Incentives given to Exports Sector is less than 1% of Total Exports, FIEO Reports

Mr S C Ralhan, President, Federation of Indian Export Organisations (FIEO), while commenting on the export incentives being given to the exporters has said that the reduction of rates in Merchandise Export from India Scheme (MEIS) and Service Exports from India Scheme (SEIS) have hit the exporters badly. While we appreciate the move to take exporters away from subsidy but the timing of the move probably is not correct. FIEO Chief shared some important data on export incentives being given to the sector during the last 3 financial years in which India’s exports have been hovering at around 300-310 billion dollars.

SNo.	Exports Promotional Schemes	2012-13 (Rs Crore)	2013-14 (Rs Crore)	2014-15 (Rs Crore) (Estimated)
1	Vishesh Krishi and Gram Udyog Yojana	2382	2442	3311
2	Focus Market/Focus Product/ Market linked Focus Product Scheme	6178	10182	12798
3	Interest Subvention	1475	1435	1625
4	Market Access Initiative	180	200	200
5 (i)	Market Development Assistance (DOC)	50	50	50
(ii)	Market Development Assistance (MSME)	10.5	9.15	11.81
6	TOTAL	10,275.5	14,318.15	17,995.81
7	India’s Export	16,34,319	19,05,011	18,97,026
8	Incentives as a % of Exports	0.63%	0.75%	0.95%

Exports Incentives

The incentives being given to exports sector as may be seen from the data given is less than 1 percent of the total exports, which is a miniscule amount added FIEO President. And therefore FIEO is of the view that there is an urgent need to review the benefits announced in the new Foreign Trade Policy to sustain the exports growth in such a situation when global economies are reeling under intense pressure except for few. FIEO Chief further reiterated it is important that the percentage of benefits being given should be increased and if not possible atleast the same may be restored at the same level as earlier.