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