Suresh Prabhu says working on roadmap to create jobs through exports, fast tracking refunds

A day after exporters flagged worries related to refund of the Goods and Services Tax ( GST) and blockage of working capital to a revenue secretary chaired committee, commerce and industry minister Suresh Prabhu has said that the government is working to address their concerns.

In a series of tweets on Wednesday, the minister said the commerce ministry is working with the finance ministry to address the blockage of working capital and with NITI Aayog to create jobs through exports.

“Speeding up refunds of taxes paid by exporters and making incentives for exporters more attractive,” Prabhu tweeted.

Exporters have asked the government to fast-track the GST refund process to improve their liquidity, claiming Rs 65,000 crore could get stuck for the July-October period if the current mechanism continues.

India’s exports rose 10.3% on year in August on year but the growth was due to pre-GST contracts, composite duty drawback facility available till September 30 and low base effect.

The commerce ministry is expected to announce incentives to boost exports in the review of the foreign trade policy, which is scheduled to be released next month.

The minister also talked about exports growth.

“Ensuring growth of exports is our priority…We are working closely with NITI Aayog to devise strategic road map for generating employment through exports,” Prabhu said in two separate tweets.

Growth in outbound shipments slowed to an eight-month low in July, weighed down by appreciation in the rupee and disruptions on account of the introduction of the GST regime.