Exports play a very important role in growing a country’s GDP. From export business, countries receive foreign currency, which is reflected in the economy of the country. As a result, the Indian government offers some benefits or incentives to exporters to make countries’ profits and to appreciate export business. Learn import export online and know that incentives can get in your import export business.  Our country’s export-intensive policies and foreign trade policy are coordinated by the Directorate General of Foreign Trade (DGFT) within the Department of Commerce and Industry. These benefits or incentives are regulatory, monetary, or tax programs to motivate and encourage existing and new export businesses.   By providing these benefits, Indian products are exposed to a wider global market and can grow their export businesses. Different benefits are depending on scarcity, supply, and product. Import-export course in Ahmedabad will explain how you can take the benefits and grow your business.  

Types of Government Benefits- 

1 Export from India Scheme- 

There are two parts to the scheme, Merchandise Exports from India Scheme (MEIS) and Services Exports from India Scheme (SEIS). 

• Under the MEIS scheme, exporters of notified goods are rewarded by free foreign exchange rates of 2-7 percent on realized FoB (Free on Board) export values.   
• Under the SEIS scheme, exporters who earn a net foreign exchange gain of 3% to 7% receive duty credit rebates in the form of duty credit scrip. Exporters who want to claim SEIS must have an IEC and a minimum net foreign exchange of $15,000. 

2 Duty Exemption/Remission Schemes-  

It is divided into five categories: 

• Advance Authorisation (AA)- Import input for export products is allowed without paying duty if it is for export purposes. It includes fuel, oil, and catalysts. Imports are valid for 12 months, and exports must be completed within 18 months of import. 
• Advance Authorisation for Annual Requirement- An exporter can apply for advance authorization following this requirement on an annual basis. It is however only available to One to Five Star Export Houses. 
• Duty-Free Import Authorisation (DFIA)- In this scheme, the government aims to reimburse exporters for customs and excise duties paid on materials and inputs used to manufacture export products. 
• Duty Drawback- Under this scheme, the exporters receive a refund for customs and excise duties paid on their products. Within two months of the shipment date, refunds are credited to the exporter’s bank account. 
• Rebate of State and Central Levies and taxes (RoSCTL)- With this, exporters benefit from duty credit scrips on made-up articles and garments. The maximum rebate rate for apparel is 6.05%, while the maximum rebate rate for made-ups is 8.2%. 

3 Export Promotion Capital Goods Scheme- 

This is further divided into two parts: 

• Zero Duty EPGC Scheme- Capital goods are allowed to be imported at zero customs duty during the pre-production, production, and post-production phases. 
• EOU/EHTP/STP/BTP Scheme- Companies wishing to export their inventory may set up under the Export Oriented Unit (EOU), Electronic Hardware Technology Park (EHTP), Software Technology Park (STP), and Bio-Technology Park (BTP) schemes.

Importance of Government Benefits- 

• These benefits or incentives encourage more exports and the growth of the export business. 
• From these benefits, provision is granted to the exporters to cover their bad loans.  
• It also provides low-cost loan plans to exporters. 
• Through these benefits, the exporter can cope with high export prices. 
• It grants financial help to expand the export business. 
• Exporters can use the benefits to deal with high export prices. 
• You also get the benefit of the duty-free import of inputs for export production. 

 Conclusion-  

This states that benefits or incentives given to the exporters are necessary for the development of export business and our economy as well. Export plays an important part in economic growth. These benefits are necessary to encourage the existing exporters and to attract the new ones. These can also be treated as appreciation for exporters for bringing foreign currency to India.   Import-export business training in Hindi will explain the benefits in detail and Digital Exim can help you start or grow your business in just 60 days.   Join our free webinar to learn more about export.   https://chat.whatsapp.com/Bqz4SWH55nSGtKj3GnJAC8  Do give us a visit