At the Export Summit 2018, the Union Minister of Commerce & Industry, Suresh Prabhu said that the government is working on a strategy to revitalize India’s exports.
On the challenges faced by exporters such as a decline in credit availability, he said that the ministry is preparing a package to ensure that the exporters’ woes are addressed properly. Prabhu also told that the matter of unavailability of credit has been taken by the department of commerce to the finance ministry and the RBI.
He assured that he will explain the new RBI Governer Shaktikanta Das that RBI should keep credit to export as Priority Sector Lending.
The package would focus on labor-intensive sectors such as leather, textile, and marine products as it would boost the employment opportunities in these sectors.
Prabhu said that the other challenge is related to refund of Goods and Services Tax (GST). To address this, the ministry has suggested the introduction of e-wallet mechanism for the exporters. The move will help the exporters as they would not have to pay the tax first and their working capital would not get locked up. Also, a notional credit would be transferred to exporters’ accounts based on their past record and the credit can be used to pay taxes on inputs.
The Summit was organized by Confederation of Indian Industry in New Delhi on Wednesday.