Home / Knowledge / News / Textiles / Indian ministry proposes new export incentive scheme

Indian ministry proposes new export incentive scheme

01
Aug '19
Pic: Shutter Stock
Pic: Shutter Stock
India’s commerce ministry has reportedly circulated a cabinet note to phase out the Merchandise Exports from India Scheme (MEIS) and shift to a regime more compatible with the World Trade Organisation (WTO), as many nations have challenged India’s export ‘subsidy’ schemes. Exporters will be refunded levies that are not reimbursed through freely transferable scrips.

The new scheme will refund both state and central levies on inputs consumed in exports and various sectors will be covered in phases, according to a report in an Indian business daily.

The duty drawback panel under the finance ministry (with inter-ministerial representation) will fix the rate of scrips for various products. The scheme will be monitored by the ministries of commerce and finance (department of revenue).

As for the remission of state levies for garment and made-up exports, the government allocated ₹ 3,664 crore in fiscal 2018-19. However, the compensation level under this scheme was expanded in March to include central levies as well, and some embedded taxes were also factored in. So the potential revenue forgone is now estimated at around ₹6,300 crore annually.

Government officials have, however, made it clear that the entire allocation or potential revenue forgone on account of various such schemes does not qualify as export subsidies, as in most cases, these are meant to only soften the blow of imposts that exporters have been forced to bear due to a complicated tax structure.

Under MEIS, the government provides exporters, especially in the labour-intensive sectors, duty credit scrip at 2-5 per cent of their export turnover, depending on products and shipment destinations.

The United States has dragged India to the WTO, claiming that New Delhi offered illegal export subsidies and “thousands of Indian companies are receiving benefits totalling over $7 billion annually from these programmes”. India has rejected such claims.

However, to prepare exporters, commerce and industry minister Piyush Goyal last month asked the industry to stop relying on subsidies and improve competitiveness. (DS)

Fibre2Fashion News Desk – India


Must ReadView All

Pic: Shutterstock

Textiles | On 22nd Aug 2019

US-China trade war uncertainty could cost $585 bn by 2021

Uncertainty arising out of the US-China trade conflict could lower...

Pic: Shutterstock

Apparel/Garments | On 22nd Aug 2019

Myanmar's export earnings from CMP garments rise by $1 bn

Myanmar's cut-make-pack garment industry earned over $3.8 billion...

Pic: Shutterstock

Textiles | On 22nd Aug 2019

Cotton prices drop for 10th consecutive week in Brazil

Cotton prices continued to fall in the Brazilian market for the 10th...

Interviews View All

Giovanni Pizzamiglio, Paolo Crespi & Riccardo Robustelli, Epson, For.Tex & F.lli Robustelli

Giovanni Pizzamiglio, Paolo Crespi & Riccardo Robustelli
Epson, For.Tex & F.lli Robustelli

‘The percentage share of printing in the global textile market is pretty...

Top executives, Textile industry

Top executives
Textile industry

The foremost issue is bridging the skill gap

Top executives, Textile & apparel bodies

Top executives
Textile & apparel bodies

Textile industry would like to see inclusion of cotton yarn under MEIS and ...

Verena Ruckh,

Verena Ruckh

Brückner Trockentechnik develops, manufactures and supplies textile...

Puneet Jain & Yatin Jain,

Puneet Jain & Yatin Jain

Odhni is an indutva or ethnicwear brand started in 1999 by the Jain...

Pietro Turrin,

Pietro Turrin

Industrie Tessili Bresciane (ITB) has served numerous industries and...

Mary-Cathryn Kolb, Brrr°

Mary-Cathryn Kolb
Brrr°

Atlanta-based private start-up Brrr° was founded in 2014 to develop...

Melissa Tate, University of New South Wales

Melissa Tate
University of New South Wales

<div><div><div><div><b>Melissa Tate</b>, a well-known scientist currently...

Michael Jaenecke, Messe Frankfurt

Michael Jaenecke
Messe Frankfurt

From May 14 to 17, international exhibitors will present the entire...

Hemant & Nandita, Hemant & Nandita

Hemant & Nandita
Hemant & Nandita

The designer duo of Hemant &amp; Nandita are known for being inspired by...

Amiben Shroff, Shrujan

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

Jay Ramrakhiani, Occasions Elegance Wear

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


August 2019

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search