Union Minister of Finance & Corporate Affairs Smt. Nirmala Sitharaman held a press conference wherein various measures were announced to Boost Economic Growth, wherein it has also announced new measures to boost exports.
Here the measures are taken in the export sector:
- It includes replacement of Merchandise Exports from India Scheme (MEIS) with Scheme for Remission of Duties or Taxes on Export Product (RoDTEP).
- Existing dispensation in textiles of MEIS and old RoSL (Rebate on State Levies) will continue up to December 31 this year.
- The textiles and all other sectors, which currently enjoy incentives up to 2 percent over MEIS will transit into RoDTEP from January 1, 2020.
- In effect, RoDTEP will more than adequately incentivize exporters than existing schemes put together.
- Revenue foregone projected at up to Rs. 50,000 crores
Fully automated electronic refund route for Input Tax Credits (ITC) in GST
- Fully electronic refund module (FORM GSAT RFD-01) for quick and automated refund of ITC nearing completion and will be implemented by end of September 2019.
- This is expected to monitor and speed up ITC refunds.
Expanding the scope of Export Credit Insurance Scheme (ECIS) by ECGC
- The scope of ECIS will be extended Export Credit Guarantee Corporation (ECGC)l
- It will offer higher insurance cover to banks lending working capital for exports
- Premium incidence for MSMEs will be moderated suitably.
- The cost about to incur on this initiative Rs 1700 cr per annum.
- This will enable a reduction in the overall cost of export credit including interest rates, especially to MSMEs