AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYYes
Tax-based export incentive
The Ministry of Commerce and Industry through Public Notice No. 44/2015-2020 increased the export incentive by 2% under the Merchandise Exports Incentive Scheme (MEIS) on exports by labour-intensive and Micro, Small and Medium-sized Enterprises (MSMEs) in sectors such as leather, agriculture, carpets, handtools, marine products, rubber products, ceramics, sports goods, medical and scientific products and electronic and telecom components. This increased incentive is expected to increase the annual incentive under MEIS by INR 4567 crore (USD 712 million).
The additional 2% incentive was initially announced for exports in the period 1 November 2017 and 30 June 2018, but was later extended indefinitely vide Public Notice 7/2015-2020 on 11 May 2018.
The inception date of this State Act has been set as 5 December 2017, the date of the announcement, as the exports are expected to the affected after the announcement is made.
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