Government announces new measures to boost exports - (14 Sep 2019)
Union Finance Minister Nirmala Sitharaman announced various measures in order to give a boost and impetus to exports and to revive economic growth. India’s overall merchandise and services exports in June 2019 registered a marginal decline as compared to June 2018. Department of Commerce is pursuing an export promotion strategy involving conscious engagement with the EPCs and exporters to quickly address domestic and overseas constraints impacting exports. Remission of duties for export products (RoDTEP) is introduced to replace the existing merchandise exports from India scheme (MEIS). As per the statement, Revenue foregone for implementation of RoDTEP would be Rs 50,000 crore. The RoDTEP scheme will be implemented from January 1.
To strengthen India’s exports, the Government relaxed priority sector lending norms to provide additional export credit of up to Rs 68,000 crore. 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. Further, Export Credit Guarantee Corporation (ECGC) will expand the scope of Export Credit Insurance Scheme (ECIS) and 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
Technology will be further leveraged by timely completion of ongoing initiatives to further reduce "Time to export" through seamless process digitisation of all export clearances. Free trade agreements (FTA) Utilisation Mission will be set up to work exclusively with FIEO and export houses to utilise concessional tariffs in each FTA. Further, it would 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. An Online “Origin Management System” for exporters to enable them to obtain Certificates of Origin – CoO (under Rules of Origin) will be launched by DGFT in collaboration with Exports Inspection Council. This is expected to significantly improve ease of doing business for exporters.
Tags : EXPORTS PROMOTION STEPS