Exports to improve in the coming months due to collaborative efforts of all stakeholders says DGFT Official

After recording positive growth in September, India's exports declined 5.4 per cent to USD 24.82 billion in October on account of dip in shipments of petroleum products, gems and jewellery, leather, and engineering goods, said the Commerce and Industry Ministry.

While October data looked promising for exports, the situation will improve further in the coming months due to collaborative efforts of all the stakeholders, a top official of the Directorate General of Foreign Trade (DGFT) said. Since April, when there was a huge downfall in exports, it has made good progress and is going to rise in the coming months, Amit Yadav, DGFT said while speaking to exporters through a virtual session.

"COVID still continues. In the earlier part, times were challenging for exporters and importers. But the October data looks promising. With collaborative efforts, there will be better results," Yadav said. availability of containers for exports is the biggest challenge the EXIM fraternity is facing, he added.

He said that trade facilitators like ports are making their best efforts to make containers available to exporters.

According to Yadav, the government has plans to create district export hubs for which a draft report has been prepared. He said that this will require district-level data and export potential of products and the various bottlenecks that are being faced.

Yadav also added  that the new Foreign Trade Policy will be implemented from April 2021 as the current one has been extended by one year. Regarding the Merchandise Exports from India Scheme (MEIS), Yadav said although it is blocked at the moment, it will probably open shortly keeping in view the overall fiscal position of the country. The MIES is a scheme designed to provide rewards to exporters to offset infrastructural inefficiencies and associated costs.

The Commerce and Industry Ministry has blocked the online system for exporters to apply for availing tax incentives under the MEIS from July 23, as the Department of Revenue decided to limit the benefits under the plan at Rs 9,000 crore for April-December 2020.