The government has announced additional sops for exporters to prop up falling shipments, which are showing no signs of revival in the face of a continuing slowdown in global demand.

The Commerce Ministry has expanded the current incentive schemes for exporters to include more products, markets and, in some cases, also increased the incentive amount, according to an official release.

Textile items, pharmaceuticals, surgical instruments, herbals, project goods, auto components, telecom, computer, electrical and electronics products and railway transport equipment are among products that will now get incentives for exports to all countries under the existing Merchandise Exports from India Scheme (MEIS).

“The current revision introduces 110 new tariff lines and increases rates or country coverage or both for 2,228 existing tariff lines,” the release said.

Items that now qualify for higher incentives are mostly from the small sector and include industrial machinery, ready-made garments, cashew, IC Engines, machine tools, parts and machinery for dairy, agriculture, food processing, textiles, paper, hand tools used in agriculture /horticulture/forestry, safety razors and blades.

Other items include all type of locks, reinforced safes, strong boxes and doors, safe deposit lockers, flexible tubing, pilfer-proof caps for packaging and bicycle parts.

Exporters say the sops will help them regain some competitiveness in the shrinking global market, but want more.

“The enhancement of support under the MEIS is timely. However, a range of articles of iron and steel, non ferrous metals and products too need to be included and benefits for exports should cover a greater number of countries,” said Anupam Shah from the Engineering Export Promotion Council.

Interest subvention Exporters’ body FIEO has also been pushing the government for re-introduction of the interest subvention scheme, which would result in lowering of interest rates for exporters. The scheme, despite being provided for in this year’s budget, is yet to be implemented.

The MEIS, announced in the Foreign Trade Policy earlier this year, fixed incentives for various items at 2 per cent, 3 per cent and 5 per cent of the value of exports.

Exports in April-September 2015-16 fell 17.63 per cent to $132.93 billion compared to the same period last year.

The decline was across all the major sectors, including petroleum goods, ready-made garments, electronics, engineering goods, gems & jewellery, chemicals, leather and agricultural products.

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