Commerce and industry minister Suresh Prabhu on Wednesday stated that the central government is looking at various measures to facilitate a quick increase in exports, both in terms of value and volume. Indian exports have decreased from $468 billion in 2014-15 to $437 billion in 2016-17. While the exports have gradually picked up in last eleven months, the increase has not been significant enough. The minister, who was speaking to reporters in New Delhi, stated that the commerce ministry is working on various support measures “which can facilitate a quick increase in exports (both in terms of) volume and value”. He added that the exports to GDP (gross domestic product) ratio of India has to improve substantially as the outbound shipments have a great ability to generate economic activity. “Therefore, exports to GDP ratio has to rise.So we are at a crash intervention sort of a thing. We are trying to work out what to be done to promote exports in a shortest possible time which includes issues coming up because of the Goods and Services Tax (GST),” Prabhu said. He assumed the charge as the commerce minister on Sunday. Prabhu said exporters are facing certain challenges in the GST regime and the ministry is taking up those issues the concerned authorities. The commerce ministry is expected to announce incentives in the review of the foreign trade policy, which is scheduled to be released next month. On the GST, exporters have stated that the new indirect tax regime would block working capital worth over Rs 1.85 lakh crore per year with the government as they now have to pay the tax first and then seek the refund, which is a cumbersome process. Earlier they were getting their refund first and paying the taxes later. The minister also said that domestic investments by the private sector have not increased considerably and one of the reasons for that is inadequate capacity utilisation. “Unless domestic demand picks up.exports can fill in that gap,” Prabhu added. He said the ministry will work on several other fronts, including bringing in new industrial policy, improving logistics for exporters, agriculture export policy and integrating into the global supply chains.
