The current times have made us look for all the sources of income, support, and schemes to do the exports.
There are a few government schemes which can probably come to your rescue if you are an exporter.The MDA (Market development assistance) scheme used to provide a facility for exporters to travel 5 countries in a year and now it has merged with MAI (Market Access initiative) and providing subsidy for travel and also provides an attractive subsidy for the stall prices that would be set up in whichever country you visit. Around 1.5 lakh rupees are subsidized by the government regarding the stalls.
With MEIS (merchandise exports from India scheme), the exporters enjoy the benefit to export their specialized products as the scheme focuses on certain products and countries.
Well, according to the norms of WTO, though India lost the benefit of subsidy for exports, RoDTEP is now in compliance with WTO to continually support the exporters.
This means when any raw material is imported to manufacture an exportable product, the import duties are excluded and the exporter can enjoy the benefits of relieving import duties to continue his/her business as they will be provided with a special license.
One important thing to keep in mind with this process is, the support of relieving the import duties will only be implied in case exports take place. With this, it is clear that the RoDTEP scheme makes exports mandatory.
The other benefit under RoDTEP is machinery from other countries can be imported to continue the export business.
Under EPCG (Export promotion capital goods) during the pandemic, there is an interest lay down by the government with 5% on the name of the Interest subvention scheme. Where 12% has to be paid to the bank by the exporter and 5 % is borne by the government.
Cabinet also approved scheme for “Remission of Duties and Taxes on Exported Products (RoDTEP)” to boost exports Scheme for enhancing Exports to International Markets. This is to make Indian exports cost-competitive and create a level playing field for exporters in International market.
RoDTEP scheme is WTO compliant, will reimburse taxes/duties/levies at the central, state and local level, which are currently not being refunded. To give a boost to employment generation in various sectors items will be shifted in a phased manner from existing scheme MEIS to RoDTEP with proper monitoring & audit mechanism.
These are a few important government schemes under which the exporters can be benefitted. Alongside this, the government is also providing support to all types of industries in every means. The body has a prior list of industries that can be supported during the economic lockdown as well.