Our Bureau
New Delhi
This Tuesday, on September 9th, Chief Economic Advisor Anantha Nageswaran has stated that the central government is thinking about introducing certain measures for the exporters that were impacted heavily by the tariffs introduced by the United States President Donald Trump. The move is speculated to be somewhere along the lines of measures that were brought during the Covid-19 pandemic.
Nageswaran has stated that due to the 50% tariffs the topline will be heavily impacted, especially of the industries that are dependent on exports. He also noted that these industries will have fixed obligations in terms of interest payments and other commitments for which they will require some hand holding with working capital, management of cash flow and to find newer markets.
“We do have a template from what we did five years ago. Fortunately this time the impact is not as much as it was the last time,” the CEA said.
Speaking on the new GST reforms Nageswaran stated that the boost to consumption as per the measures should be noted as a complement to private capex and not a pivot by the government. He believes that the new measures will help in surging the demand in the market and provide some relief from the impact of tariffs. He said, “As such, the GST 2.0 is well timed.”
He highlighted that GST 2.0 is “some natural spring cleaning post GST 1.0”. He added that the reforms would create compensation for the exporters who can find some relief through the domestic market after the impositions of heavy import duties. The new measures of GST 2.0 also add to the overall conditions and will definitely be a huge boost to the market.
