Indian govt provides big boost to exporters; to release ₹56,027 cr

09 Sep '21

2 min read

Pic: Twitter.com / Piyush Goyal

To provide big boost to exporters, the Narendra Modi-led Indian government has decided to budget ₹56,027 crore in the current Financial Year (FY) 2021-22 in order to disburse all pending export incentives due to exporters. This amount includes claims relating to MEIS, SEIS, RoSL, RoSCTL, other scrip based schemes relating to earlier policies and the remission support for RoDTEP and RoSCTL for exports made in the 4th quarter of FY 20-21.

"Benefits would be disbursed to more than 45,000 exporters, out of which about 98 per cent are small exporters in the micro, small and medium enterprises (MSME) category", commerce and industry, and textiles minister Piyush Goyal said in a tweet.

The amount of ₹56,027 crore of arrears is for different export promotion and remission schemes: MEIS (₹33,010 crore), SEIS (₹10,002 crore), RoSCTL (₹5,286 crore), RoSL (₹330 crore), RoDTEP (₹2,568 crore), other legacy Schemes like Target Plus etc (₹4,831 crore). This amount is over and above duty remission amount of ₹12,454 crore for the RoDTEP scheme and ₹6,946 crore for RoSCTL scheme already announced for exports made in this year i.e. FY 2021-22.

Exports in India have seen robust growth in recent months. Merchandise exports for April-August 2021 was nearly $164 billion, which is an increase of 67 per cent over 2020-21 and 23 per cent over 2019-20. "This decision to clear all pending export incentives within this financial year, will lead to even more rapid export growth in coming months," an official statement said.

"The apparel sector, which is a major labour-intensive sector, would get past arrears under RoSCTL and RoSL, and all stakeholders in the interconnected supply chains would be strengthened to meet the festive season demand in international markets," the statement added.

Export claims relating to earlier years will need to be filed by the exporters by December 31, 2021 beyond which they will become time barred. The ministry said that an online IT portal will be enabled shortly to accept MEIS and other scrip based applications and would be integrated with a robust mechanism set up by Ministry of Finance to monitor provisioning and disbursement of the export incentives under a budgetary framework.

"A decision to clear all pending export incentives within this Financial Year itself despite other budgetary commitments arising out of the pandemic is with the objective of providing timely and crucial support to this vital pillar of Indian economy," the Ministry of Commerce & Industry said.

Fibre2Fashion News Desk (RKS)

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