To contain a slide in outbound shipments, the government on Thursday widened the ambit of its Merchandise Exports from India Scheme (MEIS) to offer assistance on items ranging from certain varieties of garments to marine products and engineering goods, which would potentially cost the exchequer an additional Rs 1,500 crore.
While the government included 2,901 new export items to the MEIS, it also raised the rate of incentives for 575 items across 11 categories. “The move will enhance our competitiveness, as 70 per cent of the country’s exportable items will now be covered under the scheme and eligible for assistance from the earlier 46 per cent,” Ajay Sahai, the director general of the Federation of Indian Export
Organisations, said. The total potential revenue losses for the government under the MEIS is now expected to go up to Rs 23,500 crore a year, as per a commerce ministry estimate. FE