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Karnataka Minister for Large, Medium Industries and Infrastructure Development RV Deshpande has said delay in refund of IGST (Integrated GST) has resulted in blockage of capital, especially for MSMEs.
Participating at the third meeting of Council for Trade Development and Promotion in New Delhi, he said the delay burdened MSMEs with huge interest payments.
“Major textile and apparels exporters from Karnataka like Himmatsingka, Shahi Exports, Gokuldas, Kanvas etc are facing the problem and a mechanism is needed for prompt refund of IGST,” he added.
Fall in GDP growthOn the fall in GDP growth, Deshpande said, “It is important to give thrust on the rural economy to boost GDP. Without flourishing of rural economy, we cannot expect GDP to improve. Hence the agricultural sector needs focussed attention. So, Farmers, agri-food processing industries and exporters will be benefited and in turn exports as well as GDP will improve.”
Budget outlay“I am told that the Central government’s budget outlay for improving export infrastructure is only ₹500 crore. Since the infrastructure is crucial for exports, budget allocation on infrastructure has to be enhanced considerably. Higher assistance should be provided to logistics also,” the Minister said.
He claimed that Karnataka had received investment intentions of ₹1.49 lakh crore till October 2017, which is 43 per cent of the investment intentions of the country. The State has become the top destination for FDI in the country and has done well in exports, contributing about 40 per cent in electronics and software services.
“Both goods and services put together, our contribution is about 19 per cent, which places the State at the second slot in the country,” he added.
Export performanceTalking about exports, Deshpande said Karnataka has done well in aerospace, auto, engineering, textiles, garments, silk, cotton, pharmaceutical, agro & food, vegetables, fruits, flowers, cashew, marine, coffee, and gems & jewellery.
“We are nurturing the ecosystem for the thrust areas with the right policy to provide infrastructure, incentives, technology support, skilling and ease of doing business,” he said.
Deshpande said Karnataka stands first in establishing a non-profit company ‘Invest Karnataka Forum’ under Section 8 of Companies Act with nine directors, out of which five are prominent industry leaders.
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