Why in the news ?

• The commerce and industry ministry is considering incentives for states that play a proactive role in promoting exports as it will help boost economic growth

More on news

• The minister said that the ministry is in the process of preparing a strategy to promote overall exports and push the country’s industrial growth.
• He furhter added that we are in the process of preparing a strategy for at least 40% of India’s GDP which will happen in next 7-8 years to come from global trade, and at least half of that should be from exports.

• “We are thinking of ideas whereby we can incentivise the states which promote exports. This is something that will have to work with our Niti Aayog. We have asked all the states to appoint at least one nodal officer who will be in charge of exports and other related activities. The states suggested that he should be a professional rather than a typical bureaucrat,” said the minister.

Allaying Concerns over GST refund

• 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 Federation of Indian Export Organisations (FIEO) has stated that about Rs 1,85,000 crore will get stuck with the government.
• Responding to the concerns over GST refund, the minister said that the solution to GST refund lies in the fact that you don’t have to first spend and then refund. We are working on a system that would not require exporters to first spend and then refund. That will happen. Today, a few states said that we need to expedite this process. He further added that the ministry is working on an ‘e-wallet’ system to resolve the matter.
• Under the proposed “e-wallet” system, according to 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 available.

Source

The hindu, Indian Express