The government has assured that it will soon announce incentives, including extension of interest subsidy scheme, to boost exports, which are in negative zone since December last year. In a review meeting chaired by Commerce Secretary Rita Teaotia, which came in the backdrop of declining trend in the exports for which the Commerce Ministry is taking steps to arrest the same for faster export growth in the coming times, export organisations stressed that the interest subvention scheme should be implemented without delay.
Commerce Secretary Rita Teaotia held detailed consultations and deliberations with around 27 Export Promotion Councils to seek their views and suggestions on ways to promote exports. The major issues highlighted by the Export Promotion Councils related to early refund of the duty drawback amounts, credit of interest subvention, increase in the incentives given in the Merchandise Exports from India Scheme (MEIS), governance issues relating to delays in clearances, addition of more items under the MEIS, request for increase in MEIS incentives for certain items, agreements with specific countries to promote exports of certain items.
The Commerce Secretary also informed that the allocations for export incentive schemes in the current financial year has been increased from the earlier Rs 18,000 crore to Rs 21,000 crore and this amount was likely to be available for allocations in the coming week.
However, Commerce Secretary pointed that the Foreign Trade Policy 2015-20 was drawn after extensive deliberations. Hence it may not be possible to make changes very frequently and go back on the scheme and incentives under the Merchandise Export from India Scheme. She said that with the changing paradigms/ dynamics of the export market, exporters should be flexible in responding to the changing economic scenario and should work in the spirit of give and take wherein getting access has to be complimented by giving access to markets.
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