Question : Impact of Demonetisation on Exports

(a) whether the Government has conducted any study or convened a meeting to assess the impact of demonetisation on the country''s exports/exporters including small and medium units;
(b) if so, the details and the outcome thereof;
(c) whether the Government has received any suggestions from the exporters to minimize the impact of demonitisation on exports/exporters and if so, the details thereof along with the response of the Government thereto;
(d) whether the Council of Leather Exports has also expressed their concern on the move to put limitations on cash withdrawal which is impacting the working capital of exporters; and
(e) if so, the details thereof along with the corrective measures proposed to be taken by the Government in this regard and the time by which limitation on withdrawal of cash is likely to be lifted for this sector?

THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE)
(SMT. NIRMALA SITHARAMAN)

(a) to (e): A meeting was convened by Department of Commerce on 21st November, 2016 with Export Promotion Councils (EPCs) to assess the impact of demonetisation on the country''s exports/exporters. A similar meeting was also convened by Ministry of Micro, Small & Medium Enterprises (MSME) to assess the impact of demonetization on 24th November, 2016.Suggestions were made by various EPC’s including Council for Leather Exports (CLE) to increase the withdrawal limits.

All EPC’s have been advised to go cashless in respect of their payments. The Government and the Reserve Bank of India are closely monitoring cash availability and appropriate decisions are being taken from time to time.

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