India’s goods export growth in the year 2017-18 is seen at a six-year high of 9.8% despite exporters complaining about the GST refund problem. India’s merchandise export is seen growing to 9.8% from 5.2% in the year 2016-17, making it highest since 2012-13.
While the goods export performed well, the gap between the exports and imports, increased too from 28.5% from 2017 to $13.7 billion in the month of March taking yearly deficit to a whopping $87.2 billion from $47.7 billion a year ago. Imports increased by 20% to $456.6 billion, stated the report released by the commerce department on Friday. The decline in exports in March was due to a higher base in the same month last year.
The Good and Services Tax (GST), which was implemented in July last year, subsumes all the indirect taxes that businesses used to pay the central authorities and state authorities separately. Under this scheme, companies were given claim refunds for the taxes they had paid while buying raw materials for their businesses.
However, among many things, including technical glitches, made it difficult for authorities to reimburse the input tax credit refund on time causing capital deficit or liquidity problems to exporters.
Gold imports declined by 40.31% year-on-year to $2.5 billion, while pearl and jewellery imports moderated. The value of exports declined by 0.66% as compared to $29.11 billion in March last year.
The import of petroleum and crude oil increased by 13.92 percent to hit $11.1 billion from last year. Import of pearls and stones went marginally up by 0.78 percent. Organic and inorganic chemical imports went up by 28.04 percent while coal, coke and briquettes catapulted by 44.67 percent to $2.4 billion. Inbound shipments of machinery increased 33.41 percent to $3.4 billion.
Gems and jewellery exports went down by 16.57 % while engineering goods, organic and inorganic chemicals, and drugs and pharmaceuticals, rose by 2.62%, 31.75%, and 8.4% respectively.