GOVERNMENT OF INDIA
MINISTRY OF FINANCE
UNSTARRED QUESTION NO: 3319
ANSWERED ON: 30.08.2013
(a) whether a deficit of 191. billion dollar has been registered in the countrys foreign Trade on the basis of value of our importexport in 2012-13;
(b) if so, the details thereof and the reaction of the Government thereto; and
(c) the corrective steps taenproposed to be taen by the Government in this regard?
(a) (b) Yes Sirs. According to Department of Commerce, in the year 2012-13 total imports were US 491.9 billion while total exports were US 300.3 billion thereby the trade deficit being US 191. billion. The increase in trade deficit has negatively impacted the economic condition of the country. Though merchandise trade has increased, the trade deficit has also increased. The global economic crisis, the sovereign debt crisis in Europe and the economic slowdown in developed economies have adversely impacted demand for our exports. Exports of engineering goods, gems jewelry, textiles, electronic goods, iron ore, mining have been affected during 2012-13.
c) According to Department of Commerce, the Government assesses the export performance on a continuous basis and need based corrective measures to boost exports are taen from time to time. Government has announced certain export promotion measures as part of Annual Supplement to the Foreign Trade Policy (2009-14) on 18-04-2013. Government continued the strategy of product diversification and maret diversification. More countries have been added under both Focus Maret Scheme (FMS) and Special Focus Maret Scheme (Special FMS). 47 new items have been added to the Maret Lined Focus Product Scheme (MLFPS) and 122 new items have been added to the Focus Product Scheme (FPS). Subseuently, Government has notified 13 high-tech products on 10-072013 under Focus Product Scheme. Government has further enhanced the rate of interest subvention from 2 to 3 with effect from 01.08.2013.