India: Incentives to exporters through Market Linked Focus Programme
Description
On 12 January 2010, India announced an incentive scheme for exporters in sectors such as engineering, handicrafts , textiles, chemicals, electronics and some metals thorugh the market Linked Focus Programme (MLFP). Under this programme, the exporters are allowed duty free import of inputs. The MLFP covered 15 countries in Africa, Latin America, Asia and Oceania. China and Japan were the latest markets to be included under this scheme. Exporters will get duty free scrips or certificates valued at 2-5 % of value of exports. These can be either used to import goods free of duty or sold in the market for use by other importers.
On 31 March 2010, the programme was also extended to cover the agro-food sector as part of the stimulus package announced for exporters. Incentives for textiles (readymade garments) will be available till September 2010, whereas incentives for electronic, engineering and agro-chemical goods will be given for the entire 2010-2011 period under the MLFP.
Any Evidence-Based Deliberation:
| Question | Result |
|---|---|
| Is there anything in the public record to suggest that evidence of the effectiveness of the proposed measure was considered during official deliberations? | |
| Is there any evidence that alternatives to the proposed measure were considered? | |
| Is there anything in the public record that suggests that empirical evidence informed the comparison across the alternatives available to government? | |
| Was such evidence identified? | |
| Is such evidence publicly available? | |
| Did the official decision-maker in question provide an explanation as to why a chosen measure was favoured over alternatives? | |
| Is there any evidence to suggest that potentially affected trading partners were consulted before the measures were taken? | |
| Is there any evidence that safeguards have been put in place to ensure that implementation of the initiative is transparent and non-discriminatory? | |
| Did the government state its intention to review the measure within one year of implementation? |
Date Discovered: 01/06/2010
Implemented: Yes
Date of inception: 1 Jan 2010
GTA Evaluation: Red
Source:
Struggling exporters get Rs 500-cr lifeline, http://economictimes.indiatimes.com/news/economy/finance/Struggling-expo...
The Mint report for 31 March 2010, http://www.livemint.com/2010/03/31224614/The-Mint-report-for-31-March-2....
Government Response:
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