Zero rating of export: Zero-rated supplies under the GST law include export of goods or services and supply of goods or services to a SEZ developer or an SEZ unit. This may also face the challenge.
Challenges
Fall of exports: The obligation to phase out the subsidies comes at a time when India’s exports of goods and services as a proportion of its gross domestic product have hit a six-year low.
Overvaluation of rupee: The rupee remains over-valued by around 20% against a basket of 36 currencies of major export partners.
Poor export infrastructure: India’s export infrastructure faces various challenges in form of poor mechanisation of ports, siltation issues, lack of intermodal connectivity etc.
High logistic cost: Logistics costs are much higher than emerging market peers.
Overlapping export schemes: The Indian government has launched various export promotion scheme, which are overlapping and causes much confusion and litigation.
