Higher export relief for labour-intensive sectors Back to News & Events List


The mid-term review of the Foreign Trade Policy (2015-20) has brought in additional relief worth Rs.8,450 crore annually for the labour-intensive and micro, small and medium enterprises (MSME) sectors.
 
Exporters of labour-intensive items, such as leather and footwear, agriculture and marine products, handmade carpets, telecom and electronics components, and medical and surgical equipment, will now be eligible for 2 per cent higher incentives across-the-board under the popular Merchandise Export from India Scheme (MEIS), under the review released by Commerce and Industry Minister, Suresh Prabhu on Tuesday.
 
A number of services such as accountancy, architecture, legal, education and restaurant, too, will get similar relief under the Services Export from India Scheme (SEIS).
 
The incentives come at a time when exporters are struggling under the new Goods and Services Tax (GST) regime introduced in July. Prabhu said the government was committed to redress the problems. It is not a one-time exercise but an ongoing effort. We will continuously revisit issues, identify challenges and address them on a real-time basis, the Minister said.
 
Acknowledging that exporters had suffered due to problems in GST implementation, Prabhu said the government would sort it out together with exporters. No new legislation can be made perfect in one go. I ask exporters to bear with us and be our partners in dealing with the problems, he said, adding that a number of problems had already been sorted out.
 
Exporters who were upset by the drop in goods exports in October 2017, and were expecting a further fall over the next few months due to lower duty drawback rates (of input tax reimbursement) and slow refunds, seem more optimistic now.
 
The higher incentives should start reflecting in export numbers from January. However, we are disappointed that a number of sectors were left out. Problems for exporters exist across sectors and the relief should have been for all, said Ganesh Kumar Gupta, President, FIEO.
 
Other initiatives like the extension of validity of MEIS scrips from 18 months to 24 months and the provision of zero GST on sale of scrips will help the industry in a big way, Apparel Export Promotion Council Chairman Ashok Rajani said.
 
Original Source: thehindubusinessline.com

Recent News


11

09/2018
Government procures 38 mn tonnes rice so far in 2017-18; exceeds target

The Centre's rice procurement has surpassed the target at 38 million tonnes so far in the ongoing 2017-18 marketing year that will end this month, a senior food ministry of...

31

08/2018
Indian agro exporters to get subsidy on sea routes

Farmer Producer Companies (FPCs) and co-operative institutes in the state of Maharashtra will get a subsidy of ?30.000 (€365) per container if they export fruits and veget...

22

08/2018
Badal urges food processing firms to contribute to Kerala flood relief

Harsimrat Kaur Badal, minister of food processing industries, Government of India, has appealed to all the firms in the food processing industry to come to the aid of the victi...

11

08/2018
India-Myanmar border opens for trade

India's border with Myanmar was formally opened on Wednesday to facilitate trade between the two countries, officials said.   A function was held in the morning on...