Exports to US, Europe, China eligible to fetch govt incentives

From 1st Jan 2013, exports to conventional markets such as US and Europe will be eligible to fetch government incentives.

Concerned over the shrinkage of Indian exports during the first eight months of the current fiscal, the government has notified a scheme whereby an exporter is entitled to get an incentive even if exports are meant for US, Europe or China, three key destinations of Indian exports.

Earlier, incentives were meant for exports to new markets like Central Asia and Latin America.

Under this performance-oriented scheme titled Incremental Exports Incentivisation Scheme, exporters will get duty credit scrip at 2% on incremental growth of exports to be achieved during January-March quarter of 2012-13 over the same period last fiscal.

But exporters will be eligible only if they export more in value terms during the current financial year in comparison to that of the last fiscal.

While talking to ET, Director General of Foreign Trade Dr Anup K Pujari said the scheme should drive the exporters to work hard and achieve more.

"We want exporters to work harder during this quarter and show results. The scheme will cover exports to USA, Europe and Asian countries. But exports to Singapore, UAE and Hong Kong will not be eligible as those are mere trans-shipment hubs," Pujari said.

He further added that this scheme would be over and above other existing schemes. "We want to reward the performing exporters rather than distributing sops among all," he added.

The scheme, however, will not include exports from SEZs, service exports, and exports of select goods like diamond, gold, silver, platinum, cereals, milk, sugar etc.

The total Indian exports between April and October in 2012-13 was $169 billion, down 6% over the corresponding period of the last fiscal.

Source: The Economic Times