Exports rise to USD 26.19 billion on global demand, govt incentives and a simplified GST refund process
New Delhi : After a brief pause, exports rose 30.55 per cent to USD 26.19 billion in November on account of improved global demand, government incentives and simplification of GST refund process. Exports had witnessed a decline of 1.12 per cent to USD 23 billion in October this year, retreating from a six-month high growth rate in September.
India’s exports in November 2016 stood at USD 20.06 billion. The data released by the Commerce Ministry on Friday also revealed that imports too grew 19.61 per cent to USD 40 billion in November from USD 33.46 billion in the same month of the previous year. Therefore, on account of rise in imports, trade deficit increased marginally to USD 13.82 billion in November on Y-o-Y basis. However, the deficit — gap between imports and exports — narrowed on month-on-month basis. November witnessed robust growth in the outward shipments of gems and jewellery, engineering goods, chemical and of pharmaceutical products.
The government has simplified the process for exporters to claim refunds under the Goods and Services Tax (GST). Input Tax Credit (ITC) and integrated-GST (IGST) refunds for exporters are being expedited for quick unlocking of their capital. Earlier this month, the government had announced Rs 8,450 crore incentives for exporters in sectors like leather and agriculture. Meanwhile, gold imports dropped by 25.96 per cent to USD 3.26 billion last month, the data showed. Oil imports and non-oil imports in November grew 39.14 per cent and 14.57 per cent to USD 9.55 billion and USD 30.47 billion, respectively.
Commenting on the trade numbers, trade body Federation of Indian Exporters Organisation (FIEO) said the positive growth in exports have also been witnessed by countries like China, South Korea, Taiwan, and Singapore, among others, reflecting a recovery in global demand, though India has “emerged as a top performer”. 24 out of 30 major product groups were in the positive territory. However, the major growth contributors were engineering, petroleum products, gems and jewellery, organic and inorganic chemicals, marine items and pharmaceutical, government data revealed. Meanwhile, another trade body, the Engineering Export Promotion Council of India ( EEPC India), said the “stellar performance” of exports comes on the back of a smart recovery in the US economy along with recoveries logged by several other key European nations. Cumulative exports during the April-November period of the 2017-18 fiscal increased by 12.01 per cent to USD 196.48 billion, while imports grew 21.85 per cent to USD 296.45 billion, leaving a trade deficit of nearly USD 100 billion. In November, gems & jewellery, drugs & pharma, organic & inorganic chemicals and engineering exports grew by 32.69%, 13.39%, 54.28% and 43.76% respectively.
