Government rolls out incentives to boost exports with focus on SMEs in its Mid Term review of Foreign Trade Policy

Posted by Daily Shipping Times on 06-12-2017        Tweet

• Incentives under the Merchandise Exports from India Scheme (MEIS) raised from 2 to 4 per cent

• Services Export from India Scheme (SEIS), incentives has been raised by 2 per cent

NEW DELHI: The Government, in its mid-term review of the Foreign Trade Policy, has rolled out a slew of incentives mainly focused at reviving exports from the small and medium enterprises.

The Government has increased the incentives under the Merchandise Exports from India Scheme (MEIS) from 2 per cent to 4 per cent. Similarly, under the Services Export from India Scheme (SEIS), incentives has been raised by 2 per cent.

The labour incentives for small businesses has been raised by 2 per cent. The policy aims to expand the markets for India's exporters which include Africa and Latin America.

Also, the policy has increased export sops for labour-intensive, MSME products to 2%.

"Have given extra monetary benefit of Rs 8,500 crore for labour intensive exports. Also, given additional 2% under MEIS for labour-intensive exports. Govt has agreed to forego Rs 8,500 cr to boost exports," Hasmukh Adhia, Finance Secretary, said.

"Have responded to vulnerable sectors like leather, goods, marine products; logistics division has been setup in Commerce Ministry," Rita Teotia, Commerce Secretary, said.

In its review, the Government has expressed hope that the implementation of the Goods and Services Tax (GST) will spur exports.

The review which was expected to come out earlier this year was delayed because of the implementation of GST in July. The delay in the mid-term review was on account of the GST as the Government wanted to assess its impact on the exports, the Commerce Secretary said.