7 schemes for boosting exports Here are top export schemes of the Indian Government.
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India's exports contracted in recent months due to sluggish demand in western markets. India's exports declined for the eighth straight month by 10.3 per cent in July to $23.13 billion, pushing the trade deficit to $12.81 billion. In July 2014, the merchandise exports was at $25.79 billion. Last time exports registered a positive growth was in November 2014 when shipments expanded at the rate of 7.27 per cent. To push export growth, exporters can take help of the government schemes. Here are top export schemes of the Indian Government.
1. Market Development Assistance Scheme
Description: Entrepreneurs get funding for participating in trade fairs. It assists exporters for export promotion activities.
Nature of assistance: The scheme offers funding up to 90 per cent in respect of to and fro air fare for the participation by MSME entrepreneurs in overseas fairs/trade delegations. The scheme also provides funding for producing publicity material (up to 25 per cent of costs) sector specific studies (up to Rs 2 lakh) and for contesting anti-dumping cases (50 per cent up to Rs 1 lakh).
Who can apply: Exporters, entrepreneurs, etc.
From where to apply: FIEO, Export Promotion Council and Ministry of Commerce
2. Export Oriented Unit (EOU) Scheme
Description: EOU Scheme provides an internationally competitive duty-free environment coupled with better infrastructural facilities for export production.
Nature of assistance: The units are allowed to import or procure locally without the payment of duty all types of goods including capital goods, raw materials, components, packing materials, consumables, spares and various other specified categories of equipment.
Who can apply: Exporters, entrepreneurs, etc.
From where to apply: FIEO, Export Promotion Council and Ministry of Commerce
3. Market Access Initiative (MAI) Scheme
Description: MAI Scheme is an Export Promotion Scheme, envisaged to act as a catalyst to promote India's exports on a sustained basis.
Nature of assistance: The scheme is formulated on focus productfocus country approach to evolve specific market and specific product. These activities are eligible for financial assistance - marketing projects abroad, capacity building, support for statutory compliances, studies, project development, etc.
Who can apply: Exporters, entrepreneurs, etc.
From where to apply: FIEO, Export Promotion Council
4. Software Technology Park (STP) Scheme
Description: STP Scheme is a 100 per cent export-oriented scheme for undertaking software development for export using.
Nature of assistance: The approvals are given under single window clearance mechanism. All imports of hardware and software in STP units are completely duty free, and import of second-hand capital goods and re-export of capital goods are also permitted.
Who can apply: Exporters, entrepreneurs, etc.
From where to apply: FIEO, Export Promotion Council and Ministry of Commerce
5. Services Exports from India Scheme (SEIS)
Description: The SEIS has been introduced to increase exports of notified services.
Nature of assistance: The rewards under SEIS shall be admissible for exports made/services rendered on or after the date of notification of this policy. The duty credit scrips shall be granted as rewards under SEIS. The duty credit scrips and goods imported/domestically procured against them shall be freely transferable.
Who can apply: Exporters, entrepreneurs, etc.
From where to apply: FIEO, Export Promotion Council and Ministry of Commerce
6. The Merchandise Exports from India Scheme (MEIS)
Description: The MEIS has been introduced for the export of specific goods to specified markets.
Nature of assistance: Rewards for the export of notified goods to notified markets under MEIS shall be payable as percentage of realised FOB value.
Who can apply: Exporters, entrepreneurs, etc.
From where to apply: FIEO, Export Promotion Council and Ministry of Commerce
7. Export Promotional Capital Goods (EPCG) Scheme
Description: The objective of the EPCG Scheme is to facilitate import of capital goods for producing quality goods and services to enhance India's export competitiveness.
Nature of assistance: EPCG Scheme allows import of capital goods for preproduction, production and post-production at zero customs duty.
Who can apply: Importers, entrepreneurs, etc.
From where to apply: FIEO, Export Promotion Council and Ministry of Commerce
(This article first appeared in the Indian edition of Entrepreneur magazine (October, 2015 Issue).
