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5 MAJOR INITIATIVES TO BOOST EXPORTS-ECONOMY(24th March)

By March 24, 2022May 25th, 2022Economy, GS 3

Economy 

5 MAJOR INITIATIVES TO BOOST EXPORTS

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$400 Billion Exports

 

 

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Remission of Duties and Taxes on Exported Products (RoDTEP)

  • RoDTEP stands for Remission of Duties and Taxes on Export Products.
  • It is a new scheme that is applicable with effect from January 1st, 2021, formed to replace the existing MEIS (Merchandise Exports from India Scheme).

Features of the RoDTEP Scheme

  • Refund of the previously non-refundable duties and taxes
  • Automated system of credit
  • Quick verification through digitisation
  • Multi-sector scheme

Electronic Platform for Preferential Certificate of Origin (CoO)

  • In view of the COVID-19 crisis, on-boarding of FTAs/ preferential trade agreements (PTAs) was quickly done to allow electronic issuance to avoid physical movement.
  • Around 4.6 lakh CoOs have been issued from the e-platform till date.
  • A Certificate of Origin is an instrument which establishes evidence on the origin of goods imported into any country.
  • These certificates are essential for exporters to prove where their goods come from and therefore stake their claim to whatever benefits goods of Indian origin may be eligible for in the country of exports.
  • The digital platform has been designed and developed by the Director-General of Foreign Trade (DGFT) and Regional & Multilateral Trade Relations (RMTR) Division, Department of Commerce, Ministry of Commerce and Industry.
  • The platform also provides administrative access to the Department of Commerce for reporting and monitoring purposes.
  • Authorities of partner countries will now be able to verify the authenticity of certificates from the website.
  • A non-preferential COO certifies the origin of the goods but does not grant any preferential tariff rights to the exporter.
  • Issuance of Non-Preferential CoOs was also started from 15.04.2021.

Export Promotion Capital Goods (EPCG) Scheme                

  • It is an ongoing scheme under the foreign trade policy.
  • In order to increase procurement of capital goods from indigenous manufacturers under the EPCG scheme, the government has reduced specific export obligations from 90 per cent to 75 per cent of the normal export obligation.
  • However, the scheme is subject to an export value equivalent to 6 times of duty saved on the importation of such capital goods within 6 years from the date of issuance of the authorization.

 

Developing District as Export Hub

  • Under this initiative, the focus is to make districts active stakeholders in the promotion of exports of goods/services produced/ manufactured in the district.
  • District Export Promotion Committees (DEPCs) have been set up in each district.
  • Products with export potential (including agricultural, geographical indication (GI) & toy clusters) have been identified in all 739 districts across the country.
  • This scheme would help in diversifying the portfolio of export commodities.

Infusion of capital in EXIM Bank

  • Government of India infused capital of `750 crore in Export-Import Bank of India (EXIM Bank) during the current financial year 2021-22 through subscription to its share capital.

EXIM Bank

  • EXIM Bank or Export-Import Bank of India is India’s leading export financing institute that engages in integrating foreign trade and investment with the country’s economic growth.
  • Founded in 1982 by the Government of India, EXIM Bank is a wholly-owned subsidiary of the Indian Government.
  • Headquartered in Mumbai, Maharashtra.

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