Measures to Boost Exports
Export promotion : Steps taken so far
Export promotion measures taken in last few years:
- Interest Equalization Scheme (IES) on pre and post shipment rupee export credit introduced from 1.4.2015 providing interest equalisation at 3% to exporters on 416 lines and for all MSME exporters.
- The IES rate increased to 5% for MSME exporters with effect from 2.11.2018 and merchant exporters were covered under the scheme with effect from 2.1.2019.
- India’s rank in World Bank ‘Ease of doing business’ ranking improved from 142 in 2014 to 77 in 2018, with the sub-rank in ‘Trading across borders’ moving up from 122 to 80.
- “Trade Infrastructure for Export Scheme (TIES)” launched with effect from 1st April 2017 to address the export infrastructure gaps in the country.
- Comprehensive “Agriculture Export Policy” launched on 6th December, 2018 with an aim to double farmers’ income by 2022
- “Transport and Marketing Assistance” (TMA) scheme launched in 05th March 2019 for mitigating disadvantage of higher cost of transportation for export of specified agriculture products.
- Scheme for Rebate of State and Central Taxes and Levies (RoSCTL) covering export of garments and made-ups notified on 7.3.2019 providing refund of duties/taxes at higher rates.
New Measures to Boost Exports: Incentives and Taxation
1. Extend the scheme of Reimbursement of Taxes & Duties for Export promotion
- Scheme for Remission of Duties or Taxes on Export Product (RoDTEP) will replace MEIS.
- Existing dispensation in textiles of MEIS + old ROSL will continue up to 31.12.2019
- Textiles and all other sectors which currently enjoy incentives upto 2% over MEIS will transit into RODTEP from 1.1.2020
- In effect, RODTEP will more than adequately incentivize exporters than existing schemes put together.
- Revenue foregone projected at up to Rs. 50,000 crores
Fully automated electronic refund route for Input Tax Credits (ITC) in GST:
- Fully electronic refund module (FORM GSAT RFD-01) for quick and automated refund of ITC nearing completion and will be implemented by end September 2019.
- This is expected to monitor and speed up ITC refunds.
Expanding scope of Export Credit Insurance Scheme (ECIS) by ECGC:
- Export Credit Guarantee Corporation (ECGC) will expand the scope of ECIS
- Will offer higher insurance cover to banks lending working capital for exports.
- Premium incidence for MSMEs will be moderated suitably.
- It is expected that the initiative will cost about Rs 1700 cr per annum.
- This will enable reduction in overall cost of export credit including interest rates, especially to MSMEs
Revised Priority Sector Lending (PSL) norms for Export Credit:
- Priority Sector Lending (PSL) norms for Export credit have been examined and enabling guidelines are under consideration of RBI
- This will release an additional Rs. 36,000 crs. to Rs 68,000 crores as export credit under priority sector.
Effective monitoring of Export Financing by Department of Commerce
- Data on Export Finance is regularly published by RBI
- Export Finance will be actively monitored by an Inter Ministerial Working Group in Department of Commerce, tracked through a dashboard, reviewed with institutions and active intervention carried out
Leverage technology to reduce “Time to Export or Turn-around time”
- Technology will be further leveraged by timely completion of ongoing initiatives to further reduce “Time to export” – though seamless process digitization of all export clearances (port/airport/customs, etc) and elimination of offline/manual services
- An action plan to reduce Time to export/turn-around time in airports and ports benchmarked to international standards will be implemented by Dec 2019.
- Actual turnaround times will be published in real time for each port and airport to push them to improve performance
- An Inter-Ministerial Group will be made accountable for this.
Annual mega shopping festivals.
• Annual mega shopping festivals in India will be organized in 4 places across 2020 March in 4 themes (G&J, Handicrafts/Yoga/Tourism, Textiles and Leather)
Special FTA Utilisation Mission
- FTA Utilisation Mission, headed by a Senior officer in Department of Commerce, will be set up
- To work exclusively with FIEO and export houses to utilise concessional tariffs in each FTA,
- Enhance awareness of preferential duty benefits among MSMEs, disseminate and facilitate compliance requirements (Rules of Origin/ Certificate of Origin, etc.) under FTAs for importers and exporters,
- Set goals for FTA utilization and put in place an effective FTA monitoring system.
Online “Origin Management System”
- An Online “Origin Management System” for exporters to enable them to obtain Certificates of Origin – CoO (under Rules of Origin) will be launched in the next few weeks by DGFT in collaboration with Exports Inspection Council.
- This is expected to significantly improve ease of doing business for exporters.
Time bound adoption of mandatory Technical Standards
- Time bound adoption by Industry of all necessary mandatory technical standards and their effective enforcement to elevate the quality and performance ecosystem, enhance competitiveness and address the issue of sub-standard imports.
- A Working Group on Standards will be set up in D/o Commerce to work with industry to lay down a roadmap for adoption of Standards, time lines and enforcement.
- This is expected to be a big boost in enabling Indian products overcome Non-tariff barriers in exports.
Affordable testing and certification infrastructure
- Affordable testing and certification infrastructure will be adequately expanded and developed in PPP mode to enable exporters to get all internationally accepted tests and certification done within India.
- This will reduce costs of adoption of standards and certification for Indian exporters to meet national standards of FTA partners
Enable handicrafts industry to effectively harness e-commerce for exports
- Special dispensation for facilitating and on-boarding handicrafts artisans and handicraft cooperatives directly on e-commerce portals and enable seamless exports.
- Mass enrolment of artisans across India with help of M/o Textile and organisations like TRIFED, CIE, etc.
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