ASSIGNMENT ON INTERNATIONAL MARKETING

(Role of WTO,EXIM Bank & DoC in development of Indias Foreign Trade)

Submitted by: Arun Sarkar Role No.47 Marketing II

INDIAS FOREIGN TRADE: DECEMBER, 2011

EXPORTS (including re-exports)
Exports during December, 2011 were valued at US$ 25015.89 million (Rs.131775.95 crore) which was 6.71 per cent higher in Dollar terms (24.48 per cent higher in Rupee terms) than the level of US$ 23442.07 million (Rs. 105856.90) during December, 2010. Cumulative value of exports for the period April-December 2011 -12 was US$ 217663.66 million (Rs 1024706.95 crore) as against US$ 172964.94 million (Rs.789068.93 crore) registering a growth of 25.84 per cent in Dollar terms and 29.86 per cent in Rupee terms over the same period last year.

IMPORTS
Imports during December, 2011 were valued at US$ 37753.36 million (Rs.198873.00 crore) representing a growth of 19.81 per cent in Dollar terms (39.76 per cent in Rupee terms) over the level of imports valued at US$ 31511.08 million ( Rs. 142293.94 crore) in December, 2010. Cumulative value of imports for the period April-December, 201112 was US$ 350935.69 million (Rs.1651239.75 crore) as against US$ 269175.16 million (Rs. 1228074.48 crore) registering a growth of 30.37 per cent in Dollar terms and 34.46 per cent in Rupee terms over the same period last year.

CRUDE OIL AND NON-OIL IMPORTS:

Oil imports during December, 2011 were valued at US$ 10279.3 million which was 11.20 per cent higher than oil imports valued at US$ 9243.6 million in the corresponding period last year. Oil imports during April-December, 2011-12 were valued at US$ 105588.7 million which was 40.39 per cent higher than the oil imports of US$ 75211.4 million in the corresponding period last year. Non-oil imports during December, 2011 were estimated at US$ 27474.1 million which was 23.38 per cent higher than non-oil imports of US$ 22267.5 million in December, 2010. Non-oil imports during April - December, 2011-12 were valued at US$ 245347.0 million which was 26.49 per cent higher than the level of such imports valued at US$ 193963.8 million in April - December, 2010-11.

TRADE BALANCE
The trade deficit for April-December, 2011-12 was estimated at US$ 133272.03 million which was higher than the deficit of US$ 96210.22 million during April-December, 2010-11. EXPORTS & IMPORTS : (US $ Million)

Ministry (Source : PRESS RELEASE, Ministry of Commerce and Industry Department of Commerce)

WORLD TRADE ORGANISATION (WTO)

While the WTO is driven by its member states, it could not function without its Secretariat to coordinate the activities. The Secretariat employs over 600 staff, and its experts lawyers, economists, statisticians and communications experts assist WTO members on a daily basis to ensure, among other things, that negotiations progress smoothly, and that the rules of international trade are correctly applied and enforced. Trade negotiations Implementation and monitoring Dispute settlement Building trade capacity Outreach

ROLE OF WTO IN DEVELOPING INDIAS FOREIGN TRADE

Endorsement of a trade assistance programme designed to help LDCs (Least Developed Countries) increase their ability to trade. Announcements of new and improved preferential market access measures for LDCs by 19 developed and developing countries. Among the WTO members that announced improved market access for LDCs were: The European Communities will eliminate discrimination among all LDCs, from 1 January 1998, by giving all of them equivalent treatment, whether they are members of the Lom Convention or not. The LDCs will be allowed derogations from normal ECs rules of origin. The United States said its Africa Initiative will provide improved access to the US market for the countries of sub-Saharan Africa. Legislation is moving through the US Congress, which includes a long-term renewal of the GSP programme, including permanent GSP for LDCs.

Morocco Morocco announced the elimination in 1998 of tariffs for African LDCs on a wide range of agricultural and industrial products;

Singapore will eliminate tariffs on 107 products of export interest to LDCs. It will also organize with the WTO trade policy courses for LDC trade officials. Other WTO members that announced new or additional preferential market access measures for LDCs were: Egypt, India Korea Malaysia Mauritius South Africa India, Korea, Malaysia, Mauritius, Africa, Switzerland, Turkey. Switzerland Thailand and Turkey least-developed Market access for least-developed countries Trade is only a small share of economic activity in most least-developed countries: on average, exports and imports account respectively for about 9 per cent and 16 per cent of their GDP, compared with 24 percent and 26 percent for developing countries as a group. The least-developed countries exports have grown far more slowly than world trade over the past twenty years, and their collective share of world merchandise exports has consequently declined from about 0.8 per cent in 1980 to 0.46 per cent in 1995, when their exports were valued at about $23 billion. In the 1990s, the annual growth in value of least-developed countries exports has averaged less than 2 per cent, compared with 8 percent for world trade as a whole. On the import side, the participation of least-developed countries in trade is equally marginal; their total import bill in 1995 was equivalent to 0.7 per cent of world merchandise imports.

Over 60 per cent of the least-developed countries exports is sold in developed country markets, mainly the European Union, Japan and the United States . Thirty-four percent is sold in developing country markets, of which the main ones (accounting annually for $150 million or more) are Brazil, China, Chinese Taipei, Hong Kong, India, Indonesia, Korea, Malaysia, Singapore, South Africa, and Thailand. The product structure of the least-developed countries exports is familiar and has changed little over the past twenty-five years. Primary commodities, mainly minerals and tropical agricultural products make up over 70 per cent of the total. Most are exported as raw materials with very little processing. Manufactured products (mainly textiles and clothing) constitute about 20 per cent of the least-developed countries exports in aggregate, but they are significant for only a few of them, notably

Bangladesh. Most least-developed countries are dependent upon a very small range of export products, usually just two or three. About 75 per cent of least-developed countries total exports are accounted for by 112 products (classified at the 6-digit H.S. level), out of over 5,000 that are traded internationally. On average, the top three export commodities account for over 70 per cent of each least-developed countrys total exports, leaving them vulnerable to changes in demand and prices on world markets and to exogenous factors affecting domestic supply. The dependence of least-developed countries on exports of a narrow range of largely unprocessed primary commodities and raw materials, which are susceptible to price volatility on world markets, whose price and income elasticity of demand is low, and whose growth has been far more sluggish than world trade overall, is one of the main factors hindering their export performance. It also limits severely the stimulus that the export sector can provide to the domestic economy through backward linkage activities. As has been suggested repeatedly in the past, the diversification of their economies.

Indias status in the Multilateral Trade System

New Delhi makes use of the WTO Special and Differential Treatment in two ways: as a beneficiary, because of its status as a developing country; and as a provider, especially for Least Developed Countries (LDCs). Indeed, the WTO Agreements contain special provisions which allow for the possibility of more developed countries treating developing countries more favourably than other WTO members. These provisions include longer time periods for implementing agreements and commitments, measures to increase trading opportunities for developing countries, support to help developing countries build the infrastructure for WTO work, dispute resolution, and implementation of technical standards,26 in addition to provisions relating specifically to LDC members. Secondly, India receives preferential market access in the EU, US, Russia and Japan, among others, under the General System of Preferences (GSP). The latter was first developed at the second United Nations Conference on Trade and Development (UNCTAD) session in New Delhi, in 1968. It is a non contractual instrument by which developed countries unilaterally and on the basis of nonreciprocity and non-discrimination extend tariff concessions to developing countries. It

is also at the origin of the Enabling Clause, which emerged as a result of the Tokyo round of talks and provided for a legal basis for the GSP preferences in 1979. The Enabling Clause system also provides a legal basis for the Global System of Trade Preferences (GSTP), of which India is also a member alongside other developing countries within the G77. The principle of this agreement, in force in India since 1989, is the exchange of trade concessions on the Most Favoured Nation (MFN) principle on tariffs, Para-tariffs, non-tariff measures, direct trade measures including medium- and long-term contracts and sectoral agreements. The GSTP is to be based and applied on the principle of mutuality of advantages, although the LDCs particular needs shall also be taken into account and they may benefit from special measures and concessions on a non-reciprocal basis. Finally, the Global System of Trade Preferences shall not replace, but supplement and reinforce regional and inter-regional economic groupings of developing countries of the Group of 77, and shall take into account the concerns and commitments of such economic groupings. Even if Indian offers of tariff preferences are ultimately limited, this agreement is nevertheless interesting because it provides, more broadly, for the spirit of Indian trade agreements with developing and Least Developed Countries.

In addition to the Enabling Clause, other WTO provisions allow exceptions to the Most Favoured Nation principle, pillar of the world trade system, in order to create Regional Trade Agreements (RTAs), but on certain conditions only, founded on articles XXIV GATT and V of the General Agreement on Services (GATS). In the WTO sense, a RTA is based on the formation of a customs union or of a free trade area (FTA), or the adoption of an interim agreement (generally a Preferential Trade Agreement [PTA]) necessary for the formation of a customs union or of a free-trade area. Besides, regional must not be taken here in a geographical sense but designates a trade agreement between two parties at least, whatever their continent of origin. Legal requirements to create a RTA compatible with WTO law are comparatively reasonable, especially for developing countries.28 In practice, the main objective of RTAs is to facilitate substantially trade among their members and not to raise barriers to trade for other parties.29 Most RTAs concluded by India and reported to the WTO, such as

the South Asia Preferential Trade Agreement (SAPTA) and the Asia-Pacific Trade Agreement (APTA), are based on the enabling clause, except for the agreement with Singapore. In fact, most of them refer to the relevant provisions of the GATT, without further detail. New RTAs, especially with South- East Asia, refer to article XXIV GATT and V GATS but, in the meantime, allow SDTs for the less developed partners, in conformity with the enabling clause. Furthermore, a full Free Trade Agreement should normally be established within ten years, while so far most Indian RTAs are in fact PTAs, achieved particularly through the system of Early Harvest Schemes (EHS), permitting a more rapid reduction of tariffs on certain items only.

Indias policy at the WTO

The Indian position in the Doha Agenda negotiations

The Doha Agenda for development has led to the hope that developing countries interests could be taken into account in more effective and fairer ways. Within the WTO, one of the most important negotiating groups including developing countries is the G-20. Created in the final stage of the Cancun Ministerial Meeting, this group, first concerned with agriculture, now deals with issues such as non-agricultural market access (NAMA), services, and trade facilitation. The G- 20 position on agricultural products is that developed countries should eliminate trade-distorting subsidies. In the meantime, they should considerably reduce their customs tariffs, while allowing developing countries to maintain appropriate customs tariffs for the protection of their domestic production. India particularly defends the idea that developing countries should be able to self-designate and protect Special Products based on the criteria of food security, livelihood security and rural development. G-20 is a somewhat hostile alliance, frequently opposing the EU and the USA, and one in which the support of China will be crucial for bargaining.33 Nevertheless, there are a fair number of contradictions between its members. Some of them, Brazil for instance, are also part of the Cairns Group, which advocates overall reductions, particularly of higher tariffs (in accordance with the Swiss formula), especially in agriculture, reductions to which India is firmly opposed.34 These positions are also challenged by the proposals taken by the G-33 on Special Products and on the special safeguard mechanism in agriculture for developing countries.

ROLE OF EXIM BANK

Exim Bank : A Catalyst for Indias International Trade
With India amongst leading global services exporters, the Bank has played a pivotal and pioneering role in catalysing Indias software exports since the mid 1980s, while the Banks support to Indian engineering and consultancy services has added to the momentum in the significant growth in Indias overall services exports witnessed in recent years. The growing domain expertise as also increasing technical sophistication of Exim Bank would, perhaps, be best reflected by the fact that the Bank, in its journey spanning a quarter century, has been partnering and sharing its experience with other developing and emerging economies in their efforts to set up similar institutions, fostering an era of South-South cooperation. Challenges abound in the globalised trading environment; with increased focus on regional trade, and South-South cooperation emerging as important drivers of growth, the significant role of the Bank in facilitating enhanced regional trade through the setting up of the Asian Exim Banks Forum, as also the creation of the Global Network of Exim Banks and Development Finance Institutions (G-NEXID) in 2006 in Geneva under the auspices of UNCTAD to boost South-South cooperation in trade and investment, would, inter alia, serve to highlight the continuous evolution of the Banks endeavours in meeting global challenges.

BUSINESS INITIATIVES
To enhance market diversification, the Bank lays special emphasis on extension of Lines of Credit (LOCs) as an effective market entry mechanism especially for small and medium enterprises. During the year, 16 LOCs were extended aggregating US$ 542 mn to support exports of projects, goods and services from India. The Bank now has in place 73 LOCs covering 83 countries in Africa, Asia, CIS, Europe and Latin America, with credit commitments aggregating US$ 2.3 billion, and the Bank is proactively seeking to expand geographical reach and volumes under the LOC programme. With the pivotal role of the Bank in supporting Indias project exports, renewed focus in this direction has seen 21 Indian exporters, with Exim Banks support, securing 57 contracts amounting to Rs. 140 billion covering 20 countries.

Indian consultants, suppliers and contractors have demonstrated increasing capability to execute a range of projects. With Indian companies increasing endeavours to expand their reach overseas, the Banks focus in this direction is evident from the fact that 29 proposals were supported during the year for part financing their overseas investments in diverse sectors covering different markets. The Bank has, over the years, supported 176 ventures set up by over 147 companies in 54 countries, both in industrial countries and developing & emerging economies. Towards facilitating inclusive globalisation, and in line with the Government of Indias focus on village and rural sectors, the Bank has introduced an innovative facility to support globalisation of rural industries through its Grassroots Business Initiative. The programme seeks to address the needs of relatively disadvantaged sections of society while creating expanded opportunities for traditional craftsperson and artisans, and rural entrepreneurs of the country.

Towards this end, the Bank has consciously sought to establish, nurture and foster a variety of institutional linkages with select Non-Governmental Organisations (NGOs) / Self Help Groups (SHGs), with a view to assisting their members with capacity building, training and access to national and global markets. During the year, the Bank, in association with the International Finance Corporation (IFC), a member

institution of the World Bank Group, organised an India Day at IFCs displaycumsales centre called Pangea at Washington D.C. at which products made by a number of NGOs/ SHGs in India were displayed. The Bank is also in discussion with the Khadi and Village Industries Commission (KVIC), to set up a joint Export marketing Organisation that will contribute to capacity building of grassroots business enterprises and promote exports of products from rural enterprises.

Exim Banks Commencement Day Annual Lecture 2007, delivered by Dr. David Hulme, Professor of Development Studies and Founder Director of Chronic Poverty Research Centre, University of Manchester, United Kingdom, focused on Inclusive Globalisation: Tackling Chronic Poverty. To enhance support provided to the SME sector, a vibrant and important sector of the Indian economy, Exim Bank, under its cooperation arrangement with the International Trade Centre (ITC) for implementing ITCs unique Enterprise Management Development Services program, seeks to support small enterprises through capacity building and assistance in formulating viable proposals. The Bank has also partnered the Commonwealth Secretariat in the CommonwealthIndia Small Business Competitiveness Development Programme to undertake capacity development initiatives that promote economic development (through increased employment, investment, trade and economic activity) in Commonwealth member states. Exim Bank is in discussion with Asian Development Bank for a long term line of credit of US$ 250 mn without sovereign guarantee for supporting and strengthening export oriented SME sector in India. Exim Bank has concluded an agreement with Japan Bank for International Cooperation (JBIC) for a US$ 100 mn equivalent Japanese Yen loan to support exporting companies in India with Japanese interest. Research studies brought out by the Bank during the year include Strengthening R & D Capabilities in India; Sector study of Indian Chemical Industry; Opportunities abroad for Indian Construction Industry; as also, Analysis of Japanese and US Foreign Direct Investments in Indian Manufacturing Sector. Towards diversification of export markets, the Banks Occasional Papers have identified opportunities for enhancing Indias commercial presence as also bilateral trade and investment relations with countries in the Maghreb region and the CIS region.

The Bank also brought out a publication titled Looking through the Kaleidoscope: India and Globalisation which is a compendium of Exim Banks Commencement Day Annual Lecture Series for the period 1986 to 2006, in commemoration of the Banks Silver Jubilee. As part of the Banks Silver Jubilee Year celebrations, a series of seminars on topics of relevance were organised at select centres in India which included Potential for Export of Agricultural Products from Bihar at Patna; Globalisation through Overseas Investment at Kolkata; Potential for Export of Agricultural Products from the North-Eastern Region at Guwahati; Trade and Investment Opportunities between India and GCC Countries at Dubai; Indian Industry: Journey Towards Borderless World at Chennai; and the concluding seminar on Globalisation: Opportunities and Challenges for Indian Companies at Mumbai.

ROLE OF DEPARTMENT OF COMMERCE, GOVERNMENT OF INDIA

The basic role of the Department of Commerce is to facilitate and create an enabling environment and infrastructure for accelerated growth of Indias international trade. In consonance with the Governments vision of making India a major player in world trade, the Foreign Trade Policy (FTP) is announced every five years. It provides the basic policy framework of translating this vision into specific strategies, goals and targets. Keeping in line with the cherished goal of the economy to grow at a double digit rate over the next decade, the aspiration of the Department, has been outlined in the Strategic Plan to achieve an average annual growth of exports of 25% over the next six years. The Outcome Budget is a technique of presenting the budget of the ministry/Department in terms of functions, programmes, and activities. The Outcome Budget 2011-12 of the Department of Commerce highlights the various programmes and activities undertaken/envisaged to be undertaken by the Department in furtherance of the core objective of strengthening Indias foreign trade performance in the context of the related targets and achievements for 2009-10 and first nine months of 2010-11 and targets set for 2011-12 in terms of financial outlays, physical

outputs/quantifiable deliverables and outcomes. The present document is divided into six chapters viz: Chapter I brings out a brief introductory note on the goals, objectives and functions; the organizational set up; its mandate and the list of major programmes/ schemes implemented by the Department. The Department is headed by a Secretary who is assisted by an Additional Secretary & Financial Adviser, three Additional Secretaries and thirteen Joint Secretaries and Joint Secretary level officers and a number of other senior officers. The Department is functionally organized into the eight Divisions viz - Administration and General Division, Finance Division, Economic Division, Trade Policy Division, Foreign Trade Territorial Division, State Trading & Infrastructure Division, Supply Division and Plantation Division. The various offices/ organizations under the administrative control of the Department are: (A) three Attached Offices, (B) eleven Subordinate Offices, (C) ten Autonomous Bodies, (D) five Public Sector Undertakings, (E) Advisory Bodies, (F) fourteen Export Promotion Councils and (G) other Organizations. Chapter II presents the vertical compression and horizontal expansion of Statement of Budget Estimates. The main objective is to establish a one to one correspondence between (financial) Budget 2011-12 and Outcome Budget 2011-12. The details comprise of the financial outlays, projected physical outputs and projected/ budgeted outcomes. For the year 2010-11, an outlay of Rs.3,980.05 crore was approved for the various Plan and Non-Plan schemes of the Department. Out of this, Plan outlay was Rs.1,680 crore. The provisional Plan Expenditure (upto 31.12.2010) for the year 2010-11 is estimated at Rs. 1,275.73 crore. As against this, an outlay of Rs 6,516.08 crore has been approved for the year 2011-12; consisting of Plan outlay of Rs.2,000 crore and Non-Plan outlay of Rs. 4,516.08 crore. As export promotion and market development is the core of the activities of the Department, assistance in the form of export subsidy, grants and interest subsidy to banks at Rs. 1,000.00 crore constitutes the bulk of the Non-Plan expenditure. On the Plan side, the Centrally-sponsored scheme of Assistance to States for the Development of Export Related Infrastructure and Allied Activities (ASIDE) constitutes the single most important activity accounting for an outlay of Rs. 850.96 crore.

Chapter III highlights the details of reforms measures and policy initiatives undertaken by the Department and how these relate to the intermediate outputs and final outcomes in areas such as public private partnership, delivery mechanisms, social and gender empowerment processes, greater decentralization, transparency etc. Against the backdrop of a global economic crisis and faltering exports the current Foreign Trade Policy (FTP), 2009-14 was unveiled by the Government on 27th August, 2009. The new Policy clearly spells out both the short term and the long term objectives of the Government. The short term objective of FTP (2009-14) is to arrest and reverse the declining trend of exports and to provide additional support, especially to those sectors which have been hit badly by recession in the developed world. The FTP (200914) envisages three basic pillars for supporting Indias exports. These are (i) Strengthening of infrastructure related to exports, (ii) bringing down transaction costs, and (iii) providing full refund of all indirect taxes and levies. The only option available with the Department of Commerce towards attainment of these objectives is to achieve further acceleration in exports growth. Keeping in line with the cherished goal of the economy to grow at a double digit rate over the next decade, the aspiration of the Department, as outlined in the Strategic Plan, is to achieve an average annual growth of exports of 25% over the next six years. It is against this backdrop of a global economic crisis and faltering exports that the new Foreign Trade Policy (FTP), 2009-14 was unveiled by the Government on 27th August, 2009. The new Policy clearly spells out both the short term and the long term objectives of the Government. The short term objective of FTP (2009-14) is to arrest and reverse the declining trend of exports and to provide additional support especially to those sectors which have been hit badly by recession in the developed world. The Policy, with clearly enunciated objectives and strategies and necessary initiatives taken by the Government during the last five years, has been very effective in putting Indias exports on a higher growth trajectory. The Indian exports grew from US$ 83.5 billion in 2004-05 to US$ 185.3 billion in 2008-09, registering an average annual growth rate of about 24%. As far as giving special thrust to employment generation is concerned, sectors with significant export potential, coupled with employment generation in semiurban and rural areas, were identified and specific sectoral strategies were prepared.

Subsequent to announcements made in FTP (2009-14), short term sectoral performance review of the exporting sectors was carried out and additional measures were extended for higher support for market and product diversification undertaken in the Annual Supplement, 2010-11as under: Additional benefit of 2% bonus, over and above the existing benefits of 5% / 2% under Focus Product Scheme, allowed for about 135 existing products, which have suffered due to recession in exports. Major sectors include all Handicrafts items, silk carpets, toys and sports goods (all of which were earlier eligible for 5% benefits); leather products and leather footwear, handloom products and engineering Items including bicycle parts and grinding media balls (all of which were earlier eligible for 2% benefit).

256 new products added under FPS (at 8 digit level), which shall be entitled for benefits @ 2% of FOB value of exports to all markets. Major sectors/product groups are engineering, electronics, rubber & rubber products, other oil meals, finished leather, packaged coconut water and coconut shell worked items.

Instant Tea and CSNL Cardinol included for benefits under VKGUY @ 5% of FOB value of exports.

Nearly 300 products (at 8 digit level) from the readymade garment sector incentivised under MLFPS for further 6 months from October, 2010 to March, 2011 for exports to 27 EU countries.

Since October 2009, exports have resumed their uptrend and recovery has been maintained since then. Exports during the first nine months of the current fiscal i.e.AprilDecember, 2010-11, are estimated at US $164.7 billion recording a growth rate of 29.5% over the same period last year. Chapter IV reviews the scheme-wise past performance of the various programmes and activities undertaken by the Department during 2009-10 and 2010-11 in terms of targets already set. The Plan Schemes being implemented by the Department are aimed at creating an enabling environment for promotion of Indian exports.

The scheme-wise performance in respect of major schemes being implemented by the Department is given below:Assistance to States for Development of Export Infrastructure and Allied Activities (ASIDE) Scheme: The basic objective of the scheme is to involve the States/UTs in export efforts by providing incentive-linked assistance to concerned Governments and to create appropriate infrastructure for development and growth of exports. It has been possible to achieve this in spite of various constraints as is evident from active participation of States/UTs in sponsoring a large number of export related projects for assistance from the ASIDE Scheme. During 2009-10, total number of projects approved by State Governments under ASIDE scheme were, 122 worth Rs. 1147.68 crore. Out of this Rs. 554.89 crore only has been proposed by state govt./UTs to be met from the ASIDE funds, and the balance of Rs. 592.79 crore have been/are being leveraged from the resources of State Govt/UTs and other sources identified by the State Govt./UTs. Similarly in the central component a total of 40 projects worth Rs. 187.99 crore have been approved so far and out of this Rs. 139.07 crore only has been/ is to be funded from the central component of ASIDE scheme. Balance Rs. 48.92 crore has been/is being leveraged from other sources including states, private partnership and agencies of states.

Development of Special Economic Zones (SEZs) is a major initiative of the Government. This is aimed at generation of additional economic activity; promotion of exports of goods and services; promotion of investment from domestic and foreign sources; creation of employment opportunities and development of infrastructure facilities. In the short span of about five years since the SEZs Act and Rules were notified in February, 2006, formal approvals have been granted for setting up of 580 SEZs out of which 374 have been notified. Out of the total employment provided to 6,44,073 persons in SEZs as a whole, incremental employment of 5,09,369 persons was generated after February, 2006 when the SEZ Act came into force. This is apart from millions of man days of employment created by the developer for infrastructure activities. Physical exports from the SEZs has increased from Rs. 99,689 crore in 2008-09 to Rs. 2,20,711.39 crore in 2009-10, registering a growth of 121%. There has been overall growth of export of 1493% over past seven years (2003-04 to 2009-10). The total

physical exports from SEZs as on 31st December, 2010 i.e. in the first three quarters of the current financial year, has been to the tune of Rs. 2,23,132.31 crore approximately registering a growth of 46.70% over the exports of corresponding period of the previous financial year. The total investment in SEZs till 31st December, 2010 is Rs. 1,95,348.16 crore approximately, including Rs. 1,91,312.65 crore in the newly notified zones. 100% FDI is allowed in SEZs through automatic route. A total of 130 SEZs are currently doing exports. Revenue Section

Plan: During 2009-10, the Plan expenditure was Rs. 885.54 crore as against Rs.857.76
crore during 2008-2009. The provision for the year 2010-11 was Rs. 997.01 crore and Revised Estimate was Rs. 997.01 crore.

Non-Plan: During 2009-10, the Non-Plan expenditure was Rs.2,295.61 crore as against NonRs.3,448.79 crore during 2008-2009. The provision for the year 2010-11 was Rs.2,304.55 crore and the Revised Estimate was Rs.4,997.94 crore. Capital Section

Plan: During the year 2009-2010, the Plan expenditure was Rs.610.50 crore as against
Rs.584.25 crore during the year 2008-09. The provision for the year 2010-2011 was Rs.682.99 crore for Budget Estimates and Revised Estimates. Chapter VI reviews the performance of the Statutory and Autonomous Bodies under the administrative control of the Department. The Export Inspection Agencies (EIA) under the Export Inspection Council of India (EIC) certified export items valued at Rs 10,667.80 crore during the year 2009-10. During April-November 2010, the value of exports certified by the EIAs was Rs 5,609.09 crore.

The Government is committed to facilitate efficiency, transparency and decentralization of decision making process through intensive use of Information and Communication Technologies (ICT) based tools. To facilitate quick appraisal of interministerial and inter-agency trade related matters, an Executive Video Conference System (EVCS) has been installed in the Department, connecting Secretaries to Government of India and all Chief Secretaries/Administrators of States/UTs over NIC network (NICNET). For bilateral and multilateral international negotiations, a Video

Conferencing Studio has been setup in the Ministry of Commerce & Industry. The Department's web site (http://commerce.nic.in) is the major source of information dissemination and provides Government-to-Citizen (G2C) and Government-to-Business (G2B) interface for electronic delivery of services, trade facilitation and monitoring various applications. The access to various e-governance and office automation systems/applications and databases is available to the user in the Department through an Intranet Portal.