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Merchant Export from India Scheme (MEIS)
Why is it in news?
- The Federation of Indian Export Organisations (FIEO) has expressed concerns over government’s decision to cap export incentives under MEIS scheme at Rs. 2 crore per exporter on outbound shipments.
- FIEO said it is going to “seriously” affect traders.
Details:
- FIEO President said exports that will be made during September-December are based on orders that had been negotiated earlier, factoring in the existing Merchant Export from India Scheme (MEIS) benefit.
- These benefits are part of the export competitiveness and therefore the sudden change will affect exporters’ financially as buyers were not going to revise their prices upwards.
Merchandise Exports from India Scheme (MEIS):
- MEIS was introduced in the Foreign Trade Policy (FTP) for the period 2015-2020.
- The MEIS was launched as an incentive scheme for the export of goods and the rewards are given by way of duty credit scrips to exporters.
- Government recently imposed a cap of Rs. 2 crore per IEC (Import Export Code), on MEIS benefit of exports made during September 1 to December 31, 2020.