Addition of new products under MEIS to boost shipments, say exporters
Export bodies have welcomed the government’s move to expand the list of products for giving incentive under the Merchandise Exports from India Scheme (MEIS) and suggested more such measures to revive the country’s foreign trade.
Taking note of the continuous fall in India’s exports for the past ten months, the government on Friday introduced 110 new tariff lines under the MEIS, under which exporters get duty benefits on shipment of certain products to specific countries.
“Additional countries have been covered for selected leather products, iron, steel, and base metals, products. Higher support has been allowed for cashews, readymade garments, paper mache products and handmade shawls of wool,” Ministry of Commerce & Industry said in a statement on Friday.
Export bodies have also said that there were more scopes for the government to improve exports. Exporters have long been demanding the re-introduction of the interest subvention scheme, which had been discontinued since April 2014.
“The enhancement of support under the merchandise exports from India Scheme (MEIS) is timely. The increase in support for export of items such as iron, steel, base metals and industrial machinery would provide some relief to engineering exporters who are battling a severe demand slowdown in the key markets of the world,” EEPC Chairman Anupam Shah said.
India’s engineering exports, which accounts for over 23% of the country’s outbound shipment, fell by 25.43% in September compared to the figure of the same month last year. The sharp fall during August and September this year led to over 12% decline in the cumulative exports value of this sector.
The country’s overall merchandise exports during the first half of the current financial year declined to $30.7 billion from $35.13 billion during the same period last year.
Shah said that several key products including iron and steel and non-ferrous metals didn’t figure on the fresh list under MEIS. He sought inclusion of these products as well to gain more share in the international market.
Shah also called for an early implementation of interest subvention scheme as Indian exporters have to pay higher interest on credit as compared to their counterparts in many countries.
Calling it a Diwali gift for the exporting community, Federation of Indian Export Organisations (FIEO) President S C Ralhan said, “Inclusion of 110 new tariff lines and revising rates and country coverage for 2,228 tariff lines will indeed enhance price competitiveness to some extent and help in arresting the current downfall in exports. Now, total 5,012 tariff lines are eligible for MEIS benefit.”
Delhi Exporters Association President Tilak Raj Manaktala termed the decision as a good move but expressed his displeasure over the government’s reluctance in taking pro-active initiatives.
“The interest subvention scheme was withdrawn in April 2014 and has not been restored even after 16-17 months. We have made many representations before the government. Reward scheme, which was introduced in April 2015, hasn’t been updated on the website yet. All our claims are not being accepted and we aren’t getting back our hard-earned money,” Manaktala told The Dollar Business.
October 31, 2015 | 3:02pm IST.
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