Exports Grew 30.55% to $26.19 Billion After GST Simplification
By: Tax Hunts
December 26, 2017
On 15th December 2017; IndiaTodayFLASH tweeted that India’s exports rise 30.55% to 26.19 billion USD in November on account of; improved global demand, government incentives and simplification of GST refund process. As per the reports, November witnessed robust growth in outward shipments of gems & jewelry, chemical & pharmaceutical products, and engineering goods.
Exports Grew 30.55% to $26.19 billion in November After GST Simplification
After a brief pause, in November, the exports rose 30.55% to 26.19 billion USD; due to the simplification of GST refund process and government incentives. Earlier, exports have witnessed a decline of 1.12% to 23 billion USD in the month of October 2017; retreating from a six-month high growth rate in September. As of November 2016, exports stood at 20.06 billion USD.
Exporter’s body Fieo while commenting on the trade number said that China, Taiwan, South Korea and Singapore had witnessed the positive growth in exports, which reflects the recovery in global demand. India has emerged as a top performer. Out of 30 major product groups, 24 were in the positive territory. The primary growth contributors were petroleum products, engineering, gems and jewelry, organic & inorganic chemicals, marine items, and pharmaceutical, as per the data.
Growth of Imports
As per the commercial ministry data, imports also grew 19.61% to 40 billion USD in November from 33.46 billion USD in November last year. Thus, on account of rising in imports; the trade deficit increased marginally to 13.82 billion USD in November on Year over Year basis. But, the deficit gap between the imports & exports narrowed on month on month basis. Engineering goods exporters body EEPC India said that the ‘Stellar Performance’ of exports comes on the back of the smart recovery in the US economy along with several other key European nations.
Cumulative exports in April-November 2017-18 increased by 12.01% to 196.48 billion USD, while imports also grew 21.84% to 296.45 billion USD. This left a trade deficit of nearly 100 billion USD.
As of now, the government has simplified the process of claim refunds for exporters under GST. ITC and Integrated GST refunds for exporters are being promoted for quick unlocking of their capital. During this month, the government had also announced Rs. 8450 crore as incentives for exporters in sectors like leather and agriculture.
Meanwhile, gold imports dropped by 25.96% to $3.26 billion last month as per the data. While oil imports and non-oil imports grew 39.14% to $9.55 billion and 14.57% to $30.47 billion respectively. In the month of November, gems & jewelry, organic & inorganic chemicals, drugs & pharmaceuticals and engineering exports grew by 32.69%, 54.28%, 13.39%, and 43.76% respectively.
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