Economic Buzz: Revival Of Global Demand Not Materializing Into Strong Exports For India

While appreciating Indias export growth of around 10% at US $ 302.8 billion in 2017-18 increased from $ 275.8 billion in 2016-17, Anil Khaitan, President, PHD Chamber of Commerce and Industry said that the growth of exports was not in line with the PHD Chambers expectations of $ 325 billion on revival of global demand. Khaitan said that various structural and domestic factors such as after-effects of demonetization and teething problems of GST have significantly impacted the potential of exports growth. Many of the exporters are still struggling for their IGST refunds and are out of exports business as their working capital has been squeezed. Crores of rupees have been stuck in the IGST refunds process. The trade deficit has been widened by 45% to $ 157 billion in 2017-18 compared with $ 108 billion in 2016-17.