India announces export targets for a period of 5 years

Sets under obligation to achieve NFE   

For SEZs and EOUs with FTP upto 31-3-2021   

Export targets are set for Special Economic Zones (SEZs)/Export Oriented Units (EOUs). The SEZ units/EOU units are under obligation to achieve positive Net Foreign Exchange (NFE) earning to be calculated cumulatively for a period of 5 years from the commencement of production. Merchandise exports to Europe and other major western countries (USA, Canada and Mexico) exhibited a positive growth trend in 2017-18 and 2018-19. 

As per World Bank data, some of the major sectors that showed a decline in global demand during 2019 (latest data available) include chemicals, fuels, textiles & clothing, machinery & electricals, metals and transportation. Of these, India’s exports showed a decline in respect of fuels, textiles & clothing and metals during the same period.

The following are some of the key steps taken by Government to increase exports:

i. Foreign Trade Policy (2015-20) extended by one year, i.e., upto 31-3-2021 due to the COVID-19 pandemic situation.

ii. Interest Equalization Scheme on pre and post shipment rupee export credit has also been extended by one year, i.e., upto 31-3-2021.

iii. A new Scheme, Remission of Duties and Taxes on Exported Products (RoDTEP), has been launched with effect from 01.01.2021.

iv. Common Digital Platform for Certificate of Origin has been launched to facilitate trade and increase FTA utilization by exporters.

v. A comprehensive “Agriculture Export Policy” to provide an impetus to agricultural exports related to agriculture, horticulture, animal husbandry, fisheries and food processing sectors, is under implementation.

vi. Promoting and diversifying services exports by pursuing specific action plans for the 12 Champion Services Sectors.

vii. Promoting districts as export hubs by identifying products with export potential in each district, addressing bottlenecks for exporting these products and supporting local exporters/manufacturers to generate employment in the district.

viii. Active role of Indian missions abroad towards promoting India’s trade, tourism, technology and investment goals has been enhanced.

ix. Package announced in light of the Covid pandemic to support domestic industry through various banking and financial sector relief measures, especially for MSMEs, which constitute a major share in exports.

Charts for the review: 

1: India’s exports during the last three years are as under:

Year	Exports (Merchandise +Services) (USD Billion)	Growth (%)
2017-18	498.61	13.31
2018-19	538.08	7.91
2019-20	526.55	-2.14

Source: DGCI&S& RBI 

2: The total exports from SEZs and EOUs during the last two years and the current year is as under: (Rs.in crore)

Year	SEZs export	EOUs export
2018-19	7,01,179	87371.74
2019-20	7,96,669	102492.92
2020-21 (upto 31.12.2020)	5,53,396	65602.04*

* Provisional 

3: Year-wise exports during the last three years are as under: (in USD Billion)

Countries	2017-18	Growth%	2018-19	Growth%	2019-20	Growth%
Europe	60.35	13.16	64.38	6.68	60.56	-5.93
Other Western Countries
USA	47.88	13.42	52.41	9.46	53.09	1.30
Mexico	3.78	9.30	3.84	1.55	3.62	-5.67
Canada	2.51	25.05	2.85	13.78	2.85	0.01
Total	54.17	13.61	59.10	9.10	59.56	0.79

            Source: DGCI&S