To help exporters overcome the continued slowdown in global demand, the Centre has announced additional incentives worth ₹1,500 crore. This will benefit wide-ranging sectors such as iron and steel, footwear, marine products and auto components.

The number of items eligible for sops under the existing Merchandise Exports from India Scheme (MEIS) has been increased to 7,103 from 5,012. The rate of incentives has also been increased for select products. “The total support extended by the Centre under the MEIS has been enhanced from ₹22,000 crore to ₹23,500 crore per annum,” an official release from the Commerce Ministry said.

Duty-free scrips

Under the MEIS, eligible exporters get duty-free scrips, based on a percentage value of their exports (ranging between 2 per cent and 5 per cent), which can be used to import inputs by the exporter or sold to other entities.

As many as 2,091 additional items have been added to the MEIS, including traditional medicines, marine products, industrial goods, processed food, silk items and wool products.

The rate of incentive under the scheme for 575 products has been increased. These include iron and steel, handicrafts, moulded and extruded goods, rubber, ceramic, glass, auto tyres and tubes, industrial machinery engineering items, IC Engines, machine tools, footwear, ghee & cheese and rubber products.

Exports of goods have declined continuously for 20 months as demand continues to be low in both India’s traditional markets such as the EU, the US and Japan as well as South-East Asia and China.

Related Topics
comment COMMENT NOW