‘Boosts’ -- the Secret of Our Economy?
Seven days, four press conferences, and a series of announcements to revive the economy. From India Inc. to MSMEs, including the export community, Finance Minister Nirmala Sitharaman has ensured the government’s new messaging is passed loud and clear to all sections of the market -- they mean business, and will not leave any stone unturned to promote overall growth.
Last Saturday, Sitharaman announced the Remission of Duties or Taxes on Export Product (RoDTEP) scheme to boost exports. This Rs. 50,000 crore scheme will replace the Merchandise Exports from India Scheme (MEIS) from 1st January 2020. The Minister and other policymakers will be hoping that this boost -- and others like it -- will be enough to revive the flagging economy.
In the meantime, businesses are closely watching Prime Minister Narendra Modi’s visit to the United States. Given the US’s recent indications of a possible resolution to Indo-US trade tensions, there will be lots of expectations for beneficial outcomes from this visit. One hopes the Prime Minister is able to deliver on all those aspirations.
August merchandise exports fall 6.05 per cent; trade deficit narrows
India’s merchandise exports dropped over 6% to $26.13 billion in August from the same month in 2018 due to a drop in shipments of petroleum, gems and jewelry, engineering goods, textile, chemicals, and rice, showed data released by the Commerce Ministry on 13th September. In August 2018, the country had exported goods worth $27.81 billion. India’s goods trade deficit for August narrowed nearly 25% to $13.45 billion from $17.92 billion in the same period last year.
Govt announces Rs 50,000 crore scheme to boost exports
As India’s exports in August dropped by 6.05% in comparison to the August 2018 mark, Finance Minister Nirmala Sitharaman on 14th September announced the Remission of Duties or Taxes on Export Product (RoDTEP) scheme to boost exports. The minister said the revenue foregone towards the scheme is projected at Rs. 50,000 crores. The announcement comes in the backdrop of India’s merchandise exports declining by 6.05% to US$26.13 billion in August compared to the year-ago month.
Decoding Slowdown: What's ailing India's exports?
The UNCTAD’s Statistics and Trends in International Trade report of 2019 says international trade in the past few years was marked by an anemic growth (2012-14), then a downturn (2015 and 2016) and a strong rebound (2017 and 2018). The rebound was due to (a) a global upturn in output and investment and (b) recovery of commodity prices. However, it warns that the future does not look bright because the global output is unlikely to increase substantially and commodity prices are projected to stabilize or even decrease.
Trade wars: Modi, Trump may soon clinch a deal
India is working with the US with an “open mind” to resolve various contentious issues, commerce minister Piyush Goyal said on 16th September, amid mounting expectations that the two countries could either clinch a trade deal or finalize broad contours of it when Prime Minister Narendra Modi visits the US this month. “We are in dialogue with the US on a number of issues and as we firm up the specifics, we will inform you once the Prime Minister (Narendra Modi) and the US President sit down and finalize…We have an open mind and with an open mind, we are looking at several sectors,” Goyal said.
Piyush Goyal launches ‘Nirvik’ scheme to enhance loan access to MSMEs and exporters
Union Minister of Commerce and Industry and Railways Piyush Goyal on 16th September shared details of a new Export Credit Insurance Scheme (ECIS) by the Export Credit Guarantee Corporation of India (ECGC) named ‘Nirvik’, according to media reports. The scheme was first announced by Finance Minister Nirmala Sitharaman as part of new initiatives to boost exports. Nirvik aims to make loans easier to access for exporters and also simplifies the lending process.
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