Assistance and Incentives for Indian Exporters¶
India provides a comprehensive suite of assistance and incentives to support exporters. These measures are designed to boost India's export capabilities, make Indian goods more competitive on the global stage, and alleviate various financial, regulatory, and operational challenges faced by exporters. Here’s an overview of the key assistance programs and incentives available to Indian exporters:
Key Assistance Programs and Incentives¶
1. Duty Drawback Scheme (DBK)¶
- Purpose: To refund customs and central excise duties paid on materials used in the manufacture of exported goods.
- Benefit: Reduces the cost burden on exporters, making their products price-competitive in international markets.
2. Duty-Free Import Authorization (DFIA)¶
- Overview: Allows duty-free import of inputs used in the manufacture of export products, under specific conditions.
- Characteristic: This is a post-export incentive, where the benefits can be availed after the export obligation has been fulfilled.
3. Export Promotion Capital Goods (EPCG) Scheme¶
- Purpose: Enables import of capital goods for producing quality goods and services and enhance India’s manufacturing competitiveness.
- Benefit: Capital goods can be imported at zero duty, subject to an export obligation.
4. Market Access Initiative (MAI) Scheme¶
- Objective: To support and assist medium and small-scale industries to enter international markets.
- Activities Supported: Includes funding for participating in international trade fairs, study tours, and publicity campaigns.
5. Merchandise Exports from India Scheme (MEIS)¶
- Purpose: Provides incentives to exporters to offset infrastructural inefficiencies and associated costs.
- Benefit: The incentive is given in the form of duty credit scrips which can be used to pay customs duties on imported goods.
6. Services Exports from India Scheme (SEIS)¶
- Objective: To encourage export of notified services from India.
- Incentive Form: Rewards are given in the form of duty credit scrips.
7. Export Credit Guarantee Corporation (ECGC)¶
- Role: Provides credit risk insurance and related services for exports.
- Benefit: Enhances exporters’ capacity to extend credit to overseas buyers by mitigating risks of non-payment.
Support from Government Bodies¶
Several government bodies are instrumental in implementing these incentives and providing ongoing support:
- Directorate General of Foreign Trade (DGFT): Plays a crucial role in the development and regulation of foreign trade by facilitating exports.
- Ministry of Commerce and Industry: Formulates and implements international trade policies.
- Export Credit Guarantee Corporation of India (ECGC): Offers insurance protection against payment risks.
- Export Promotion Councils (EPCs): Focus on promoting specific sectors by providing necessary guidance, information, and tools to penetrate new markets.
Conclusion¶
The array of incentives and assistance programs designed for Indian exporters aims to mitigate risks, reduce operational costs, and make Indian exports competitive internationally. Understanding and utilizing these incentives can significantly benefit exporters, driving growth and expanding India’s footprint in global trade.
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