04 Jata Kahan Hai Diwane (2) Exporters say meeting the export target of $900 billion by 2020 seems tough, given the current global economic scenario; a more realistic goal would be $700-750 billion.
The Federation of Indian Export Organisations (FIEO) has also expressed apprehensions that paying input taxes first and then claiming refunds under the Goods and Services Tax (GST) regime could lead to losses worth 2 per cent of export value, and has asked the government to bear that burden.
“Reaching the target of $900 billion set in the Foreign Trade Policy would require exports to grow at a compound rate of 27 per cent (from the current fiscal to 2019-20). Given the current global scenario, the possible rate of growth might be 15 per cent, which would translate into exports of $700-750 billion by 2019-20,” said FIEO Director General Ajay Sahai.
The Commerce Ministry is expected to announce a review of the FTP 2015-2020 simultaneously with the implementation of GST from July 1 this year.
Refund mechanism
via ‘Export target of $900 billion by 2020 not feasible’ | Business Line
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