Exporters seek interest relief, faster GST refunds

INDIA’S EXPORTERS, IN a recent meeting with Prime Minister Narendra Modi, have asked for support that will help mitigate the adverse fallout of extra tariffs that their shipments to the US face, when compared to main competitors.

- MUKESH JAGOTA

While Indian exports to the USare subject to 50% extra tariffs, competitors payaround 20%. The 30% extra that Indian exporters have to pay is what is hurting shipments to the US.

In the meeting with the PM on Monday, the exporters offered to bear 15% of the extra tariff and requested the government to take steps to blunt the impact of the balance 15%.

They suggested that the interest equalisation scheme (IES) be reintroduced. This, they said, would reduce the cost of credit and make Indian products more competitive. There was also a demand for automating the Goods and Services Tax refund of inverted duty structure in their sectors.

Apart from issues of immediate interest, exporters also raised longer term issues like more focus on skilling, reducing costs of raw material and reducing incidence of inverted duty structure.