After GST Simplification, export rise from 30.55% to $26.19 billion in November.

After a brief pause, exports rose 30.55 percent to $26.19 billion in November on account of improved global demand, government incentives and simplification of GST refund process.

Exports had witnessed a decline of 1.12 percent to $23 billion in October this year, retreating from a six-month high growth rate in September.

India’s exports in November 2016 stood at $20.06 billion.

The data released by the commerce ministry also revealed that imports too grew 19.61 percent to $40 billion in November from $33.46 billion in the same month last year.

Because a rise in imports, trade deficit increased marginally to $13.82 billion in November on Y-o-Y basis.

However, the deficit — gap between imports and exports — narrowed on a month-on-month basis.

November witnessed robust growth in outward shipments of gems and jewelry, engineering goods, chemical and pharmaceutical products.

The government has simplified the process for exporters to claim refunds under the Goods and Services Tax (GST). Input Tax Credit (ITC) and Integrated-GST refunds for exporters are being expedited for quick unlocking of their capital.

Earlier this month, the government had announced Rs 8,450 crore incentives for exporters in sectors like leather and agriculture.

Meanwhile, gold imports dropped by 25.96 percent to $3.26 billion last month, the data showed.

Oil imports and non-oil imports in November grew 39.14 percent and 14.57 percent to $9.55 billion and $30.47 billion, respectively.

Commenting on the trade numbers, exporters’ body Fieo said the positive growth in exports has been witnessed by China, South Korea, Taiwan, and Singapore, among others, reflecting a recovery in global demand, though India has “emerged as a top performer”.

Twenty-four out of 30 major product groups were in the positive territory.

However, the major growth contributors were engineering, petroleum products, gems and jewelry, organic and inorganic chemicals, marine items and pharmaceutical, the data revealed.

Engineering goods exporters body EEPC India said the “stellar performance” of exports comes on the back of a smart recovery in the US economy along with several other key European nations.

Cumulative exports during April-November 2017-18 increased by 12.01 percent to $196.48 billion, while imports grew 21.85 percent to $296.45 billion, leaving a trade deficit of nearly $100 billion.

In November, gems and jewelry, drugs and pharmaceuticals, organic and inorganic chemicals and engineering exports grew by 32.69 percent, 13.39 percent, 54.28 percent and 43.76 percent, respectively.

 

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