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Budget proposals to help boost India's exports: Piyush Goyal.
Feb 03, 2023

A number of measures such as tweaks in customs duties on certain products announced in the Union Budget for 2023-24 will help boost the country's exports, Commerce and Industry Minister Piyush Goyal said on Wednesday. He said that despite global economic uncertainties, India's goods and services exports together are registering nearly 14-15 per cent growth.

'The world is seeing recessionary conditions and global growth and global trade is also expected to slow down. Despite that when we combine our merchandise and service exports, we are still at quite a sweet spot...We believe that we will close this year also at a double-digit growth in goods and services combined,' Goyal told PTI.

He said that merchandise outbound shipments will be 'slightly less' as the whole world is overstocked, high inventories are there, and inflation has caused consumer demand to fall.

'As the global economy recovers from these stresses, particularly of inflation, next year we hope to do better even in merchandise exports and the finance minister (Nirmala Sitharaman) has been generous with her budget allocations for the commerce and industry ministry. So I am quite confident that this will give a boost to our exports,' he added.

When asked about the tweak in customs duties on certain products, the minister said the finance minister has 'intelligently' calibrated the duties both upward and downward.

In the Budget, customs duty on lab-grown diamonds has been removed from 5 per cent earlier.

Goyal said that seeds used in lab-grown diamonds (LGD) are essential raw materials which are processed in India and help us create high-quality LGD which have a large market.

'LGD exports have grown multi-fold in the last 3-4 years and the industry tells us that there is a potential for adding nearly another 4x or 5x growth in the next few years,' he added.

Replying to a question on the announcement about continuation of concessional import duty on lithium-ion cells, the commerce minister said that the government is promoting domestic manufacturing of electric vehicles and these cells are an essential component.

'Since we do not have domestic manufacturing (of these cells) as yet, it is essential to continue this concessional duty so that the cost of 2, 3, 4 wheeler EVS can be kept under control and low which will encourage faster adoption of EVs,' he added.

Sitharaman in the budget for 2023-24 proposed a cut in import duty on seeds used to make lab-grown diamonds with a view to boosting domestic manufacturing.

The minister also announced that the government from April 1, 2013, will launch a revamped credit guarantee scheme for MSMEs with an outlay of Rs 9,000 crore.

economictimes.indiatimes.com

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