Foreign trade policy review offers more incentives to boost MSME-led exports

On Tuesday, commerce and industry minister Suresh Prabhu let out more incentives while unveiling the mid-term review of the foreign […]

   

On Tuesday, commerce and industry minister Suresh Prabhu let out more incentives while unveiling the mid-term review of the foreign trade policy 2015-20 in New Delhi, with a view to boosting exports. The minister said the incentive rate of the Merchandise Exports from India Scheme (MEIS) will be raised by two per cent across the board for labour intensive or MSME sectors. The increase in annual incentive by 34 per cent to Rs 8,450 crore will benefit leather, handicraft, carpets, sports goods, agriculture, marine, electronic components and project exports, the minister said in a tweet. The mid-term review, 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”. The focus of the FTP, he said, will be on exploring new markets and products as well as increasing India’s share in traditional markets and products. Emphasis will be on enhancing participation of Indian industry in global and regional value chains, the minister added. The FTP will provide “additional annual incentive of Rs 749 crore for the leather sector, Rs 921 crore for hand-made carpets of silk, handloom, coir, jute products, Rs 1,354 crore for agri products, Rs 759 crore for marine products, Rs 369 crore for telecom, electronic components, Rs 193 crore for medical equipment,” the ministry said in a tweet. It further said MEIS incentives for two sub-sectors of textiles — ready-made garments and made-ups — have already been increased to 4 per cent from 2 per cent, with an additional annual incentive of Rs 2,743 crore. The FTP, Prabhu said, also aims at facilitating increase in farmers’ income through a focussed policy for agricultural export. Referring to implementation of the GST, Prabhu said introduction of the new tax regime “would be the catalyst for spurring growth in the export sector. The lower duty on most of items and reduction of cascading effect of various duties would lower the cost and make exports competitive”. He added that green shoots in export growth are distinctly visible now with positive export growth in 13 of the past 14 months. The five-year FTP was announced on 1 April 2015, and set an ambitious target of India’s goods and services exports at USD 900 billion by 2020. It also has a goal of increasing India’s share of world exports to 3.5 per cent, from two per cent.





Trending

layoff

Labour ministry data: 3557 workers affected by lay-offs across India between January and June

ecommerce festival sale

E-tailers poised to clock $7 billion festive month sales in 2020: RedSeer

Changing landscape of healthcare start-ups amidst COVID-19

A changing landscape of healthcare start-ups amidst pandemic

Insurance For MSMEs Is A Key Ingredient Towards Nurturing The Atma Nirbhar Bharat

Insurance for MSMEs is a key ingredient towards nurturing the Atmanirbhar Bharat

How AI and deep learning are becoming artificial eye for visually impaired people

This Indian startup is giving an artificial vision to visually impaired people using AI and Deep Learning

25 - 20 million MSMEs lost jobs

US restrictions on textile imports from China may augur well for India: ICRA

real estate construction

Weak outlook for builders to affect cement and steel demand: Fitch Ratings

ease of doing business

Promotion of industry and internal trade identifying ease of doing business reforms with states

micro industrialization process

Ministry of MSME re-activates micro industrialization process in rural India

indian export piyush goyal

Piyush Goyal: double digit growth in exports show rapid economic recovery

auto sales

India’s 2020 auto sales to decline by 30%: Moody’s

bamboo plantation

Government launches 22 bamboo clusters in 9 States and new logo for NBM