Objectives of Merchandise Exports from India Scheme (MEIS) Incentives
Merchandise Exports from India Scheme (MEIS) was announced in the (FTP) Foreign Trade Policy for the period 2015-2020. The MEIS scheme was brought forward as an incentive for exporting goods. This incentive is given by approach to exporters of duty credit scrips. The MEIS is acquainted by the Directorate General of Foreign Trade (DGFT) and executed by the Ministry of Industry and Commerce.
MEIS incentive
MEIS intends to provide rewards or incentives to exports of goods that are manufactured or produced in India. MEIS incentives are for goods exported from India widely, industries producing or manufacturing goods to make Indian exports competitive. The MEIS caters to all goods notified under the scheme.
The incentives are calculated as a percentage where a certain percentage of benefits are given to exporter i.e. 2%, 3% or 5% of the comprehended FOB value exports in free foreign as per shipping bills in free foreign exchange. The incentives are given through a MEIS duty credit scrip. The ‘free foreign exchange’ consists of foreign exchange gained through international credit cards permitted by the Reserve Bank of India (RBI).
The objective of the MEIS Scheme
The motive behind MEIS Scheme is to offset infrastructural inefficiencies and the allied costs of exporting products manufactured/produced in India giving special importance on those which are of India’s export interest and have the proficiency to produce employment and improve India’s effectiveness in the world market.
The Indian Government has brought in MEIS Scheme by substituting 5 similar incentives offered in the Foreign Trade Policy 2009-14. The schemes include:
- Agri. Infrastructure incentive scheme
- Focus Product Scheme (FPS)
- Market Linked Focus Product Scheme (MLFPS)
- Focus Market Scheme (FMS)
- Vishesh Krishi Gramin Upaj Yojna (VKGUY)
At present, the MEIS scheme not only aims to substitute these 5 incentive schemes but also aims to streamline the export incentives and expand the scopes by eradicating various restrictions.
For more details: Click here
