ANNOUNCEMENT 14 Jan 2020
India has provided a one-time incentive on exports of textiles to compensate for differences from earlier incentive schemes.
NUMBER OF INTERVENTIONS
Official Gazette Notification No. F. No. 14/26/2016-IT/VOl. II.
On 14 January 2020, the Indian Ministry of Textiles through Notification No. 14/26/2016-IT/VOl. II announced a one-time additional ad-hoc incentive of up to 1% of the FOB value on exports of made-ups and apparel for exports between 7 March 2019 and 31 December 2019. During this period, these exports were incentivized under the Rebate of State and Central Taxes and Levies (RoSCTL). Prior to 07 March 2019, these exports were incentivized under the Merchandise Exports from India Scheme (MEIS) and the Rebate of State Levies (RoSL). According to the Notification, the 1% incentive has been provided to compensate for those exports that have received less incentive under the RoSCTL as compared to the MEIS+RoSL schemes during the period 7 March 2019 to 31 December 2019.
The total budget for the ad-hoc incentive has been set at INR 600 crore (~USD 84.67 million)*.
The MEIS scheme has been announced under the Foreign Trade Policy 2015-2020 to provide incentives on exports of certain goods to specific countries.
The RoSL has been announced since 2016 to provide a rebate on state levies levied on exported textile products.
The RoSCTL scheme was announced on March 2019 to provide a rebate on central and state taxes levied on exported textile goods.
* INR to USD conversion as on 14 January 2020 - INR 70.86/USD