Introduction
Export promotion refers to the policies and initiatives implemented by the government to encourage domestic companies to sell their goods and services abroad. The Government of India has taken several recent measures to enhance the country’s exports, increase foreign exchange earnings, and boost economic growth. These steps are particularly significant in the context of the government’s aim to achieve a self-reliant India (Atmanirbhar Bharat).
Recent Export Promotion Measures of the Government of India
1. Remission of Duties and Taxes on Export Products (RoDTEP)
This scheme was introduced to replace the MEIS (Merchandise Exports from India Scheme). It aims to reimburse exporters for taxes and duties not refunded under any other scheme, such as electricity duty, VAT on fuel, and local levies.
2. Production Linked Incentive (PLI) Scheme
The PLI scheme has been launched for various sectors like electronics, pharmaceuticals, textiles, and automobiles. It provides financial incentives to companies based on their incremental sales from products manufactured in India. The scheme is expected to increase exports by making Indian products more competitive globally.
3. One District One Product (ODOP) Initiative
This initiative aims to promote export of products unique to each district in India by identifying and supporting traditional industries. It helps in branding, capacity building, and market access support.
4. Trade Infrastructure for Export Scheme (TIES)
TIES aims to develop dedicated export infrastructure like testing labs, cold chains, customs clearance centers, and more. This helps in reducing transaction costs and improving logistics efficiency.
5. Indian Trade Portal
This online portal provides real-time information on tariffs, regulations, trade agreements, and export-import procedures. It facilitates exporters with easy access to international market requirements.
6. District Export Hubs
The government has identified potential export districts and is integrating them into the national export strategy. Support includes training programs, financial assistance, and connecting MSMEs with international buyers.
7. Free Trade Agreements (FTAs)
India is actively pursuing new FTAs and renegotiating existing ones to provide better market access for Indian goods. Recent FTAs with countries like UAE and Australia are expected to significantly boost exports.
8. Interest Equalization Scheme
This scheme provides interest subvention to exporters, particularly MSMEs, to make credit affordable. It reduces the cost of working capital and encourages export-oriented production.
9. Export Credit Guarantee Corporation (ECGC) Support
ECGC offers credit risk insurance to Indian exporters, thereby reducing the risk of non-payment and encouraging exports to risky or new markets.
10. Simplification of Customs Procedures
The government has introduced digital customs clearance, single-window interface, and risk-based inspection to reduce time and costs at ports.
Conclusion
The Indian government’s recent export promotion measures aim to build a robust export ecosystem by offering financial incentives, infrastructure support, and easier market access. These initiatives are vital for increasing the competitiveness of Indian products in global markets and achieving the goal of a $5 trillion economy. Continued focus on policy implementation and industry feedback will ensure sustainable export growth in the coming years.