In the backdrop of the continued challenging global environment being faced by Indian exporters, department of commerce has extended support to certain new products under the Merchandise Exports from India Scheme (MEIS). These include industrial products that fall under categories like fabrics, garments, chemicals, silk items, made ups and wool products.
A total of 2,901 additional products falling under different product categories have been added to MEIS of the Foreign Trade Policy. As a result, the total number of items covered under the scheme has been increased from 5,012 to 7,103, the commerce and industry ministry said in a statement.
The new items added to the list include certain marine products, sea food items, traditional medicines, onion dried, processed cereal products and other value added items of plastics, leather articles, suitcases, etc. The list also has industrial products under different categories, including engineering goods, fabrics, garments, chemicals, ceramics, glass products, leather goods, newspapers, periodicals, silk items, made ups, wool products, tubes, pipes, etc.
In addition, the government has also enhanced the rate of incentives under the MEIS, for 575 product items falling under 11 products categories. These include products of iron and steel, handicrafts, moulded and extruded goods, rubber, ceramic, glass, auto tyres and tubes, industrial machinery engineering items, IC Engines, machine tools/parts, items of wood, paper, stationary, footwear, auto seats, steel furniture, prefabs, items under the category of butter, ghee and cheese, dried egg albumin and rubber products.
“The total support extended by Government of India under the scheme has been enhanced from the present Rs 22,000 crore to Rs 23,500 crore per annum,” the statement said.
The new benefits have been implemented through the directorate general of foreign trade, effective September 22, 2016.
Except for the month of June, India’s exports have been in the negative zone in 2016 so far. The latest announcement may help to some extent to reverse this trend.
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