New Delhi, April 21 - Business body PHD Chamber of Commerce and Industry on April 21 said that the "after-effects of demonetisation and teething problems of GST" have significantly impacted the potential of exports growth.
According to the chamber's President Anil Khaitan, various structural and domestic factors such as after-effects of demonetisation and teething problems of GST have significantly impacted the potential of exports growth.
While releasing a study on 'Impact of GST on Business, Industry and Exporters', he said that many exporters still struggle for their IGST refunds and are out of exports business as their working capital has been squeezed.
"Crores of rupees have been stuck in the IGST refunds process.
"We are not able to capitalise the emerging global market opportunities due to roadblocks in the IGST refunds.
"The year 2017-18 can be translated as a missed opportunity for India to touch an unprecedented growth in its exports, as world economy has shown remarkable signs of growth and major economies like US, EU, Japan are showing rise in their import growth," Khaitan said, as per a statement.
In 2017-18, India's export grew by around 10% to $302.8 billion from $275.8 billion in 2016-17.
On the other hand, the trade deficit has widened by 45% to $157 billion in 2017-18 compared with $108 billion in 2016-17 on the back of a rise in imports vis-a-vis revival of domestic demand.
"If the problem of IGST refunds is resolved properly, we look forward to a 20% growth at $360 billion in 2018-19 on rising global demand and improving supply side scenario at domestic front," Khaitan said.