Indian exports are on upward trend in last few months as the country ended up with export of $275 billion in last fiscal, says GK Gupta, president, Federation of Indian Export Organisation (FIEO). The country could achieve a new milestone of $325 billion in 2017-18 and Gupta has suggested providing additional support to top 200 products of global imports.

The FIEO president also shared concerns regarding some important issues. He stated that the export sector welcomes the introduction of GST as its spin off effect would benefit both the manufacturing and export sector. The logistics cost is expected to come down to help the exim sector. The quick refund, as against delayed refund of VAT, will also help the export sector.

The company is worried with the liquidity issue as the refund mechanism would require payment of GST first and its refund subsequently. The additional cost of credit to manage the liquidity should be borne by the government, if present exemption is not brought forward in the GST. Export sector would be losing export competitiveness by about 2 per cent and the same needs to be off-set to the export sector,says Gupta.

FIEO, is request the government to provide interest on delayed refund after 10 days (3 days + 7 days) instead of 60 days, added Gupta. FIEO has requested the ministry of commerce to prepone the announcement so as to coincide with the rolling out of GST.

The Mid-Term Policy Review should look at the performance of the new instruments introduced in the Foreign Trade Policy 2015-20 and also the modifications which are required in the wake of introduction of GST. On this the FIEO presidentstated that they request the Government to sensitize the trade and industry that the imports duty benefit on imports under the existing instruments would only continue till the date of introduction of GST.

FIEO acknowledge the positive role played by Rupee appreciation in Indian economy particularly, as it helps in containing import led inflation. However, it does affect competitiveness of Indian exports. The impact of Rupee appreciation varies from sector to sector. Traditional sectors of exports like handicrafts, carpets, handlooms, textiles, leather, etc. face huge competitiveness issue on account of such appreciation.