What are some of the key government schemes available to support Indian exporters, and how can exporters take advantage of these schemes to drive their growth?
Introduction:
The Indian government has implemented several schemes to support the growth of the country’s export industry. These schemes aim to incentivize exporters and provide them with the necessary support to expand their businesses. India’s export industry is critical to the country’s economic growth, and the government recognizes the importance of supporting this industry. In this blog post, we will explore some of the key government schemes available to support Indian exporters and how they can take advantage of these schemes to drive their growth.
1. Merchandise Exports from India Scheme (MEIS)
The Merchandise Exports from India Scheme (MEIS) is a key government scheme that provides exporters with incentives to promote exports of notified goods. Under this scheme, exporters are given duty credit scrips that can be used to offset various duties, including basic customs duty, central excise duty, and service tax. The duty credit scrips can be used to pay for the import of capital goods, raw materials, and other inputs required for the production of goods.
How to take advantage of the MEIS: To take advantage of the MEIS, exporters must register with the Directorate General of Foreign Trade (DGFT) and apply for the duty credit scrips. The application must be supported by documents such as bills of entry, shipping bills, and other relevant documents. Once the application is approved, the exporter will receive the duty credit scrips, which can be used to offset various duties.
2. Export Promotion Capital Goods (EPCG) Scheme
The Export Promotion Capital Goods (EPCG) Scheme is another key government scheme that aims to promote exports by enabling Indian manufacturers to import capital goods at a concessional rate of duty. The scheme allows Indian manufacturers to import capital goods required for production at a lower rate of duty. The imported goods can be used for the manufacture of goods for export purposes.
How to take advantage of the EPCG scheme: To take advantage of the EPCG scheme, exporters must apply to the DGFT for an authorization certificate. The certificate will allow the exporter to import capital goods at a concessional rate of duty. The capital goods must be used for the production of goods that will be exported. The exporter must fulfill specific export obligations, which are calculated as a percentage of the total value of capital goods imported under the scheme.
3. Market Access Initiative (MAI) Scheme
The Market Access Initiative (MAI) Scheme aims to increase India’s exports by promoting Indian products and services in foreign markets. The scheme provides financial assistance to exporters to undertake market studies, participate in trade fairs and exhibitions, and undertake other market development activities.
How to take advantage of the MAI scheme: To take advantage of the MAI scheme, exporters must apply to the Export Promotion Councils (EPCs) or Commodity Boards. The EPCs and Commodity Boards will submit proposals to the Ministry of Commerce and Industry on behalf of the exporters. The proposals must include details of the proposed market development activities and the estimated cost of the activities. Once the proposal is approved, the EPCs and Commodity Boards will receive financial assistance to undertake the proposed market development activities.
4. Trade Infrastructure for Export Scheme (TIES)
The Trade Infrastructure for Export Scheme (TIES) aims to enhance export competitiveness by developing and upgrading infrastructure related to exports. The scheme provides financial assistance to state governments and other stakeholders for the development of infrastructure such as ports, airports, rail connectivity, and cold chains.
How to take advantage of the TIES scheme: To take advantage of the TIES scheme, exporters must work with the state governments and other stakeholders to identify infrastructure projects that can support exports. The state government must submit a proposal to the Ministry of Commerce and Industry on behalf of the exporters. The proposal must include details of the infrastructure project and the estimated cost of the project. Once the proposal is approved, the state government will receive financial assistance to develop or upgrade the infrastructure.
5. Services Exports from India Scheme (SEIS)
The Services Exports from India Scheme (SEIS) is a government scheme that provides incentives to service exporters. Under this scheme, service exporters are given duty credit scrips that can be used to offset various duties, including basic customs duty, central excise duty, and service tax. The duty credit scrips can be used to pay for the import of capital goods, raw materials, and other inputs required for the provision of services.
How to take advantage of the SEIS: To take advantage of the SEIS, service exporters must register with the DGFT and apply for the duty credit scrips. The application must be supported by documents such as invoices, bank realization certificates, and other relevant documents. Once the application is approved, the service exporter will receive the duty credit scrips, which can be used to offset various duties.
There are several government associations that provide support to Indian exporters. Here are some of the key government associations that exporters can approach for assistance:
- Directorate General of Foreign Trade (DGFT): The DGFT is the main agency responsible for implementing the government’s foreign trade policies. The DGFT provides exporters with information on export opportunities, export incentives, and export procedures. The agency also issues export licenses and monitors export performance.
- Federation of Indian Export Organisations (FIEO): The FIEO is a non-profit organization that represents the interests of Indian exporters. The organization provides exporters with market intelligence, trade promotion services, and advocacy support. The FIEO also organizes trade delegations and exhibitions to promote Indian exports.
- Export Inspection Council (EIC): The EIC is a statutory body that provides quality control and inspection services for exports. The agency inspects export consignments to ensure compliance with quality and safety standards. The EIC also provides certification services for exports and helps exporters to comply with import regulations of other countries.
- Indian Trade Promotion Organization (ITPO): The ITPO is a government agency that promotes Indian exports and organizes trade fairs and exhibitions to showcase Indian products. The agency also provides market intelligence and trade information to exporters.
- Engineering Export Promotion Council (EEPC): The EEPC is a non-profit organization that represents the interests of Indian engineering exporters. The council provides exporters with information on export markets, trade regulations, and export incentives. The EEPC also organizes trade delegations and exhibitions to promote Indian engineering exports.
- Pharmaceuticals Export Promotion Council (Pharmexcil): The Pharmexcil is a non-profit organization that represents the interests of Indian pharmaceutical exporters. The council provides exporters with market intelligence, regulatory information, and export incentives. The Pharmexcil also organizes trade delegations and exhibitions to promote Indian pharmaceutical exports.
These are just some of the key government associations that provide support to Indian exporters. Exporters can approach these agencies for assistance and guidance on export-related matters.
Conclusion:
In conclusion, the Indian government has implemented several schemes to support the growth of the country’s export industry. These schemes provide incentives to exporters and provide them with the necessary support to expand their businesses. The key government schemes available to support Indian exporters include the Merchandise Exports from India Scheme (MEIS), Export Promotion Capital Goods (EPCG) Scheme, Market Access Initiative (MAI) Scheme, Trade Infrastructure for Export Scheme (TIES), and Services Exports from India Scheme (SEIS).
To take advantage of these schemes, exporters must work with the relevant government agencies and stakeholders to understand the requirements and procedures. Exporters must also keep themselves informed of any changes or updates to the schemes. By leveraging these schemes, Indian exporters can drive their growth and contribute to the country’s economic growth.