Exporters Expect Support from Mr. Jaitley's Union Budget 2018: FIEO President

The Economic Survey showed some key insights on global trade development, which projects 4% growth in global trade in 2018. This puts Indian exporters into a serious position to think and act, but in any case this sector holds deserves a great consideration of support from Mr. Arun Jaitley when he will be presenting the Union Budget 2018. GK Gupta, President, FIEO said, “Such growth (mentioned in Economic Survey ) augurs well for Indian exports as we have always been either above the curve or below the curve. Whenever, global trade has done well, Indian exports have posted much encouraging results.”

Perhaps, the budget should consider the obstacles faced by the export sector including loss of competitiveness of labor-intensive sectors, constant appreciation of Indian Rupee, less than flexible labor laws, need of skilling and improvement in logistics & infrastructure.

FIEO Chief said, “The Economic Survey has rightly recognized that embedded taxes arising from products left outside GST (petroleum and electricity) and those that arise from inverted duty structure with nil duty on the final product, needs to be compensated and Union Budget should announce a policy decision for factoring them through Duty Drawback route."

Gupta added that “The focus of the Union Budget should be on job creation including in export sector thereby providing fiscal support to employment-intensive sectors in exports.”

The expenditure on imparting skills or on overseas marketing that is met by industry may be provided tax deduction at 100%.

The legal issues need a revision in GST Law including an exemption from IGST on imports/inputs required for exports, a comprehensive drawback Scheme for MSME to provide a refund of GST and Customs Duty, procedural changes to allow GST refund at let export order, etc. to be addressed via Budget/Finance Bill.

President FIEO said, “with a view to double farmers’ income, the Budget should allocate substantial fund for backward and forward linkages in agriculture including in cold chains and warehouses so that we build on a stable Agri Policy, likely to be announced soon”.