Export Promotion Schemes
Exports play pivotal role in the development of any economy, is an important determinant while arriving at the growth and GDP figures of the developing countries. It acts as a driving force in stimulating the nation building process and unfolding new opportunities by enhancing existing manufacturing facilities, establishing new capabilities, generating more employment opportunities, surge in forex reserves, decrease in trade deficit and obviously revamping the overall standing of the country in the globe.
Factors which are predominant in increasing exports & should be taken into consideration are:
- Manifold increase in manufacturing facilities without compromising qualitative competitiveness
- Stretching accessibility of transportation & logistics, making it a facilitator instead of an inhibitor
- Uniform government support to the Exporters through various schemes, incentives etc.
- Increase in visibility of Indian products in international markets by expanding the same.
- Setting sector and region specific trade targets, the need to focus on value addition, quality standards of products, supply chain diversification, export infrastructure development
- Ensuring reliability in supplies and improving connectivity, focus on new markets and region specific products, while at the same time, maintaining our competitive edge in the regions and products where we are doing well currently.
It is very surprising to acknowledge a fact that even after 3 decades of industrial revolution, still half of our exports are confined to only 4 major destinations and most of the exports are limited to only Engineering Goods, Gems & Jewelerry, Chemical Products and Pharmaceuticals so there is a need of hour to formulate and execute a detailed holistic action plan in order to become exporter giant by creating new markets, new destinations for new products.
With the vision of making every state of India an export hub, Government of India from time to time envisaged new schemes, policies, incentives and benefits, encouraging states to focus on one product in each district, improving the business environment through ease of doing business, attracting new foreign investments.
Government of India has taken various measures and interventions for promoting exports. Key schemes/interventions are highlighted below:
(Source-Press release by Ministry of Commerce and Industry dated 4th Aug, 2021)
- The Foreign Trade Policy (FTP) has been extended upto 09.2021 to provide a stable regime during the Covid-19 pandemic.
- Schemes such as the Advance Authorization Scheme(AA) and the Export Promotion Capital Goods (EPCG) Scheme are being implemented to enable duty free import of raw materials and capital goods for export production.
- The Interest Equalization Scheme, which provides pre and post shipment Rupee export credit has been extended upto 30.09.2021.
- Remission of Duties and Taxes on Exported Products(RoDTEP) scheme has been operationalized for exports with effect from 01.01.2021.
- It has been decided to extend the Rebate of State and Central Levies and Taxes (RoSCTL) Scheme for apparel and made-up exports till March 2024.
- Transport and Marketing Assistance (TMA) scheme for specified agriculture products provides assistance for the international component of freight and marketing of agricultural produce and to promote brand recognition for Indian agricultural products in the specified overseas markets.
- A common digital platform for Certificate of Origin (CoO) has been launched to increase Free Trade Agreement (FTA) utilization by exporters.
- In order to leverage the full export potential of our vast country, Districts are being promoted as Exports Hubs by identifying products and services with export potential in each district, addressing bottlenecks for exporting these products/services and supporting such local exporters/manufactures through institutional and strategic interventions. District specific export action plans for 478 districts have been prepared.
- Exports of services is being supported through negotiating meaningful market access through multilateral, regional and bilateral trade agreements, through participation in and organization of international fairs/exhibitions like the Global Exhibition on Services. An ‘Action Plan for Champion Sectors in Services’ is being developed to give focused attention to identified Champion Services Sectors through identified nodal Ministries/Departments
- Assistance is being extended to exporters under the Market Access Initiative (MAI) scheme for various activities such as export market research & product development, product registration, organizing / participating in fairs, exhibitions and Buyer Seller Meets (BSMs) abroad, Reverse Buyer Seller Meets etc.
- In order to have a coordinated and focused attention on development of export infrastructure, a working group on infrastructure up-gradation has been constituted under National Committee on Trade Facilitation (NCTF) and a National Trade Facilitation Action Plan (NTFAP) has been formulated. This includes measures for improving road and rail connectivity to ports and smart gates at sea ports.