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The government has doubled the rates of incentives under the Merchandise Exports from India Scheme (MEIS) for garments and made-ups exporters for a period of eight months.
The move is expected to bring major relief to the two sectors that took a beating after the implementation of the Goods & Services Tax (GST) regime.
“The Directorate General of Foreign Trade has issued a notification today by which rates for incentives under the MEIS for two sub-sectors of textiles industry, that is readymade garments and made ups, have been enhanced from two per cent to four per cent of value of exports with effect from November 1 2017 till June 30 2018,” according to a Commerce Ministry release. The estimated annual incentives will be ₹1,143.15 crore for 2017-18 and ₹685.89 crore for 2018-19. “This measure will incentivise the exports of labour intensive sectors of readymade garments and made ups and contribute to employment generation,” the release added. Garment exporters have been attributing the fall in exports to the erosion of their competitiveness due to the sharp reduction in the drawback and RoSL (rebate of State levies) rates.
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