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on inputs, the scheme has become unattractive The mid-term review of the FTP (2015-2020),
and that many may opt out if IGST is also not likely next month, will try to sort out some of the
exempted,” the official said. problems faced by exporters if the GST Council
gives its consent.
It is accepted international practice — in countries
where GST and VAT exist — to give exemptions “There is nothing that the Commerce Ministry can
to exporters from such taxes on imported inputs, do without the approval from the GST Council.
he added. It is being hoped that all issues being faced by
exporters, which can be sorted out by the Centre,
Under the GST regime, DTA manufacturers will get resolved in the review. If not, efforts in the
supplying to EOUs are not allowed to import the direction would continue,” the official said.
inputs without payment of duty under Advance
Authorisation. “The DTA suppliers have to pay the India’s exports have been growing consistently for
basic customs duty, cesses and IGST for imported the past eleven months, but the pace of growth
inputs.They are entitled to input tax credit of only has slackened. Exports in 2016-17 grew 4.71 per
IGST. Basic customs duty and cesses thereon are cent to $274.64 billion compared with the previous
cost to them,” points out the Engineering Export fiscal, it was after two years of continuous decline.
Promotion Council.
(Ref. http://www.thehindubusinessline.com/economy/policy/
gst-exports/article9824328.ece dated 20th August-2017)
15. NEW HORIZONS ON INDIA'S FOREIGN TRADE
By G Srinivasan
Even as the weak global trade growth in the tariff obstructions in the form of ever-changing
last few years largely reflects persistent standards and other sanitary and phyto-sanitary
weakness in the global economy as observed by riders, India’s exports had acquitted commendably.
the World Trade Organization (WTO) in April 2017, This is confirmed by the fact that the country’s
India’s foreign trade performance, both on the exports have been exhibiting positive growth for
merchandise goods and in the services fronts, has the last nine months. In line with growth indicated
been singularly showing up positive trends. by exports since September 2016, exports during
June 2017 have shown growth of 4.39 per cent in
A particularly noteworthy feature is that in the dollar terms valued at US$ 23,562.62 million as
country’s export efforts, the immense contribution compared to US$ 22,572.30 million during June,
of the Micro, Small and Medium Enterprises 2016. .
(MSMEs) has been growing up, providing
employment opportunities to countless skilled, During June 2017, major commodity groups
semi-skilled personnel besides diversifying into of export showing positive growth over the
a plethora of product portfolios. The share of corresponding month of last year are engineering
exports from MSME in the country’s aggregate goods (14.78%), petroleum products (3.6%),
exports has grown up from 42.42 per cent in 2013- organic & inorganic chemicals (13.2%), rice
14 to 44.76 per cent in 2014-15 and to 49.86 per (27.29%) and marine products (24.27%).
cent in 2015-16.
Cumulative value of exports for the period April-
Thanks to the pro-active supportive policies of June 2017-18 was US$ 72,212.33 million (Rs
the government, challenges on the trade front 4,65,472.04 crore) as against US$ 65,311.77 million
in the face of protectionist barriers and non- (Rs 4,36,960.98 crore) registering a positive growth
August-September-2017 36
