India is preparing a package for exporters. There have been challenges for the export sector over time and one big challenge is credit. There has been a sharp decline in credit to the export sector. The package would focus on labor intensive sectors such as leather, textile and marine products as they would help in creating jobs.

Another challenge the export sector is facing is related to GST. A e-wallet mechanism may be introduced to effectively address the woes of exporters who have been complaining of delays in refund of taxes under the GST regime. They get refunds over a period of time. They have to first pay upfront and in that working capital gets locked up.

With an e-wallet, exporters do not have to pay the tax first. A notional credit would be transferred to exporters’ accounts based on their past record and the credit can be used to pay taxes on inputs. To reduce transaction costs for exporters, there may be multi-modal transport, which will help enhance efficiency in the logistics sector. Each logistics company will be rated by a regulatory organisation, which will be created by the industry.

India’s exports grew by a meager 0.80 per cent in November. During April to November, exports rose 11.58 per cent.