Industry

Centre mulls incentives for States promoting exports

Strategy on anvil for 40% of GDP to come from global trade in 7-8 years: Prabhu

Commerce Minister Suresh Prabhu on Monday said the government was looking into ways to incentivise States that promote exports, adding that a strategy was being prepared to increase the share of international trade in India’s GDP.

“We have discussed ideas to incentivise States that will promote exports,” Mr. Prabhu said at a press conference following the third meeting of the Council for Trade Development and Promotion.

‘Experts needed’

“We will have to work with NITI Aayog for this. We had also asked States to appoint at least one nodal officer in charge of exports. They said for this, they would need experts, not bureaucrats. So, we are looking into 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,” he added. “So, [we are looking at] strategies for promoting that. We are also looking at strategies for Make in India..., to take our manufacturing share to more than what it is today.”

Trade bodies that attended the meeting sought steps to raise the awareness of officers who handle refunds under the Goods and Services Tax, and also asked for an exemption from GST for all inputs used for export production.

“A refund mechanism, howsoever efficient, affects the liquidity and competitiveness of exports... we request you all to provide exemption from GST on inputs required for export production as [in] many countries where GST or VAT is in operation,” Ganesh Kumar Gupta, president, Federation of Indian Export Organisations, said in a note.

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Printable version | Jun 1, 2020 8:07:53 AM | https://www.thehindu.com/business/Industry/centre-mulls-incentives-for-states-promoting-exports/article22399100.ece

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