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Purpose This paper aims to assess how Sharīʿah guidelines improve the working capital needs of the Indian sugar industry. Previous studies reveal that the sugar industry in India is in a state of cash deprivation for decades. Finance is not available for expansion, as well as for working capital requirements. Banks have also declined to provide working capital loans to the sugar industry. Design/methodology/approach Lack of working capital management and its impact upon sugar mills profitability are examined based on a sample of six Indian sugar mills and the use of panel data analysis for the period 2011-2015. Findings The regression results suggest the need for reducing the number of days’ account receivables and inventories to a reasonable minimum to maintain the liquidity necessary for the mills, which current mills cannot manage to achieve, and consequently, suffer liquidity problems. Practical implications This paper presents a model of Sharīʿah-compliant working capital financing for cash deprived Indian sugar industry. All the three parties stand to benefit from this arrangement: the farmer will get the price of his crop promptly and at its farmland, sugar mill will secure the required quantity of raw material (sugarcane) without any immediate cash outflow, and the Islamic bank will earn a reasonable mark-up profit from this transaction. Originality/value The study is the first comprehensive effort to explore the possible combination of Islamic banking products subject to the fulfillment of needs of sugar mills and farmers and the application of an Islamic banking instrument in the agriculture sector of India. It also suggests the possible models for financing under a Salam and Murabahah contract.

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PurposeThe impact of Goods and Service Tax (GST) on the motor and pump exports in the Coimbatore region is measured in this study using various parameters and scales. The data collected from exporters were used to identify the pros and cons of GST, stating their opinions on variables considered by the researchers through extensive literature on GST and exports.Design/methodology/approachThe data were collected from 220 motors and pump exporters through a field survey from the month of January to September 2021. The impacts have been measured using principal component analysis (PCA) and confirmatory factor analysis (CFA). The factor analyses and CFA will derive the positive and negative impact of GST determined through critical empirical evidence in this study. Also, the problems faced by the exporters allied to GST, which the authors could not include in the questionnaire due to certain reasons, are concisely apportioned and discussed.FindingsThe study depicts the major advantages of GST, such as harmonized system, long-run performance, reduction in logistics cost, check-post operation, bonds and ease of doing business. Also, it highlights the disadvantages of GST, such as biases in the indirect tax system, the reimbursement of duty drawback being late or pending and document filing was still a tedious job under the GST regime.Originality/valueThe unavailability of considerable literature on the impact of GST on Indian exports signifies the novelty of this research. So far, this is the first empirical attempt to measure the impact of GST on exports which is a unique and original attempt to highlight the problem that lies under the GST regime and the necessary reforms the tax structure needs in the context of Indian exports.

The study identifies the challenges motor and pump exporters face in the Coimbatore region. This city is also called as ‘Pump City of Asia’. Despite the export potential, these exporters are facing challenges which are largely ignored by researchers, academicians, and policymakers. The application of motors and pumps in numerous industries signifies the need for research in this particular sector, especially the export segments. Various challenges faced by motor and pump exporters in this region were identified to test the hypothesis. In a later stage, we tried to measure the impact of these export issues on the export performance of the firms. The study assumed that various export challenges directly or indirectly impact motor and pump exports. We tried to explore the association between export problems and export performance, contrary to all the previous studies conducted by researchers and academicians on motor and pump exports. This region (Coimbatore, Tamil Nadu) is an ideal place for research and optimisation of desired results because of its market share and reputation in the global market. We have collected data from 220 exporters (motor and pump) through a field study from January to September 2021. We have identified the challenges using principal component analysis and confirmatory factor analysis, and the impact of these impediments on the export performance of the firm was analysed through path analysis. The study depicts the major challenges, and derived results from the analysis state that there is a significant impact of labour issues, cultural differences, raw materials, and geographical distance on the performance of the motor and pump exports from the Coimbatore region.

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