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Benefit mode: Government extends duty benefits to boost exports |
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NEW DELHI: Worried over the continuing fall in merchandise exports from India, the government has increased support for exports of several products while expanding the scope of the Merchandise Exports from India Scheme (MEIS) by adding new items under it. A statement from the commerce and industry ministry on Friday said exports of cashews, readymade garments, paper mache products and handmade shawls of wool will now be entitled for higher support.
The ministry also, for the first time, added medical instruments and sports goods to the MEIS. The current revision has in all added 110 new tariff lines to the MEIS, making them eligible for export benefits. "Additional countries have been covered for selected leather products, steel, and base metals, products," the statement said.
Under the MEIS, the government provides duty benefits at 2%, 3% and 5%, depending upon the product and the country. With the revision, the government has extended the MEIS benefits to textile and readymade garments exports to the African countries. As per the change, electronics exports to developed countries including the US as well as India's neighbouring countries will be eligible for duty credit scrips—a benefit that was taken away this year in the Foreign Trade Policy. Similar, textile exporters will now get the MEIS benefits when they send their shipments to category A or developed.` countries like the US.
"Since the global situation is not good, we decided to focus on our neighbouring countries and Africa. Hence, for textiles and readymade garments, we will extend the MEIS benefits on exports to these countries," said an official from the Directorate General of Foreign Trade.
The emphasis on exports to Africa come at a time when senior officials from around 40 African Nations are in Delhi for the India-Africa Summit.
The moves announced on Friday are expected to give a boost to India's merchandise exports, which fell by nearly a quarter in September, the tenth straight month when they have shrunk, raising worries about the 2015-16 shipments falling short of last year's levels.
Source : economictimes.indiatimes.com
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