NEW DELHI: Expressing concern over the current global economic and geopolitical situation, Commerce Minister Nirmala Sitharaman warned that international trade may be impacted. She, however, denied that suggestions were made to scale down the 2020 export target of $900 billion in view of the current geopolitical situation.
Sitharaman was speaking to reporters after a meeting with various stakeholders, including exporters, as part mid-term review of the Foreign Trade Policy (FTP) for 2015-20.
The commerce minister assured the stake holders that the government will take all measures to help them with required policy, so that they can focus on their business.
She said that since the revised mid-term FTP is to be announced a few days ahead of July 1, the scheduled date for the goods and services tax rollout, review would be concluded by July 1 so that it is aligned with the GST implementation.
Small and medium exporters, along with other exporters, expressed concern that their funds would be locked up for several months if the government does not review before GST implementation.
According to GST norms, 90 per cent of the refund will be given in seven days and the remaining 10 per cent will be given in 4-5 months. She said SME exporters had raised concerns on this clause as their funds could remain locked for long time.
“We found merit in the suggestion that the policy review should be well in time to go along with the rollout of the GST. It means I have to announce it well in time for July 1,” Sitharaman said.
The minister told reporters that suggestions were made that the FTP should not focus only on exports but on imports as well.
Sitharaman said that stakeholders have been brief that a team including the Commerce Secretary will soon seek time from GST Council, headed by Finance Minister Arun Jaitley. The meeting is expected to happen immediately after Jaitley returns from his Japan trip. The finance minister is scheduled to reach Delhi on May 9.