How to boost exports: Suggestion to Modi govt as full fiscal trade deficit hits record high

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Published: April 17, 2019 5:52:52 PM

Trade deficit in 2018-19 has widened to $176.42 billion against $162 billion in 2017-18, according to the recent data by Ministry of Commerce and Industry.

Although exports performed well despite major challenges such as protectionism, global slowdown, constraints on the domestic front, more is needed to further boost exports as trade deficit of India worsened in the fiscal 2018-19.

“We demand for immediate support like augmenting flow of credit, higher tax deduction for Research & Development, outright exemption from Goods and Services Tax (GST), interest equalisation support to agriculture exports, benefits on sales to foreign tourists to further boost exports,” said Federation of Indian Export Organisations (FIEO) President Ganesh Kumar Gupta, reported PTI.

Although there has been an increase in exports, yet the trade deficit which refers to the difference between exports and imports for the full fiscal year 2018-19 has widened, show government data.

Trade deficit in 2018-19 has widened to $176.42 billion against $162 billion in 2017-18, according to the recent data by Ministry of Commerce and Industry.

The overall exports during April-March 2018-19 are estimated to be USD 535.45 Billion, exhibiting a positive growth of 7.97 per cent over the same period last year. Overall imports during April-March 2018-19 are estimated to be USD 631.29 Billion, exhibiting a positive growth of 8.48 per cent over the same period last year.

While oil imports in April-March 2018-19 rose by 29.27 per cent to $140.47 billion, non-oil imports were up by 2.82 per cent to $366.97 billion during the same fiscal.

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Exports of India has risen on the back of improvement in organic & inorganic chemicals, engineering goods, textiles, pharmaceuticals and petroleum products.

“Through secular growth over the last three financial years, following the major downturn in the face of the global slowdown, merchandise exports for 2018-19 are estimated at $331.02 billion, the highest ever, surpassing the earlier peak of $314.4 billion achieved in 2013-14. This has been achieved in a challenging global environment,” said the Ministry of Commerce and Industry in a statement.

However, still more is to be done to bridge the gap to improve the trade balance of India.

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