www.eximmitra.in January 2021

Overview

  • India is one of the largest consumer electronics market in the Asia Pacific
  • Second largest manufacturer of mobile phones in the world in 2018
  • Provides employment to 13 million people, directly and indirectly

Exports

  • Electronic items accounted for 3.58% of the merchandise exports from India in 2019-20
  • Exports of electronic goods registered a CAGR of 13.31% during FY 15-20, increasing from US$ 6009.09 million in 2014-15 to US$ 11,224.67 million in 2019-20
  • Telecom instruments recorded the highest y-o-y growth of 77.56%, followed by electronic instruments (21.41%), consumer electronics (15.81%), electronic components (5.21%) and computer hardware, peripherals (0.39%) during 2019-20
  • During April-November 2020-21, exports from the sector witnessed decline of (-)19.83% as compared to corresponding of the previous year

Policy and Incentives

  • 100% FDI is allowed in the electronic goods sector through automatic route
  • Schemes under Nation Policy on Electronics 2019 (NPE 2019):
    • Production Linked Incentive Scheme offers incentive of 4-6% on incremental sales
    • Scheme for Promotion of manufacturing of Electronic Components and Semiconductors offers an incentive of 25% on capital expenditure
    • Modified Electronics Manufacturing Clusters Scheme (EMC 2.0): Provides grant up to 50% of the project cost of infrastructure, subject to ceiling
  • Electronics Development Fund Scheme promotes start-ups and innovation by investing in venture funds, which in turn invest in innovation ventures/ start-ups in electronics, nanoelectronics and IT
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Amendment in import policy of Coal -

Coal Import Monitoring System (CIMS) shall require importers to submit advance information through an online system.
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Amendment in Import Policy Condition for import of Copra and Coconut Oil -

Import of Copra under HS Code 12030000 is now allowed through MMTC; while import of Coconut oil- under HS codes 15131100 (Crude) and 15131900 (Others) is now allowed through State Trading Enterprises, except State Trading Corporation.
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Amendment in Export Policy of Medical Goggles and Nitrile/NBR Gloves -

Export policy of Medical Goggles and Nitrile/NBR Gloves is amended from ‘Restricted’ to ‘Free’ category making all types of Medical Goggles and Nitrile/ NBR Gloves freely exportable.
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Amendment in Export Policy of Onions -

Exports of all varieties of Onions, under HS Code 07031010 & 07122000 are “Free” with effect from 01.01.2021.
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Amendment of Para 2.54 of the Handbook of Procedures -

DGFT amended Para No. 2.54 (d)(v)(ii) of the Handbook of Procedures (2015-2020) and extended the deadline to install and operationalise Radiation Portal Monitors and Container Scanners in the designated sea ports upto 31st March 2021.
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• India's new foreign trade policy to come into effect from 1 April 2021 - India’s new foreign trade policy will come into effect from 1 April 2021 for a period of five years. The policy will strive to make India a leader in the area of international trade and channelise the synergies gained through merchandise and services exports for growth and employment, with a goal to make India a USD 5 trillion economy.

• India refuses to sign up for RCEP - India has decided not to join the Regional Comprehensive Economic Partnership (RCEP) pact saying it will not “compromise” on its core issues.

• India in talks with Argentina & Brazil to sign trade pacts- India is in talks with Argentina and Brazil to ink trade pacts with the two largest markets in South America as it seeks to strengthen trade with the region.

• Non-Basmati rice exports up 123% - Exporters are also bullish about the next quarter as trade enquiries from Africa, Middle East and South East Asian countries are pouring and companies have a strong order book.

• Commerce Ministry to develop import monitoring system for various sectors -Ministry of Commerce & Industry is under the process of setting up an import monitoring system for several sectors, which would help assemble advanced data and information on imports of these products and make it available to the stakeholders.

• India-Taiwan trade prospects likely to be promising in 2021 -According to the Taiwan External Trade Development Council, the overall restructuring of supply chains will give India a very unique place and attract many Taiwanese companies to invest in the country.

Delivery Under DAP, DPU and DDP

‘All these three Rules, known as the ‘D’ Rules, require the seller to deliver the goods in the buyer’s country, where necessary after carrying out the import formalities.

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