AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYYes
Tax-based export incentive
On 29 October 2015, the Indian Ministry of Commerce & Industry changed the incentives granted under the Merchandize Exports Incentive Scheme (MEIS). The MEIS scheme under the Foreign Trade Policy 2015-2020 provides incentives in the form of "duty scrips" which can be used to pay a range of customs or excise duties. Export receive duty scrips worth between 2% and 5% of the export value depending on the product and the destination country. The scrip value may vary across three country groups.
For country group A, the notification from 19 October 2015 added 110 new products to the list of eligible exports plus the existing incentives were increased for 1'336 products.
The countries listed in group A are the European Union members plus the USA i.e. Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovak Republic, Slovenia, Spain, Sweden, United Kingdom, and United States of America.
On 31 March 2020, the Ministry of Commerce and Industry announced that the existing Foreign Trade Policy 2015-2020, which was to expire on 31 March 2020, will be extended till 31 March 2021.
On 15 April 2020, the Ministry of Commerce and Industry notified through Trade Notice 03/2020-21 that the benefits under the MEIS scheme will be available until 31 December 2020, unless the incentive on the product is replaced by the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme.