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India to top prawn exports to US

goexporter [IN] on January 02, 2019

Figures from the US National Oceanic and Atmospheric Administration (US NOAA) showed that India’s exports of frozen prawns to the US has grown 16.5% to 203,699 tonnes between January and October 2018 from 174,843 tonnes in the same period of the previous year. The figures also indicated that India may top in the export of prawns to the US in the year 2018.
Thailand, which had been holding the position as the largest prawn exporter to the US till 2012, was hit by early mortality syndrome (EMS), an untimely death of prawns due to toxins produced by a unique strain of bacterium Vibrio parahaemolyticus, an action triggered by a virus.Thailand’s exports to the US were 38,405 tonnes in January-October 2018, down from 60,229 tonnes in the similar period of the previous year. 
China’s prawn exports were 39,982 tonnes, compared to 38,126 tonnes in January-October 2017. Ecuador exported 65,228 tonnes. The exports from Vietnam rose to 47,228 tonnes from 45,997 tonnes a year ago. India topped prawn exports as Vannamei - an exotic white prawn variety from the Pacific - was thrived in the aquaculture farms of Tamil Nadu, Gujarat, Pondicherry and Andhra Pradesh. The Marine Products Export Development Authority (MPEDA) introduced Vannamei in India in 2009.
Source :- Timesofindia.indiatimes.com

Karnataka moves ahead in shaping its Export Policy

goexporter[IN] on December 31, 2018

A meeting to chalk out an export strategy for Karnataka, organised by the Kanara Chamber of Commerce and Industry (KCCI) in association with Federation of Indian Export Organisations (FIEO) in Mangaluru recently, underscored the need to improve infrastructure to boost exports. Export strategy
Ms. Sunena Sharma, who led the FIEO team for drawing up the State’s export strategy, in an interactive session with the KCCI members, said that the team had visited various parts of the State. She said the plan will be finalised by January and submitted to the State Government. Highlighting some potential sectors for exports from the coastal region, she said Karnataka stands fourth in merchandise export. There is a huge gap between it and the neighbouring Tamil Nadu in merchandise exports.
Referring to Tamil Nadu’s growth in merchandise exports, Abdul Rahman Musba, member of KCCI, said Tamil Nadu had seen industrial development across the State. In Karnataka, a majority of industrial development is limited to Bengaluru and surrounding areas.
Karnataka cannot surpass Tamil Nadu in industrial development unless the State Government focusses on the development of other regions of the State, he said. Mr. Ajith Kamath, Vice-President of Kanara Small Industries Association (KSIA), urged the Government to improve the infrastructure in industrial areas and to provide land for the establishment of new units in the State.
Port cargo handling.Mr. YR Belagal, Traffic Manager of New Mangalore Port Trust, said the port handled 42 million tonnes of cargo in 2017-18, recording a growth of around 5 per cent over the previous fiscal.
Source :- Dailyshippingtimes.com

China's new imports record inspiring for world economy amid protectionist headwinds

goexporter[IN] on December 31, 2018

As the year 2018 draws to an end, China’s imports are expected to surpass 2 trillion U.S. dollars, a record high.Another piece of good news: nearly 100,000 square meters of exhibition area have been booked for the second China International Import Expo (CIIE) next year.According to China’s official Customs data, China’s imports increased 14.6 percent year-on-year in the first 11 months of 2018. The expected 2 trillion dollars in imports equals the gross domestic product (GDP) of either Brazil or Italy in 2017.The robust growth of imports and the success of the inaugural CIIE in Shanghai last month illustrate China’s success in ramping up imports and the role the world has played in China’s policy of reform and opening-up. China this year has lowered tariffs on an array of products, ranging from medicines to vehicles, bringing down the general duty level from 9.8 percent to 7.5.
Beijing’s resolve to boost imports have sent a strong message to the international community that China is committed to reform and opening-up. According to China’s Ministry of Commerce, lower tariffs, easier customs clearance and improved car import policies could be expected next year. The Asian Country is delivering on its commitment to supporting free trade, bolstering openness in the world economy and safeguarding a multilateral trading system.
The strong momentum seen in China’s imports has inspired a world economy struggling with the rising tide of trade protectionism.
Source :- Dailyshippingtimes.com

Despite Global trade war, India managed to grow its exports in 2018

goexporter[IN] on December 31, 2018

Despite a global trade war, India managed to grow its exports in 2018 but high crude prices and rising domestic demand continued to inflate the trade deficit.The year started with monthly trade deficit soaring to a 56-month high.By October, it had risen to more than $153 billion. Despite reports of crippling capital inadequacy in the wake of the new Goods and Services Tax regime, double-digit export growth continued for half of the year. On the other hand, imports also shot up as volatile crude prices made a comeback to haunt policymakers after a year of relative ease. India’s current account deficit (CAD) is expected to triple to $19-21 billion in Q2 of FY19, or about 3 per cent of the GDP, from the modest $7 billion in Q2 last fiscal year, economists predict.
As a result, the Government placed import restrictions and raised inbound duties on six separate occasions for hundreds of products including textile inputs, steel, mobile phones and solar panels, among others. The move was strongly criticised for raising protectionist barriers at a time when economic growth was tepid.But India managed to navigate through a field of tariff landmines as a trade war between the United States and China heated up throughout the year.
Source :- Dailyshippingtimes.com

GST revenue: States’ deficit falls to just 10 per cent in April-November

goexporter[IN] on December 29, 2018

Despite the series of rate cuts since its July 2017 launch, the shortfalls in GST collections seem to be bridging for many states, in what indicates an improvement in compliance. As a result, the overall GST revenue deficit for states has come down to 10% in April-November 2018 from 20% in the August 2017-March 2018 period, data gathered by FE showed. (The deficit is reckoned against the 14% y-o-y growth target set under the GST compensation law).Among the big states that managed to reduce the shortfall the most are Bihar (18 percentage point reduction between the two periods), Assam (14 pps) and Jharkhand (10 pps). The deficit saw a marginal rise or remained at the same level in case of Tamil Nadu, Karnataka, Gujarat and Kerala. Also, in case of some states like Himachal Pradesh, Punjab, Uttarakhand and Jammu and Kashmir, the shortfall is still very high at over 30%.The states are, of course, guaranteed full compensation for any revenue shortfall against the 14% target.
Notwithstanding the compensation, the states also bear the brunt of GST revenue shortfall, as it would affect the Centre’s tax devolution to them under the Finance Commission formula. Finance minister Arun Jaitley has recently stated that only six states have achieved the revenue-growth target, while seven were very near to achieving it. The overall monthly GST target for states last fiscal was Rs 43,000 crore if one goes by the 14% growth norm (it is another matter states individually set higher targets). That means they would need a little over Rs 49,000 crore/month in the current fiscal. The latest trends in revenue indicate that some of the ‘consuming states’ that were running high deficit last fiscal have managed to reduce the gap significantly. These include Bihar, Assam, Rajasthan, Madhya Pradesh and Jharkhand. In contrast, “manufacturing states” like Maharashtra and Gujarat are still struggling. Arguing that GST revenue position isn’t disappointing as it is made out to be, Jaitley said recently that the targets set for the states were ‘unprecedently high’ and so, ‘almost unachievable’. Recalling that tax incidence on some 235 items were 31% or higher during the UPA regime, Jaitley said substantial rate reductions — in monetary terms amounting to about Rs 80,000 crore/year — have already taken place from that levels in the UPA period.” “Notwithstanding the substantial tax reduction, the GST collection in the first six months of this year has shown a significant improvement compared to the first year. The average monthly tax collected in the first year was Rs 89,700 crore compared to Rs 97,100 crore per month in the second year,” the minister wrote in a blog. The overall GST collections for October (collected in November) dropped to Rs 97,637 crore from Rs 1 lakh crore collected in the previous month. These latest figures sustained worries over a major GST revenue deficit for the Centre , although November collections were marginally higher than the monthly average of Rs 97,039 crore in the April-November period. A report by the country’s largest bank State Bank of India estimated that federal and state governments could face a shortfall of about Rs 90,000 crore in GST tax collections in the current fiscal year against the target of Rs 12.9 lakh crore.
Source :- Financialexpress.com

GST rates of over 370 items reviewed in last 18 months

goexporter[IN] on December 27, 2018

Eighteen months after the rollout of the goods and services tax, the government had to revise rates and exempt or issue clarifications on close to 400 of the 1,216 items under the new indirect tax levy. The reduction in rates of 23 items by the GST Council in its meeting on December 22 has been preceded by at least four rounds of rate reviews on July 21 and January 18 this year, and November 10 and October 6 last year.
An analysis by BusinessLine showed that the GST rates on over 370 goods and services have been reviewed over the last 18 months, and at least 50 clarifications have been issued by government authorities on the rates of various products.
“While there has been an extensive movement of products across rate slabs after the introduction of the GST, these movements have helped businesses in having very reasonable rates for many products compared to the pre-GST situation. Since the intention is to eventually converge the 12 per cent and 18 per cent slabs into one rate, these movements serve as steps in that direction, " said MS Mani, Partner, Deloitte India.
With just 28 items now left in the highest tax bracket of 28 per cent, Finance Minister Arun Jaitley has also indicated more reviews of GST rates going ahead, as the next stage of reforms would be to converge the 18 per cent and 12 per cent tax slabs into a standard rate of 15 per cent.“We transiently put them in the 28 per cent slab. As the revenues kept increasing, we started bringing down the rates,” Jaitley said in a recent post.Impact on fiscal deficit Revenue losses are still a concern under GST— with average monthly collections pegged at about 97,100 crore — and could result in some fiscal slippage. The fiscal deficit by November-end this year amounted to 114.8 per cent of the Budget estimate.
“It (the rate changes) will have an impact on the fiscal deficit situation. They are already short of the targeted revenue collections from the GST and further reduction of rates will hurt the fiscal position. But then they should not have set the revenue targets so high if it was the intention to lower the rates over 18 months,” former Finance Minister P Chidambaram told BusinessLine. “In April-November 2018, Central GST collections stood at a relatively moderate 49 per cent of the Budget estimate for 2018-19, which suggests an impending shortfall relative to the level budgeted by the government for this fiscal. The provisional settlement of the Integrated GST, as well as residual GST compensation cess (after disbursal to states) will be key in augmenting the Centre’s cash flows in the coming months,” said Aditi Nayar, Principal Economist, ICRA.
Source :- Thehindubusinessline.com