Indian economy is growing but…
Our GDP has grown up from 5.7% to 6.30%, its good to know that we are moving up after the huge downfall. Its not limited to this as we will grow more in GDP aspects as GST rates have been cut down for various goods and services which is a crucial part for the convenience of business activities.
Yesterday, one of the articles in Economic Times said “Exporters file over 10000 applications for GST refunds”. As per GST regime unlike before now exporters have to pay IGST which will be fully refunded to them after sometime. From an exporter’s perspective my working capital is getting blocked for some time . Another part of the article stated “Earlier this month, it allowed businesses making zero rated supplies or those who have pad IGST on exports or those want to claim input credit to fill Form RFD-01A”.
In the light of above statements exporters are in big trouble as their businesses are not doing well . On the other hand,if we talk about GDP so we should keep in mind that exporting is also one of the important aspects to measure a country’s growth and this step will also negatively affect our Current Account Deficit that’s also not a good take for us.
The conclusion of this article is weather our GDP is actually growing but we must look at the other side too. If exports will not grow consistently then in the future our GDP might plummet again.