AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
Tax-based export incentive
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. Incentivesfor textiles (readymade garments) will be available till September 2010, whereasincentivesforelectronic,engineeringandagro-chemical goodswillbegivenfortheentire2010-2011periodunderthe MLFP.