Foreign trade policy is keen towards the motivation of MSMEs. In this bid, Support to Export Credit Guarantee Corp is also being enhanced to increase insurance cover to exporters particularly MSMEs exploring new or difficult markets.
To push exports, commerce minister Suresh Prabhu announced more incentives in the mid-term review of the Foreign Trade Policy 2015-20 including 2 per cent hike in Merchandise Exports from India Scheme (MEIS) incentive across the board for labour intensive sectors. This will result in additional annual incentive of Rs 4,567 crore to the exporters.
In addition, the trade policy is keen towards the motivation of MSMEs. In this bid, the Support to Export Credit Guarantee Corp is also being enhanced to increase insurance cover to exporters particularly MSMEs exploring new or difficult markets.
Further, incentives under Services Exports from India Scheme (SEIS) have also been increased by 2 per cent leading to additional annual incentive of Rs 1,140 crore.
The review, Mr Prabhu said, “aims to promote exports by simplification of processes, enhancing support to high employment sectors, leveraging benefits of GST, promoting services exports, monitoring exports performance through state-of-the-art analytics”.
Further, the validity period of Duty Credit Scrips has been increased from 18 to 24 months and GST rates on transfer/ sale of scrips has been reduced to zero.
Issue of gold availability for exporters has been resolved by allowing Specified Nominated Agencies to import gold without payment of IGST, said the ministry.
To improve ease of doing business, a new scheme of self-assessment-based duty-free procurement of inputs required for exports has been introduced. “There will be no need of standard input output norms in such cases and this will eliminate delays. It is based on trust,” said the policy.
Exporters will self-certify the requirement of duty free raw materials/ inputs. The scheme will improve ease of doing business. “The 2 per cent increase in the MEIS rates for labour intensive sectors will provide much needed respite to these sectors which are facing huge competitiveness from other countries,” said Ganesh Kumar Gupta, president, FIEO.
He said that the new system for the grant of Advance Authorisation marks a new beginning of reliance on trade and will encourage exporters to apply for AEO Scheme which facilitate customs clearance both in India as well as abroad. He also said that the creation of new logistics division and decision to develop National Logistics Information Portal for online logistics market player will go a long way to reduce the logistics cost in India.