Export Incentives and Benefit Schemes in India
It is no doubt that the economy of India is one of the fastest-growing worldwide. Hence, the export sector needs some benefits and incentives for the growing development of the economy. The Government, also as a part of the economic reforms, has introduced several economic policies. Initiatives also get taken to improve the export conditions and benefit the export businesses in the country. The Government also highlighted various export incentives and benefits under the Foreign Trade Policy for encouraging the exporters.
Incentives Schemes for Exports
The introduction of various promotional schemes for boosting India’s export trade took place, intending to minimize the infrastructure’s inefficiencies and the costs associated with it. Below are some of the schemes or benefits for the export trade.
- India Scheme Exports: There are two types of incentives benefits under the exports from India Scheme, Merchandise Exports from India Scheme (MEIS) and Service Exports from India Scheme (SEIS). Duty credit scrips that are free and transferable get granted under the schemes. Appendix 3B of Handbook of Procedures notifies the services and goods or product eligibility for the duty credit scrips.
- Duty Exemption and Remission Schemes: It also has various incentives for enabling the products import, which is duty-free for export production and obligations. It consists of benefits under the advance authorization scheme, advance authorization for annual requirement, Interest Equalisation Scheme, Duty-Free Import Authorization Scheme, and Duty Drawbacks of Customs.
- EPCG Scheme: Zero duty EPCG scheme and Post Export EPCG Duty Credit Scrip Scheme are two types of schemes for capital goods importing at either zero custom duty or full payment in cash applicable duty.
- Other Export Benefits: The scheme consists of Towns of Export Excellence, Gold Card Scheme, Exports of Goods under Bond, Market Access Initiative (MAI) Scheme, Marketing Development Assistance (MDA), and Status Holder Scheme.
Assistance for Exporters
Different schemes of several financial assistance are provided to exporters for boosting the exports in India. One of the crucial things required even in the export trade is finance. There are many trade finance providers or government agencies, or bank guarantee providers for financial assistance. The various guarantees provided in exports are a guarantee for customs, advanced payment guarantees, retention money guarantees, performance guarantees, etc. The mechanisms for Line of Credit are also given for services, projects, goods, and equipment exports from India.
Hence, the Indian export sector is also developing with time. The Government is taking measures and introducing incentives for supporting the exporters. It is also a way of improving the economy of India.