Export As Per GDP Lowest In 13 Years
Data from the Centre For Monitoring Indian Economy (CMIE) shows that the botched introduction of Goods and Services Tax (GST) has taken a heavy toll on the exports. Export as per the Gross Domestic Product (GDP) has been the lowest since 2003-04.
According to Livemint, while it can be said that the poor rates of 2017 are due to GST, the numbers for March 2018 are also not an attractive one. The figures could be mostly due to the delay in giving refunds to exporters.
In the last quarter, due to disruptions in the gems and jewellery sector and also because of the Punjab National Bank scam revelation, the sector has not done well.
The engineering sector has not been doing well too. “The engineering sector, which had been leading the basket of goods exports, could manage to grow by a meagre 2.62% in March, making it imperative to redraw our external trade strategy. This is all the more important in the backdrop of more and more protectionism rearing its head. Rising raw material costs, among other factors, have had a crippling impact on the shipments,” EEPC (Engineering Export Promotion Council) India chairman Ravi Sehgal said.
With protectionism increasing in the US, the outlook for exports has been further put in a hazy area. Last Thursday, the US trade representative office said it has launched investigations on whether India was complying with the rules on the Generalised System of Preferences, which could affect the duty-free entry of a host of products from India.