Union Minister of Finance & Corporate Affairs Smt. Nirmala Sitharaman held a press conference wherein various measures were announced to Boost Economic Growth. Following are the list of important measures taken to Boost Export:
- Extend the scheme of Reimbursement of Taxes & Duties for Export promotion
- Scheme for Remission of Duties or Taxes on Export Product (RoDTEP) will replace MEIS.
- Existing dispensation in textiles of MEIS + old ROSL will continue up to 31.12.2019
- Textiles and all other sectors which currently enjoy incentives upto 2% over MEIS will transit into RoDTEP from 1.1.2020
- 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 scope of Export Credit Insurance Scheme (ECIS) by ECGC
- Export Credit Guarantee Corporation (ECGC) will expand the scope of ECIS
- Will offer higher insurance cover to banks lending working capital for exports.
- Premium incidence for MSMEs will be moderated suitably.
- It is expected that the initiative will cost about Rs 1700 cr per annum.
- This will enable reduction in overall cost of export credit including interest rates, especially to MSMEs
- Revised Priority Sector Lending norms for Export Credit
- Priority Sector Lending norms for Export credit have been examined and enabling guidelines are under consideration of RBI
- This will release an additional Rs. 36,000 crs. to Rs 68,000 crores as export credit under priority sector.
- Effective monitoring of Export Financing by Department of Commerce
- Data on Export Finance is regularly published by RBI
- Export Finance will be actively monitored by an Inter-Ministerial Working Group in Department of Commerce, tracked through a dashboard, reviewed with institutions and active intervention carried out.
- Leverage technology to reduce “Time to Export or Turn-around time”
- Technology will be further leveraged by timely completion of ongoing initiatives to further reduce “Time to export” – though seamless process digitization of all export clearances (port/airport/customs, etc) and elimination of offline/manual services
- An action plan to reduce Time to export/turn-around time in airports and ports benchmarked to international standards will be implemented by Dec 2019.
- Actual turnaround times will be published in real time for each port and airport to push them to improve performance
- An Inter-Ministerial Group will be made accountable for this.
- Online “Origin Management System”
- An Online “Origin Management System” for exporters to enable them to obtain Certificates of Origin – CoO (under Rules of Origin) will be launched in the next few weeks by DGFT in collaboration with Exports Inspection Council.
- This is expected to significantly improve ease of doing business for exporters.
- Time bound adoption of mandatory Technical Standards
- Time bound adoption by Industry of all necessary mandatory technical standards and their effective enforcement to elevate the quality and performance ecosystem, enhance competitiveness and address the issue of sub-standard imports.
- A Working Group on Standards will be set up in D/o Commerce to work with industry to lay down a roadmap for adoption of Standards, timelines and enforcement.
- This is expected to be a big boost in enabling Indian products overcome Non-tariff barriers in exports.
Read the full list of measures announced for various sectors at: https://pib.gov.in/PressReleseDetail.aspx?PRID=1585074