The growth of goods exports in India has soften to single digits during second quarter of FY23 and expectedly there may be a contraction in October and November. Along with chemical exporters, the gems and jewellery sector exporters too highlighted the issue of constrained supply of gold because of various compliances, sought Refund of Duties and Taxes on Exported Products scheme benefits
The exporters point out some concerns with the government amid slowing growth of merchandise shipments. Their concerns include withdrawal of EU (European Union) Generalised System of Preferences (GSP) for certain specific sectors, goods and services tax on ocean freight, export duty on stainless steel, longer period of realization and repatriation of export proceeds and a demand slowdown in China and the United States.
The growth of goods exports in India has soften to single digits during second quarter of FY23 and expectedly there may be a contraction in October and November. The exports in India of plastics, stone, machinery and mechanical appliances worth 7.9 billion dollar to the EU will not witness low or zero-duty concessions from January 2023, according to exporters.
They also seek benefits of the Refund of Duties and Taxes on Exported Products (RoDTEP) scheme to be extended to pharmaceuticals, chemicals and steel products as they do not form part of the same, at present. Steel being another key input in engineering goods whose exports went down 10.85 per cent on year-on-year basis in September.
The chairman of Engineering Export Promotion Council, India, Arun Kumar Garodia said the last two months have witnessed a decline in engineering exports due to the Russia-Ukraine crisis, and gas crisis in the EU. GST on ocean and air freight along with Export duty on certain specific steel products have been added to the challenges.
The meeting that commerce and industry minister Piyush Goyal had with export promotion councils on 7 November, addressed the issues. Quoting the low global liquidity, the Federation of Indian Export Organisations raised concerns over longer tenure of realisation and repatriation of export proceeds which currently is nine months. The longer period eill act as a marketing tool to boost exports, it said.
Along with chemical exporters, the gems and jewellery sector exporters too highlighted the issue of constrained supply of gold because of various compliances, sought RoDTEP benefits. According to media reports, increasing imports of raw materials and intermediates from China but slow exports growth from India to China and the US were also discussed, restating e-visas for tourists from the UK and Canada