The GST hurdle

Govt must act fast to remove problems faced by exporters

Merchandise exports from India have had a difficult few years. They went through several successive quarters of decline, even as competing countries such as Vietnam saw exports grow. India failed to enhance competitiveness in the face of weak global demand and capture a larger share of world trade. Attempts to do so have floundered not just in the face of unreformed domestic supply chains and factor markets, but also because of a rupee that is stronger than warranted, given India's balance of trade. Strong foreign inflows, first into equity and then into debt markets, have caused the rupee to stay