The incentives under Services Exports from India Scheme (SEIS) have been increases by 2 per cent leading to additional annual incentive of Rs 1,140 crore.
In its mid-term review of the foreign trade policy (FTP), the government announced to provide additional incentives worth Rs 8,450 crore a year to catalyse both merchandise and services exports.
In addition, specific focus will be given to micro, small and medium enterprises (MSMEs) and labour-intensive sectors to boost job creation.
Export incentives under Merchandise Exports from India (MEIS) have been increased by 2 per cent across the board for labour intensive MSME sectors leading to additional annual incentive of Rs. 4,567 crore.
This is in addition to the already announced increase in MEIS incentives from 2 percent to 4 per cent for Ready-made Garments and Made-Ups in the labour intensive textiles sector with an additional annual incentive of Rs 2,743 crore.
Further, incentives under Services Exports from India Scheme (SEIS) have also been increases by 2 per cent leading to additional annual incentive of Rs 1,140 crore.
The incentives under the two schemes represent a 34 per cent increase as against a year earlier.
Further, the validity period of Duty Credit Scrips has been increased from 18 to 24 months and GST rates on transfer/sale of scrips has been reduced to zero.