Home / Knowledge / News / Policy / 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


Interviews View All

Office bearers, Textile industry

Office bearers
Textile industry

There might be negative impact on garment exports

Top executives, Textile industry

Top executives
Textile industry

Denimsandjeans India 2018

Mukesh Agarwal & Rajesh Agarwal, Madhuram Fincap Pvt Ltd

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Erik Sy,

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Wesly Clements,

Wesly Clements

US-based Baldwin Technology Company is a global manufacturer and supplier...

Boban Charly,

Boban Charly

Bierrebi designs and manufactures automatic machines that cut fabric into...

Dr. Rene Wollert, Freudenberg Nonwovens

Dr. Rene Wollert
Freudenberg Nonwovens

Dr. Rene Wollert discusses the current scenario of the global nonwovens...

S Ziya Gumuser, Teknomelt

S Ziya Gumuser
Teknomelt

Turkish nonwoven manufacturer Teknomelt has been around for only seven...

Johann-Philipp Dilo, Dilo Group

Johann-Philipp Dilo
Dilo Group

German company Dilo Group is one of the leading equipment suppliers of...

Silvia Venturini Fendi, Fendi s.r.l

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Niti Singhal, Twee In One

Niti Singhal
Twee In One

Best known for convertible clothing, Indian brand Twee In One by designer...

Aditi Somani, Aditi Somani

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

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


October 2019

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

news category


Related Categories:

Follow us on instagram

Follow

Follow Fibre2Fashion On


Advanced Search