‘Exporters from labour-intensive sectors will now be eligible for 2% higher incentives under the MEIS’
Aamir H Kaki
Exporters, essentially from MSMEs and labour-intensive sectors will now be eligible for 2% higher incentives under the Merchandise Export from India Scheme (MEIS), as per the mid-term review of the Foreign Trade Policy (FTP) released by Commerce and Industry Minister Suresh Prabhu on Tuesday in New Delhi.
Incentives under the Services Exports from India Scheme (SEIS) have also been increased by 2%.
In addition, the review of the FTP has brought in relief amounting to Rs. 8450 crore annually for the labour-intensive sectors and micro, small and medium enterprises (MSME).
The Minister said that the Policy, announced in 2015, was not a one-time exercise for helping the exporters.
“It is an on-going effort. The Government will continuously revisit concerns of the exporters, identify challenges and addressed them as and when they arise,” he said.
He accepted that exporters had faced hurdles due to implementation-related issues of Goods and Services Tax (GST). Assuring the exporters that the Government will sort out these issues together with exporters, Prabhu said, “No new legislation can be made perfect in one go. I ask exporters to please bear with us and be our partners in dealing with the problems.”
The government is also focused on transparency as well as trust with the industry and maintaining international quality standards to succeed in the global market, he added.
Speaking at the event, Minister of State for Commerce C R Chaudhary said that the government has taken measures to sort out the issues related to refunds and blockage of working capital of exporters.
Chaudhary further said that the government is focused on maintaining the share in traditional export markets such as EU, the US as well as the focus will be on exploring new markets.
Alok Chaturvedi, Director General of Foreign Trade (DGFT), while speaking the event, said that the review is an ongoing process. “Changes are dynamic and changes are continue to be made.”
DGFT is interacting continuously with the exporters to take care their concerns, he said, while adding that the main focus is on the MSMEs, labour intensive sectors and export of agri products.
The FTP’s mid-term review is aimed at mid-course correction. The review was to be announced on July 1 this year, along with the implementation of GST.