FIEO News

The robust MSMEs and large-scale exporters, coupled with strong government support mechanisms, will help cushion any near-term shocks. 

The finance ministry on Friday stated that the government has decided to exempt small exporters from furnishing bank guarantee for shipping goods and services.

The finance ministry in a statement said that small exporters have brought to the notice of the government the difficulties in furnishing bond with requisite bank guarantee.

For July, where GSTR 1 form has been already filed by businesses, it said the authorities would be in a position to process the refund applications.

Many exporters were on the verge of closure due to draining of working capital, since blockage of funds on account of GST was exorbitant, he said in a press release.

The Goods and Services Tax (GST) will severely dent the liquidity situation of traders and the compliance cost of merchant exporters may go up, top exporter body FIEO said on Friday.

The WTO's trade facilitation agreement is expected to reduce transaction costs and promote exports, trade body FIEO said on Thursday.

Exporters body FIEO on Thursday said under the Goods and Services Tax (GST) regime, exemption on final export products should continue to promote overseas shipments.

Exports of over half of the sectors, out of the 30 closely monitored by the Commerce Ministry, were in the negative zone in January due to a fall in global prices and demand.  

As exports fell for the 14th month in a row, exporters said the country may end up with outbound shipments of USD 260 billion in 2015-16, sharply lower than the USD 310.5 billion mark achieved in the previous fiscal.

Government's decision to extend the interest subsidy scheme for five years will help in controlling dip in exports and increasing competitiveness of domestic products in the global market.  

Worried over continued decline in exports, the Commerce Ministry will hold a meeting of exporters on October 7 to discuss ways to contain the dip in the outbound shipments.

Cereals, oil meals, oil seeds, fruits and vegetables, marine products, dairy and poultry products too recorded negative growth during the month, according to the Commerce Ministry.

Exporters body FIEO on Thursday said the decline in outbound shipments has "pulled down" India's GDP growth in the April-June quarter by over 3 percent.

"The devaluation will affect India's exports not only to China but to other countries also with increasing competitiveness of Chinese exports.

India's exports will be hit and the trade deficit might widen after the devaluation of Chinese currency yuan by 2 percent, which is bound to raise the competitiveness of outbound shipments from the neighbouring country, exporters' body FIEO said Tuesday.

Finance Minister Arun Jaitley Monday assured exporters of timely payment of tax refund and promised steps to boost shipments, exporters body FIEO said.

"If exports continue to move in the negative territory, it will sooner or later put pressure on CAD (current account deficit) and may derail the rebuilding of economy."

While expressing concern on sharp decline in India's export for May 2015, FIEO Southern Region Chairman, A Shaktivel said that continuous decline in export need to be arrested at any cost.

The government Thursday restricted free outbound shipments of goods by large exporters for export promotion activities to Rs 10 lakh.