It said that Section 15 of the Integrated Goods and Services Tax (IGST) Act, 2017, provides for a GST refund mechanism for foreign tourists purchasing goods in India.
Despite nearly nine years having elapsed since the introduction of GST, this important provision remains unimplemented, the Federation of Indian Export Organisations (FIEO) said.
It also requested the government to establish an ‘Apex Green Transition Fund‘ dedicated to supporting exporters in adopting cleaner technologies, improving energy efficiency and reducing carbon intensity.
Besides, it requested the central government to extend priority sector export credit to sustain growth in overseas shipments.
India’s exports have displayed remarkable resilience despite an increasingly uncertain global trading environment.
However, this growth is not being matched by adequate institutional credit support, it said, adding that priority sector lending for exports has witnessed a significant decline, with export credit contracting by nearly 14 per cent in the recent period. This has created serious liquidity constraints, particularly for MSME exporters who constitute the backbone of India’s export sector, it said.
These suggestions were made during the Board of Trade, chaired by Commerce and Industry Minister Piyush Goyal.
The federation said that at a time when exporters are grappling with longer payment cycles, higher logistics costs, increased compliance requirements and heightened global competition, timely access to affordable working capital has become more critical than ever.
Inadequate availability of pre-shipment and post-shipment credit directly impacts their ability to execute export orders, diversify into new markets and remain globally competitive, it added.
“We, therefore, request the government to engage with the RBI and the banking sector to restore export credit as a strategic priority, ensure adequate and timely availability of export finance at internationally competitive interest rates and encourage banks to adopt a more facilitative approach towards exporters,” it said, adding that a vibrant and responsive export credit ecosystem will be indispensable for achieving India’s ambitious target of becoming a USD 2 trillion export economy.
Further, it asked the government to accord high priority to addressing logistics-related challenges.
“…evolve a framework that ensures greater transparency and reasonableness in freight-related charges, improves container and vessel availability for Indian export cargo, and facilitates regular dialogue between exporters and shipping lines,” it said.
It added that financial assistance, concessional finance and competitive technology transfer, along with support for carbon audits and traceability systems, will enable Indian exporters to successfully navigate the evolving global trade architecture. PTI