Page 119 - economic_survey_2021-2022

External Sector 93

scheme for 14 key sectors starting from 2021-22. The scheme provides incentives to
companies on incremental sales for products manufactured in domestic units, which is
expected to create minimum production of over US$ 500 billion in 5 years. Automobiles
and auto components, pharmaceutical drugs, telecom & networking products, electronic/
technology products, etc., are some of the sectors covered under PLI scheme. The scheme
is expected to give a push to both domestic manufacturing capabilities and exports. (Refer
to Industry and Infrastructure Chapter for details)
iv. Electronic Platform for Preferential Certificate of Origin (CoO): In view of the
COVID-19 crisis, on-boarding of FTAs/ preferential trade agreements (PTAs) was quickly
done to allow electronic issuance to avoid physical movement. Around 4.6 lakh CoOs have
been issued from the e-platform till date. Issuance of Non-Preferential CoOs was also
2
started from 15.04.2021.
v. Infusion of capital in EXIM Bank: Government of India infused capital of `750 crore
in Export-Import Bank of India (EXIM Bank) during the current financial year 2021-22
through subscription to its share capital.
vi. Export Credit Guarantee Corporation of India Ltd. (ECGC) provides insurance cover
to banks against risks in export credit lending to the exporter borrowers. Government
approved capital infusion of `4,400 crore to ECGC Ltd. over a period of five years, i.e.
from 2021-2022 to 2025-2026. This will increase the capacity of ECGC to underwrite risks
up to `88,000 crore, that will support additional exports of `5.28 lakh crore over the five-
year period.
vii. Export Promotion Capital Goods (EPCG) Scheme is an ongoing scheme under the
foreign trade policy. In order to increase procurement of capital goods from indigenous
manufacturers under the EPCG scheme, the government has reduced specific export
obligations from 90 per cent to 75 per cent of the normal export obligation.
viii. The export promotion schemes such as Trade Infrastructure for Export Scheme (TIES),
Market Access Initiatives (MAI), Special Economic Zone (SEZ) scheme, Emergency
Credit Line Guarantee Scheme (ECLGS) and Advance Authorization Scheme continue to
provide support to trade infrastructure and marketing.

Box 1: Enabling an efficient Logistics eco-system to boost exports

An efficient, competitive and resilient logistics ecosystem is pivotal to boost exports. Despite multiple
challenges, India has made substantial progress in trade-related logistics, reflected in leading global
indices. India scored 90.3 per cent in 2021 in United Nations Economic and Social Commission for
Asia Pacific’s (UNESCAP) latest Global Survey on Digital and Sustainable Trade Facilitation, a
remarkable jump from its score of 78.5 per cent in 2019, on account of improvement in scores of five
key indicators. The Survey notes that India is the best performing country when compared to South
and South West Asia region (63.1 per cent) and Asia Pacific region (65.9 per cent).

India witnessed consistent and significant increase in its overall trade facilitation score since 2015,
supported by continuous improvement in each of the five indicators (Figure B1.1). Transparency
index got 100 per cent score in 2021, while paperless trade and formalities got 96 per cent.

2 A non-preferential COO certifies the origin of the goods but does not grant any preferential tariff rights to the exporter.