Freeing Up Credit, Tax Breaks And A Mega Shopping Festival: FM Announces Measures To Boost Exports And Retail In India

Third in the series of conferences held by the Finance Minister (FM) Nirmala Sitharaman, the minister today (14 September) again announced a slew of measures to boost the economy amid the ongoing global downturn.

The minister announced a Remission of Duties or Taxes on Export Products (RoDTEP) to replace the existing the Merchandise Export from India Scheme (MEIS) beginning 1 January, 2020. The government will forego Rs 50,000 crore in revenue as per the scheme towards boosting exports from India.

To boost export credit, the government will be revising the Priority Sector Lending policy and hopes to open up Rs 36,000 crore to Rs 68,000 crore for export units. Also, banks lending to export units will get an extended cover from under the Export Credit Insurance Scheme (ECIS).

The extended coverage will cost the government Rs 1700 crore per year. The data on export financing will be under review by the RBI to provide necessary timely incentives.

Further, the government will carry out technology interventions to reduce the time-to-export and turn-around times at ports and airports bringing them at par with international standards.

To boost retail within India, the government plans Dubai-like annual mega shopping festivals in four places and in four sectors - Gems and Jewellery, textiles, leather and handicrafts, yoga and tourism.

Also, to increase Indian exports through the current and upcoming Free Trade Agreements (FTAs), an FTA Utilisation Mission headed by a senior officer in the Department of Commerce is to be setup.

Further to boost handicrafts, the artisans are to be directly onboarded to the GeM directly through co-operatives. This will help boost their exports.

The government is also looking at upgrading the manufacturing standards in India across industries towards which the government will provide affordable testing and certification infrastructure.