Meis is expected to support the sector with special emphasis
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facing criticism from exporters and domestic industry over the decision to axe the Merchandise Export from India Scheme (MEIS) scheme, the commerce department has now told the revenue department that some broad benefits should be continued under MEIS’s proposed successor.
instead of extending the MEIS, which cost Rs 43,500 crore in 2019-20, the finance ministry and the NITI Aayog have called for putting financial resources into new Production-Linked Incentive (PLI) schemes in select sectors with core competency and potential for global exports. Unlike MEIS, RoDTEP aims to support a few identified sectors where the government deems India to have competitive strength and assist companies to enhance their size and scale.
THE CII on Tuesday batted for increasing MEIS rates for all products by 2 per cent, for a period of six months, up to December 31. “India’s working capital cycle is elongated owing to various factors, necessitating higher credit requirements, which add to costs of exports,” it said.
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