Bikky Khosla | 19 Dec, 2017
India's exports rose 30.55 per cent to $26.19 billion in
November. This spurt in overseas shipment is attributed mainly to improved
global demand. It is interesting to see that while China, South Korea, Taiwan,
and Singapore, among others, witnessed positive exports growth in the month,
India has emerged as a top performer. This indicates that recent government
steps, including sops and simplification of GST refund process, have played a
positive role in improving the performance of the sector.
Earlier this month, the Centre had announced Rs 8,450 crore
incentives for exporters in sectors like leather and agriculture. Later in
another positive move, it simplified the process for exporters to claim refunds
under the Goods and Services Tax (GST). Input Tax Credit (ITC) and
Integrated-GST refunds for exporters are being expedited for quick unlocking of
their capital. These twin measures definitely played a positive role and thus
It is encouraging to see that some major sectors including engineering,
petroleum, gems & jewellery, organic & inorganic chemicals, marine and
pharmaceuticals performed very well in November. Also, overall 24 out of 30
major product groups were in positive territory including petroleum, cotton
yarns, fabrics and made-ups and plastic and linoleum. However, decline seen in some sectors like RMG
of all products, jute manufacturing and fruits and vegetables is not a good
sign and should be taken care of.
Meanwhile, data released by RBI shows that our services
exports, which amounted to $ 13.11 billion in October last year, grew by 8 per
cent to $14.15 billion in October. Overall, the sector witnessed a surplus of
3.3 per cent to US$ 39.05 billion in April-October FY2017 over a year ago, with
0.9% rise in services imports to US$ 55.44 billion and 1.9 per cent growth in
exports to US$ 94.49 billion. These figures are not bad. The
services sector contributes to about 55 per cent in India's GDP and it deserves
further attention from the government.
I invite your opinions.