New Delhi, Nov 24 (PTI) The government has doubled therates for incentives under an export promotion scheme to 4 percent for readymade garments and made-ups to boost shipments ofthe sector, the commerce ministry today said.
The estimated annual incentives will be Rs 1,143.15 crorefor 2017-18 and Rs 685.89 crore for 2018-19, it added.
It said the measure will incentivise the exports oflabour intensive sectors of readymade garments and made-upsand contribute to employment generation.
The rate of incentives are increased from 2 per cent to 4per cent under Merchandise Exports from India Scheme (MEIS).
Under this scheme, the commerce ministry gives dutybenefits to several products. It provides duty benefits at 2per cent, 3 per cent and 5 per cent depending upon the productand country.
The Directorate General of Foreign Trade (DGFT) saidrates for incentives under this scheme for two subsectors oftextiles industry -- readymade garments and made-ups -- havebeen enhanced "from two per cent to four per cent of value ofexports with effect from November 1 till June 30 next year".
Commenting on this, Chairman Export Promotion Council forEOUs and SEZs (EPCES) Rahul Gupta said that the commerceministry has assured exporters to resolve refund relatedproblems.
"Increase in the incentives rates would help boostexports of these two segments," he added.
Ready made garments' exports dipped by about 40 per centto USD 829.44 million in October. PTI RR CSSBT.
This is unedited, unformatted feed from the Press Trust of India wire.