Business Across Borders 2022

14 Region wise Market/Trade Share a) In imports, India’s top 10 partners are: China (15.33%), UAE (7.42%), US (7.11%), Saudi Arabia (5.14%), Iraq (4.93%), Switzerland (4.45%), Hong Kong (3.12%), Singapore (3.01%), Indonesia (2.91%) & Korea (2.90%); b) The region wise segmentation is: Asia (63.11%), Europe (14.66%), US (12.12%), Africa (8.00%) & CIS (2.10%). Key export drivers 1. Conducive policy measures creating favourable ecosystem for exports Name of the scheme/ initiatives Description PLI (Production-linked Incentive) scheme 1. The scheme offers government’s incentives to industry which are of diverse types, such as government subsidy, tax incentive, cash payments, waiver of certain types, etc. 2. The government has provided an outlay of INR 1.97 lakh crores over the next 5 years across 14 key sectors, to create national manufacturing champions and generate employment opportunities for the country’s youth. Top sectors are (i) Auto Component – INR 2,59,38 cr, (ii) Automobile -INR 2,59,38 cr (iii) Pharma- INR 2,19,40 Cr & Electronics- INR 40,000 Cr (large scale) & INR 7,325 Cr (IT & hardware) 3. It indicates that minimum production in India under PLI Schemes is expected to be over US$ 500 billion in 5 years 4. There are two phases in PLI. In the 1st phase the applicant companies have produced goods worth ~INR 35,000 crore, invested ~INR 1,300 crore under the scheme and generated 22,000 jobs. 5. The 2nd phase of PLI Scheme has been launched on 11.03.2021, which focuses on building a vibrant and robust electronic component manufacturing ecosystem. Advance Authorization Scheme The scheme allows duty-free import of inputs, which are physically incorporated to produce the export product. For spare parts that must be mandatorily exported with the final product, the authorization scheme grants a cover of up to 10% of the CIF (cost, insurance, freight) value. Remission of Duties and Taxes on Exported Products This scheme was implemented to reduce taxes for exported products and thereby encouraging the exports a. Under the RoDTEP Scheme, exporters are entitled to benefit from 0.5% to 4.3% of the FOB value of the exported products falling under the specified HS Codes. Dun & Bradstreet