The government on Tuesday announced a series of steps to revive exports amid disruptions to supply chains arising from the implementation of the goods and services tax (GST).
Fresh export incentives to labour intensive sectors and services that will cost the exchequer Rs8,450 crore annually were announced as part of a mid-term review of foreign trade policy for 2015-2020. Also announced were a series of steps to improve the ease of doing business for exporters by cutting red tape and automating more processes.
The Union government is pursuing a two-step strategy. In the short run, it is offering sops to exporters, while in the long run, it is looking to improve the competitiveness of Indian exports by raising productivity of exporters, especially in the supply chain through the implementation of GST and improving the ease of doing business. These measures are expected to benefit sectors including leather, readymade garments, handcrafted carpets, agriculture, telecom and hotels and restaurants.