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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
