Commerce and Industry Minister Piyush Goyal has said quality, technology and scale of production -- not government subsidies -- will help India take its annual exports to $1 trillion. He exhorted exporters and the industry as a whole to target $1 trillion worth of shipments. He said there is a need to identify areas where sensible policies can help take exports to $1 trillion.
Further, the minister released a study - Domestic Constraints for Exports in Select Sectors - published by the Export-Import Bank of India. According to the study, an immediate refund of GST could increase the overall GDP by 2 per cent, exports by 7 per cent, aggregate imports by 6 per cent, and overall employment by nearly 4 per cent. It identifies sector specific policy initiatives that could improve operational conditions and efficiency of exporters gems and jewellery, auto and auto-components, electronics, textiles and clothing, and pharmaceuticals sectors.
The study highlighted the need for direct government intervention to reduce costs at ports; attractive production oriented incentives; addressing procedural delays in approvals and refunds, as well as custom clearances by the Government; expediting GST refunds and duty drawback refunds to improve the manufacturing landscape, among others. It added the effects of immediate refund of GST on individual sectors are much larger, with exports from the six identified sectors expected to register double-digit growth.