Govt. increases export incentives to Rs. 5 lakh/consignment

Govt. india - Export Incentive

To boost exports and encourage small scale e-commerce platforms, the government has increased the export incentives from Rs. 25000 per consignment earlier, to Rs. 5 lakh per consignment now for sales taking place through online platforms. The increased incentive will provide major boost to exporters and the relaxed norms is set to benefit handloom products, books, leather products, fashion garments and toys.

The Government of India introduced the Merchandise Exports from India Scheme (MEIS) through the Foreign Trade Policy (FTP) in April 2015. It seeks to promote export of notified goods manufactured/ produced in India. MEIS is a major export promotion scheme of GOI implemented by the Ministry of Commerce and Industry.Rewards under MEIS are payable as a percentage (2, 3 or 5%) of realized FOB value of covered exports.

The low cap earlier at Rs 25000/ consignment often resulted into mismanagement of export data with exporters opting to categorize the product as a gift since they would have to file a shipping bill and go through customs. A cumbersome task for small scale exporters with low-value shipments. The increased incentives would attract more small and medium scale exporters and the governments expects the change to bring and encourage more number of exports which boosts local handlooms and products.

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