Union Finance Minister Nirmala Sitharaman on Saturday announced a slew of measures to boost exports, including hike in interest equalisation scheme, automated GST tax credit refunds for exporters, remission of taxes on export products to replace MEIS, among others.
In a press briefing, FM Sitharaman said that Export Credit Guarantee Corporation (ECGC) will expand scope of export credit insurance service (ECIS) and will offer higher insurance cover, which will cost Rs 1,700 crores per annum to the exchequer.
The FM announced introduction of remission of duties for export products (RoDTEP) to replace the existing merchandise exports from India scheme (MEIS). Revenue foregone for implementation of RoDTEP would be Rs 50,000 crore, Nirmala said. The new scheme will completely replace MEIS for all goods and services, while the existing dispensation will continue till December 31, 2019, she added.
There shall be time bound adoption by Industry of all necessary mandatory technical standardsSeptember 14, 2019
The announcement came a day after India's exports dropped by 6.05 per cent to $26.13 billion in August mainly on account of significant fall in shipments from key sectors such as petroleum, engineering, leather, and gems & jewellery.
In another measure to boost exports, Sitharaman said that additional 36,000-68,000 crore will be released for Ministry of Micro, Small & Medium Enterprises (MSME) to ensure higher credit availability for exports.
The minister said that there would be a removal of human interference in tax assessment and fully automated refund route for GST credit would be put in place by the September-end.
While an inter-ministerial working group will be formed to monitor export finance, the working group in the commerce ministry will be set up to set standards for imports, FM said.
On free trade agreements, the minister said that a FTA utilisation mission would be set up, which will be headed by a senior officer in Department of Commerce, to work with FIEO and export houses to utilise concessional tariffs in each FTA.
In a bid to give fillip to tourism, small and medium enterprises and export sector, the FM announced that "India shall hold an annual mega shopping festival, like the one held in Dubai". It shall happen by March 2020 and themes will vary from textile, handicraft, yoga, and others, she added.
Edited by Chitranjan Kumar