FM Nirmala Sitharaman on 14 September 2019 made some more announcements, all these directing towards a revival path for the Indian economy. The export and the housing sector were key focus areas on Saturday’s meet.
Certain key changes were announced in the exemption schemes existing for the exporters. The existing scheme of Merchandise Export Incentive Scheme, availed by many exporters will soon be defunct. Honourable Finance Minister declared that the scheme popularly known as MEIS will continue up to 31 December 2019 before being completely stopped.
The exporters of any industry, primarily the textile who now enjoy immunity of over 2% under this scheme, will continue to do so until such time. A new scheme will thereafter take over the present duty-scrip scheme. It will be known as the Remission of Duties or Taxes on Export Product (RoDTEP) and begins to apply from 1 January 2020.
The RoDTEP will also replace another scheme known as the Rebate on State Levies (ROSL) scheme. The Ministry expects that Rs 50,000 crore will be the total revenue foregone due to the change. It has emphasised that the RoDTEP will appropriately cover up for all the existing incentive schemes put together.
Apart from this, the government will be increasing the scope of insurance cover for banks lending the working capital to exporters. It helps in reducing the overall cost of export credit, mostly needed by MSMEs.
The FM also stated that increasing the Priority Sector Lending (PSL) for export credit is being examined and is currently under the consideration of the RBI. It is ready to add around Rs 36,000 to Rs 68,000 crores as funding for export credit under the priority sector.
The Union FM alongside the DGFT who had also presided the meet promised a thorough action plan to reduce the time taken for export in all the airports/ports to be implemented by December 2019.
They aim to reach the global best by benchmarking the turnaround times of Shangai and Boston. Further, an annual mega shopping festival will be organised in four places in India throughout the month of March 2020.
It will be themed around gems and jewellery, yoga, handicrafts, tourism, textiles and leather and is seen to readily promote the Indian-made products thereby winning the global trust.
It is interesting to note that the government will also work hand-in-hand with the popular e-commerce portals and introduce a special dispensation facility to draw the handicraft artisans onto the e-commerce websites.
Among other things, a special Free Trade Agreement (FTA) Utilisation Mission will soon be set up to monitor the export houses utilising the concessional tariffs for exports.
The press meet was organised by the FM as a part of the ongoing series of press meets to boost the economic growth of the country that is currently seeing a slowdown.