: The main objective of this
● Establishment of group processing centres, assistance for inter- scheme is to improve the productivity and production of cardamom
cropping and soil and water conservation programmes under (small & large) and produce quality spices for export. During 2017-
MGNREGS in Odisha. 18 it is envisaged to cover about 520 Ha of Small Cardamom and
1000 Ha of Large Cardamom under replanting scheme.
● Supply of sheeting rollers in Arunachal Pradesh
Export Development & Promotion of spices: To encourage
● Rainwater harvesting on a pilot basis under MGNREGS and higher end value addition in spice processing and scientific facility
short term training programmes under Skill Development Mis- for ensuring quality and food safety, the market development activ-
sion in Tripura. ities of the Board have its focus on technology & process up-grada-
tion. The major thrust areas are infrastructure development,
SPICES BOARD research on new applications of spices & new innovative product
Spices Board was constituted as a statutory body on February, development, promotion of Indian Spice Brand abroad, setting up
1987 under Section (3) of the Spices Board Act, 1986. The Board of Infrastructure for common cleaning, grading, processing, pack-
is responsible for the research, development, marketing of car- ing, storing facilities (Spices Park) in major spice growing/marketing
damom and export promotion of 52 spices as scheduled under the centres, promotion of organic spices/GI spices etc. Special pro-
Spices Board Act, 1986. The functions of the Board include imple- grammes are proposed for North East Entrepreneur’s. The spice
mentation of development programmes for small and large car- industry is facilitated through its Regional offices spread all over
damom, implementation of programmes for export development India.
and promotion, regulation of export of spices and control on quality
of spices for export. The Board is issuing Certificate of Registra- Export Oriented Research: Indian Cardamom Research Insti-
tion as Exporter of Spices (CRES) and issue of Cardamom Dealers tute undertakes research programmes mainly on Crop Improvement,
and Auctioneers Licenses. The Board has been undertaking various Biotechnological interventions, Soil testing based Nutrient Manage-
programmes and projects like support for infrastructure improve- ment studies, Pest and Disease Management, Farm mechanization
ment in spices processing, assisting and encouraging studies and re- feasibility and harvest and post-harvest studies in small and large
search on medicinal properties of spices, development of new cardamoms. During the reporting period, Crop improvement trials
products, improvement of processing, grading and packaging of under All India Co-ordinate Research Project (AICRP -spices) and
spices, setting up of spices parks; striving towards stabilization of Distinct Unique Stability (DUS) programmes were continued. Ten
prices of spices for export and controlling & upgrading quality for accessions of small cardamom were collected and added to the
export (including setting up of Regional Quality Evaluation Labo- germplasm conservatory. Initiated trials to evaluate, nine farmers’
ratories and training centres) for promotion of export of spices and varieties (land races) as well as drought tolerant and thrips tolerant
spice products. lines of small cardamom. Black pepper and Vanilla multiplication
programmes were continued.
Export: Despite stiff global competition, Indian spices exports
have been able to continue its increasing trend during 2016-17 also. As part of biocontrol measures, 1,14,460 numbers of EPN (En-
During the period the period the Spices export from India attained tomo Pathogenic Nematode) were produced and supplied to needy

Department of Commerce | Annual Report 2017-18 | 125

farmers for control of cardamom root grubs. Ongoing project under keting and export of spices in the region. The SDAs will be helpful
the Area Wide Integrated pest Management (AWIPM) to develop in boosting production, development and export of spices by ad-
integrated wilt diseases management in Black pepper for Idukki dis- dressing the State/ Region specific issues related to production,
trict at ICRI Myladumpara funded by Kerala State Planning Board post-harvest operations, quality etc. Actions have been initiated as
in collaboration with Indian Institute of Spices Research, Calicut per the decisions taken in SDA meetings.
was completed. Trials on spraying fungicide Fosetyl –Al 80 WP was
found to reduce the incidence of Phytophthora infections in small car- Saffron Production and Export Development Agency
damom. Bioagents such as Pseudomonas fluorescens (1204 L) and Tri- [SPEDA]: The Govt of India has established Saffron Production
choderma harzianum (626 L) were produced and distributed to farmers. and Export Development Agency [SPEDA] at Srinagar for promot-
Services such as Cfu analysis of organic manure samples (10 no.s) ing co-ordination of research, development, domestic marketing and
received from farmers were carried out. Scientific advice on disease export promotion of saffron in Jammu & Kashmir. Board has ex-
management in small cardamom was extended to 242 farmers who tended financial assistance of Rs.1 lakh to Sher-e-Kashmir Univer-
visited the division seeking advices. Organized nine Spice Clinics sity of Agriculture Sciences and Technology, Kashmir for conduct
and four hands on training programmes on Biocontrol Agent pro- of National Seminar on Saffron Production and Promotion during
duction, in Idukki District during the period. 2017-18.

Research achievements were delivered to farmers/stakeholders GMS [Grant Management System]: The Board is implement-
through Transfer of Technology programmes such as spice clinics, ing Grant Management System [GMS], online software for entering
hands on training programmes, supply of bio control agents, quality applications, inspections reports and payment of subsidy into the
planting materials and weather forecast information. Advisory serv- farmer's bank accounts under various development programmes.
ices on different aspects related to cardamom and other spice crops Aadhar is made mandatory in the software to avail benefit under-
cultivation including disease diagnosis, soil testing services, mass taken by Board's schemes.
multiplication and supply of bio control agents were carried out.
During the period under field advisory services, scientists visited 68 Spices Park: In spices growing regions in India, Spices Parks
plantations and gave spot advisory services to farmers on integrated are developed by the Board to support the farmers for better price
disease management for small cardamom and black pepper. Research realization for their produce. The farmers can utilize the common
programmes of large cardamom were continued at ICRI, RRS, Ta- infrastructure facilities for cleaning, grading and steam sterilization
dong. enhance the quality of the product for fetching higher price. These
parks provide the facilities of scientific packing and warehousing
Quality improvement: The Quality Evaluation Laboratories of and a quality testing laboratory to improve the overall quality of
the Spices Board provide analytical service to the spice industry and spices produced in the locality. The Board had established Spices
control the quality of spices and spice products exported from the Park at Chhindwara and Guna in Madhya Pradesh; Puttadi in Kerala;
country through mandatory testing and certification. During the pe- Jodhpur in Rajasthan; Sivaganga in Tamil Nadu and Guntur in
riod April to September, 2017, the laboratory analyzed 41,990 sam- Andhra Pradesh, Also completed Spice Parks at Kota, in Rajastan
ples for various parameters including Mycotoxins, Pesticide residues, and Rae Bareli in Uttar Pradesh.
Illegal dyes in chillies and chili products etc. During 2016-17,
1,06,811 samples were analysed by the laboratory. Codex Committee on Spices & Culinary Herbs: The Codex
Committee on Spices and Culinary Herbs (CCSCH) was approved
Spices Board is in the process of setting up a centre of excel- at the 36th Session of the Codex Alimentarius Commission held at
lence laboratory for Microbial analysis to implement a comprehen- the FAO Headquarters, Rome during July 2013. The Secretariat of
sive screening for microbial parameters for export consignment of the CCSCH is functioning in Spices Board. After successful conduct
spices. Board’s Labs are installed with rapid and modern analytical of the first Session of the CCSCH held during 11th to 14th February
techniques like RT PCR, VIDAS System, MALDI-TOF system etc. 2014 in Cochin, Kerala, the second session of CCSCH was convened
procured under the ASIDE Scheme allocated in 2015 and all the during 14th to 18th September 2015 at Goa. The third session was
equipments are under standardization. Mandatory inspection for held in Chennai from 6th to 10th February 2017.
the clearance Salmonella contamination on selected spices shall also
be implemented during the financial year 2016-17 to eliminate the e-Spice Bazaar: e-Spice Bazaar, a digital platform initiated by the
detention of consignments at US port due to Salmonella contami- Spices Board in association with Department of Electronics and In-
nation. formation Technology (DeitY), GoI is aimed at the spice traceability
and better price realization to spice farmers. The project is presently
MIDH/RKVY Projects: Spices Board, as National Level focused on Warangal and Khammam districts in Telangana, Guntur
Agency, under Mission for Integrated Development of Horticulture and Prakasam districts in Andhra Pradesh. The project during the
[MIDH], Ministry of Agriculture, has received approval for imple- period 2016-17 covered 52,745 farmer of which 11,138 are turmeric
menting post-harvest improvement of Spices at a total financial as- farmers and 41,607 are chilli farmers. Global location numbers are
sistance of Rs.200 lakh during 2017-18. The Board is also allotted to the farmers. The web portal www.espicebazaar.com is
implementing the programmes for development of spices under now functional.
RKVY in the state of Andhra Pradesh and Telangana.
Revenue Insurance Scheme for Plantation Crops (RISPC)
Spice Development Agencies [SDA]: In order to have synergy Revenue Insurance Scheme for Plantation Crops is an improved
and convergence of activities for development of Spices by different and modified form of Price Stabilization Fund(PSF) scheme im-
State/Central agencies, Government of India has established 11 plemented by the Department of Commerce from 2003 to 2013 for
Spice Development Agencies (SDAs) in major spice growing the growers of plantation crops viz., Tea, Coffee, Rubber, Tobacco
States/Region of the country, viz Haveri in Karnataka, Erode in and Spices in all States. Under the scheme, a Corpus of Rs. 435.55
Tamilnadu, Guntur in Andhra Pradesh, Jodhpur in Rajasthan, Unjha crore (Govt. of India contribution of Rs. 432.88 crores and growers’
in Gujarat, Barabanki in UP, Gangtok in Sikkim Guwahati in Assam, contribution (towards entry fee) of Rs. 2.67 crores was created and
Guna in Madhya Pradesh, Mumbai in Maharashtra and Warangal in kept in the Public Account of Government of India. The scheme
Telangana. SDAs have the mandate to formulate programmes for was implemented with interest earnings on the Corpus Fund. Both
addressing issues related to the production, quality, domestic mar- these schemes were closed on 30.9.2013. Thereafter, a Modified

126 | Annual Report 2017-18 | Department of Commerce

Price Stabilization Fund Scheme was formulated, which was dis- at Mumbai, Bangalore, Hyderabad, Kolkata & Guwahati.
cussed in the meeting held on 4/6/2014 under the chairpersonship
of Secretary (Expenditure). It was decided in the meeting that avail- APEDA has been entrusted with the responsibility of export
able fund in PSF Corpus may be utilized by the Department of promotion and development of 14 agricultural and processed food
Commerce to implement a modified insurance premium subvention products groups listed in the First Schedule of the APEDA Act.
scheme for the small growers of plantation crops. Accordingly, De- Basmati Rice has been included in the Second Schedule of APEDA
partment of Commerce approved and operationalized an Insurance Act. In addition to this, APEDA has been entrusted with the re-
based pilot scheme for small growers of Coffee, Tea, Rubber and sponsibility to monitor the import of sugar as well.
Cardamom having land holding upto 10 hactares to protect them
from the twin risks of weather and prices arising from yield loss due APEDA also functions as the Secretariat of the Certification
to adverse weather parameters, pest attacks etc. and from income Bodies under National Programme for Organic Production (NPOP)
loss caused by fall in international/ domestic prices through crop for Organic exports. `Organic Products’ for export are to be certi-
insurance mechanism to ensure their sustainability. fied only if produced, processed and packed as per the standards
laid down in the document `National Programme for Organic Pro-
RISPC has been approved on pilot basis for implementation in duction (NPOP).’
nine districts of seven State for one crop cycle, which may spread
over two years. Insurance premium subvention under RISPC is ap- APEDA has been actively engaged in the development of mar-
plicable for small growers of Rubber, Tea, Coffee(Robusta & Ara- kets besides upgradation of infrastructure and quality to promote
bica), Tobacco and Cardamom(Small & Large). Large growers can the export of agro products. In its endeavour to promote agro ex-
also participate in the scheme by paying the actuarial premium as port, APEDA under its Plan Scheme titled `Agricultural Export Pro-
they are not eligible for premium subsidy. The pilot scheme is to be motion Scheme of APEDA’ provides financial assistance to the
implemented by Commodity Boards through selected Insurance registered exporters under sub-components of the scheme – Market
Companies mainly engaged in agriculture/rural insurance business. Development, Infrastructure Development and Quality Develop-
The pilot scheme is expected to benefit around 1.82 lakhs small ment.
growers in the selected 9 districts of 7 States viz. Karnataka, Kerala,
Tamil Nadu, Andhra Pradesh, West Bangal, Assam and Sikkim, cov- Agricultural Export Promotion Scheme
ering an area of around 2.15 lakh ha. Outcomes and Deliverables
Despite distinctive advantages in agriculture sector, India’s share
The pilot scheme has been approved with an estimated cost of in global exports of agri and food products is small and has potential
Rs.168.77 crores, to be shared by the Central Government (through for growth. India ranks 9thin agricultural exports and as per the
Commodity Boards), concerned State Governments and growers in WTO, the world exports in agricultural products stood at $ 1,590
the ratio of 75:15:10. Government of India’s share of premium will billion in 2015 and India’s share of this was 2.2 percent and has
be met from funds available in the PSF Corpus vested in the Public shown remarkable increase from 1.52% in 2009 due to consistent
Account of Government of India. After evaluating the outcome of support extended to exporters.
the scheme, decision regarding extension of the scheme to other
plantation districts will be taken. In view of the above, development of a strong supply chain in-
frastructure is critical for the growth of the agro and food sector
AGRICULTURAL AND PROCESSED FOOD PRODUCTS particularly for exports. The second estimate, as per Ministry of
EXPORT DEVELOPMENT AUTHORITY (APEDA) Agriculture for 2016-17 for production of fruits and vegetables in
The Agricultural and Processed Food Products Export Devel- India is about 92.85 million tonnes and 175.20 million tonnes re-
opment Authority (APEDA) was established by the Government of spectively. However, significant quantity of the produce is wasted
India under the Agricultural and Processed Food Products Export due to lack of adequate infrastructure for post-harvest handling,
Development Authority Act passed by the Parliament in December, transportation and storage. Therefore, the efforts for upgradation
1985. The Authority with its headquarters at New Delhi, is headed of post-harvest handling, distribution and marketing facilities, initi-
by Chairman, APEDA has been serving the agri-export community ated in last one decade, need to be continued to preserve the quality
for the last 31 years. In order to reach out to the exporters in dif- of fresh produce which can result in lower wastage levels.
ferent parts of the Country, APEDA has set up 5 Regional Offices

Department of Commerce | Annual Report 2017-18 | 127

 India's Export of APEDA Products Qty In MT; Value in Rs. Crore & US$ Million
Product 2015-16 2016-17 2017-18 (April-July) %Growth in 2016-
17 from 2015-16
Qty Rs. US$ Qty Rs. US$ Qty Rs. US$ Rs. US$
Crore Mill Crore Mill Crore Mill Crore Mill
Basmati Rice 4045796 22718 3478 4000472 21605 3230 1559396 10136 1573 -4.90 -7.12
Buffalo Meat 1314473 26685 4069 1330660 26308 3934 373870 7326 1137 -1.41 -3.33
Non Basmati Rice 6366586 15129 2315 6820773 17145 2564 2419066 6396 992 13.33 10.76
Guargum 325251 3234 497 423286 3132 468 177498 1429 222 -3.16 -5.77
Cereal Preparations 314645 3341 511 340872 3573 534 110578 1143 177 6.92 4.61
Other Processed Fruits 320733 2900 443 351835 3116 466 118840 1066 165 7.44 5.25
& Vegetables
Groundnuts 537888 4046 616 726536 5457 813 126697 968 150 34.87 32.07
Miscellaneous 354905 2593 396 283265 2570 385 95575 895 139 -0.89 -3.00
Preparations
Fresh Onions 1201245 2747 420 2415757 3107 464 635822 767 119 13.07 10.57
Other Fresh Vegetables 699600 2120 324 1002397 2815 421 245300 724 112 32.83 29.91
Alcoholic Beverages 239128 2005 306 231332 2001 299 81200 673 104 -0.22 -2.40
Other Fresh Fruits 308261 1538 234 409939 1859 278 118313 579 90 20.85 18.51
Pulses 251644 1603 244 124884 1140 171 53512 541 84 -28.88 -29.93
Jaggery & Confectionery 292212 1289 197 298076 1472 220 81655 434 67 14.15 11.78
Fresh Grapes 156218 1551 232 232941 2088 314 50070 419 65 34.62 35.35
Sheep/Goat Meat 21636 834 128 22060 871 130 9321 360 56 4.46 1.87
Fresh Mangoes 36329 317 50 53177 446 67 42520 335 52 40.51 35.75
Dried & Preserved 66190 914 139 87280 1089 163 30767 333 52 19.07 16.79
Vegetables
Cocoa Products 32634 1267 193 25700 1090 163 8986 329 51 -13.97 -15.53
Maize 650103 1090 167 569297 1030 154 162533 274 42 -5.47 -8.06
Fruits & Vegetables
Seeds 10926 494 75 11638 527 79 2387 267 41 6.86 4.92
Milled Products 416079 1078 165 256605 818 122 81157 263 41 -24.18 -26.02
Dairy Products 33377 754 115 39398 910 136 11275 261 41 20.72 18.24
Cucumber and Gherkins 202927 999 152 180821 943 141 48691 260 40 -5.65 -7.30
( Prepd. & Presvd)
Natural Honey 38177 706 109 45538 563 84 19168 245 38 -20.21 -22.41
Mango Pulp 128866 796 121 135621 865 129 26522 171 26 8.64 6.60
Wheat 618020 979 152 265909 448 67 99909 167 26 -54.18 -55.58
Floriculture 22519 479 73 22086 549 82 6989 165 26 14.46 12.11
Poultry Products 659304 769 117 449527 532 80 128525 155 24 -30.84 -32.29
Other Cereals 264974 517 80 168642 396 59 36984 97 15 -23.47 -25.59
Casein 5898 216 33 6215 241 36 680 28 4 11.64 8.88
Animal Casings 206 17 3 173 14 2 831 23 4 -18.68 -20.69
Albumin( Eggs & Milk) 1934 150 23 1706 88 13 546 22 3 -41.31 -42.55
Walnuts 3292 118 18 2191 55 8 563 19 3 -53.13 -53.88
Processed Meat 280.92 6.18 0.96 140.90 4.58 0.69 37.40 1.38 0.21 -25.89 -28.13
Other Meat 0.10 0.00 0.00 78.51 0.91 0.14 7.01 0.18 0.03 100.00 100.00
Total 19942257 106002 16196 21336829 108867 16278 6965789 37270 5782 2.70 0.51

Source: DGCIS
128 | Annual Report 2017-18 | Department of Commerce
Export Promotion Initiatives cates after inspection and recommendation of the inspection
● Development and implementation of Farmer Connect Mobile Committee and following the procedure prescribed procedure.
App for farmer registration in HortiNet and BasmatiRice.Net. While 15 certificates were issued after amendments in the Unit
registration as per request of the units.
● Online farmer registration module was developed for traceability
of 11 vegetables. Registration of farmer is expanding upto ● As per DoC, MoC&I Public Notice No 24 2015-2020 dated
Tehsil / Taluk level of each state under Horti Net traceability 29.09.2017, APEDA is added at Serial No.17 of Appendix 2C
system. [Agencies Authorized to issue GSP Certification] and at Serial
No.15 (Delhi) of Appendix 2E [List of Agencies Authorized to
● As per the new DGFT notification No. 28/2015-2020 dated 15- issue Certificate of Origin (Non-Preferential)] of Appendices &
09-2017, a paperless issuance of RCAC for export of Pulses has Aayat Niryat Forms of FTP 2015-20 for issuing GSP certificate
been developed and implemented for the stakeholder. and certificate of Origin (Non-Preferential).

● Participated and represented APEDA in the Indian Delegation ● APEDA is organising the training programmes for the exporters
to 20th Session of Codex Committee on Fresh Fruits and Veg- of processed food products who are exporting or willing to ex-
etables Kampala Uganda 1-6 October 2017. port to USA on Food Safety Preventive Controls Alliance
(FSPCA) Preventive Controls for Human Food (PCHF).
● Participated and represented APEDA in the Indian Delegation
to 11th Session of Codex Committee on Contaminants in Food ● The AQSIQ, China team visited India in September 2016 for
Rio de Janeiro Brazil 3-7 April 17. field verification of 19 units and have subsequently conveyed
approval of 14 rice establishments in November, 2016 for ex-
● Export of Mango to USA has got increased to 1055.062 MT in port of Basmati rice to China. Export of non-Basmati rice to
comparison to 767.38 MT last year. China is expected to be approved after technical discussions be-
tween AQSIQ and NPPO India for amendment of protocol.
● South Korea granted market access for mangoes in June 2016.
During the mango export season 2017, two QIA- inspectors ● APEDA organized 15 field workshops through BEDF in asso-
were stationed at four VHT facilities for on-site clearance pro- ciation with AIREA, KVK and State Agriculture Departments
gramme. The export of mangoes to South Korea was 66MT in to educate farmers and exporters about judicious use of Pesti-
the mango season 2017. A mango promotion programme was cides during 2017-18.
organised in Seoul and Busan in South Korea 25th to 27th May,
2017. ● Inclusion of new product categories of Organic Mushrooms,
Organic Seaweed, Aquatic Plants and Green House Crop Pro-
● Two members Iranian Delegation visited India from 21-28 April duction under NPOP Standards.
2017 to verify the HWT facilities for export of HWT treated
mangoes from India to Iran. During their visit the delegation ● Revision of livestock standards and inclusion of group certifi-
approved five facilities i.e. four from Western and one from cation.
Northern parts of India. (22.79 MT of mangoes were exported
from India to Iran) ● Online module for application and issuance of RCAC for Or-
ganic pulses has been developed and implemented for Stream-
● Market access for export of Grapes to Canada has been has been
lining of RCAC issuance for organic products.
achieved and 14 numbers of containers were exported in the last
grape season.
● Visit of Malaysian Delegation from 13.8.2017 to 24.8.2017 for
inspection and approval of meat processing plants. The delega-
● From Vidharbha region, export of banana G-9 Variety (i.e.
tion visited nine plants in the states of Punjab, Maharashtra,
Cavendish dwarf) was undertaken by sea shipment to Dubai by
Telangana and AP. The report of delegation is awaited. Further,
M/s INI Farms, Mumbai. This was an outcome of the outreach
efforts are being made for inspection of meat plants by the
programme organized by APEDA, Mumbai in Akola region.
Malaysian delegation in the state of UP.
The efforts have been made by APEDA to promote and stabi-
lized the Banana exports from Vidharbha Region on regular
● Visit of delegation from Angola for inspection and approval of
basis.
meat plants from 28th April to 5th May, 2017. The delegation
has approved 8 meat plants.
● Training programmes for litchi growers and stakeholders was or-
ganised through ICAR-NRC on Litchi, Muzaffarpur in the State
International Trade Fairs and Promotion Programmes
of Bihar.
during 2017-18:
● To create and tap markets and enhance the brand image,
● Packaging standards have been developed for following fresh
APEDA designs and delivers various promotional activities for
fruits and vegetable through Indian Institute of packaging
its products. Participation in international trade fairs, commod-
ity-specific promotional campaigns, brand promotion through
● APEDA took initiatives in paperless processing and imple- publicity and organizing exporter importer meets are amongst
mented online issuance of Certificate of Export (CoE) for the few in this respect. Promotional campaigns for Indian Bas-
peanut and peanut products through digital signature. Therefore, mati Rice, Indian Fruits, Indian Beer, Indian Wines, Indian Cur-
APEDA has issued 8696 CoEs during April to September 2017. ries and Indian Snacks have already been launched by APEDA
It is pertinent to mentioned that about 90% CoEs were issued at major trade fairs across the world.
on the same day with the implementation of the paperless pro-
cessing of CoEs.
● The current financial year 2017-18, APEDA had/will participate
in Seven (9) International fairs and Four (3) Generic/Brand pro-
● APEDA also implemented paperless filing, processing and cer- motion program on Indian Food products i.e. Indian Wine de-
tification of Peanut and Peanut Products (PPP) unit registration hydrated products, Ethnic products, pulps and cereal
system. APEDA issued 36 nos. of PPP unit registration certifi-

Department of Commerce | Annual Report 2017-18 | 129

 preparations and rice. ulate the production of Virginia Tobacco to match the demand for
Indian tobacco so as to ensure fair and remunerative prices to the
TOBACCO BOARD growers for their produce. This objective is sought to be achieved
Tobacco Board was established on 01/01/1976 under the pro- by fixing crop size and by registering commercial nurserymen, to-
visions of the Tobacco Board Act, 1975 with its Head Quarters at bacco growers and barn operators every year. The Board decides the
Guntur, Andhra Pradesh. Tobacco Board is headed by a Chairman. crop size of FCV Tobacco, considering various factors like demand
The important functions of the Tobacco Board are : and supply situations in domestic and international markets, mar-
● Regulating the production and curing the Virginia tobacco to ketability of different types of FCV tobacco, carryover stocks, trends
match demand in India and abroad. in cigarette production and consumption.

● Propagating information useful to the growers, dealers and ex- FCV crop production policy
porters (including packers) of Virginia tobacco and manufactur- During 2017-18, Tobacco Board had fixed a crop size of 235
ers of Virginia tobacco products. million kg for cultivation of FCV tobacco in India as against 225
million kg fixed during the last year. Tobacco Board has fixed a crop
● Promoting the grading of tobacco at the level of the growers. size of 99 million kg in Karnataka for 2017-18 crop season as against
95 million kg fixed during 2016-17 crop season. For the State of
● Establishment of auction platforms for the sale of Virginia to- Andhra Pradesh, the Board has fixed a crop size of 136 million kg
bacco and function as auctioneer. as against 130 million kg fixed during the last year.

● Maintenance and improvement of existing markets and devel- Soil Testing Services to Growers
opment of new markets outside India. Tobacco Board every year undertakes analysis of soil and water
samples collected from grower’s fields at free of cost to advise grow-
● Keeping a constant watch on the Virginia tobacco market, both ers on suitability of soil and irrigation water used for tobacco culti-
in India and abroad and ensuring fair and remunerative price vation and quantity of fertilizers to be used for tobacco cultivation.
for the same. During 2017-18 crop season, 2300 soil samples and 625 water sam-
ples in Andhra Pradesh are analysed at Tobacco Board’s Soil Testing
● Purchasing Virginia tobacco from the growers when the same is Laboratory at Ongole and based on the analysis results, growers are
considered necessary or expedient for protecting the interest of advised about suitability of soil and dosage of fertilizers to be used.
growers with the approval of the Government of India. Similarly in Karnataka, about 4,200 soil samples are analyzed and
growers are suitably advised. In addition to the above, 974 soil sam-
FCV Tobacco Production in India: FCV tobacco production in ples in Andhra Pradesh and 180 soil samples in Karnataka are ana-
the last ten years had been fluctuating from year to year. These fluc- lyzed for micro nutrients – Fe, Zn, Mn and Cu during 2017-18 crop
tuations reflect weather impacts on yield as well as market dynamics season.
in terms of price elasticity of supply. FCV tobacco production has
registered a Compound Annual Growth Rate (CAGR) of -2.13% Extension & Development Activities:
during the period 2007-08 to 2016-17. The Tobacco Board provides a comprehensive package of sup-
port and Extension services to farmers through supply of inputs
The production of FCV tobacco in 2017-18 is estimated at at competitive prices by extending subsidy to some extent for im-
239.05 million kg as against 204.07 million kg produced during last proving the productivity and quality of Tobacco, thus helping the
year. The production of FCV tobacco in Karnataka is estimated at farming community. Hence, every year Board implements various
103.05 million kg and that of Andhra Pradesh at 136.00 million kg. Extension and Developmental Schemes with its own funds through
FCV tobacco is cultivated in about 1.37 lakh hectares during 2016- supply of inputs and imparting training to farmers at every crop
17. In 2017-18, the area under FCV tobacco is 0.81 lakh hectares in growth stage.
Karnataka and the plantations in Andhra Pradesh are still in
progress. TOBACCO AUCTIONS
The Auction system for sale of FCV tobacco was introduced for
FCV Tobacco Production Regulation the 1st time in Karnataka in 1984 followed by Andhra Pradesh in
One of the important functions of the Tobacco Board is to reg- 1985.

FCV TOBACCO PRODUCTION IN INDIA (In M.Kgs)

130 | Annual Report 2017-18 | Department of Commerce

 In Andhra Pradesh 2016-17 crop season, a total quantity of Participation in International Fairs / Exhibition
102.46 mkg (million kg) of tobacco was marketed at an average price Tobacco Board is participating in International Tobacco Exhi-
of ₹133.70 per kg between 01/04/2017 to 09/10/2017 (the auction bition “World Tobacco Middle East 2017” scheduled to be held from
sales were concluded on 09/10/2017). In Karnataka 2017-18 crop 5-6 December 2017 at Dubai, UAE with the objective of Brand
season, a total quantity of 11.50 mkg of tobacco was marketed at building and export promotion of Indian tobacco & tobacco prod-
an average price of ₹139.14 per kg between 08/09/2017 & ucts in the international markets.
12/10/2017 (The auction sales were commenced from 08/09/2017).
It is estimated that the total estimated production is 103.05 mkg at DIRECTORATE GENERAL OF COMMERCIAL INTELLI-
the beginning of the season as against the targeted crop size of 99 GENCE AND STATISTICS (DGCI&S)
mkg fixed by the Board. The Directorate General of Commercial Intelligence & Statistics
(DGCIS) is a Subordinate Office of Department of Commerce
Growers Welfare Fund Initiatives: (DoC) under the administrative and financial control of DGFT,
Tobacco Board is undertaking various welfare measures, to DoC. This Directorate, with its office located at Kolkata, is headed
ensure overall welfare of around 89000 Tobacco Growers and by the Director General. It is entrusted with the work of collecting,
their families in the states of Andhra Pradesh, Karnataka, Telan- compiling and disseminating trade statistics and various types of
gana & Odisha by establishing “Tobacco Board’s Growers’ Wel- commercial information required by the policy makers, researchers,
fare Schemes” in 2009-10 with the approval of Department of importers, exporters, traders as well as international organizations.
Commerce, Ministry of Commerce & Industry, Government of It is the first large scale data processing organization in the country
India. with ISO certification for compilation and dissemination of India’s
foreign trade statistics, which has been upgraded to ISO 9001:2015
The Welfare Scheme provides financial assistance, in the form during this year.
of Death Grants and Interest Free Loans, to perform Girl Marriage,
Education of Dependant Children, Treatment for major Illness / Data Receipt in DGCI&S
Accident cases requiring surgery and repairs to barns damaged due DGCI&S receives the basic data in the form of DTRs (Daily
to Natural Calamities / Fire Accidents. Since the inception of the Trade Returns) from different Customs formations and the Special
scheme, Tobacco Board had provided financial relief to 11992 grow- Economic Zones (SEZs) as a part of the administrative data gener-
ers, in terms of Grants and Loans so far. Grants worth Rs.27.14 ated whenever any international merchandise trade takes place. The
crores were sanctioned to 8596 beneficiaries and interest free loans Customs Authority transmits these DTRs in three different modes,
of Rs.6.14 crores were sanctioned to 3396 growers. namely, Electronic Data Interchange (EDI), Non-EDI and Manual.
The EDI data is transmitted on-line daily through Indian Customs
For the financial year 2017-18 as on date, Rs. 4.94 crores were EDI Gateway (ICEGATE). From the remaining Ports the monthly
disbursed in the form of Grants and Rs. 0.94 crores in the form of merchandise trade data is transmitted through e-mail or CD or
Interest Free Loans, totaling to Rs. 5.88 crores. The details of through manually typed/ hand written paper schedules. DTRs from
Grants/Interest Free Loans extended scheme wise to as on date for the SEZs are being received through NSDL on a daily basis. DGCIS
the year 2017-18 are as follows: processes and compiles the raw data received using state-of-the-art
technology.
MARKETING AND EXPORTS
The exports of tobacco and tobacco products during 2016-17 Volume of Data and percentage Contribution by Type of DTR
were 231800 tons valued at Rs.5975.08 crores (891.91 M.US$) as during 2013-14 to 2015-16
against 243418 tons valued at Rs.6058.13 crores (925.33 M.US$) ex- The number of records being processed in DGCIS has been
ported in 2015-16. steadily increasing over the years. From 39.00 lakh records processed
in 2000-01, the number has increased to 186.73 lakh in 2016-17. Till
Exports of tobacco & tobacco products during the period under October 2017, about 115.42 lakh records have already been
report have declined by 5%, 1% and 4& in terms of quantity, value processed. The number of records processed during the last 3 years,
in rupees and in US dollars respectively compared to the exports the distribution of records by type of transactions and by values is
made during the previous year. shown in the following Tables:

Table: 1 Number of Records Processed 2015-16 to 2017-18

Year Export Import Total
2015-16 9740368 8015898 17756266
2016-17 10482527 8190493 18673020
2017-18* 5262231 6279708 11541939
(up to October’17)
* Figures for 2017-18 are provisional

Table: 2 Percentage of Records Processed by type of record

Year Export Import Total
EDI Non-EDI Manual EDI Non-EDI Manual EDI Non-EDI Manual
2015-16 89.99 9.12 0.89 94.05 5.85 0.10 91.83 7.64 0.53
2016-17 90.31 9.13 0.56 94.08 5.88 0.04 91.96 7.71 0.33
Apr-Oct, 2017* 92.78 7.00 0.22 94.60 5.39 0.01 93.61 6.27 0.12
* Figures for 2017-18 are provisional

Department of Commerce | Annual Report 2017-18 | 131

 Table: 3 Percentage Contribution of Different Types of Transactions to the value of trade
Year Export Import Total
EDI Non-EDI Manual EDI Non-EDI Manual EDI Non-EDI Manual
2015-16 76.74 23.10 0.16 80.85 18.91 0.24 79.17 20.62 0.21
2016-17 79.79 20.10 0.11 80.53 19.30 0.17 80.22 19.64 0.14
Apr-Oct, 2017* 83.47 16.49 0.04 86.76 13.16 0.08 85.47 14.47 0.06
* Figures for 2017-18 are provisional

Release of Foreign Trade Data The primary objectives of the Company are:-
DGCI&S has drastically reduced time-lag in all its releases and ● to promote transparency, accountability, competitiveness and ef-
have made the data dissemination process more user-friendly ficiency in procurement by government agencies, that includes
based on the suggestions of stakeholders. The foreign trade data Central & State Government Ministries/Departments, CPSUs,
compiled by the Directorate are disseminated through (i) Monthly SPSUs, Autonomous Institutions, Statutory & Constitutional
Press Release brought out by the Department of Commerce bodies etc.
within fortnight of the following month, (ii) the Principal com-
modity-wise data is now available within a month and (iii) 8-digit ● to development, operate and maintain technology driven e-mar-
item level data within two months. Web based module for on-line ketplace which can be used by government agencies for procure-
data dissemination, viz., Foreign Trade Dissemination Portal ment of various goods and services and disposal of items in a
(FDDP) giving direct access to both the provisional and finalized transparent and efficient manner.
data-set.
Apart from above, the Company also deals with various objec-
Area of new initiatives tives e.g.:
DGCI&S has been declared as the nodal agency for compilation ● Promotion of trade and commerce by providing easily accessi-
of services trade statistics in the country. Statistics on Services Trade ble, transparent, quick and efficient technology enabled plat-
compiled by RBI following the standard classification as stipulated form,
under the IMF’s Balance of Payment Manual does not meet the re-
quirement for disaggregate level Services Trade Data – by partner ● Development maintenance and providing public procurement
country and mode of delivery. related common information technology and communications
infrastructure to all stakeholders,
The Technical Group, headed by Director General, DGCIS con- ● Providing quality research, advice, consultancy and technology
stituted by the Department of Commerce recommended for con- and management related services / support to government agen-
duct of separate surveys at regular intervals to ensure a complete cies
coverage of all the important services categories by partner country
and mode of delivery. In addition to pilot studies, DGCIS has so far ● Assist vendors and service providers to provide their goods and
conducted an all India survey on exports of Health Services with services
2015-16 as the reference period. Report of this survey has been re-
leased in April 2017. DIRECTORATE GENERAL OF ANTI-DUMPING & AL-
LIED DUTIES (DGAD)
Currently, an all-India survey on exports of ICT- enabled serv- The Directorate General of Anti-Dumping & Allied Duties
ices is in progress and expected to release report by the end of was constituted in April, 1998 and is headed by the Designated
March 2018. Surveys on exports of (i) Education Services, (ii) In- Authority of the level of Additional Secretary to the Government
surance services and a repeat survey on (iii) Health Services (refer- of India, who is advised on costing issues by a Principal Adviser
ence period 2016-17) are likely to be launched during (Cost) and one Joint Secretary level officer. In addition, there are
November/December 2017, the report of which is scheduled to be Investigating and Costing Officers with varied experience to con-
released by the end of June 2018. duct various investigations like anti-dumping, anti-subsidy, cir-
cumvention of anti-dumping duty investigations etc. The
GOVERNMENT E-MARKETPLACE (GEM) Directorate is responsible for carrying out investigations and rec-
The Union Cabinet chaired by Hon’ble Prime Minister on 12th ommending, where required, under the Customs Tariff Act, the
April 2017 gave its approval for setting up of a Special Purpose Ve- amount of anti-dumping duty/countervailing duty on the identi-
hicle to be called Government e-Marketplace (GeM SPV) as the Na- fied articles as would be adequate to remove injury to the domestic
tional Public Procurement Portal as Section 8 Company registered industry.
under the Companies Act, 2013, for providing procurement of
goods & services required by Central & State Government organi- During the period from 01.04.2017 to 31.10.2017, DGAD initi-
zations. In view of setting up of GeM SPV, the Cabinet also ap- ated 17 anti-dumping (both fresh and Review) investigations, issued
proved closure of DGS&D by 31.10.2017. The process of winding Preliminary Findings in 3 investigations, and Final Findings in 26
up was initiated and all Regional Offices/Directorates of DGS&D anti-dumping investigations.
across India were closed. The closure of DGS&D was effected on
31.10.2017. The details of anti-dumping investigations for the years 2012-
13 to 2017-18 (up-to October, 2017) are shown in the following
Accordingly, a Company Government e-Marketplace was incor- graphs: -
porated as a 100% Government owned, ‘Not for Profit’ company
on 17th May 2017 under Companies Act, 2013, with its Registered
Office at Jeevan Tara Building, 5-Sansad Marg, New Delhi.

132 | Annual Report 2017-18 | Department of Commerce

 Fresh Anti Dumping Investigations

Review of Anti Dumping Investigations

From 1992 till 31.10.2017, India has initiated anti-dumping investigations into 377 products. The countries prominently figuring in anti-
dumping investigations are China, European Union, Taiwan, Korea, Japan, USA, Singapore, Russia, etc. The major product categories on which
anti-dumping duty has been levied are chemicals and petrochemicals, pharmaceuticals, fibres/yarns, steel and other metals and consumer goods.
The country-wise break-up of 377 products, is as given below: -

Number of investigations initiated by DGAD country wise as on 31.10.2017

Department of Commerce | Annual Report 2017-18 | 133

THE MARINE PRODUCTS EXPORT DEVELOPMENT AU- and increase the varieties.
THORITY (MPEDA) ● Establishing traceability of aquaculture through enrolment of
The Marine Products Export Development Authority, a statutory farms and hatcheries.
body under the Department of Commerce, Ministry of Commerce & ● Extending assistance to set up state-of-the-art infrastructure fa-
Industry, is mandated for the development of export of marine prod- cilities including processing plants and cold chain facilities for
ucts from India. export of value added products.
● Ensuring production of quality seafood by setting up sophisti-
Export performance: There is steady growth of marine and aqua- cated residue control laboratories and operating Enzyme Linked
culture exports from India for the past several years and has touched Immunosorbant Assay (ELISA) labs for antibiotic residue free
all time high standing at USD 5.78 billion in 2016-17. exports, across the country. Pre Harvest Testing and NRCP lab
testing are also computerised.

EXPORT PERFORMANCE ● Implementation of Hazard Analysis Critical Control Points

Export Details 2016-17 2015-16 Growth (HACCP) and assisting industry for HACCP.
● Promoting Indian seafood in major international markets
Quantity in Tons 1134948 945892 19.99 % through co-branding, publicity abroad, participating in Interna-
tional Seafood Shows, organizing international events viz. India
Value in Rs. Crore 37871 30421 24.49 % International Seafood Show (IISS) and Aqua Aquaria India
Value in USD million 5778 4688 23.24 % (AAI) and so on.

Unit Value (USD/kg) 5.09 4.96 2.71 % Steps taken to increase production and exports:
● Extend technical and financial assistance for the development
The provisional export figures for Apr-Sep, 2017: The ex- of aquaculture in all the maritime States of the country for sus-
ports of marine products have shown a growth of 11.00 % in quan- tainable production of seafood.
tity terms, 4.33% in rupee value terms and 8.56 % in USD earnings ● Production of disease free quality SPF L. vannamei Shrimp
compared to the exports effected during the same period last year. seeds for farming through aquatic quarantine facility (AQF) at
However, the unit value realization decreased from 5.80 USD/kg to Chennai and production in a bio-secure condition and supply
5.67 USD/kg, which is about 2.19% less compared to last year. This of brood stock.
decrease is attributed mainly due to the increased supply of seafood, ● Encouraging Aqua Farmers Welfare Societies and adoption of
especially shrimps and fish. There was considerable decline in the Code of Practices for sustainable shrimp culture by extending
unit value of dried and live items also. Frozen shrimp continued to financial assistance for setting up common facilities.
be the principal export item in the export basket accounting for ● Popularizing the technology through field demonstrations and
75.68% of foreign earnings in terms of USD value followed by financial assistance for Crab farming, all male Genetically Im-
frozen fish. Export of frozen fish had shown a growth of 13.40% proved Fish Tilapia culture, Cobia culture, culture of Sea bass,
and dried items export has grown at the rate 42.76%, in value USD High Health Tiger shrimp, etc.
terms. During this period USA continued to be the principal export ● Extending financial assistance for establishment of
market in foreign exchange earnings with a share of 35.46%, and a shrimp/scampi hatcheries, Polymerase Chain Reaction (PCR) di-
growth of 16.78% in US Dollar value. South East Asia, the second agnostic laboratories, establishment of Effluent Treatment Sys-
major market for Indian marine products, had a share of 31.52% in tem (ETS).
terms of foreign exchange earnings with an export growth of ● To check rejections due to detection of antibiotics, MPEDA ac-
25.11% in US Dollar value. European Union (EU), Japan, Middle tively pursuing to institute traceability of aquaculture through
East & China are the other major markets for Indian marine prod- enrolment of farms and hatcheries. A total of 49,186 aqua
ucts. The exports to EU and Japan showed a declining trend as per farms were enrolled covering an area of 1.35 lakh ha. In addi-
the provisional data. tion, 132 shrimp hatcheries were also enrolled and out of that
101 hatcheries are geotagged.
Thrust Areas: To facilitate enhanced export of marine products ● Monitoring hatcheries and collecting the feed samples from pro-
from the country, MPEDA has been giving greater thrust in the fol- duction units for quality analysis for ensuring quality seeds.
lowing areas: - NABL accredited central aquaculture pathological lab (CAPL)
● Diversify the culture practices in to commercially important for diagnosis of emerging pathogens.
Shell fishes and Fin fishes to enhance aquaculture production ● Export promotional steps include organizing AQUA AQUARIA

134 | Annual Report 2017-18 | Department of Commerce

 INDIA an international show focusing the Aquaculture and Or- lakhs seeds under mangrove crab hatchery project, 2.3 lakh pom-
namental Fish sector once in two years, India International pano seeds under marine finfish hatchery project, 300 kg bio-
Seafood Show to attract the foreign buyers, participating exten- mass and 65 kg dry Artemia cyst under Artemia project, 9130
sively along with exporters in domestic as well as International pairs of brood stock under L. vannamei BMC project, quaran-
Trade Fairs, taking delegations along with exporters to new mar- tine of over 1 lakh brood stock and 70000 of PLS of L. van-
kets for exploring trade opportunities, trade interactions, Buyer namei through AQF, supply of 1.28 lakh crablets and 4720
Seller Meets and so on. seabass fingerlings to farmers aquaculture demonstration farm
project and 9.5 lakhs seeds under tilapia project. RGCA through
these projects has generated a revenue of Rs. 1802 lakh in 2015-
16, Rs. 2166 lakh in 2016-17 and Rs. 1245 lakh in 2017-18 (till
25-11-2017). In addition to this, the Domestication of Tiger
Shrimp Project at Andaman & Nicobar Island successfully pro-
duced 22 families of G7 families. RGCA also conducted 17
Technology Transfer training programmes and the Genetic lab-
oratory identified 27 partial gene sequences of various fin fishes
and shell fishes.
● Network of National Centre for Sustainable Aquaculture
(NaCSA), a Society promoted by MPEDA is instrumental in ex-
tension education programmes for culture fisheries, quality up
gradation, capacity building of small scale shrimp farmers, better
management practices, crop Planning, etc and continue to sup-
port sustainable aquaculture.
● The Network for Fish Quality Management and Sustainable
Fishing (NETFISH) is a society under the aegis of MPEDA has
been conducting effective extension training programmes at
● Publicity of Indian produce in international market is top pri- areas in and around selected harbours and landing centers in all
ority for MPEDA. In addition to participation at international maritime states of India, since 2007. NETFISH in instrumental
fora along with exporters, MPEDA also brings out a monthly in capacity building in fish quality management and conservation
magazine, MPEDA Newsletter to disseminate the latest infor- of marine fishery resources at the grass root level by networking
mation covering the entire gamut of seafood industry to the with fishermen societies, federations and other non-governmen-
stakeholders across the country. Through weekly publication tal organizations. NETFISH organizes a variety of programmes
PRIME the indicative prices for all seafood items in different like clean-up programmes, mass communication programmes,
markets are disseminated. Prices of cultured shrimp species like school children programmes, door to door programmes, etc.
Black Tiger, L. vannamei are disseminated to general public via This financial year, focus has been shifted towards conducting
SMS on a missed call from mobile. more livelihood improvement programmes including production
● Providing financial assistance for processing infrastructure under of hygienic dry fish, production of value added fishery products,
Technology & Infrastructural Upgradation Scheme for Marine popularization of square mesh cod ends, GPS handling, sea
Products (TIUSMP), Cold Chain Development (CCD), installa- safety, vocational students training, tuna processing, etc. In total,
tion of insulated fish holds onboard fishing vessels, installation 880 extension training programmes have been conducted by
of Radio Telephone onboard fishing vessels, etc. NETFISH from April to October 2017, reaching around 29500
● Being the Competent Authority, MPEDA validating catch cer- beneficiaries.
tificates for the export of sea caught to the EU market, issue of ● Assisting the processors to construct/renovate the captive/in-
DS 2031 certificates for exports to USA and validation of In- dependent pre-processing centers as per EU/GOI guidelines
ternational Commission for the Conservation of Atlantic Tuna and setting up of mini laboratory in processing centers.
(ICCAT) Swordfish Statistical Documents for export of tuna MPEDA takes up timely investigation and suggestion of correc-
and sword fish to different markets. tive action to the processor on Rapid Alert Notifications by EU,
● Imparting training to stakeholders and to trainers and also in as- import refusals by USFDA, violation of Japanese standards, etc.,
sociation with international bodies for instance, INFOFISH, to prevent recurrence in future. Implements National Residue
Malaysia has organized ‘Trainers training programme on Seafood Control Plan (NRCP) for Aquaculture products through four
Value addition’ at Kochi, Vishakhapatnam and Mumbai. Also Quality Control laboratories located at Kochi, Bhimavaram and
conduct training programme on Seafood HACCP (Basic) and Nellore. The Quality Control lab at Bhubaneswar is set up for
issue of HACCP Compliance Certificates. testing commercial samples. In addition, samples were analyzed
● Ease of Doing Business and removing bottlenecks to Indian Ex- in the 11 ELISA labs established in the states of West Bengal,
ports, MPEDA provides regular inputs on Sanitary and Phyto Orissa, Andhra Pradesh, Tamil Nadu and Gujarat. The Quality
Sanitary/Technical Barriers to Trade notifications and an- Control lab at Kochi is also undertaking a project for Monitoring
tidumping duties in major markets. Inputs also provided on of Pesticide Residues at National Level (MPRNL) and samples
product specific rules, tariff rates relaxation and rules of origin of inland fishes and crustaceans from the maritime states of
under various trade agreements. Making recommendations to India are analysed.
DGFT and MoCI for inclusion of marine HS lines for MEIS ● Functioning of MPEDA is largely shifted to e-platform and dis-
benefits. MPEDA also pursues regularly with country counter- bursal of payments, application for registration, payment of fee
parts or through MoCI on issues of import ban and other bot- and issue of various certificates are made on-line. E-office is
tlenecks or instance, intervention in rejections by National successfully implemented and all activities including financial ac-
Regulator for Compulsory Specifications (NRCS), South Africa. counting, payroll, pension, personnel, GPF, stores, inventory,
● Rajiv Gandhi Centre for Aquaculture (RGCA) spearheads re- etc. are computerised.
search and development for developing new aquaculture tech- ● New initiatives taken up including establishing Self Sufficiency
nologies by innovative methods by implementing several species Project (March, 2017) for stocking Tilapia aiming at quality fish
specific projects. Outputs from various RGCA projects include fingerlings & shrimp seed for the state of Kerala.
supply of 20.03 lakhs seeds under sea bass hatchery Project, 5.6 ● In October, 2017 as a reward to its achievements Bharathidasan

Department of Commerce | Annual Report 2017-18 | 135

 University, Tiruchirapalli, Tamilnadu recognized RGCA as an dents have got more than Rs.75 lakh per annum (LPA) in Interna-
accredited centre for conducting research programmes. tional Placements. The average compensation also maintained an up-
ward trend with Rs.18.41 LPA with highest domestic CTC of Rs. 26
TRADE FACILITATION INSTITUTIONS LPA despite increase in batch strength. In spite of challenges of
INDIAN INSTITUTE OF FOREIGN TRADE (IIFT) black swan events in local and global scenario, 94 companies visited
Indian Institute of Foreign Trade (IIFT) was set up by Govern- IIFT campus for placements. Pre-Placement Offers from Summer
ment of India on 2nd May, 1963 with a focus on foreign trade re- Internships and Corporate Competitions also had an increasing
lated research and training. In 53 years, the Institute has broadened trend with 74 PPOs offered to IIFTians as compared to 64 last year.
the scope and dimensions of its academic activities covering the en- International placements have always been IIFT’s strength as there
tire gamut of international business. Today, the Institute is widely has been a remarkable increase in International placement over the
recognized for its knowledge and resource base, rich heritage and years and with 20 international offers IIFT has proven its strength
for its strong alumni network both in India and abroad. with 33% increase in International placement.

In recognition of its all round achievements, the Institute was IIFI was the fastest B School to complete summer placement
given the status of “Deemed University” in May 2002 by University for the largest ever batch of 288 students of 2016-18 batch. Thirty
Grants Commission(UGC) enabling it to award degrees and start three (33) new recruiters made offers to students. Average stipend
its own doctoral programme. was Rs 1.24 lacs as compared to Rs 1.10 lacs previous year. Sixty
nine percent (69%) of the batch were offered six figure stipend. The
The National Assessment and Accreditation Council (NAAC) TATA group (Tata Steel, Tata Motors, Tata International, TCS)
accredited IIFT with the highest grade ‘A’ with overall CGPA score made a total of 16 offers. Fourteen (14) International roles were of-
of 3.53 in 2015. IIFT is in the process of getting AACSB Accredi- fered. OECD (Paris) and WTO(Geneva) continued to hire exclu-
tation and the iSER has been accepted by AACSB. sively from IIFT. Leading Brands such as Goldman Sachs, GSK CH,
Sun Pharma etc. offered new roles to students like Treasury, Corpo-
The Institute enjoys close and enduring linkages with the Min- rate Finance and Business Strategy. Few of the top brands that re-
istry of Commerce, Government of India and has established ties cruited IIFT students were HUL, ITC, Goldman Sachs, JP Morgan,
with leading Industrial and Trading Houses and Academic Institu- Nestle, Godrej, Colgate Palmolive, Marico, Shell, Dabur, Bain, De-
tions, both in India and abroad. These linkages have helped the In- loitte, J&J Pharma, Google, Amazon, Citibank, Axis Bank and many
stitute to expand its activities relating to training & research and more.
addressing critical issues of international business in a holistic man-
ner. IIFT students bought laurels to the institute by winning 39 na-
tional and international awards. The case study skills competition
The Board of Management is the principal executive body of were organized by leading originations and premier B schools to
the Institute. The BoM consists of 11 members and is headed by showcase the talents of the management students. Few of such pres-
the Director of the Institute. tigious awards won by IIFT students are RBI Policy Challenge or-
ganized by RBI, CFA Research Challenge organized by CFA,
The Secretary, Department of Commerce, Ministry of Com- Mahindra War Room organized by Mahindra Group, Carpe Diem
merce & Industry, Government of India, is the Chairman of the In- Organised by HUL, LOriel Brandstorm organized by LOriel, Yes
stitute. The Director of the Institute is the Principal Executive of Bank Transformation Series organized by Yes bank, Optimus organ-
the Institute and exercises supervision and control over the affairs ized by IIM Bangalore, Finalogue organsied by XLRI, Buizkriti or-
of the Institute. ganized by IIT Kanpur, and many more.

ACADEMICS RESEARCH
The Institute has five academic divisions namely Graduate Stud- The Research Division at IIFT organizes important national and
ies Division (GSD), Research Division, Management Development international conferences on contemporary themes from time to
Programmes Division, International Collaboration and Capacity De- time. The Institute had completed five Research Projects during
velopment Division and International Projects Division and three 2016-17 for State Governments and Corporate Sector.
Centres namely Centre for WTO Studies, Centre for MSME Studies,
and Centre for International Trade in Technology (CITT). Each Di- The Institute organized its Fifth Research Conference on Em-
vision and Centre caters to competence development in a specific pirical Issues in International Trade and Finance (EIITF) during 16-
area and contributes to the overall growth of the Institute. 17 December 2016 at its Kolkata Campus. The Conference received
wide response from the academia and the policy research commu-
The Institute offers a number of programmes comprising two- nity, and a total of 101 papers were submitted by scholars from Uni-
year full time MBA (International Business), two year & six months versities and Research Institutes from India and abroad.
weekend MBA (International Business) Degree Programmes, three
Executive Post Graduate Diploma Programmes, etc. The flagship Ph. D PROGRAMMES
programmes of the Institute – two year MBA (International Busi- The Ph.D. Programme offered by the Institute is very well-ac-
ness) Degree Programme received overwhelming response with claimed. Fifteen candidates have been enrolled for the Ph.D. Pro-
more than 61,967 applicants applying for 350 seats during the year. gramme 2016 on the basis of written exam and viva-cum-interview.
IIFT is one of the few management institutes in India which con- Nine students (09) were awarded Ph.D. Degree at the 51st Annual
ducts a separate and exclusive entrance examination. The other pro- Convocation held on 28 July, 2017. Till date IIFT had awarded 29
grammes have been equally well received both in the corporate and Ph.D. Degrees.
the government sector.
The Management Development Programmes (MDP)- The In-
The main market reflector for any business school is its place- stitute offers regular training programmes in the area of finance, ex-
ment. IIFT has reinforced its standing as one of the elite B-Schools port & trade operations, strategic management, human resources,
of the country by organizing final placements for the largest ever IT & software management, corporate social responsibility (CSR),
batch of 258 students of 2015-17 with an impressive highest com- e-governance, management of special economic zones(SEZs), issues
pensation in excess of Rs. 1 crore per annum for 3 students. Six stu- like dollar-rupee valuation etc. IIFT also conducts programmes for

136 | Annual Report 2017-18 | Department of Commerce

IFS, IPS, IRS and ITS officers. Besides, MDP Division has provided zania with the enrollment of 12 students.
training to ITI principal under the Vocational Training Improvement
Project (VTIP) Scheme. During 2016-17, IIFT conducted 09 on- IIFT launched Post Graduate Diploma Program in International
line programmes on Export Import Business and provided training Trade (PGDIT) for delegates from Cambodia, Laos, Myanmar and
to 353 exporters and entrepreneurs across the country under Niryat Vietnam (CLMV) countries at IIFT, New Delhi on 24 April 2017.
Bandhu Scheme. IIFT also has undertaken 09 open programmes, There are 18 participants from Myanmar, 15 from Vietnam, 9 from
21 sponsored programmes for Government officers executives from Laos and 2 from Cambodia.
PSUs and corporates. In addition, the Institute has also conducted
three long duration online programmes: (i) One-year EPGDIBS IIFT undertook the Study Report on ‘Israel FTA and the nego-
(Online) with NIIT, (ii) One-year EPGDIB-VSAT (Online) with tiation stand for India in the Goods sector’ and submitted the final
Hughes, (iii) One-year PGCPBM with Talent edge (2nd batch), (iv) report to DoC in September 2017.
Four-months CPEIM (with IIFT’s own online platform). A total of
1246 participants benefited from various programmes conducted by MEA has sanctioned Rs. 20 Crores to IIFT for organizing 40
the Institute. Capacity Building Programs in African Countries in the next five
years. The following two EDPs were conducted:-
International Collaborations & Capacity Development (ICCD)
division plays an important role in the Institute through establishing S.No. Country Dates of Partner
academic ties with domestic and international universities/institu- Name the EDP Organization
tions to enable joint training and research programmes. At present,
IIFT has collaborations with 24 Universities / Institutes across the 1 Luanda, 19-22 Agência para a Promoção
world. Of these Universities/Institutes, 13 are in Europe, 5 are in Angola September do Investimento e
Asia and 6 are in other parts of the world. Students and faculty ex- 2017 Exportações de Angola
change is an integral part of the academic cooperation with these (APIEX)
institutions.
2 Cairo, 1-5 Foreign Trade Training
Under Student Exchange Programme, eighteen students came Egypt October 2017 Centre (FTTC)
to IIFT from different Universities and Institutions from France,
Spain, Italy, under Student Exchange Programme during for Aca- LIBRARY
demic Year July 2016 - March 2017. And Under the Student Ex- The Foreign Trade Library is a knowledge bank and a
change Programme, 22 students from Delhi Campus and 14 students resources centre on International Business & Economic
from Kolkata Campus visited the various International universities Environment and is accessible in printed as well as e-form to its
from France, Finland, Germany, Spain, Barcelona, January to March readers for their reference. It continued with its endeavour to add
2017. to its collection of specialized publications, reports, databases, e-
journals, print journals, articles, etc. and get itself updated regu-
The Institute, by obtaining membership of renowned domestic larly. The WTO Resources Centre provides rich information
and international institutions, further consolidated the academic co- exclusively on WTO and related issues. Further, the Library con-
operation. The Division hosts interactive information sessions for tinuously enriches itself with the publications from National and
foreign delegations, academicians and policy-makers from different International Organizations such as United Nations Agencies,
countries who visit the Institute and also facilitates participation of ITC/UNCTAD/WTO, International Monetary Fund, World
faculty in national and international training programmes and con- Bank, Ministers and Departments of Government of India, Ex-
ferences. port Promotion Councils, Commodity Boards and other Trade
Promotion Organizations.
New MoU Signed in 2016-17
The Institute has signed an MoU with Florida International Uni- The Library is enriched with its virtual resources, called the e-brary
versity, USA on 27th October, 2016 for student / faculty exchange which is accessible round the clock These resources are available
& other academic activities. through the licensed databases like ,EBSCO, Proquest, Emerald, Black-
Visitors from International Universities well, CMIE, JSTOR, ISI Emerging Markets, Indiastat, World Trade
● IIFT invited Prof. Farok J. Contractor from Rutgers business Online, IMF databases, OECD online, World Trade Atlas, Sciencedi-
school, USA for guest lecture on 3rd March 2017. rect and many others. The latest development is web OPEC on intranet
● A 15 member delegation from Bradley University, USA visited in which reader can access, download and print e-books, articles, etc.
IIFT on 6th Oct., 2017 to understand about socio-cultural-
economic factors of India. Dr. Rajesh Iyer, Associate Professor PUBLICATIONS
was the Team Leader. In addition to various brochures, prospectus and folders, the In-
stitute continued to publish the following quarter journal/paper se-
INTERNATIONAL PROJECTS DIVISION of the Insti- ries/e-news letter to communicate its views on critical and
tute plays a crucial role in developing capacities in different aspects contemporary issues related to International Trade & Business,
of international business in developing countries through short-term WTO, General Management, Finance, IT, technology and trade etc.:
and long-term programmes like Capacity Building Programmes in
Africa and MBA (IB) in Dar-es Salaam, Tanzania. Simultaneously, 1. Foreign Trade Review
through focused research, the Division analyzes India’s trade and in- 2. Focus WTO
vestment opportunities with developing countries. The Division 3. Working Paper Series
also works closely with different trade bodies on enhancing India’s 4. Tech-n-Trade – e-Newsletter
foreign trade.
Various papers of IIFT faculty were published in
Since the year 2009, the Institute has successfully conducted international/national journals of repute during the year. In addi-
thirty-six Executive Development Programmes on International tion, faculty members also participated in the National and Interna-
Business in Thirty Three African Countries during 2015-16. Batch tional Seminars, apart from contributing chapters in the books and
of MBA (IB) 2017-18 was inaugurated on 10 July 2017 at IFM, Tan- articles in the newspapers.

Department of Commerce | Annual Report 2017-18 | 137

COMPUTER CENTRE provided locally whereas other web services are being facilitated to
The Institute has a well equipped Computer Centre exclusively IIFT Kolkata over NLD line.
for the students for their training and research activities. The Com-
puter Centre for students is open round-the-clock and have access INDIAN INSTITUTE OF PACKAGING (IIP)
to all IT facilities. This facility also houses the provision to conduct The Indian Institute of Packaging is an autonomous body in the
online assessment activities by the faculty. The desktops are fully field of packaging technology which was set up on 14th May, 1966
supported with application software such as Microsoft Lync Com- as a society under the societies registration act, 1860 by the leading
munication, Oracle, VB, Microsoft project, Java, SPSS, E-Views, packaging and allied industries and the Ministry of Commerce & In-
SAS, etc. India Trade & Prowess databases from CMIE are also avail- dustry, Govt. of India. The main objective of this Institute is to pro-
able on the Institute’s network. For its internet requirements, IIFT mote the export market by way of innovative package design and
avails 125 MBPS leased line from two different ISPs on load balanc- development and also to upgrade the packaging standards at Na-
ing mode. IIFT also uses video conferencing facility for placement, tional Level. The head office of the Institute is situated at Mumbai
training, research activities besides connecting IIFT Delhi & Kolkata and its branches are located at Delhi, Kolkata, Chennai, Hyderabad
for internal meetings, etc. The classrooms are adequately equipped and Ahmedabad. The Institute has got an excellent rapport with In-
with LCD projectors and PCs. ternational organizations like World Packaging Organisation (WPO)
and Asian Packaging Federation (APF)
CENTRES OF IIFT
I. Centre for International Trade in Technology: The Centre The main functions of the Institute are Training & Education
for International Trade in Technology (CITT) at the Institute and Research & Development in field of packaging. Under educa-
operates with the objective of actualizing India’s potential in tional activities, the Institute has been conducting different types of
technology trade and addressing some of these institutional short term and long term programs. Till date, more than 10000 per-
complexities. The Centre regularly undertakes research projects sonnel have been trained in the field of packaging through different
in the area of FDI and technology transfer, technology financing programs. The two years PGDP program is being conducted by the
and other related issues. institute for the last 33 years. More than 3500 students have been
qualified and also working in India and abroad in the leading FMCG
II. Centre for Micro, Small and Medium Enterprises (MSME): companies. The laboratories of the Institute are also approved by
Studies aims at providing continuous support to the MSME sec- NABL as per ISO/IEC 17025:2005 and Bureau of Indian Standards.
tor by carrying out activities which can broadly be classified into The laboratories are recognized under the SIROs Schemes of DST
conducting training programmes, provision of business intelli- Govt. of India.
gence services through comprehensive information hub and act-
ing as a catalyst for interfacing with the other concerned and Under Research & Development, the Institute has got three
associated institutions and organisations, both within the coun- wings i.e. testing and certification of packaging materials and pack-
try and abroad. The training programmes are being conducted ages, consultancy and projects and R&D. Under Testing, the Institute
in various areas of international business such as international has got well equipped laboratories at its head office, Mumbai and
marketing, trade operations and logistics, international finance, also at the branches at Delhi, Kolkata, Chennai, Hyderabad &
WTO related issues, documentation and trade facilitation meas- Ahmedabad.
ures, entry level strategies, etc.
The Governing Body of the Institute has got 33 members com-
III. Centre for WTO Studies: The activities undertaken by the prising of 21 members from the industries representing to all sectors
Centre for WTO Studies seek to achieve three broad objectives: of packaging materials, packaging machineries and user industries
(i) to assist India’s trade negotiators and policy-makers in par- and the balance 12 members are nominated by the different Min-
ticipating effectively in the WTO and at the related multilateral istries and Commodity Boards of Govt. of India. The Director is
trade negotiations; (ii) to enhance the understanding of key trade the Head and Principal Executive Officer of the Institute who is the
issues among stakeholders through outreach and dissemination overall in-charge of the organization
activities; and (iii) to develop capacities within India and in other
developing countries for analysing WTO and other trade-related EXPORT PROMOTION MEASURES
issues through training programmes. The Institute is acting as a facilitator for the exporters by way
of issuing the test reports for the quality of packages for dangerous
IIFT CAMPUS KOLKATA goods for export and also issuing UN certificate. Besides, the Insti-
IIFT started its Kolkata Campus in 2006 in a rented accommo- tute is also involved to the export promotion of commodity goods
dation. With the financial help from the Ministry of Commerce, by way of formulating the technical specifications of packaging ma-
Government of India, the new Campus has been built in Kolkata terials and packages for the export of commodity goods. In addi-
and the academic session 2015-16 commenced from the new cam- tion, the Institute do also organizes a series of training programs on
pus. Apart from the two year MBA full-time and six months week- “Packaging for Export” across the country for MSME sectors which
end programmes, Kolkata Campus offers various Executive are being sponsored by the Ministry of MSME, Govt. of India. Sim-
programmes and undertakes research projects. ilarly the Institute do also organizes specialized training programs
on “Export Packaging of Handicraft Items” duly sponsored by Di-
The library at Kolkata Campus is gradually growing with re- rectorate of Handloom and Handicrafts, Ministry of Textiles, Govt
sources of traditional type as well as electronic and virtual informa- of India.
tion. It includes above 3500 books and CDs and more than 70
national and international printed journals in the field of manage- New Initiative for Packaging Growth
ment and its related facets. The collection is fully automated with In the recent days, the DOC, MOCI, Govt. of India has reviewed
the facility of Online Public Access Catalogue and the bar-coded the functions of the Institute and also constituted a Standing Advi-
circulation system sory Committee (SAC) with the heads of 21 export promotion coun-
cils, 7 commodity boards and the 7 reputed National Institutions
Computer lab at IIFT Kolkata is well equipped with computers under the Chairmanship of Addl. Secretary, DOC, MOCI, Govt. of
for student access. WiFi services are also made available to the stu- India to utilize the available expertise of the Institute. The institute
dents in the campus. Libsys, Prowess, India Trades etc. services are has been advised to emphasize its activities in three major areas i.e.

138 | Annual Report 2017-18 | Department of Commerce

Export Promotion by way of formulating packaging standards for counterparts, by fulfilling the demand of skilled man power with its
exportable commodity goods, up-gradation of packaging education specific curriculum, state of the art laboratories, world class infra-
by way of introducing B.Tech and M.Tech programme in packaging structure and experienced faculty.
technology and management. The SAC has also advised the Institute
to formulate the packaging standards for 500 exportable commodities The Institute, having the status of ‘Institute of National Impor-
over the period of next 10 years i.e 50 products in each year. tance’ (as per FDDI Act 2017) is located at different parts of the coun-
try with well-designed campuses at Noida, Fursatganj, Chennai, Kolkata,
WELFARE OF SCS/STS/OBCS, WOMEN AND PERSONS Rohtak, Chhindwara, Guna, Jodhpur, Ankleshwar, Banur, Patna and Hy-
WITH DISABILITIES derabad and is providing trained manpower to the industry.
The Institute has 18 number of woman employees as against 65
number of men employees. The Institute has conducted exclusive The Institute is well acclaimed globally and conducts the follow-
recruitment drive for recruitment of SR, SC, OBC and PWD for dif- ing long-term programmes:
ferent vacant posts. The institute is also following up the reservation
policy for the admission into Post Graduate Diploma in Packaging S. No. Bachelor Degree Master Degree
(PGDP) for ST/ST/OBC candidates and persons with disabilities. Programmes Programmes
(Duration 4 Years) (Duration 2 Years)
NATIONAL CENTRE FOR TRADE INFORMATION
(NCTI) 1 Footwear Design & Footwear Design &
The National Centre for Trade Information (NCTI) was incor- Production Production
porated on 31st March, 1995 as a Company under Section 25 of
2 Retail & Fashion Retail & Fashion
Companies Act, 1956. The Company started functioning w.e.f.
March, 1996. It has a Board of Directors for administration of its Merchandise Merchandise
affairs, which includes representatives from Ministry of Commerce 3 Leather Goods and Creative Design
& Industry, National Informatics Centre (NIC), Indian Institute of Accessories Design CAD/CAM
Foreign trade (IIFT), and Directorate General of Commercial Intel-
ligence & Statistics (DGCI&S). Other representatives are from India 4 Fashion Design
Trade Promotion Organisation (ITPO) and other Export Promotion
Councils / Apex Bodies. ITPO and NIC are co-promoters of the FDDI, Noida has prestigious certifications such as ISO 9001, ISO
Company and have contributed a sum of Rs.4 crore (Rs.2 crore each) 14000 and ISO 17025 (For International Testing Centre) and accredita-
as Corpus Fund in the equity contribution of the Company. tion from a leading international organization like SATRA- UK. Besides
this, from time to time the Institute has entered into academic alliances
Major Activities carried out since inception: with top management and Fashion Design institutes such as LDT
● Trade data based research and analysis – 2/4/6/8/ digit HS clas-
Nagold, Germany, ARSutoria, Italy, Thomas Bata University (TBU),
sification-India/Target Country – 9/10 digit level Czech Republic and Northampton University, UK which ensures an
● Focus Market: Focus Product – Export potential studies
international level of training in the campus and extends the scope of
● Drawing/evaluating wish lists/offer lists under various
Student / Faculty exchange programme in order to equip them to meet
PTA/FTAs of India (existing and prospective) Trade Data the challenges of globalization.
Analysis support to Department of Commerce
● India-ASEAN FTA
The Institute has remarkable global recognition in the area of
● Identification of Tariff lines with high export potential to East-
Training & Consultancy due to its relevance to the dynamic workplace
ern and Central European Countries environment, unique & innovative content and delivery mechanism
● “India-Canada FTA – Analysis of trade data and Identification
and high acceptance in the industry / academia worldwide. It has
of Potential items for India’s wish list Web & Database Support crossed the national boundaries and created a niche for itself in the
to ITPO area of training and consultancy in Asian countries like Bangladesh,
● Development of Online Ticket Booking System for various fairs.
Sri Lanka and many African countries like Ethiopia, Botswana, Nigeria,
● Development and maintenance of Virtual Trade Portal
South Africa, etc.
● Development of all Fair Specific Websites Corporate, RTI web-
sites of ITPO The Institute has an impeccable track record of almost 100% place-
ment for all its pass outs in major Multinational and Indian companies.
● Creation of Sector Specific Database & Participants Feedback
FDDI alumni include VPs and CEOs of some of the renowned com-
Survey for ITPO
panies. FDDI students have been placed globally in countries like USA,
● Collection and compilation of Sector Specific Database and Par-
UK, Germany, Hong Kong, Egypt, China, Singapore, UK, Middle East,
ticipants Feedback Survey for various fairs organized by ITPO.
Sri Lanka, South Africa, etc.
● The promoters have now decided to wind up the organisation
in the year 2017-18.
Major activities/ events undertaken during the year:
Footwear Design & Development Institute (FDDI) has been de-
FOOTWEAR DESIGN & DEVELOPMENT INSTITUTE
clared an ‘Institute of National Importance’ under Ministry of Com-
(FDDI)
merce & Industry. The FDDI bill was passed by the Parliament in July
Footwear Design and Development Institute (FDDI) was set-
2017. The Provisions of FDDI Act 2017 have come into force from
up by the Ministry of Commerce and Industry, Government of
16.10.2017, according to the Notification published in The Gazette of
India in the year 1986 for the development and promotion of
India on 05.10.2017. This brings FDDI in the league of the premier
Footwear and Allied Product Industries.
institutions of the country.
FDDI is a premier Institute, serving as a ‘One stop solutions
Students Placement:
provider’ in footwear, leather and allied industry. Since its inception
The placement of 2016-17 batch saw a number of multinationals
in 1986, FDDI has been playing a pivotal role in facilitating Indian
and corporates vying to pick up talent from FDDI. A centralized drive
industry by bridging skill gaps in the areas of footwear, leather, fash-
for placements was held at Noida campus from March, 2017.
ion, retail and management. FDDI has been functioning as an inter-
face between the untapped talent and industry and its global
Companies of repute like Bata, Sketchers, Reliance Brands, Land-

Department of Commerce | Annual Report 2017-18 | 139

mark, Madura Aditya Birla, Armani, Genesis Luxury group, AVT, VKC, promotion agency of India, provides a broad spectrum of services to
Superhouse, Future Group, Pidilite, Khadims, Reliance Footprints, trade and industry and acts as a catalyst for growth of India’s trade.
Arvind Brands, Nike etc. were the major recruiters of this year. ITPO is a section 8 Company and its main corporate objectives are:
● To promote external and domestic trade of India in a cost effective
Placement Linked Skill Development Programme: manner by organizing and participating in international trade fairs
Under the Placement Linked Skill Development Programme in India and abroad; organizing buyer-seller meets and contact pro-
(PLSDP), FDDI set a record of training more than 5.35 lakhs unem- motion programmes abroad; exchanging and coordinating visits of
ployed youth from economically weaker sections from January, 2009 to business delegations, and undertake need based research to facilitate
March, 2017. Out of these trainees, 4,30,928 (80.50%) have also been trade in specific sectors/markets;
placed at various footwear companies for the first time. ● To support and assist small and medium enterprises to access mar-
kets both in India and abroad;
During the period from April, 2016 to March, 2017, FDDI has ● To disseminate trade information and facilitate E-commerce/trade;
trained 1,45,164 trainees and out of them 1,16,772 have been placed in ● To facilitate promotion of Trade in goods and services connected
different footwear companies through its training centres/ Sub-centres with or relating to fairs, exhibitions, conventions in India and
located in various parts of the country including main OTCs at Agra, abroad;
Chandigarh, Delhi/NCR, Kanpur, Kolkata and Ranipet. ● To develop quality physical infrastructure, services and management
so as to enable holding of trade promotion events such as conven-
Integrated Development of Leather Sector (IDLS) Sub-scheme : tions and trade exhibitions of international standard; and
To implement the Integrated Development of Leather Sector ● To enlist the involvement and support of the State Governments,
(IDLS) Scheme of Department of Industrial Policy & Promotion other government trade promotion agencies, trade and industry as-
(DIPP), Government of India, a Project Implementation Unit (PIU) sociations in promotion of India’s external and domestic trade.
has been set up at FDDI, Noida.
With its Headquarters at Pragati Maidan, New Delhi and regional
FDDI is the implementing agency for modernization and technology offices at Chennai, Kolkata and Mumbai, ITPO ensures representative
upgradation of leather goods and garments, saddlery, leather footwear participation of trade and industry from different regions of the country
and footwear components units under the IDLS Scheme since the com- in its events in India and abroad.
mencement of the scheme. During 12th Five year plan, FDDI has also
been entrusted with disbursal of sanctioned grant under IDLS scheme. During the year 2017-18, the following significant initiatives have
been undertaken for improving and augmenting the infrastructure ca-
As on March, 31, 2017, FDDI has processed 769 applications from pacity and service delivery of ITPO:
different units in different States since 01 April, 2012. The total invest-
ment from these units under IDLS scheme is approximate Rs.870.56 E-Enablement/Customer Friendly Measures
crores and the grant amount eligible is approximate Rs.207.65 Crores. ● Online space booking system in ITPO’s domestic events
Out of these 769 applications, 507 applications were approved. As a ● Online booking of tickets implemented for IITF and New Delhi
nodal agency for disbursal, FDDI has disbursed IDLS grant to 310 units World Book Fair
across the country since 2014. ● E-procurement from GEMS/e-tendering introduced
● E-payment/E-refund functional
INDIAN DIAMOND INSTITUTE (IDI) ● Wi-Fi facility in all AC Exhibition Halls
Indian Diamond Institute (IDI) was established in 1978 under Society ● Mobile Apps introduced in ITPO’s domestic fairs
Registration Act, 1860 and also under the Bombay Public Trust Act, 1950, ● Seven new telecom towers installed for better network connectivity
with a focus to provide a vocational education in the field of Diamond, ● Comprehensive Mobile App of ITPO is in final stages
Gems & Jewellery. IDI is sponsored by Ministry of Commerce & Indus- ● Implementation of ‘Help Desk’ during third party events.
try, Government of India & is a project of The Gem & Jewellery Export ● 50 % discount in ITPO events for start-ups.
Promotion Council. IDI conducts vocational educational level pro- ● Regular interaction with participants/ organizers.
grammes in the areas of Diamond Manufacturing, Diamond Grading, ● Online space booking for third party events is underway.
Jewellery Designing & Jewellery Manufacturing, Gemmology thereby cov-
ering entire spectrum of Gems & Jewellery education under one roof. In- REDEVELOPMENT PLAN FOR PRAGATI MAIDAN
stitute, as a knowledge provider to the re-skilling programmes launched To firmly place ITPO in the global MICE Industry, ITPO is in the
by the GJEPC, upgrade/impart the skill to 315 small/medium process of establishing a world class iconic Integrated Exhibition-cum-
diamond/jewellers manufacturers in interior parts of Gujarat. IDI is also Convention Centre (IECC) at Pragati Maidan, New Delhi. The new
recognized as an Anchor Institute-Gems & Jewellery by Industries Com- Complex will be a symbol of “New India” envisioned by the Hon.
missionerate, Government of Gujarat. Prime Minister and in sync with India aspiring to be a global power.

The Institute’s Gemological Laboratory is engaged in testing & The proposed centre will have world class convention facilities be-
identification of Diamonds, Gem Stones & Jewellery, and issuing a Di- fitting India’s economic, political and strategic importance in the comity
amond Grading, Gem Stone Identification & Jewellery Quality report. of nations. The proposed infrastructure aims to fill gaps in requirements
The Institute’s Diamond Grading Laboratory is authorized by the for MICE (Meetings, Incentives, Conferences, Events) sector in NCR.
DGFT, MoC&I, as per Chapter 4 of the FTP 2015-2020 for certifica- It is expected to contribute to foreign exchange earnings of the country
tion /grading of Diamonds of 0.10 Ct & above. IDI also operates Di- and revenues of the services & business sector of Delhi.
amond Detection & Resource Centre (DDRC) at its Katargam campus
to provide diamond screening services to small / medium diamond The project proposal includes the development of 3,82,188 sqm of
manufacturer/ diamond traders/Jewellers at affordable rates. IDI also total built up area including 1,51,687 sq. mtr. of exhibition area in Phase-
conducts various workshops/seminars on “Synthetic Diamond Identi- I. The Convention Centre will be a state of the art landmark structure
fication” to spread awareness in diamond trade on the subject. on par with the best in the world and will have a 7000 pax seating facility
in single format (with a plenary hall of 3000 pax capacity and functional
PUBLIC SECTOR CORPORATIONS hall of 4000 pax) alongwith various appurtenant facilities like meeting
INDIA TRADE PROMOTION ORGANISATION (ITPO) halls, lounges, services and underground parking space for about 4800
India Trade Promotion Organisation (ITPO) is the premier trade passenger car units (PCU). To improve access to the Complex and de-

140 | Annual Report 2017-18 | Department of Commerce

congest traffic in and around Pragati Maidan, comprehensive traffic in- held during August 26 – September 3, 2017. Both the events were
terventions have also been approved as integral to IECC project. All organized successfully in a net area of around 3711 sq. mtrs. 167
the clearances/approvals for both IECC project and traffic interven- nos. of companies had participated in the nine day events and the
tions have been obtained in a record time. shows witnessed a footfall of around Two Lakh visitors.

The Cabinet Committee on Economic Affairs (CCEA) approved FAIRS ABROAD

in January, 2017 the IECC project at an estimated cost of Rs.2,254 crore. India Trade Promotion Organisation (ITPO) during the year
The revised cost estimate of Rs.2596.25 crore has been approved by 2017-18, proposed India’s national level participation in 29 overseas
DoC. ITPO will utilise Rs.1,200 crore out of its free reserves towards trade shows including exclusive India Shows and making its presence
funding of the project and will raise institutional loan and /or land mon- globally.
etization for hotel for the balance amount of the project cost. The Na-
tional Buildings Construction Corporation Ltd. (NBCC) is working as During the course of the year between the period April 2017 to
a Project Management Consultant for the project. On the basis of September 2017; ITPO has successfully organised participation in
Global bidding, the IECC project stands awarded to Shapoorji Pallonji 16 overseas events with 2 mini India Shows i.e IHF & IGF in Osaka
at a cost of Rs.2149.93 crore. The work for the traffic decongestion in- (Japan) and one EXPO 2017, Astana (Kazakhstan) from June10-30
terventions in and around Pragati Maidan Complex has been awarded September 2017.
to L&T at a cost of Rs. 777 crore.
India Pavilion at Astana (Kazakhstan), June 10-September 10,
The IECC Project and the work on traffic interventions are to be 2017 was inaugurated on 10th June, 2017 jointly by CMD, ITPO
completed within 24 months by August, 2019. and Ambassador of India to Kazakhstan. The theme of the EXPO
was “Future Energy” emphasizing new and renewable energy solu-
FINANCIAL HIGHLIGHTS tions such as solar energy, wind energy, hydro energy and safe nu-
During the year 2016-17, ITPO had earned a record Revenue from clear energy. The Future of the energy had led the visitors to
Operations of Rs. 263.14 crore which is the highest during the last five “Energy in Life” corridor. The corridor, designed with Indian his-
years. The total income generated by ITPO during the year was Rs. torical architecture, had presented new energy ideas through tech-
388.97 crore against Rs. 375.56 crore (Recast as per Ind-AS) of the pre- nology and smart India with experience of smart cities, smart
vious year. The outstanding performance by the company is reflected transfer, tourism, yoga, ayurveda and culture. The India Pavilion
by all time high total Income i.e. Rs.388.97 crore which is the highest was amongst the top five most visited pavilions. Although, the pop-
ever total income generated by ITPO since its inception. ITPO had ulation of Astana is only 1 million approximately, there was a foot-
earned a surplus of Rs. 168.99 crore, Net after considering ‘Other com- fall of 10,000-12,000 visitors on an average per day to the Indian
prehensive Income’, compared to Rs. 164.13 crore (Recast as per Ind- Pavilion. The most interesting parts of the pavilion were the models
AS) in the preceding year. ITPO has received “NIL” Comments from designed and displayed by the Department of Science and Technol-
Comptroller and Auditor General of India (CAG) on the Annual Ac- ogy, Ministry of New and Renewable Energy and The Energy Re-
counts for the year 2016-17. sources Institute India. The models showcased native technology
with strong forms of Science and technology. A delegation led by
The cumulative financial figures (Income) in respect of Fairs in hon’ble Minister of Green Energy, Government of Malaysia had
India, Fairs in Abroad, and 3rd Party Fairs, up to September, 2017, are also visited the India Pavilion. A large number of visitors were com-
as under: ing to the show. Business delegations from Oman Electricity Com-
pany, Surinam, Russia, UAE had also visited the pavilion and had
(Rs. in lakh) recorded their appreciation. A delegation of TERI scientists had
made impressive presentations in conference on the theme of the
Fairs in India Rs. 1150.52 Expo. A 10 member Rajasthani cultural troupe of ICCR, Delhi had
Fairs Abroad Rs. 2270.07 performed at the cultural stage of Indian Pavilion from June 24-30,
2017. The events and activities in the India Pavilion at Astana were
3rd Party Fairs Rs. 3582.87 uploaded on various social networking platforms. The celebration
Total Rs. 7003.46 of National Day was organized by the Embassy of India, Astana
and ITPO, on 15th August 2017 in semi-open theatre called “Na-
FAIRS IN INDIA tional Day Stage (NDS)” in the Expo Ground. India Pavilion was
India Trade Promotion Organisation (ITPO) organized number awarded the Bronze Award in “Theme Development Category” by
of specialized events during the period from 01.04.2017 to an eminent International Jury among the 115 participating nations
30.09.2017. and 28 International Corporations.

India International Footwear Fair, Delhi REGIONAL TRADE CENTRES

The 3rd edition of India International Footwear Fair (IIFF) was ITPO has provided assistance to State Governments in setting
organized by ITPO from 04-06 August, 2017. The fair was inaugu- up Regional Trade Promotion Centres (RTPCs) for creating Export
rated by Shri Santosh Gangwar, Hon’ble Minister of State for Fi- Infrastructure in State capital/major cities.
nance, Govt. of India. IIFF’ Delhi 2017 covered an area of 5800 1. Tamilnadu Trade Promotion Organistion (TNTPO) at Chennai.
sq.mtr. There were 240 exhibitors including 100 from overseas (from For expansion plan of TNTPO, the TNTPO Board has ap-
China, Italy and Taiwan). About 10,000 business visitors visited the proved the construction of a multi-purpose (Exhibition/Con-
fair, out of which 68 were overseas business visitors from 16 coun- vention) hall with an area of 15,708 sq. mtrs. After the
tries. These visitors were from Bangladesh, China, Colombia, expansion, there will be 2 halls for conventions and 4 halls for
Ethiopia, Kenya, Kuwait, Libya, Nepal, Nigeria, Qatar, Spain, Sri exhibitions in the total area of 31,063 Sq. mtrs. The estimated
Lanka, Tanzania, Uganda, UK and USA. cost is Rs. 289 crore.

Delhi Book Fair and the Stationery, Office Automation & Cor- 2. Karnataka Trade Promotion Organisation (KTPO) at Bangaluru.
porate Gift Fair, Delhi For expansion Plan of KTPO, the KTPO Board has approved
The 23rd Delhi Book Fair, 19th Stationery Fair, 3rd Office Au- the construction of a multi-purpose (convention/exhibition)
tomation Fair and 3rd Corporate Gift Fair 2017 were the twin events hall with an area of 5000 sq. mtrs. After the expansion, there

Department of Commerce | Annual Report 2017-18 | 141

 will be 2 halls for conventions and 2 halls for exhibitions in the Besides acting as canalizing agency for Iron Ore, Manganese
total area of 11,871 Sq. Mtrs. The estimated cost is Rs.40 crore. Ore, Chrome Ore/Concentrate & Import of Urea, MMTC func-
tions as one of the Nominated Agency for Import of Gold & Sil-
3. Kerala Industrial Infrastructure Development Corporation ver, sale of Sovereign India Gold Coin, Import of Pulses, trading
(KINFRA) has proposed for setting up an Exhibition Centre at in other commodities like Agro Products, Fertilizers, Coal, Steel,
Kakkanad near Kochi in collaboration with ITPO. The esti- Non-ferrous metals, Pig Iron etc. and investment in trade related
mated cost of the first phase of the project is Rs.159.90 crore. JVs like NINL, MMTC PAMP, FTWZ etc.
The Board of ITPO has already approved the Capital Contribu-
tion of Rs.30 crore (Rs. 15 crore from owned funds & Rs. 15 MMTC has grown over the years to become one of the largest
crore from TIES grant) towards the project. trading organizations in India following the mantra of strategic di-
versification for progress, exploiting opportunities to expand base
4. Jammu & Kashmir: Jammu & Kashmir Small Scale Industries and open up new business prospects. It endeavors constantly to ex-
Development Corporation Ltd. (SICOP), a J&K Government plore emerging opportunities by synergizing and blending them
Undertaking, has sent a proposal for setting up an International with its own core competencies, thereby creating new epicenters of
Trade Centre (ITC) in Pampore (J&K) in collaboration with growth and expanding its role as a trade organizer and facilitator.
ITPO and EPCH under TIES Scheme. The initiative for this The company has participated in various value-multiplier initiatives
project is taken by SICOP in association with Ministry of Com- by investing in trade related infrastructure projects to enhance its
merce & Industry, Govt. of India through ITPO. The project future sustainability through the JVs and PPP route. It has invested
is proposed to be implemented by JKTPO through equity to be in 1.1 million ton steel plant in JV with Govt. of Orissa, a world
held by Government of J&K, ITPO & EPCH with financial class gold / silver refinery, setting up free trade warehousing zone
support from Government of India. The Cost of Project is (FTWZ) at Kandla etc.
Rs.47.92 crore. The International Trade Centre will be floated
by SICOP through its joint promoters ITPO & EPCH with a Subsidiary Company
Capital Contribution of Rs.5.00 crore to be contributed under MMTC Transnational Pte Ltd., Singapore (MTPL) is a wholly
the proportion as 51% from SICOP, 44% from ITPO and 5% owned subsidiary company of MMTC and was incorporated in Oc-
from EPCH. tober 1994 under the laws of Singapore with a share Capital of
USD 1 million.Since inception, the company has been engaged in
ADMINISTRATION & HRD commodity trading and has established itself as a credible and rep-
During the period upto September, 2017, 07 officials were ap- utable trading company in Singapore.
pointed and 41 officials were granted personal up-gradation under
Incentivized Assured Career Progression Scheme (IACPS). Guide- New Initiatives:
lines on reservation were compiled with ITPO. Liaison Officers a) Make in India
have been nominated to look after the interest of SCs/STs & OBC. In line with Govt. of India’s initiative of Make in India, follow-
The provisions contained in Persons with Disabilities (Equal Op- ing initiatives were taken by MMTC.
portunities, Protection of Rights and Full Participation) Act 1995 ● Launch of India’s first Sovereign Gold Coin - India Gold Coin
regarding reservation in posts/services for disabled person were (IGC) in November, 2015. MMTC has undertaken marketing of
also complied. IGC unveiled by the Hon’ble Prime Minister of India. The coins
are minted in 5 gms, 10gms and bars in 20 gms denomination at
There has been no complaint under Sexual Harassment of India Govt. Mint, Mumbai and Kolkata. Total turnover of IGC
Women at Workplace (Prevention, Prohibition and Redressal) Act, sales achieved during 2016-17 was Rs. 129.10 crore. MMTC has
2013. tied up with 7 Banks to sell IGC through its 400 branches to
make easy availability of the coins across India. Efforts are on
Reservation Policy of Government of India to further expand distribution network for sale of Indian Gold
Government of India guidelines, issued from time to time, Coin.
were followed on reservation in appointment/promotion in respect ● The joint venture for gold / silver refining and medallion man-
of SC/ST/OBC. Birthday of Dr. B.R. Ambedkar was also cele- ufacturing unit in collaboration with PAMP Switzerland in the
brated on 17th April, 2017 and floral tributes were offered. name of MMTC-PAMP India Pvt. Ltd. achieved a turnover of
Rs. 24,390crore and profit after tax of Rs. 14.93 crore for the
Corporate Social Responsibility year 2016-17. MMTC-PAMP became India’s first LBMA ac-
As a committed socially responsible organisation, under the credited refiner for Gold and silver. During 2016-17, MMTC
CSR Initiative for the year 2017-18, ITPO is looking forward to sold Gold Bars produced by MPIPL in the domestic market
continuing its efforts towards promotion of Sanitation. The CSR achieving a turnover of Rs.792Crore.
Committee has recommended contribution towards “Swachh ● After lot of persuasion and efforts, NINL Steel Plant (Joint
Bharat Kosh”, Govt. of India and “Clean Ganga Fund“, Govt. of venture of MMTC & Govt. of Orissa) could sign Iron ore Min-
India amounting to Rs. 2.44 crore in total. In addition, the proposal ing lease on captive basis with Govt. of Odisha for 874.24
amounting to Rs. 10 lakh for organizing two batches of 25 single hectare having 92 million tonne of mineable reserves in the
women training in Geriatric services has also been recommended. State of Odisha. Mines are expected to commission iron ore
Many other proposals are under examination and consideration. production by June, 2018. NINL has also signed MOU with
NALCO for setting up of Coal Tar Pitch Plant.
MMTC LIMITED
The MMTC Limited was created in 1963 as an independent en- b) Swachh Bharat
tity primarily to deal in exports of minerals and ores and imports During 2016-17, MMTC’s Board of Directors allocated Rs.
of non-ferrous metals. Over the years, MMTC diversified its busi- 33.50 lakhs for undertaking CSR activities to support the Swachh
ness portfolio keeping in view national requirements and new busi- Bharat Abhiyan. The funds allocated for CSR were utilized for
ness opportunities including import and export of various items. Creation of sanitation and drinking water facilities in Govt.
Commodities like fertilizers, steel, diamonds, bullion, agro etc. were Schools, installation of hand pumps in rural areas, Clean Ganga
progressively added to the portfolio of the company. Campaign etc.

142 | Annual Report 2017-18 | Department of Commerce

c) Digital India INFRASTRUCTURE DEVELOPMENT
As a part of implementing Govt. of India’s initiative of Digital NEELACHAL ISPAT NIGAM LTD. (NINL)
India, MMTC ERP system up-gradation / migration to a new ver- Neelachal Ispat Nigam Ltd.(NINL), an iron & steel plant of 1.1
sion for plugging the gaps in existing ERP module (which was im- million tones capacity, 0.8 million tonne coke oven and by-product
plemented in 2002) have been upgradedduring 2016-17. In addition, unit with captive power plant, jointly with Govt. of Odisha and
100% E-tendering is being followed in MMTC including E-Pay- others.
ments and BHIM.
The Phase II of the project for production of steel, with Basic
d) Diversification Oxygen Furnace, Oxygen Plant and SMS has been commissioned
MMTC has created two new divisions with a view to diversify and Steel Billets Production was done on trial basis. During 2016-
into new areas and enhance exports namely; 17, NINL achieved a turnover of Rs. 1,268.73 crore. After lot of
● Engineering goods and related products with focus on SME persuasion and efforts, NINL Steel Plant (Joint venture of MMTC
sector. & Govt. of Orissa) could sign Iron ore Mining lease on captive
● Drugs, Pharmaceuticals and Chemicals. basis with Govt. of Odisha for 874.24 hectare having 92 million
tonne of mineable reserves in the State of Odisha. Mines are ex-
e) Clean Energy pected to commission iron ore production by June, 2018. NINL
MMTC has set up a 15 MW capacity Wind Mill project at Gajen- has also signed MOU with NALCO for setting up of Coal Tar Pitch
dragad in Karnataka at a cost of Rs. 68.75 crores. The project is run- Plant.
ning successfully and has contributed to the development of the area
by meeting some portion of energy needs of Karnataka state. OTHER PROJECTS
MMTC is exploring possibilities of expansion of the said wind mill Aiming at diversification and with a view to add value to its ex-
project. isting trading operations, the Company has undertaken various
strategic initiatives following public-private partnership route. The
f) Trade related infrastructure initiatives taken by MMTC are –
To facilitate promotion of two-way trade, the SPV promoted i. One of the most modern gold/silver refinery and Medallion
by MMTC in association with IL&FS IIDC has taken initiatives to manufacturing unit - MMTC-Pamp India Private Limited in col-
set up International Cargo hub at Haldiaand Free Trade and Ware- laboration with Pamp of Switzerland.
housing Zone at Kandla on lines similar to Special Economic Zone. ii. 9.55% holding Indian Commodity Exchange Limited
(ICEX). ICEX has got necessary approval from SEBI for
Two plots of 2.75 acres of land in the Kandla FTWZ has been launching diamond contracts apart from obtaining ‘in prin-
leased in March, 2016 and discussions are on with the other units ciple’ approval for trading in contracts for Brent Crude and
for leasing out the plots. WTI Crude.
iii. Phase 1 of Kandla FTWZ has been made operational during
g) Marketing support to North East states the year 2016-17, a Joint Venture project between MMTC and
In order to provide support to North East states, MMTC has IL&FS Ltd..
opened its office at Guwahati, Assam and have already initiated pro-
curement of commodities like Ginger, Turmeric and largeCar- Corporate Social Responsibility
damom for marketing in rest of India and is also exploring for During 2016-17, MMTC’s Board of Directors allocated a sum
exports of the same. of Rs. 81.41 lakhs for undertaking CSR activities.

h) Government buffer stock of imported Pulses The funds allocated during 2016-17 under CSR were spent to-
In order to stabilize retail prices of Pulses, Govt. has taken ini- wards activities majorly related to the Swachh Bharat Abhiyan,
tiative to create buffer stock of Pulses both through domestic pro- Clean Ganga Mission, Skill India Mission, Promotion of healthcare
curement and imports. Since January 2016, quantity of over 3.5 lakh and Yoga and promotion of sports / para-sports. Besides this,
tons of Pulses including Toor, Urad, Red Lentils, Desi chick peas MMTC supported distribution of artificial limbs and assistive de-
has already been imported by MMTC from various countries. Govt’s vices to the differently abled.
target is to source 2 million tons of pulses for creating the buffer
stock. MMTC was nominated by the Government of India to im- THE STATE TRADING CORPORATION OF INDIA LTD.
port various pulses on Government account. (STC)
STC was set up on 18th May 1956 primarily with a view to un-
FINANCIAL PERFORMANCE dertake trade with East European countries and to supplement
MMTC is widely recognized as one of the largest International the efforts of private trade and industry in developing exports
Trading Company of India and the first Public Sector Undertaking from the country. Since then, STC has played an important role
to be awarded as “Premier Trading House” status in the country. It in country’s economy. It has arranged imports of essential items
is actively involved in exploring overseas markets for exports and of mass consumption (such as wheat, pulses, sugar, edible oils,
sourcing material for domestic needs. With focus on ‘bulk’ opera- etc.) and industrial raw materials into India and also contributed
tions, MMTC primarily has six core commodity groups viz. Miner- significantly in developing exports of a large number of items
als, Precious Metals, Coal, Fertilizers, Agro commodities and Metals. from India. The core strength of STC lies in handling exports/im-
ports of bulk agro commodities. Over the years, STC has also di-
During FY 2017-18, for the half year ending September 30, versified into exports of steel, iron ore, red sanders,
2017MMTC has achieved a turnover of Rs. 9,897crore and a trading agro-chemicals and imports of bullion, hydrocarbons, minerals,
profit of Rs. 143crore. metals, fertilizers, petro-chemicals, etc. STC is today able to struc-
ture and execute trade deals of any magnitude, as per the specific
SUBSIDIARY COMPANY requirement of its customers.
MMTC Transnational Pte Ltd., Singapore (MTPL) is a wholly
owned subsidiary company of MMTC. During 2016-17, it has The overall performance of STC during 2015-16, 2016-17 and
achieved a sale turn-over of US$ 113.17 million, Net Profit of US$ April-Sept’17 vis-a-vis figures for the corresponding period of the
0.04 million & Net Worth of US$ 15.40 million. previous year and estimates for the full year 2017-18 are given

Department of Commerce | Annual Report 2017-18 | 143

below:

---April - September---
2015-16 2016-17 Provisional 2017-18
Actuals Actuals Last Year This Year Estimates
Exports 1111 789 84 125 600
Imports 8735 6382 2339 6215 10000
Domestic 633 581 361 160 400
Total Turnover 10479 7752 2784 6500 11000
Profit Before Tax 22.70 (148.37) 19.88 13.85* 15.00
* For the period Apr-Jun’17

PERFORMANCE: 2016-17 for supply to various state agencies viz. Tamil Nadu State Civil Supplies
The total turnover of the company declined from ₹10479 crore in Corporation Ltd. (TNSCSC), Army Purchase Organisation (APO), Ker-
2015-16 to ₹7752 crore in 2016-17. The decline in turnover was mainly ala State Civil Supplies Corporation Ltd.(KSCSCL), etc.
due to (i) non-renewal of contract for export of steel plates/coils to
Iran (ii) lower allocation for import of urea by the GOI, and (iii) reduced During the year, supply of pulses worth ₹ 210 crore were made to
import of gold. TNSCSC compared to supplies worth ₹ 108 crore made during the previ-
ous year. Supplies to other state agencies yielded a turnover of ₹ 42 crore.
Exports: During the year, the Company’s exports fell from ₹1,111
crore in 2015-16 to ₹789 crore. The decline was mainly attributable to The Company continued to undertake distribution of fertilizers to
non-renewal of contract relating to exports of steel plates/coils to Iran, tobacco growers/ farmers in the states of Karnataka and Andhra
which fell from ₹1040 crore in 2015-16 to only ₹102 crore during 2016- Pradesh. In 2016-17 also, STC supplied 26992 MT of fertilizers to var-
17. However, during the year, the company, for the first time exported ious tobacco growers/farmers. The same yielded a turnover of ₹75
steel rails worth ₹576 crore to Iran against an agreement entered into crore during the year.
with Iranian Railways.
The Company continued to conduct cardamom auctions under li-
The Company also undertook exports of around 20,000 MTs of cence obtained from Spices Board. The operations involve collection
rice valuing ₹41 crore to Egypt. Besides above, the Company exported of cardamom directly from planters and auctioning the pooled car-
agro-chemicals amounting to ₹24 crore to Iran and red sanders worth damom to the traders on e-auction platform at Bodinayakanur, Tamil
₹46 crore to China. Nadu. During the year, the Company conducted 49 auctions and sold
1238.41 MT of cardamom which resulted in a turnover of ₹120 crore
Imports: During the year 2016-17, the Company achieved an import as against Rs.104 crore in the previous year.
turnover of ₹6382 crore as against ₹8735 crore in the year 2015-16. The
decline in import turnover was mainly due to lower import of urea and Profitability: The Company reported a net loss of ₹166 crore dur-
bullion. ing the year 2016-17 as against a net profit of ₹18 crore during the year
2015-16. The loss was mainly due to provisions and write-offs (net of
In the recent years, bullion imports of the Company have been con- write-back) of ₹144 crore made in respect of doubtful debts as a meas-
tinuously on decline due to frequent changes in Government policies ure of prudence.
relating to import of gold, surge in import of gold dore bars into the
country and international price parity issues. Though bullion continued PERFORMANCE: APRIL – SEPTEMBER 2017: During
to be the single largest item of import, its turnover decreased from Apr.-Sept.’17, the Company achieved a turnover of approx. 6500 crore
₹4,711 crore in 2015-16 to ₹4,272 crore in 2016-17. (prov.) and the same was more than double the turnover of 2784 crore
achieved during the corresponding period last year. The growth in
During the year, the Company was authorized by the Govt. of India turnover was contributed by higher exports and imports.
to import 13.64 lakh MT of urea. The quantities allocated for import
were lower than in the previous year due to higher indigenous produc- Exports: The Company’s export turnover of approx. 125 crore
tion and lower demand. Accordingly, the Company imported 14.06 lakh (prov.) during Apr.-Sept.’17 was significantly higher when compared
MT of urea valuing ₹2048 crore during 2016-17 as against 20 lakh MT with export of 84 crore in the corresponding period last year. During
of urea amounting to ₹3795 crore in the previous year. The Company the period, the Company supplied steel rails worth ₹124 crore to Iran
also imported and sold edible oils worth ₹53 crore to small against an MOU entered into with Iranian Railways. The Company also
processing/packaging units. exported small quantities of agro pesticides to Iran.

Domestic sales: The domestic sales of the company amounted to Imports: The Company achieved an import turnover of approx.
₹581 crore and was the second best in past seven years. ₹ 6215 crore (prov.) during Apr-Sept’17 as against ₹ 2339 crore achieved
during the corresponding period last year. The entire import turnover
The Company continued to undertake supplies of imported coal to came through import of higher quantities of gold/silver which yielded
Bharat Oman Refineries Ltd. (BORL) and sold coal worth ₹46 crore dur- sales worth ₹ 6215 crore as against ₹ 239 crore during the corresponding
ing the year 2016-17 as against supplies worth 215 crore made in 2015- period last year.
16. During the year, the Company also supplied a quantity of 7408 MTs
of coal valuing ₹ 6 crore to M/s Malabar Cements Ltd. During April-Sept’17, import of urea was nil as against ₹2048 crore
during the corresponding period last year due to no authorization for
The Company contracted a total quantity of 25543 MTs of pulses import being received by STC from the GOI.

144 | Annual Report 2017-18 | Department of Commerce

 Domestic sales: During Apr–Sept.’17, domestic sales of the Com- With the diversified trading activities, the company’s name has
pany stood at approx. ₹160 crore (prov.). The Company continued to been further amended its name from Spices Trading Corporation Lim-
supply fertilizers to tobacco growers under an agreement entered into ited to “STCL LIMITED” and fresh Certificate of Incorporation
with Tobacco Board and effected sales of fertilizers worth ₹75 crore. under the name of STCL Limited has been obtained with effect from
The Company also continued to undertake cardamom auctions under August 13, 2004.
licence from Spices Board and sold cardamom worth ₹40 crore.
Performance: There is no business activities and hence no turnover
During April-Sept’17, the Company supplied pulses worth ₹15 crore as the company is in the process of winding up. However, the company
to Tamil Nadu State Civil Supplies Corporation Ltd. (TNSCSC) and im- is attending to all the administrative issues, apart from pending legal
ported coal worth ₹18 crore to M/s. BORL against a contract entered cases and recovery processes initiated. The Company was exempted
into with them for supply of low sulfur coal. from entering MoU for the year 2016-17.

Profitability: During Apr-Jun’17, the Company’s Profit Before Tax The details of actual achievement of the company is as follows:
amounted to ₹13.85 crore,

Estimates: 2017-18 (Full Year): The Company hopes to achieve a

turnover of 11000 crore during the full year 2017-18 comprising ex- Rs. In Crores
ports of ₹ 600 crore, imports worth Rs.10000 crore and domestic sales Particulars 2015-16 (Audited) 2016-17 (Audited)
of ₹400 crore.
Gross Sales Nil Nil
STCL LIMITED:
STCL was originally incorporated in the name and style as “CAR-
PBT -480.7 -562.77
DAMOM TRADING CORPORATION LIMITED” as a PRIVATE
LIMITED COMPANY under the Companies Act, 1956 in October 1982.
Present Position of the Company: The company is incurring loss
Consequent to the change of name, the Company obtained a
from the year 2008-09 and is having a negative net worth Rs. 3,911.89
fresh certificate of incorporation under the name of SPICES
crores as on 31.03.2017.
TRADING CORPORATION LIMITED with effect from August
1987 in order to widen its marketing base from Cardamom to other
In view of the above, the Union Cabinet in its meeting held on
range of spices.
13.08.2013 had approved the winding-up of the company. Accordingly,
the company has filed winding up petition vide No. 272/2013 on
Thereafter, STCL became a subsidiary of the State Trading Cor-
26.11.2013 in the Hon’ble High Court of Karnataka for winding-up of
poration of India Ltd., with effect from 14.09.1999 and shares held
the company u/s 443[a] of the Companies Act, 1956 and the petition
by the Ministry of Commerce were transferred to the State Trading
is pending for disposal. ■
Corporation of India Ltd.

Department of Commerce | Annual Report 2017-18 | 145

 PROGRAMMES UNDERTAkEN
FOR THE WELFARE OF
SCs/STs/OBCs, WOMEN &
PERSON WITH DISABILITIES

146 | Annual Report 2017-18 | Department of Commerce

T
he Department of Commerce liaises with the attached c) One year relaxation in qualifying period for promotion within
and sub-ordinate offices, autonomous bodies, Public staff cadre, under seniority-cum-fitness.
Sector Undertakings and Commodity Boards under its d) One year relaxation in qualifying period for promotion within
administrative control for proper implementation of staff cadre, under seniority-cum-fitness.
the directions of the Government of India related to
the reservation as well as other welfare measures for the SCs, STs, SC/ST representative is nominated in all Selection Committee
OBCs categories. for Direct Recruitment and Departmental Promotion.

There is an SC/ST Cell headed by the Liaison Officer – an offi- Training

cer of the level of Deputy Secretary, functioning in the Department In order to upgrade their functional and soft skills, SC and ST
of Commerce. The Liaison Officer ensures prompt disposal of the employees are nominated from time to time to various In-house
grievances of the SC/ ST category employees and also takes care training programmes as well as programmes conducted by esteemed
that the various benefits admissible to the reserved categories are institution.
complied with by the associate organizations of the Department.
Quarter allotment
A statement showing total number of Government employees Reservation in quarter allotment is provided to SC and ST em-
and the number of SCs/ STs/ OBCs/PWDs as on 31.10.2017 in ployees to the extent of 10% for B type accommodation and 5% in
Department of Commerce (proper) and its associate organizations respect of C & D type accommodation.
is shown at Annexure A. The welfare activities undertaken by dif-
ferent organizations attached to this Department are given in the Meetings
succeeding paragraphs. The Company has in place “Structured Meetings Scheme” in
which the Management meets various representative bodies of em-
Welfare of SC,ST and OBC ployees periodically in order to discuss and resolve issues on service
1) PEC LTD matters and welfare measures. In line with this philosophy, periodic
Government Directives / Instructions with regards to meetings with MMTC SC/ST Welfare Associations in all offices of
SCs/STs/OBCs are duly complied with in PEC. In PEC, there exists the Company and the Federation of MMTC SC/ST Welfare Asso-
a Time Scale Promotion Scheme for staff cadre. Qualifying period ciations are convened.
for promotion for employees belonging to SC/ST categories is re-
laxed by one year in each stage of Promotion. Further a Complaints 4) Export Credit Guarantee Corporation of India Ltd.
register is being maintained at Head Office. No complaint has been SC/ST Candidates:
received till date. 1. Pre-examination training for recruitment is conducted for can-
didates from SC/ST category.
2) Spices Board 2. The representatives of SC/ST Union are nominated for training
The Board had constituted SC/ST & OBC Committees for look- on reservation for recruitment and promotion in Government
ing after the welfare of the employees and to sort out their problems. Companies.
3. Liaison Officer for SC/ST has been appointed to deal with the
3) MMTC Ltd. matter related to employees from SC/ST category.
The total strength of employees in MMTC as on 31st October, 4. Reservation is provided to SC/ST candidates in recruitment and
2017 was 1174 (including Board level executives and MICA employ- promotion as per Government of India rules.
ees), out of which 246 (20.95%) employees belong to SC category, 5. At least one member from SC/ST category is appointed on the
110 (9.36%) to ST category and 116 (9.88%) to OBC category. panels constituted for recruitment/promotion of
Women employees represented 20.87% (245 employees) of the total candidates/employees.
manpower.
OBC Candidates:
SC/ST Cell and Liaison Officer 1. Reservation policy of Government of India is followed for re-
An SC/ST Cell is in existence in the Company. A Chief General cruitment of OBC candidates.
Manager has been appointed in the Corporate Office as Chief Liai- 2. Liaison Officer for OBC has been appointed to deal with the
son Officer and Liaison Officers have been appointed in Regional matter related to employees from OBC category. Due consider-
offices to ensure compliance of the Orders and Instructions of the ation is given for appointment of member from OBC category
Government Directives pertaining to reservation and other conces- on recruitment panels.
sions as admissible to them.
5) Indian Trade Promotion Organization
Relaxation and Concessions Guidelines on reservation were complied with in ITPO. Liaison
The relaxations/concessions extended to SC/ST candidates in officers have been nominated to look after the interests of SCs/STs
Direct Recruitment are:- & OBCs. In every Departmental promotion/selection committee
a) Age relaxation upto 5 years; meeting officers of appropriate level belonging to SC/ST and mi-
b) Relaxation upto 5 per cent in qualifying marks in written test; nority category have been associated to look after the interests of
c) Relaxation upto 5 words per minute is allowed to SC & ST can- the candidates belonging to these categories.
didates in the typing and shorthand tests; and
d) Relaxation in percentage of marks in prescribed educational 6) Coffee Board
qualifications to the extent specified under the rules. The Coffee Board is pursuing a multi dimension approach by
creating an enabling environment keeping in view the overall welfare
As regards departmental promotion following relaxations and development of the SC, ST, OBC and Women Employees.
are provided:-
a) For promotion from staff cadre to officer cadre, relaxation of 7) Noida Sez
5% in qualifying marks in written test, All Government directives/insturctions with regard to
b) Relaxation of upto 5 w.p.m. given in typing test in promotion to SC/ST/OBC are duly complied with by NSEZ. As against total em-
Junior Assistant post, ployees of 68, NSEZ has 13, 3 and 11 employees belonging to SC,ST

Department of Commerce | Annual Report 2017-18 | 147

and OBC respectively. vided motorized wheel chair to one of the employees to move within
the office. Further, all the facilities as per rule are given to them.
8) State Trading Corporation of India (STC) Limited So far no complaints have been received from them.
In the period (from 01.01.2017 to 31.10.2017) a total of 100 em-
ployees underwent training under various programmes organized by 4) Export Credit Guarantee Corporation of India Ltd.
STC. The category wise break-up of the employees trained during 1. PWD candidates are transferred according to suitability of posts
the said period is given below: to PWD employees.
2. Scribe is allowed to them in recruitment and promotional exam-
Category SC ST OBC Women ination.
3. PWD employees are preferably posted in the offices at ground
No. of Employees 27 04 21 37 floor.
Trained 4. Government Reservation Policy for recruitment of PWD is
strictly followed.
9) Directorate General of commercial Intelligence and Statis- 5. Liaison Officer for PWD has been appointed to deal with the
tics matter related to candidates from PWD category.
Liaison officer for SC/ST and OBC has been appointed and as
per the direction of Liaison officers this Directorate submit requi- 5) Coffee Board
sition to component authority for appointment of candidates. The Coffee Board is pursuing a multi dimension approach by
creating an enabling environment keeping in view the overall welfare
10) Cochin SEZ and development of the PwD Employees.
In so far as filling up of the posts are concerned, the roster of
reservations for SC/ST/OBC has been strictly adhered to. A Com- 6) State Trading Corporation of India (STC) Limited
plaint Committee has been constituted by this office to deal with the In the period (from 01.01.2017 to 31.10.2017), 03 nos. Of PWD
complaints and also given wide publicity to constitute the committee employees have undergone training under programmes organized by
as per the instructions issued by the Government of India to deal STC.
with the harassment to women in work place.
7) MMTC Limited
11) Visakhapatnam SEZ a) In order to have easy access to office premises, ramp has been
Appointed ‘Liaison Officer’ to protect interest of SC&ST em- provided for physically challenged employees. Employee with
ployees. JDC, VSEZ appointed as ‘Liaison Officer’ for OBC Em- disability of lower limbs has been provided wheel chair for easy
ployees. mobility within the office premises.
b) PWD employees are posted to positions, taking into account
Programmes Undertaken for Welfare of Persons with Disabil- their disability, to enable them to perform their job efficiently.
ities(PwDs) c) Office buildings have auditory signals announcing the floor des-
The Persons with Disabilities (Equal Opportunities, Protection tination. Some of them have floor requisition buttons in Braille
of Rights and Full Participation) Act, 1995 Act stipulates 3% reser- symbols.
vation in the posts under the Government to be provided for Per-
sons with Disabilities (PWDs) – reserving 1% of the posts for 8) Cochin SEZ
Persons suffering from each disability i.e (i) Blindness and low vision Roster for reservation has been strictly adhered to.
(VH) (ii) hearing impairment (HH) (iii) locomotor disability or cere-
bral palsy (OH) 9) Noida SEZ
Recruitment related direction and instructions issued by the
There are guidelines on providing facilities to the disabled per- Government for welfare of PWD has been followed in this office
sons so that a barrier-free workplace is made accessible to the dif- and one post are reserved for orthopedically handicapped person in
ferently abled persons. A statement showing total number of Group ‘C’ Category and same has been filled up by
PWDs in different categories as on 31.10.2016 in Department of absorption/transfer on 07.11.2016.
Commerce (proper) and its associate organizations is shown at An-
nexure B. Programmes Undertaken for Welfare of Women
An independent Women Cell has been set up in the Department
1) PEC LTD of Commerce with the following functions:
Government Directives/instructions with regards to PWDs are a) Coordination with the Ministry of Women and Child Develop-
duly Complied with in PEC. In PEC, there exists a Time Scale Pro- ment, National Commission for Women and other concerned
motion Scheme for staff cadre. Qualifying period for promotion for agencies in respect of the matters connected with welfare of
Persons with Disabilities is relaxed by one year in each stage of Pro- Women.
motion. Further a Complaints register is being maintained at Head b) To review plan schemes and other programmes of the Depart-
Office. No complaint has been received till date. ment of Commerce and to ensure aspects of women welfare,
development and welfare.
2) Spices Board c) Preparation of action plans pertaining to the Department for
The Board had nominated a Liaison officer for reservation mat- overall development of Women in line with the National Policy
ters relating to person with disabilities. 1 post has been notified for for Empowerment of Women.
Group A with the approval of Department of Commerce which is d) Observing Awareness Week for prevention of sexual harassment
being processed. of women along with Vigilance Awareness Week.
e) Other incidental matters relating to the subject.
3) Agricultural & Processed Food Products Export Develop-
ment Authority 1) PEC LTD
As per Govt norms, the reservation for PwDs is 3% of the total PEC is a small organisation having total 120 employees out of
strength in all grades. Against the existing staff strength of 87, two which 27 are women, as on 31.10.2016. In compliance with terms
incumbents are physically handicapped. APEDA has taken care of of Section 4(1) of the Sexual Harassment of women at workplace
the welfare of persons with disabilities (PwDs). APEDA has pro-

148 | Annual Report 2017-18 | Department of Commerce

(Prevention, Prohibition and Redressal) Act, 2013, ‘Internal Com- 2. Women employees are nominated for the
plaints Committee has been re-constituted in PEC for prevention programs/seminars/workshop conducted by WIPS
and redressal of sexual harassment of women at workplace. 3. A committee on sexual harassment at workplaces has been con-
stituted.
A comprehensive policy for Prevention, Prohibition and Redres- 4. Due consideration is given to appointment of women member
sal of Sexual Harassment of women employee in PEC has been on panels for recruitment.
adopted with the approval of the Competent Authority. During the
year, no complaint has been received from any employee. 5) Indian Trade Promotion Organization
A women’s cell has been created in ITPO in regard to Sexual ha-
2) Agricultural & Processed Food Products Export Develop- rassment of women at workplace, and reports in this regard are
ment Authority being sent to Department of Commerce every month.
APEDA has formed a committee for receiving complaints
against Sexual harassments against Women at work Places. The com- 6) Tea Board
mittee also includes Women Officers. The Tea Board is in the process of setting up of special cell for
women where outside experts are being invited as members for their
3) MMTC Ltd. valuable opinion and advice as and when required.
a) Women welfare activities in MMTC are derived out of the broad
guidelines of the National Policy on Women Empowerment and 7) Noida Sez
objectives of the Forum of Women in Public Sector (WIPS). In accordance with Section 4 of sexual harassment of womn at
MMTC encourages participation of its women employees in this work place, (prevention, prohibition and redressal) Act, 2013 an in-
forum. A General Manager of MMTC, a female officer, is the trnal complaint to Committree have been constituted which is leaded
General Secretary – WIPS APEX. Many other women employ- by a woman officer and has 2 women membrs, including one woman
ees are member of WIPS. NGO member.
b) There is an active Complaint Committee at Corporate Office as
well as at Regional Offices to deal with Sexual Harassment of 8) Directorate General of commercial Intelligence and Statis-
women at workplace. Women employees are free to approach tics
the Complaint Committee to register any complaint related to In case of women, a women cell has been constituted for look-
sexual harassment. From time to time, efforts are made to sen- ing after the matter of women.
sitize women employees of their rights under the Sexual Harass-
ment of Women at Workplace (Prevention, Prohibition and 9) Kandla SEZ
Redressal) Act 2013. Monthly report is also obtained from Re- This office has constituted a special committee for prevention
gional offices of cases of sexual harassment of women for close of sexual harassment against women and treats all its employees
monitoring. whether SC/ST OBC & Women equally.
c) Good representation of women employees is ensured in various
functional and behavioural trainings organized by MMTC. 10) Visakhapatnam SEZ
Constituted Internal Complaints Committee under Sexual Ha-
4) Export Credit Guarantee Corporation of India Ltd. rassment of woman at workplace Prevention, Prohibition & Redres-
1. Programmes on issues related to women is conducted on sal Act, 2013.
Women Day.

Department of Commerce | Annual Report 2017-18 | 149

 ANNEXURE - A
Name of Group Total no. of Total No. of No. of No. of SC category No. of No. of ST category No. of No. of OBC category No. of vacancies
Organisation Employees candidates SC Emp. candidate recruited ST Emp. candidate recruited OBC Emp. candidate recruited reserved for SC and ST which
(as on 31st recruited during during calendar during calendar during calendar remained unfilled at the end
October, 2017) calendar year 2017 year 2017 year 2017 year 2017 of calendar year 2017
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
Department Group A 133 - 15 - 3 - 8 - -
of Commerce Group B 195 - 29 - 8 - 23 - -
(Proper)
Group C 168 1 47 - 21 - 24 - -
Group D - - - - - - - - -
(excluding
sweeper)
Group D
(Sweeper
only)
ATTACHED AND SUBORDINATE OFFICES UNDER DEPARTMENT OF COMMERCE
Office of Group A 137 9 20 1 8 Nil 14 0 Nil
Directorate Group B 353 24 59 05 29 04 13 Nil 5
General of
Group C 449 Nil 117 Nil 29 Nil 33 Nil 17

150 | Annual Report 2017-18 | Department of Commerce

Foreign
Trade Group D 232 Nil 73 Nil 19 Nil 16 Nil 3
(DGFT), (excluding
New Delhi sweeper)
Group D 3 Nil 2 Nil Nil Nil Nil Nil 1
(Sweeper
only)
Directorate Group A 23 - 1 - - - 4 - Controlled by cadre controlling authority
General of Group B 182 - 48 - 15 - 1 - 1(one) ST post remain vacant for not
Commercial fulfilling qualifying Service as
Intelligence per Recruitment Rule.
and Statistics
(DGCI&S), Group C 102 5 12 1 8 - 34 1 (Appointed as Fresh requisition already sent to
Kolkata UR Candidate) SSC for 48 post of Data Processing
Assistant (SC-11, ST-4, OBC-4,
UR-29) posts and For Lower Div.
Clerk (SC-2, ST-1, OBC-2 post).
Group D 39* - 10 - 2 - 1 - Requisition sent for 1 ST post to SSC
(excluding *Group C(MTS)
sweeper)
Group D
(Sweeper
only)
 Name of Group Total no. of Total No. of No. of No. of SC category No. of No. of ST category No. of No. of OBC category No. of vacancies
Organisation Employees candidates SC Emp. candidate recruited ST Emp. candidate recruited OBC Emp. candidate recruited reserved for SC and ST which
(as on 31st recruited during during calendar during calendar during calendar remained unfilled at the end
October, 2017) calendar year 2017 year 2017 year 2017 year 2017 of calendar year 2017
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
Cochin SEZ, Group A 03 Nil 01 Nil Nil Nil 01 Nil Nil
Cochin Group B 25 Nil 03 Nil 01 Nil 07 Nil Nil
Group C 26 Nil 06 Nil 01 Nil 12 Nil Nil
Group D Nil Nil Nil Nil Nil Nil Nil Nil Nil
(excluding sweeper)
Group D Nil Nil Nil Nil Nil Nil Nil Nil Nil
(Sweeper only)
MEPZ, Group A 5 1 0 0 0 0 3 1 Nil
Chennai
Group B 57 6 9 2 2 0 9 2 Nil
Group C 36 0 18 0 0 0 10 0 Nil
Group D Not Applicable - - - - - - - -
(excluding sweeper)
Group D - - - - - - - - -
(Sweeper only)
Kandla SEZ, Group A 4 Nil 1 Nil Nil Nil Nil Nil Nil
Kandla
Group B 8 Nil Nil 2 Nil 1 Nil Nil
Group C 38 Nil 4 Nil Nil Nil 4 Nil Nil
Group D 37 Nil 10 Nil 6 Nil 10 Nil Nil
(excluding sweeper)
Group D 2 Nil 2 Nil Nil Nil Nil Nil Nil
(Sweeper only)
Vishakhapat- Group A 4 1 1 - - - 1 - NA
nam SEZ, Group B 12 4 1 - - - - - NA
Vishakhapat-
nam Group C 18 - 5 - 2 - 7 - NA
Group D - - - - - - - - NIL
(excluding sweeper)
Group D - - - - - - - - NiL
(Sweeper only)
FALTA SEZ, Group A 2 Nil 2 Nil - Nil Nil Nil Nil
Kolkata Group B 23 Nil 02 Nil 02 Nil 01 Nil Nil
Group C 10 Nil 04 Nil - Nil 01 Nil Nil

Department of Commerce | Annual Report 2017-18 | 151

 Name of Group Total no. of Total No. of No. of No. of SC category No. of No. of ST category No. of No. of OBC category No. of vacancies
Organisation Employees candidates SC Emp. candidate recruited ST Emp. candidate recruited OBC Emp. candidate recruited reserved for SC and ST which
(as on 31st recruited during during calendar during calendar during calendar remained unfilled at the end
October, 2017) calendar year 2017 year 2017 year 2017 year 2017 of calendar year 2017
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
Group D NiL Nil Nil Nil Nil Nil Nil Nil Nil
(excluding sweeper)
Group D Nil Nil Nil Nil Nil Nil Nil Nil Nil
(Sweeper only)
SEEPZ SEZ, Group A 6 - 1 - - - - - -
Mumbai Group B 15 (14 on 1 (on adhoc basis) 3 - - - - - -
deputation+1)
Group B 20 (19 on depu- 1 - - 2 - 1 - -
(Non Gazetted) tation basis +1)
Group C 61 (60+1 on depu- - 15 15 3 3 19 - UDC:1SC, 1ST
tation basis) LDC: 1SC, 1ST
Group D - - - - - - - - -
(excluding sweeper)

152 | Annual Report 2017-18 | Department of Commerce

Group D - - - - - - - - -
(Sweeper only)
Indore SEZ, Group A 3 3 Nil Nil 1 1 Nil Nil Nil
Indore Group B 17 17
Group C Nil Nil Nil Nil Nil Nil Nil Nil Nil
Group D Nil Nil Nil Nil Nil Nil Nil Nil Nil
(excluding sweeper)
Group D Nil Nil Nil Nil Nil Nil Nil Nil Nil
(Sweeper only)
NOIDA SEZ, Group A 5 - - - - - - - -
NOIDA (all deputation posts)
Group B 22 - 3 - - -- - - -
(20 deputation posts)
Group C 41 - 10 - 3 - 11 - -
Group D - - - - - - - - -
(excluding sweeper)
Group D - - - - - - - - -
(Sweeper only)

SUB TOTAL (A) 2020 72 443 24 135 8 214 4 30

 Name of Group Total no. of Total No. of No. of No. of SC category No. of No. of ST category No. of No. of OBC category No. of vacancies
Organisation Employees candidates SC Emp. candidate recruited ST Emp. candidate recruited OBC Emp. candidate recruited reserved for SC and ST which
(as on 31st recruited during during calendar during calendar during calendar remained unfilled at the end
October, 2017) calendar year 2017 year 2017 year 2017 year 2017 of calendar year 2017
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
AUTONOMOUS BODIES AND COMMODITY BOARDS UNDER DEPARTMENT OF COMMERCE
Coffee Board, Group A 89 Nil 13 Nil 7 Nil 21 Nil 3
Bangalore
Group B 187 Nil 33 Nil 13 Nil 25 Nil 12
Group C 524 Nil 96 Nil 30 Nil 74 Nil 53
Group D -- -- -- -- -- -- -- -- --
(excluding sweeper)
Group D
(Sweeper only)
Spices Group A 94 Nil 12 Nil 8 Nil 24 Nil Nil
Board, Group B 133 Nil 17 Nil 14 Nil 40 Nil Nil
Cochin
Group C 197 Nil 30 Nil 20 Nil 68 Nil Nil
Group D Nil Nil Nil Nil Nil Nil Nil Nil Nil
(excluding sweeper)
Group D Nil Nil Nil Nil Nil Nil Nil Nil Nil
(Sweeper only)
Rubber Group A 302 - 34 - 19 - 55 - --
Board,
Group B 616 - 75 - 41 - 97 - --
Kottayam
Group C 589 - 86 - 59 - 182 - -
Group D 1 - 1 - - - - - --
(excluding sweeper)
Group D - - - - - - - - -
(Sweeper only)
Tobacco Group A 91 0 19 0 7 0 4 0 0
Board, Group B 112 0 24 0 8 0 24 0 0
Guntur
Group C 328 0 56 0 17 0 75 0 0
Group D 0 0 0 0 0 0 0 0
(excluding sweeper)
Group D 0 0 0 0 0 0 0 0 0
(Sweeper only)
Tea Board, Group A 69 36 9 5 4 1 16 11 0
Kolkata Group B 147 76 26 11 5 5 31 29 11

Department of Commerce | Annual Report 2017-18 | 153

 Name of Group Total no. of Total No. of No. of No. of SC category No. of No. of ST category No. of No. of OBC category No. of vacancies
Organisation Employees candidates SC Emp. candidate recruited ST Emp. candidate recruited OBC Emp. candidate recruited reserved for SC and ST which
(as on 31st recruited during during calendar during calendar during calendar remained unfilled at the end
October, 2017) calendar year 2017 year 2017 year 2017 year 2017 of calendar year 2017
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
Group C 278 199 49 40 18 17 23 21 10
Group D NA NA NA NA NA NA NA NA NA
(excluding sweeper)
Group D NA NA NA NA NA NA NA NA NA
(Sweeper only)
Agriculture and Group A 25 0 5 0 1 0 1 0 1
Processed Group B 31 0 6 0 1 0 4 0 1
Food Products
Export Devel- Group C 31 0 4 0 3 0 6 0 8
opment Au- Group D 0 0 0 0 0 0 0 0 0
thority (excluding sweeper)
(APEDA), New
Delhi Group D 0 0 0 0 0 0 0 0 0
(Sweeper only)

154 | Annual Report 2017-18 | Department of Commerce

Export Group A 113 (1 on deputation) 11 19 3 5 - 21 1 -
Inspection Group B 35 3 5 1 5 - 8 - -
Council of
India (EIC), Group C 180 5 26 1 3 - 26 1 -
New Delhi Group D - - - - - - - - -
(excluding sweeper)
Group D - - - - - - - - -
(Sweeper only)
The Marine Group A 71 7 (4-Direct, 13 2 8 1 25 2 (Deputation) -
products 3-Deputation)
Export Group B 98 1 22 - 8 1 28 - SC-3, ST-2 (All recruitment
Development process of the posts was kept in
Authority abeyance as per the directors
(MPEDA) of Ministry )
Group C 79 - 12 - 4 - 33 - SC-3 (All recruitment process of
the posts was kept in abeyance
as per the directors of Ministry )
Group D 25 - 5 - 5 - 6 - -
(excluding sweeper)
Group D - - - - - - - - -
(Sweeper only)
SUB TOTAL (B) 4445 338 697 63 313 25 917 65 107
 Name of Group Total no. of Total No. of No. of No. of SC category No. of No. of ST category No. of No. of OBC category No. of vacancies
Organisation Employees candidates SC Emp. candidate recruited ST Emp. candidate recruited OBC Emp. candidate recruited reserved for SC and ST which
(as on 31st recruited during during calendar during calendar during calendar remained unfilled at the end
October, 2017) calendar year 2017 year 2017 year 2017 year 2017 of calendar year 2017
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
PUBLIC SECTOR UNDERTAKINGS UNDER DEPARTMENT OF COMMERCE
State Trading Group A 427 7 101 0 23 0 42 2 As per the statement of last year as on
Corporation 31.10.2016 for the period from 01.01.2016
Of India to 31.10.2016, 02 SC vacancies and 01 ST
(STC), vacancies were there and were under
New Delhi screening process. During the screening
process only 01 SC candidate fulfilled the
eligibility criteria and was selected and
issued offer letter but he did not join.
Therefore, the reserved 02 SC and 01 ST
position remain unfilled, which will be filled
in future recruitment process. During the
period from 01.01.2017 to 31.10.2017
no fresh recruitment process was initiated.
Group B 102 0 14 0 10 0 8 0 In STC, no recruitment has taken place in
group B & C since last 21 years (approx.)
except on compassionate appointment
made as per policy of the organization.
Group C 97 0 42 0 11 0 6 0
Group D - - - - - - - - -
(excluding
sweeper)
Group D - - - - - - - - -
(Sweeper
only)
Minerals and Group A 464 10 91 0 36 0 36 4 -
Metals Group B 468 - 94 - 58 - 20 - -
Trading
Corporation Group C 106 - 17 - 6 - 28 - -
(MMTC) Group D 136 - 44 - 10 - 32 - -
Limited, (excluding
New Delhi sweeper)
Group D - - - - - - - - -
(Sweeper
only)

Department of Commerce | Annual Report 2017-18 | 155

 Name of Group Total no. of Total No. of No. of No. of SC category No. of No. of ST category No. of No. of OBC category No. of vacancies
Organisation Employees candidates SC Emp. candidate recruited ST Emp. candidate recruited OBC Emp. candidate recruited reserved for SC and ST which
(as on 31st recruited during during calendar during calendar during calendar remained unfilled at the end
October, 2017) calendar year 2017 year 2017 year 2017 year 2017 of calendar year 2017
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
Indian Trade Group A 140 - 27 -- 05 -- 13 -- --
Promotion
Organisation Group B 68 -- 14 -- 04 -- 01 -- --
(ITPO), Group C 223 09 48 5 05 -- 20 04 1(ST)
New Delhi
Group D 290 -- 68 -- 03 -- 10 --- --
(excluding sweeper)
Group D 49 -- 47 -- -- -- -- -- --
(Sweeper only)
Project and Group A 107 (including CMD, 4 (Three joined 21 - 6 - 18 01 04
Equipment 2 Directors and CVO) in March, 2017)
Corporation Group B 10 - 02 - 01 - 02 - -
of India
(PEC) Group C 03 - 01 - 01 - - - -
Limited, Group D - - - - - - - - -

156 | Annual Report 2017-18 | Department of Commerce

New Delhi (excluding sweeper)
Group D - - - - - - - - -
(Sweeper only)
Export Credit Group A 256 NIL 40 NIL 14 NIL 37 NIL NIL
Guarantee Group B 331 28 59 2 25 1 70 6 Nil
Corporation
of India Group C 22 NIL 8 NIL 3 NIL 1 NIL NIL
(ECGC) Group D 9 NIL 2 NIL NIL NIL NIL NIL NIL
Limited, (excluding sweeper)
Mumbai
Group D Nil Nil NIL NIL NIL NIL NIL NIL NIL
(Sweeper only)
SUB TOTAL (C) 3308 58 740 7 221 1 344 17 5
GRAND TOTAL = (DoC+A+B+C) 10269 469 1971 94 701 34 1530 86 142
 ANNEXURE - B
Name of Group Total no. of Total No. of No. of No. of VH category No. of No. of OH category No. of No. of HH category Total no. of vacancies reserved
Organisation Employees candidates Visually candidate recruited Orthopaedically candidate recruited Hearing candidate recruited for PWDs, which remained unfilled
(as on 31st recruited during Handicapped during calendar Handicapped during calendar Handicapped during calendar as on 31st October 2017 (Reasons
October, 2017) calendar year 2017 Employees year 2017 Employees year 2017 Employees year 2017 for non-filling of reserved vacancies)
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
Department Group A 133 - - - - - - - -
of Commerce Group B 195 - 2 - 2 - - 2 -
(Proper)
Group C 164 - 2 - 1 - - - 1
Group D - - - - - - - - -
(excluding
sweeper)
Group D - - - - - - - - -
(Sweeper
only)
ATTACHED AND SUBORDINATE OFFICES UNDER DEPARTMENT OF COMMERCE
Office of Group A 137 9 Nil Nil 02 Nil Nil Nil Nil
Directorate Group B 353 24 1 Nil 3 Nil 3 Nil Nil
General of
Foreign Group C 460 Nil 1 Nil 8 Nil Nil Nil 5
Trade Group D 232 Nil Nil Nil 1 Nil Nil Nil Nil
(DGFT), (excluding
New Delhi sweeper)
Group D 3 Nil Nil Nil Nil Nil Nil Nil Nil
(Sweeper
only)
Directorate Group A 23 Controlled by Cadre - Controlled by Cadre - Controlled by Cadre - Controlled by Cadre Controlled by Cadre
General of Controlling Authority Controlling Authority Controlling Authority Controlling Authority Controlling Authority
Commercial Group B 182 - - - 3 - - - All Group B posts are promotional
Intelligence posts and there is no provision of
and Statistics reservation for PWDs.
(DGCI&S),
Kolkata Group C 102 5 - - 2 - - - Requisition already sent to SSC for 2 PWD
candidates (1 PWDs for DPA post and 1 for
LDC post)
Group C* 39 - 1 - - - - - Requisition already sent to SSC for
(MTS) 1 PWD candidate.
Group D As per recommendation of 6th CPC all group D employees are treated as Group C (MTS)
(Sweeper
only)

Department of Commerce | Annual Report 2017-18 | 157

 Name of Group Total no. of Total No. of No. of No. of VH category No. of No. of OH category No. of No. of HH category Total no. of vacancies reserved
Organisation Employees candidates Visually candidate recruited Orthopaedically candidate recruited Hearing candidate recruited for PWDs, which remained unfilled
(as on 31st recruited during Handicapped during calendar Handicapped during calendar Handicapped during calendar as on 31st October 2017 (Reasons
October, 2017) calendar year 2017 Employees year 2017 Employees year 2017 Employees year 2017 for non-filling of reserved vacancies)
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
Cochin SEZ, Group A 03 Nil Nil Nil Nil Nil Nil Nil Nil
Cochin Group B 25 Nil Nil Nil 01 Nil Nil Nil Nil
Group C 26 Nil Nil Nil 01 Nil Nil Nil Nil
Group D
(excluding NIL
sweeper)
Group D
(Sweeper NIL
only)
MEPZ, Group A 5 1 Nil Nil Nil Nil Nil Nil Nil
Chennai Group B 57 6 Nil Nil Nil Nil Nil Nil Nil
Group C 36 Nil Nil Nil Nil Nil Nil Nil Nil
Group D Nil Nil Nil Nil Nil Nil Nil Nil Nil

158 | Annual Report 2017-18 | Department of Commerce

(excluding
sweeper)
Group D Nil Nil Nil Nil Nil Nil Nil Nil Nil
(Sweeper
only)
Kandla SEZ, Group A 4 Nil Nil Nil Nil Nil Nil Nil Nil
Kandla Group B 8 Nil Nil Nil Nil Nil Nil Nil Nil
Group C 38 Nil Nil Nil 1 Nil Nil Nil Nil
Group D 37 Nil Nil Nil Nil Nil Nil Nil Nil
(excluding
sweeper)
Group D 2 Nil Nil Nil Nil Nil Nil Nil Nil
(Sweeper
only)
Vishakhapat- Group A 4 Nil Nil Nil Nil Nil Nil Nil Nil
nam SEZ, Group B 12 Nil Nil Nil Nil Nil Nil Nil Nil
Vishakhapat-
nam Group C 18 Nil Nil Nil Nil Nil Nil Nil Nil
Group D Nil Nil Nil Nil Nil Nil Nil Nil Nil
(excluding sweeper)
 Name of Group Total no. of Total No. of No. of No. of VH category No. of No. of OH category No. of No. of HH category Total no. of vacancies reserved
Organisation Employees candidates Visually candidate recruited Orthopaedically candidate recruited Hearing candidate recruited for PWDs, which remained unfilled
(as on 31st recruited during Handicapped during calendar Handicapped during calendar Handicapped during calendar as on 31st October 2017 (Reasons
October, 2017) calendar year 2017 Employees year 2017 Employees year 2017 Employees year 2017 for non-filling of reserved vacancies)
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
Group D Nil Nil Nil Nil Nil Nil Nil Nil Nil
(Sweeper
only)
FALTA SEZ, Group A 2 Nil Nil Nil - Nil Nil Nil Nil
Kolkata Group B 23 Nil Nil Nil - Nil Nil Nil Nil
Group C 10 Nil Nil Nil 1 Nil Nil Nil Nil
Group D - - - - - - - - -
(excluding
sweeper)
Group D Nil Nil Nil Nil Nil Nil Nil Nil Nil
(Sweeper
only)
SEEPZ SEZ, Group A 6 (on - - - - - - - -
Mumbai deputation basis)
Group B 15 (14 on - - - - - - - -
deputation basis+1)
Group B 20 (19 on - - - - - - - -
(NonGazetted) deputation basis+1)
Group C 61 (60+1 on 61 - - - - - - 1 LDC (HH)
deputation basis)
Group D - - - - - - - - -
(excluding
sweeper)
Group D - - - - - - - - -
(Sweeper
only)
Indore SEZ, Group A 3 3 Nil Nil Nil Nil Nil Nil Nil
Indore Group B 17 17 Nil Nil Nil Nil Nil Nil Nil
Group C Nil Nil Nil Nil Nil Nil Nil Nil Nil
Group D Nil Nil Nil Nil Nil Nil Nil Nil Nil
(excluding sweeper)
Group D Nil Nil Nil Nil Nil Nil Nil Nil Nil
(Sweeper only)

Department of Commerce | Annual Report 2017-18 | 159

 Name of Group Total no. of Total No. of No. of No. of VH category No. of No. of OH category No. of No. of HH category Total no. of vacancies reserved
Organisation Employees candidates Visually candidate recruited Orthopaedically candidate recruited Hearing candidate recruited for PWDs, which remained unfilled
(as on 31st recruited during Handicapped during calendar Handicapped during calendar Handicapped during calendar as on 31st October 2017 (Reasons
October, 2017) calendar year 2017 Employees year 2017 Employees year 2017 Employees year 2017 for non-filling of reserved vacancies)
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
NOIDA SEZ, Group A 4 - - - - - - - -
NOIDA Group B 22 - - - - - - - -
Group C 41 - - - - 1 - - -
Group D - - - - - - - - -
(excluding
sweeper)
Group D
(Sweeper
only)
SUB TOTAL (A) 2030 126 3 Nil 23 1 3 0 9
AUTONOMOUS BODIES AND COMMODITY BOARDS UNDER DEPARTMENT OF COMMERCE
Coffee Board, Group A 89 Nil - Nil 1 Nil - Nil Nil
Bangalore Group B 187 Nil 2 Nil 3 Nil 1 Nil Nil

160 | Annual Report 2017-18 | Department of Commerce

Group C 524 Nil 3 Nil 4 Nil 3 Nil Nil
Group D - - - - - - - - -
(excluding
sweeper)
Group D - - - - - - - - -
(Sweeper
only)
Spices Group A 94 Nil Nil Nil Nil Nil Nil Nil 1
Board, Group B 133 Nil Nil Nil 4 Nil Nil Nil Nil
Cochin
Group C 197 Nil 3 Nil 3 Nil 2 Nil Nil
Group D Nil Nil Nil Nil Nil Nil Nil Nil Nil
(excluding
sweeper)
Group D Nil Nil Nil Nil Nil Nil Nil Nil Nil
(Sweeper
only)
Rubber Group A 302 - - - 1 - - - -
Board, Group B 616 - 2 - 8 - 2 - -
Kottayam
Group C 589 - 2 - 10 - 2 - -
 Name of Group Total no. of Total No. of No. of No. of VH category No. of No. of OH category No. of No. of HH category Total no. of vacancies reserved
Organisation Employees candidates Visually candidate recruited Orthopaedically candidate recruited Hearing candidate recruited for PWDs, which remained unfilled
(as on 31st recruited during Handicapped during calendar Handicapped during calendar Handicapped during calendar as on 31st October 2017 (Reasons
October, 2017) calendar year 2017 Employees year 2017 Employees year 2017 Employees year 2017 for non-filling of reserved vacancies)
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
Group D 1 - - - - - - - -
(excluding
sweeper)
Group D - - - - - - - - -
(Sweeper
only)
Tobacco Group A 91 0 0 0 0 0 0 0 1st (a) In response to 1st Notification,
Board, 96 applications received but only one
Guntur applicant is eligible. However, he did
not attend for (b) In response to
2nd Notification, 11 applications
received but none of the applicant
is eligible. (c) PwD-HH category is
not available whereas other category
of PwD is available. Hence Board has
submitted a letter to the Ministry.
Group B 112 0 0 0 7 0 0 0 0
Group C 328 0 2 0 10 0 1 0 0
Group D 0 0 0 0 0 0 0 0 0
(excluding
sweeper)
Group D 0 0 0 0 0 0 0 0 0
(Sweeper
only)
Tea Board, Group A 69 36 0 0 0 0 0 0 1
Kolkata
Group B 147 76 0 0 0 0 0 0 0
Group C 287 199 0 0 3 0 0 0 0
Group D NA NA NA NA NA NA NA NA NA
(excluding
sweeper)
Group D NA NA NA NA NA NA NA NA NA
(Sweeper
only)

Department of Commerce | Annual Report 2017-18 | 161

 Name of Group Total no. of Total No. of No. of No. of VH category No. of No. of OH category No. of No. of HH category Total no. of vacancies reserved
Organisation Employees candidates Visually candidate recruited Orthopaedically candidate recruited Hearing candidate recruited for PWDs, which remained unfilled
(as on 31st recruited during Handicapped during calendar Handicapped during calendar Handicapped during calendar as on 31st October 2017 (Reasons
October, 2017) calendar year 2017 Employees year 2017 Employees year 2017 Employees year 2017 for non-filling of reserved vacancies)
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
Agriculture Group A 25 0 0 0 01 0 0 0 0
and Group B 31 0 0 0 0 0 0 0 01
Processed
Food Prod- Group C 31 0 0 0 01 0 0 0 0
ucts Export Group D 0 0 0 0 0 0 0 0 0
Development (excluding
Authority sweeper)
(APEDA),
Group D 0 0 0 0 0 0 0 0 0
New Delhi
(Sweeper
only)
Export Group A 113 (1 on deputation) 11 - - 2 - - - -
Inspection Group B 35 3 - - 2 - - - -
Council of
India (EIC), Group C 180 5 - - 2 - 1 - -
New Delhi Group D - - - - - - - - -

162 | Annual Report 2017-18 | Department of Commerce

(excluding
sweeper)
Group D - - - - - - - - -
(Sweeper
only)
The Marine Group A 71 (4-Direct, 3-Deputation) - - - - - - -
products Group B 98 1 - - - - - - -
Export
Development Group C 79 - 2 - - - - - 1(HH)
Authority Group D 25 - - - - - - - -
(excluding
sweeper)
Group D - - - - - - - - -
(Sweeper
only)
SUB TOTAL (B) 4454 338 16 Nil 62 Nil 12 Nil 5
 Name of Group Total no. of Total No. of No. of No. of VH category No. of No. of OH category No. of No. of HH category Total no. of vacancies reserved
Organisation Employees candidates Visually candidate recruited Orthopaedically candidate recruited Hearing candidate recruited for PWDs, which remained unfilled
(as on 31st recruited during Handicapped during calendar Handicapped during calendar Handicapped during calendar as on 31st October 2017 (Reasons
October, 2017) calendar year 2017 Employees year 2017 Employees year 2017 Employees year 2017 for non-filling of reserved vacancies)
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
PUBLIC SECTOR UNDERTAKINGS UNDER DEPARTMENT OF COMMERCE
State Trading Group A 427 7 2 1 8 0 1 0 As per the statement of last year as on
Corporation 31.10.2016 for the period from 01.01.2016
Of India to 31.10.2016, 02 SC vacancies and 01 ST
(STC) , New vacancies were there and were under
Delhi screening process. During the screening
process only 01 SC candidate fulfilled the
eligibility criteria and was selected and
issued offer letter but he did not join.
Therefore, the reserved 02 SC and 01 ST
position remain unfilled, which will be
filled in future recruitment process. During
the period from 01.01.2017 to 31.10.2017
no fresh recruitment process was initiated.
Group B 102 0 1 0 1 0 0 0 In STC, no recruitment has taken place in
group B & C since last 21 years (approx.)
except on compassionate appointment
made as per policy of the organization.
Group C 97 0 0 0 1 0 0 0
Group D - - - - - - - - -
(excluding
sweeper)
Group D - - - - - - - - -
(Sweeper
only)
Minerals and Group A 464 10 1 0 9 0 3 0 1
Metals
Trading Group B 468 - 1 0 8 0 0 0 0
Corporation Group C 106 - 0 0 1 0 0 0 0
(MMTC)
Limited, Group D 136 - 0 0 0 0 0 0 0
New Delhi (excluding
sweeper)
Group D - - - - - - - - -
(Sweeper
only)

Department of Commerce | Annual Report 2017-18 | 163

 Name of Group Total no. of Total No. of No. of No. of VH category No. of No. of OH category No. of No. of HH category Total no. of vacancies reserved
Organisation Employees candidates Visually candidate recruited Orthopaedically candidate recruited Hearing candidate recruited for PWDs, which remained unfilled
(as on 31st recruited during Handicapped during calendar Handicapped during calendar Handicapped during calendar as on 31st October 2017 (Reasons
October, 2017) calendar year 2017 Employees year 2017 Employees year 2017 Employees year 2017 for non-filling of reserved vacancies)
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
Indian Trade Group A 148 - - - - - 01 - 01(HH)
Promotion Group B 68 - - - - - - - -
Organisation
(ITPO), New Group C 223 09 - - 04 - 02 - 01(VH)
Delhi Group D 290 - 02 - 02 - - - -
(excluding
sweeper)
Group D 49 - - - 01 - - - -
(Sweeper
only)
Project and Group A 107(including 04 (Three joined 01 - 02 - - - -
Equipment CMD, 2 Directors in March 2017)
Corporation and CVO)
of India Group B 10 - - - - - - - -
(PEC)

164 | Annual Report 2017-18 | Department of Commerce

Limited, Group C 03 - - - - - - - -
New Delhi Group D - - - - - - - - -
(excluding
sweeper)
Group D - - - - - - - - -
(Sweeper
only)
Export Credit Group A 256 Nil 2 Nil 3 Nil Nil Nil Nil
Guarantee Group B 331 28 2 Nil 3 Nil 1 1 Nil
Corporation
of India Group C 22 Nil Nil Nil Nil Nil Nil Nil NIL
(ECGC) Group D 9 Nil 1 Nil Nil Nil Nil Nil Nil
Limited, (excluding
Mumbai sweeper)
Group D Nil Nil Nil Nil Nil Nil Nil Nil Nil
(Sweeper
only)
SUB TOTAL (C) 3316 58 13 1 43 Nil 8 1 6
GRAND TOTAL = 10292 522 36 1 131 1 23 3 21
DoC + A+ B+ C
 TRANSPARENCY, PUBLIC
FACILITATION AND ALLIED
ACTIVITIES

Department of Commerce | Annual Report 2017-18 | 165

CITIZEN CHARTER & Chief Vigilance Officer (JS&CVO) as the Divisional head deals
The Department of Commerce is committed to act with in- with the following work:-
tegrity, judiciousness, transparency, accountability and with courtesy ● implementation of Conduct rules
and understanding in dealings with the trade and public. All the serv- ● processing of annual property returns
ices and commitments are to be delivered to citizens in most effec- ● furnishing of CVO’s monthly report on vigilance activities to
tive and efficient manner. CVC
● compiling quarterly statistical reports of vigilance cases for send-
The Department will strive to evolve procedures in Foreign ing a consolidated quarterly report to the Department of Per-
Trade Policy to maximize public benefits and is committed to sim- sonnel
plify various requirements necessary under rules in force, in the con- ● work relating to granting permission under the provision of the
text of a globalized and liberalized economy. We will continuously Conduct Rules
consult client groups and give timely publicity to all changes in law
and procedures relevant to the Department. Vigilance Section also handles the following activities:-
● conducting regular and surprise inspections of sensitive offices
PUBLIC GRIEVANCES ● review and streamlining of procedures, which appear to afford
Public Grievance Cell deals with monitoring public grievances, scope for corruption or misconduct and for initiating other
problems of staff of Department of Commerce and of offices measures for the prevention, detection of corruption and other
under its control for speedy redressal. A Grievance Box has also malpractices and punishment to the corrupt in the Department
been provided at the Information and Facilitation Counter situated as well as its attached and subordinate offices and Public Sector
at Gate No.14, Udyog Bhavan, New Delhi. Undertakings
● keeping a watch on the movement/visits of Undesirable persons
VIGILANCE WING in the Department
The Vigilance Section in the Department with the Joint Secretary ● preparation of a list of officers of “Doubtful Integrity” /Agreed

S. No. Services/Transaction Maximum Time Limit

1 Approval for grant of financial assistance under This is a non-plan scheme which has
Market Development Assistance (MDA) scheme. been merged with MAI from
F.Y. 2017-18.
2 Approval for grant of financial assistance 3 months from the date proposals are
under MAI scheme. received in E&MDA Division.
3. Approval for grant of financial assistance in 3 months*
respect of projects under Trade Infrastructure (*Subject to availability of complete
for Export Scheme (TIES). documents and availability of funds).
4. Approval for setting up of SEZ i. Placement of cases before the Board
of Approval (BOA) within 60 days of
receipt of State Government’s
recommendations and complete
documents,
ii. Issue of approval letter within 20
days of BOA approval, subject to
security clearance.
5. RTI Act, 2005
i. Provide information or reject the request i. Within the time limits prescribed in
for any of the reasons specified in the RTI Act, 2005. the RTI Act, 2005.
ii. Disposal of appeals preferred under RTI Act, 2005. ii. Within the time limits prescribed in
the RTI Act, 2005.
PUBLIC GRIEVANCE MECHANISM
6. Resolving Public Grievances 60 days x
(x Subject to receipt of complete
details and receipt of response from
the authority taking final decision
on the grievance).
(* if longer period is involved, the
complainant will be informed through
an interim reply within 60 days.)
7. For taking actions by the Appellate Committee Within 3 months
on appeals preferred against statutory orders Note: This is subject to receipt of
passed by DGFT, etc. complete details/documents from the
appellant and respondents.

166 | Annual Report 2017-18 | Department of Commerce

 list and their postings to non sensitive areas scheme, the Hindi speaking officers and employees writing mini-
mum of 20000 words in a year and non- Hindi speaking officers and
The Vigilance Section of the Department mainly deals with the employees writing 10000 words in a year are awarded with the cash
disciplinary cases of Indian Trade Service officers and Board level prize of Rs. 5000/- . During the year 2016-17, 52 Hindi speaking
appointees working in various Public Sector Undertakings, Au- and 5 non- Hindi speaking officers/ employees were awarded for
tonomous Bodies and Commodity Boards functioning under the ad- doing their work in Hindi.
ministrative control of the Department, while the cases of non
Board level appointees of the various PSUs, Autonomous Bodies Hindi Fortnight: Following the trend in previous years, Hindi
and Commodity Boards are looked after by the respective fortnight was organized in the Department during 1-15 September
CVO/Heads of the Organisations. this year. Five competitions viz. essay writing in Hindi, Noting and
drafting in Hindi, Hindi typing, knowledge of Rajbhasha and trans-
The complaints received from individuals and other organiza- lation and Dictation in Hindi were organised wherein the officers/
tions like CBI/CVC/PMO etc. are examined on the basis of the fac- employees of the department participated whole- heartedly. The
tual report obtained from the concerned administrative winners were awarded with cash prize and certificates.
divisions/organizations. If necessary, preliminary inquiries are made
to look into the merit of the complaint. If the complaints have any Meeting of the Official Language Implementation Com-
substance then a regular departmental action is initiated. mittee: The meetings of the Official Language Committee were or-
ganised regularly in the year 2016-2017. The meetings are organised
During the year 2017-18 (April’17-22ndOctober’17), about 124 to review the progress of the implementation of the official lan-
investigations/inquiries were conducted and on the basis of these guage in the department and the schemes are devised for promoting
inquiry proceedings, in 21 cases major/minor penalties were im- the usage of Hindi.
posed in attached and subordinate offices, PSUs, Autonomous Bod-
ies/Commodity Boards and the Department of Commerce. Inspection of attached/ subordinate offices: During the year
2016-2017, the officers of the Department of Commerce inspected
Vigilance Awareness Week was observed by conduct of work- total of 12 attached and subordinate offices and the offices were
shop/sensitization programmes, pledge taking, issue of pamphlets instructed how to handle the problems faced while working in Hindi.
etc during the period 30th October, 2017 to 4th November, 2017 to
create awareness amongst officers and staff. Constitution of Hindi Advisory Committee: The constitu-
tion of Hindi Advisory Committee is under process. The notifica-
RIGHT TO INFORMATION (RTI) tion regarding the constitution of Hindi Advisory Committee will
The Department of Commerce (DoC) has implemented the be issued after getting the approval from the Honourable Minister
Right to Information Act, 2005 and has put in place all necessary of State in Ministry of Commerce and Industry.
systems and procedures on the website of the Department. At pres-
ent, there are 36 Central Public Information Officers (CPIOs) of E-GOVERNANCE
Directors/Deputy Secretaries level in the Department and 16 First The Department has continued its commitment towards e-Gov-
Appellate Authorities (F.A.A.s), who are Additional Secretary/Joint ernance with the use of ICT in its day to day functioning and
Secretary level officers to hear and dispose of first appeal(s) filed processes, delivery of services, management of country’s trade data-
under the RTI Act. bases and information dissemination. The Department's web site
(http://commerce.gov.in) is the main source of information dissem-
Besides, there are 31 Public Authorities (P.A.s) under the juris- ination. It is being regularly updated to provide latest information
diction of DoC. All these P.A.s have their own CPIOs and F.A.A.s about the working of the department, various activities, events and
for implementation of the provisions of the RTI Act. trade negotiations undertaken by the department and updates on
country’s trade.
During the period from April, 2016 to March, 2017, 967 RTI ap-
plications were disposed of by different CPIOs/Appellate Author- The high speed Local Area Network (LAN) and Wide Area Net-
ities of this Department and 494 applications were transferred to work (WAN) with Wi-Fi connectivity are operational and being
other Public Authorities. During the same period, 118 appeals were maintained by National Informatics Centre (NIC) for 24x7 E-mail,
also disposed of as per provisions of the RTI Act. intranet/ internet operations for the department. An Intranet Portal
is operational and being maintained by NIC to provide single win-
During the period from April, 2017 to September, 2017, 456 ap- dow access of various e-governance and office automation applica-
plications were disposed of by different CPIOs of this Department tions to the employees and internal users in the department.
and 199 applications were transferred to other Public Authorities.
During the same period, 32 appeals were disposed of as per provi- Video Conferencing over NICNET is being extensively used in
sions of the RTI Act. the department as one of the cost effective measures for organizing
national and international meetings. In last year, forty-eight such
OFFICIAL LANGUAGE meetings were organized.
The Hindi Section of the Department of Commerce is respon-
sible for promoting the use of official language Hindi in the Depart- As one of the major eGovernance initiatives and induce less
ment. The Hindi section implements the policies made by the paper environment, the eOffice system has been successfully imple-
Department of Official language, Ministry of Home Affairs, recom- mented for electronic file/ receipt movement besides its other com-
mendations made to the Honourable President of India by the Par- ponents like electronic notice board, leave management and tour
liamentary Committee on Official Language, directions issued by the management, knowledge management system. The existing files have
Department of Official language for promoting the official language. been digitized and integrated in the eOffice system.
The details of the various schemes implemented by the Department
are as follows: COMMERCIAL WINGS IN INDIAN MISSIONS/ POSTS
ABROAD
Hindi incentive scheme: Like previous years, the Hindi incen- There are 66 formal Commercial Wings functioning in the In-
tive award scheme was implemented this year also. Under this dian Missions/Posts abroad, which are funded from the Budget of

Department of Commerce | Annual Report 2017-18 | 167

the Department of Commerce. These Commercial Wings, working ship, promotion of project exports and of services, brand/mar-
as units are attached to the Indian Missions. These include the Per- ket promotion, analysis of emerging trends relating to multilat-
manent Mission of India to the World Trade Organization, Geneva eral and regional institutions with a focus on India’s trade and
and the Department’s Mission in Brussels. In addition, 40 other In- investment etc.
dian Missions have been provided with commercial budget either to
employ local Marketing Assistants for undertaking commercial and In order to strengthen the Commercial Wings and increase their
economic job or to carry out trade promotion activities. activities, budgetary allocation for these offices have been augmented
from time to time. The budget provisions have been enhanced from
The Commercial Wings of our Missions abroad serve as an ex- Rs. 121.35 Crore in BE 2013-14 to Rs. 172.54 Crore in BE 2017-18.
tension of the Department of Commerce in performing various
tasks relating to India’s trade with the concerned host country. It Functioning of Commercial Wings is reviewed from time to
involves: time. An exercise for strengthening the Commercial Wings to fur-
i) Information and marketing intelligence which would, inter-alia, ther the commercial interests of the country across key markets and
include collection and transmission of trade, economic and in- to have location specific and need based manpower is underway. The
vestment information; monitoring of economic, commercial and Department is devising an evaluation framework of the services ren-
trade policy developments; monitoring of bilateral economic dered by the CRs/Trade Commissioner and a web-based system for
and commercial relations, both at the Government-level as well reporting data by the Missions/posts abroad to the Department of
as at the level of business communities of the two countries; Commerce, wherein a revised reporting proforma for the Commer-
market research, surveys and critical analysis of ongoing trade; cial Wings is under consideration/finalization.

ii) Trade and investment promotion which would, inter-alia, include In order to strengthen the capacity of the Commercial Repre-
handling trade and investment enquiries, promotion of merchan- sentatives in the changing international landscape, the Department
dise trade, promotion of investment & joint ventures and assis- of Commerce is organizing capacity building sessions at the Foreign
tance in resolution of trade disputes; Service Institute (FSI), New Delhi under the Ministry of External
Affairs (MEA). Also training sessions for the Commercial Represen-
iii) Trade and economic discussions which would, inter-alia, include tatives are planned to be organized region-wise from time to time
follow-up on the bilateral economic and commercial relation- through the FSI. ■

168 | Annual Report 2017-18 | Department of Commerce

 Annexure–II
SUMMARY OF THE AUDIT OBSERVATIONS IN THE VARIOUS REPORTS OF 2017
Sl. No. Para/Report No. Gist of Para/Status Audit observations

1 1 of 2017 Utilization of duty credit by re-registering the Customs duties for import of inputs and capital goods
4.1.1 to 4.1.5 scrips (licenses) with different dates. under an export promotion scheme through a notifi-
Status:- CAG vide comments dated have cation. Importers of such exempted goods undertake
sought clarification certain issues with revise to fulfill proscribed export obligation(EO) as well as
comments from DRI. Matter referred to EDI for comply with specified conditions, failing which the full
inputs on 23.11.2017. Reply awaited. rate of duty becomes loveable. During test check of
records (April 2014- to March,2016), 35 cases have
2 1 of 2017 Incorrect grant of SFIS duty credit been noticed involving total revenue of 461.66 crore
4.5.1 Status:- Revised ATN sent to CAG on where duty exemptions were availed of without ful-
28.11.2017 filling Eos/conditions. Out of these, thirteen cases
are discussed in the following paragraphs and 22
3 1 of 2017 Grant of SHIS duty credit to ineligible goods cases which have been accepted by the department
4.5.2 Status:- Revised ATN sent to CAG on and recoveries made/ recovery proceeding initiated
29.11.2017 are mentioned.

4 12 of 2017 Final ATN approved by Audit. Ineffective monitoring by APEDA resulted in non-uti-
7.1 Pending with Section for upload final ATN lization of grant for the intended purpose. APEDA
APMS portal. sustained a loss of Rs 1.77 crore towards interest
payable on funds received from M/o Commerce & in-
dustry, as an identical clause for levy of interest was
not inserted in the MoU singed with Spices Board.

Status/Action Taken on audit observations appears in various reports

Sl. Year No. of Paras/ Details of the Paras/PA reports on which ATNs are pending.
No. PA reports on
which ATNs have No. of ATNs No. of ATN No. of ATNs sent Sent to No. of ATNs
been submitted not sent by pending but returned with Monitoring pending with
to PAC after the Ministry with Audit observations and Cell/PAC other reasons
vetting by Audit even for Audit is awaiting Branch
the first time their resubmission (Lok Sabha)
by the Ministry

1. 2008 Customs & 1 --- -- --

Excise Issues
2. 2009 Customs & 1 -- -- --
Excise Issues
3. 2010 Commercial -- -- -- -- 3
4. 2012 Commercial -- -- -- -- 1
5. 2013 Customs & Excise -- 1 -- -- 1
Commercial -- -- --- -- 1
7 2014 Customs & Excise 2 -- --
8. 2015 Customs & Excise -- 1 2 -- --
Civil --- -- -- -- 1
Commercial -- -- 2 -- --
9. 2016 Customs & Excise 3 -- -- --
Commercial --- -- 1 -- --
10 2017 Customs & Excise 1 3 -- --
Civil --- 1 -- -- --
Commercial -- -- 1 -- ---
PAC --- -- -- -- --
Total -27 --- 11 9 7

Department of Commerce | Annual Report 2017-18 | 169

 LIST OF CIVIL PARAS
Sl. No. Para/Report No. Gist of Para Status of the para
Customs & Excise Issues- EOU/SEZ

1 Report No. Reimbursement of CST. Out of 35 paras continued in the report, CAG have
8 of 2013 given No comments on 23 paras, 2 paras pertain to
DeitY. Revised comments on remaining 10 paras
have been furnished to CAG on 10.11.2017.

2 21 of 2014 Special Economic Zones(SEZs) Out of 79 paras contained in the report, CAG have
given No comments on 31 paras, 9 paras Petain to
DoR. Revised comments on remaining 39 paras
have been furnished to CAG on 16.11.2017.

Status of Civil Paras EIC/APEDA

1 18 of 2015 Avoidable expenditure due to non-collection Sub-judice with Central Sales Tax Tribunal.
(2.2) of service tax.

2 12 of 2017 Ineffective monitoring by APEDA resulted in Final ATN approved by Audit. Pending with Section
(7.1) non-utilization of grant for the intended pur- for upload final ATN APMS portal.
pose. APEDA sustained a loss of Rs 1.77
crore towards interest payable on funds re-
ceived from M/o Commerce & industry, as an
identical clause for levy of interest was not in-
serted in the MoU singed with Spices Board.

Customs & Excise Issues -DGFT

1 CA6 of 2008 Central Excise, service tax and customs. CAG has sought revised ATN on 25 sub paras on
(Ch-IV) 5.10.2017. The same had been sought from RAs.
Many RAs have responded, ATN sent to CAG on
24.11.2017.

2 PA 15 of 2009-10 Import of good under Chapter -71 w.r.t DGFTs reply on 13.9.2017, CAG vide their com-
ments at APMS portal on 26.9.2017, cleared some
of sub-paras and sought further action in r/o sub-pars
Nos. 3.6,4.4, 4.7,4.8.1 & 4.8.2. Revise ATN sent to
CAG on 9.10.2017.

3 PA 8 of 2013 Deemed Export Drawback Scheme. CAG on 29.09.2017 had dropped para 1.1 to 1.12
(Ch-I) and also offer no comments on ATN on Para 3.74 &
3.56 to 3.65 being sub-judice. But sought ATNs in
r/o para No. 3.1 to 3.93. The Same were obtained
from policy 6 and sent to CAG on 26.10.2017.
Sub-judice.

4 12 of 2014 Promotional measures (Focus Product CAG has given its no comments and sought infor-
(2.4 to2.19) Scheme). mation in r/o of other paras on 23.10.2017.Reply sent
on 10.11.2017

5 8 of 2015 Incorrect grant of duty credit scrips on earn- CAG has sought additional information on
(7.19.2) ings in Indian rupees/foreign exchange 22.11.2017. Concerned RAs asked to furnish the
through travel agents. reply on 22.11.2017. Information received Pune and
Jaipur. Information awaited from Mumbai and Goa.
Reminder sent by email on 1.12.2017 and
8.12.2017.

6 8 of 2015 (7.20 to Achievement of Net Foreign Exchange Earn- CAG has cleared para 7.20 only vide letter dated
7.23) ings by Hospitality Sector. 7.12.2017. In r/o of ther paras, CAG has already
been asked to share the cases vide letter on portal
dated 01.12.2017. Reply awaited from CAG.

170 | Annual Report 2017-18 | Department of Commerce

Sl. No. Para/Report No. Gist of Para Status of the para
Customs & Excise Issues -DGFT

7 8 of 2015 Audit of DGFTs EDI audit system CAG vide reply on 20.11.2017 have cleared some
(Para 8) paras and sought status/Revised ATNs of others.
Matter sent to EDI on 22.11.2017. Revised ATNs re-
ceived from EDI on 28.11.2017 by email were not
correct and ATNs were unsinged. EDI has been
asked to do the needful on 1.12.2017. 3 draft ATNs
made & sent to EDI for ready reference on
7.12.2017.

8 5 of 2016 Excess DEPB credit due to application of in- Revised ATN sent to Audit on 21.11.2017
(Pars 5.2) correct DEPB credit rate.

9 5 of 2016 Incorrect discharge of advance authoriza- CAG vide their note at APMS portal on 16.10.2017
(Pars5.3) tion(Zonal DGFT, Kolkata) sought specific reply to the audit comments. Revised
ATN sent on 10.11.2017

10 5 of 2016 Grant of SHIS duty credit for services ren- CAG on 29.11.2017 have sought additional informa-
(5.5) dered beyond the application period tion. Same called from RA on 29.11.2017 and reply
received on 1.12.2017 and sent to CAG on
1.12.2017.

11 5 of 2016 Grant of SHIS duty credit scrip to companies CAG sought additional information/Revised ATNs.
(5.6) already issued Zero duty EPCG and vice- Revised reply sent to CAG on 23.11.2017.
versa

12 1 of 2017 Utilization of duty credit by re-registering the CAG vide comments dated 20.11.2017 have sought
4.1.1 to 4.1.5 scrips (licenses) with different dates clarification certain issues with revise comments from
DRI. Matter referred to EDI for inputs on 23.11.2017.
Reply awaited.

13 1 of 2017 Incorrect grant of SFIS duty credit CAG had sought additional information on
4.5.1 22.11.2017. Information called from RA Chennai on
23.11.2017. Revised ATN received and sent to CAG
on 28.11.2017.

14 1 of 2017 Grant of SHIS duty credit to ineligible goods CAG has sought revised ATN on 29.11.2017 and has
4.5.2 sought input/clarification/notification regarding Base
Chemicals. Matter referred to Policy 3 on 29.11.2017.
Reply awaited.
List of Outstanding C&AG(Commercial) paragraphs-FT(ST)
1 4.3.1 Failure to devise internal controls in entering The Audit Office has furnished the vetting remarks
(9 of 2010) & executing contracts with business associ- on the ATNs sent by the Ministry. The Audit Office
ates pertaining to STCL Ltd. vide their letter dated June 2012 has stated that in
view of the sub-judice nature of the case. ATNs be
retained till the finality is reached. DoC has directed
STCL vide letter dated 2.7.2012 and reminder dt.
2.5.2013 to pursue with the concerned authorities for
early finalization of the cases. Vide letter dated
27.6.2016, Audit has been informed about latest po-
sition in the matter. As per recommendation of 6th
Meeting of the Standing Audit Committee STCL has
been requested vide letter dated 2.9.2016 to pursue
with the concerned authorities for early finalization of
the case. Updated current status send to audit on
18.7.2017.

2 13.2.1 (24 of Excess expenditure due to incorrect regulation Revised ATN dt.6.5.2013 returned from audit with the
2010) of leave encashment. vetting remarks “keeping in view the direction of DPE
PEC/MMTC/STC to take corrective action and the fact that no recovery

Department of Commerce | Annual Report 2017-18 | 171

 Sl. No. Para/Report No. Gist of Para Status of the para
List of Outstanding C&AG(Commercial) paragraphs-FT(ST)

has been affected by PEC, STC and MMTC so far,

the para may be retained. MMTC has informed on
27.5.2013 that recovery from existing employees has
been deferred due to invocation of violation of section
under ID Act 1947 lodged by MMTC Employees
Union against the management of MMTC before Re-
gional Labour Commission in May 2013 which is
pending for disposal.Fresh ATN received from STC,
PEC and MMTC have been sent to IFD/DoC for vet-
ting on 23.10.2017.

3 4.1(CA 3 of 2011- Iron Ore Business Segment.-STCL Ltd. The Audit Office has furnished the vetting remarks
12) on the ATNs sent by the Ministry. The Audit office
vide their letter dated 28.5.2012 has stated that in
view of the subjudice nature of the case, ATNs be re-
tained till the finality is reached. DOC has directed
STCL vide letter dated 2.7.2012 and reminder dt.
2.5.13 to pursue with the concerned authorities for
early finalization of the cases. Vide letter dated
27.6.2016, Audit has been informed about latest po-
sition in the matter. As per recommendation of 6th
Meeting of the Standing Audit Committee STCL has
been requested vide letter dated 2.9.2016 to pursue
with the concerned authorities for early finalization of
the case. Updated current status send to audit on
18.7.2017.

4 4.1 (8 of 2012)- Irregularities in release of funds to a business STCL furnished revised ATN s which were forwarded
13(New Addition) associate. to office of audit on 25.3.2013. The Audit has stated
that since the cases are sub-judice and the amount
is yet to be recovered, it is proposed to retain the ATN
until a finality is reached. DoC has directed STCL to
pursure with the concerned authorities for early final-
ization of the cases. Vide letter dated 27.6.2016,
Audit has been informed about latest position in the
matter. As per recommendation of 6th Meeting of the
Standing Audit Committee STCL has been requested
vide letter dated 2.9.2016 to pursue with the con-
cerned authorities for early finalization of the case.
Updated current status send to Audit on 18.7.2017.

5 4.3 (21 of 2015) Non-compliance to the directions of On the basis of inputs furnished by MMTC, STC and
Government of India for export of rice to PEC and Vig. Division, DoC ATRs on vetting remarks
African Countries. on audit have been sent to audit for vetting on
19.7.2017. Audit vide letter dated 18.10.2017 has ad-
vised dropping of para, further action is being taken
for sending requisite no. of copies to LSS.

6 4.1 (21 of 2015) Trading Activities of Agro Commodities of the On the basis of inputs furnished by MMTC, STC and
three PSUs PEC ATRs on vetting remarks of Audit received on
10.11.2016 have sent to Audit for vetting on
19.7.2017. Further remarks of Audit received vide let-
ter dated 17.11.2017 and are under examination.

7 4.1 (9 of 2017 Imprudent Financing decisions resulted in ATRs sent to audit for vetting on 19.7.2017. Audit
non-realization of dues vide letter dated 10.11.2017 has no further remakes
of para, further action is being taken for sending req-
uisite no. of copies to LLS.

172 | Annual Report 2017-18 | Department of Commerce

 Sl. No. Para/Report No. Gist of Para Status of the para
List of Outstanding C&AG (Commercial Paragraphs) MMTC

1 4.2.1 (9 of 2010) Loss of Rs. 2.14 Crore Due to delay in dis- This Department had sent ATN to Audit and con-
posal of Zinc. veyed that the matter is sub-judice vide letter dated
11.12.12 vide letter dated 1.3.13, O/o CAG conveyed
that the para need to be pursued further. Accord-
ingly, MMTC has been requested to furnish further
updates in the matter.

Present status: - The matter was listed on 6.9.2017

for framing of issues. On 6.9.2017 the court pointed
out that two applications filed by the Defendant No.
2 are still pending for disposal and matter is now fixed
on 15.11.2017 for disposal of the said application.
Present status of case is being obtained from MMTC.
Now the court has adjourned the matter to 8.2.2018
and requested MMTC to show all orginal files so that
Defendant No. 2 can be connected with Shanky
Services.

List of Outstanding C&AG(Commercial) paragraphs ECGC

1 4.1(15 of 2016) Blocking of funds on account of failure to im- Revised comments received from CAG sent to
plement IT Solution System. ECGC. Reply is awaited.

Summary of Report No.9 of 2017 – General Purpose Financial Reports on CPSEs

This Report includes important audit findings noticed as a result pines. Non-adherence to trading guidelines of STC, fixing of expo-
of test check of accounts and records of Central Government Com- sure limit at an exorbitantly higher side, ignoring the defunct status
panies and Corporations conducted by the officers of the Comptroller of the plant, failure to exercise effective control through collateral
and Auditor General of India under Section 143 (6) of the Companies management agency over the material lying in the plant of GSWII,
Act, 2013 or the statues governing the particular Corporations. failure to sell material on cash and carry basis (as approved by Board
of Directors), avoidable conciliation agreement with the party, etc.,
The State Trading Corporation of India Limited (STC) signed resulted in blockage of funds amounting to Rs.2,101.45 crore in-
(4 April 2005) a tripartite agreement with M/s. Global Steel Works cluding interest of Rs.1,129.15 crore and additional trade margin of
International Inc. (GSWII) and GSHL (Umbrella Company of Rs.220.99 crore.
GSWII) for supply of raw material to steel plant of GSWII in Philip- (Para 4.1)

Department of Commerce | Annual Report 2017-18 | 173