The commerce and industry ministry is mulling incentives for states which
play a proactive role in promoting exports as it will help boost economic
growth, Union Minister Suresh Prabhu said.
He said he
has sought the views of states on the issue, which was raised during the third
meeting of Council for Trade Development and Promotion. "We are thinking
of ideas whereby we can incentivise the states which promote exports. I have
mooted this idea before the states and asked them to give their ideas on this,"
Prabhu told reporters.
contributes significantly in boosting the country's economic growth, the
commerce and industry minister said. If the GDP of states rises, it would push
the country's growth, he said, adding that the focus should also be on the
districts' GDP, which in turn would fuel the nation's economy.
the ministry is in the process of preparing a strategy to promote overall
exports and push the country's industrial growth. When asked about the concerns
raised by exporters in the meeting related to GST (Goods and Services Tax)
refund, he said the issue was discussed and the ministry is working on an
'e-wallet' system to resolve the matter. Before the implementation of the GST
last July, exporters used to get ab-initio exemptions from duties. But now they
have to pay first and then seek refund. Due to this process, the FIEO has
stated that about Rs 1,85,000 crore will get stuck with the government.
proposed system, according to Federation of Indian Export Organisations (FIEO),
the problem of liquidity will be solved as exporters may use it like a running
account where money will be debited from e-wallet when duty paid supplies have
to be undertaken and the amount will credited when the proof of exports is made
issues which came up for discussion during the council's meeting include role
of foreign direct investment (FDI) in promoting exports and enhancing role of
states to push shipments.
meeting, Prabhu said, Goa chief Minister Manohar Parrikar suggested that all
states prepare their export policies. So far, only 14 states including Gujarat,
Tamil Nadu, Tripura and Jammu and Kashmir have done that. FIEO President Ganesh
Kumar Gupta suggested exemption from electricity duty under the GST regime and
transport subsidy to increase competitiveness.
was constituted on July 3, 2015, to ensure a continuous dialogue with states
and Union Territories on measures for providing an international trade enabling
environment, the commerce ministry said in a statement. Members of the council
also deliberated on creating a framework for making the states active partners
in boosting exports.
ministers of commerce and industry, secretaries of central departments and
heads of other export related organisations are the members of the council.
merchandise exports during April-November 2017-18 increased by 12.01 per cent
to USD 196.48 billion. On GST refund, Prabhu said the solution "lies in
the fact that, you (exporters) do not have to first pay and then claim refund.
So, we are working on e-wallet system, which will not require exporters to pay
and then seek refund". On incentivising states to promote exports, he said
their full participation is important to push India's outbound shipments.
also asked the states to participate in the Trade Infrastructure for Export
Scheme (TIES). SO far detailed project reports have been received from
Karnataka, Tamil Nadu, Madhya Pradesh, Andhra Pradesh and Tripura only.