India’s Share in Global Trade

IAS Prelims 2023

India’s performance in World trade based on the WTO database which provides the data calendar year-wise is given as follows:

India’s Trade Performance: Percentage Share in World Trade
Years India’s Share

in World

Merchandise Exports

India’s Share

in World Commercial Services Exports

India’s Share

in World Merchandise Plus Services Exports

2011 1.7 3.2 1.9
2012 1.6 3.2 1.9
2013 1.7 3.1 2.0
2014 1.7 3.1 2.0
2015 1.6 3.3 2.0

  Source:  World Trade Organization

The Government has launched several schemes and measures to increase India’s share in global trade, which are as follows:

(i) The Merchandise Exports from India Scheme (MEIS) was introduced in the Foreign Trade Policy (FTP) 2015-20 on April 1, 2015 with 4914 tariff lines at 8 digit levels. The Government has extended the market coverage to all countries in respect of 7914 tariff lines. The revenue forgone under the scheme (MEIS) has increased from Rs. 22000 Crore to Rs. 23500 Crore per annum.

(ii) The Government launched Services Exports from India Scheme (SEIS) in the FTP 2015-2020. The Scheme provided rewards to service providers of notified services who are providing service from India.

(iii) The Government is implementing the Niryat Bandhu Scheme with an objective to reach out to the new and potential exporters including exporters from Micro, Small & Medium Enterprises (MSMEs) and mentor them through orientation programmes, counseling sessions, individual facilitation, etc., on various aspects of foreign trade for being able to get into international trade and boost exports from India.

(iv) By way of trade facilitation and enhancing the ease of doing business, Government reduced the number of mandatory documents required for exports and imports to three each, which is comparable with international benchmarks. The trade community can file applications online for various trade related schemes. Online payment of application fees through Credit/Debit cards and electronic funds transfer from 53 Banks has been put in place.

(v) Interest Equalization Scheme on pre & post shipment credit launched to provide cheaper credit to exporters.

(vi) Further, the Government continues to provide the facility of access to duty free raw materials and capital goods for exports through schemes like Advance Authorization, Duty Free Import Authorization (DFIA), Export Promotion Capital Goods (EPCG) and drawback / refund of duties.

The details of the sectors covered under MEIS are given below:

S. No. Product Category
1 Fruits, Flowers and Vegetables
2 Tea, Coffee, Spices and Cashew
3 Cereals preparation, Seeds, Shellac and Essential oils
4 Processed foods, Cocoa products and Beverages
5 Eco Friendly products that add value to waste
6 Remaining Agriculture and Animal Products
7 Poultry & Dairy Products
8 Marine Products
9 Wines and Beer & Liqueur
10 Pharmaceuticals, Surgical and Herbal Products
11 Chemicals
12 Plastic Articles
13 Moulded and Extruded goods, Rubber, Ceramic and Glass
14 Auto Tyres and Tubes
15 Wood , Paper and Stationary Products
16 Handloom, Coir, Jute products and Technical Textiles
17 Carpets
18 Handicrafts
19 Textile and Garments
20 Sports Goods
21 Finished leather, Leather Garments and Goods, Saddlery Items and Footwear
22 Misc Manufactured articles, Auto seats, Steel furniture, Prefabs, Lighters, Mattresses etc.
23 Furniture and Wood Articles
24 Iron, Steel and Base Metal Products
25 Industrial Machinery, Engineering items, IC Engines, Machine tools and Parts
26 Hand Tools, Cutting Tools and Implements Made of Metals
27 Pumps of All Types
28 Automobiles, Two wheelers, Bicycles, Ships and Planes
29 Auto Components/Parts
30 Telecom, Computer and Electronics Products

Merchandise Exports from India Scheme (MEIS) incentivises exports made to all countries w.e.f May, 2016.