Exports climb 10.3% reversing 5-month slowdown : 

Exports climb 10.3% reversing 5-month slowdown

Context:

  • Ways to a sustainable growth of Indian export

Introduction:

  • India’s merchandise exports grew 10.3% year-on-year to $23.8 billion in August, reversing a declining trend witnessed for five straight months.

What has caused the growth?

  • The growth was driven mainly by engineering goods, petroleum products and chemicals
  • Improvement in demand in overseas markets.

What are the factors of worry?

  • The order booking position from October was not encouraging due to
  • Rising global uncertainties
  • Volatility of rupee
  • Challenges on the domestic front that is Goods and Services Tax (GST)

Why has GST become a road-blocker?

  • Blockage of funds under GST has resulted in least or no working capital
  • There are uncertainties on refunds to be made in the coming months

What can bring competitiveness to Indian exports?

  • In-depth sectoral analysis to pinpoint factors responsible – small and micro exporters
  • Problems arising out of the GST regime implementation are addressed
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