Business Today

Dry Run

Despite government initiatives, India's exports have remained below the 2013/14 levels. Exporters' GST problems and rising trade barriers suggest fast growth is unlikely to materialise.

Sunil Harjai, a Noida based leather footwear exporter, is worried. His value added tax refunds worth Rs1.75 crore have been pending with the tax department for five years. Increased competition in the global market and supply disruptions caused by Goods and Services Tax (GST) last year and demonetisation the year before have hit his business. The turnover of his company, Siddharth Exports, has fallen from Rs35 crore to Rs20 crore. He fears he may have to rationalise his 400 strong workforce soon. "It's getting worse. A lot of things happening around us are increasing the feeling of negativity among exporters. To make matters worse, other countries are growing and taking our business," says Harjai, who is also the convener of the footwear panel of the Council of Leather Exports in India.

Leather and leather product exports are among the various labour intensive sectors facing a slowdown. Monthly foreign trade numbers given by the commerce ministry show that apparel exports for April 2018 were 22.76 per cent lower than in the same month of the previous year. Apparel production declined for 11 straight months up to March. "Continued backlog in GST and release of rebate on state

You're reading a preview, sign up to read more.

More from Business Today

Business Today6 min read
'YouTube Should Be The Platform For The Next Million Channels'
Q. The world thinks you are a media company. You are convinced you are a technology platform. How do you marry the two realities? What is the vision? A. The vision for YouTube is that we become a platform for the next million channels. When I was her
Business Today7 min read
Back To The Wall
The liquidity crisis that is roiling non banking finance companies (NBFCs) has hit the one part of Anil Ambani's debt strapped business empire that was going strong its financial services business. Three rating agencies CARE, ICRA and Brickwork
Business Today3 min read
A Strong Foundation
The Indian mutual fund (MF) industry has grown exponentially over the last decade. However, defaults by the IL&FS group last year brought attention to the credit risks in debt mutual funds and exposures to NBFCs. Assets under management grew from Rs