Govt doubles incentives rates for garments, made-ups to 4 per cent

The government has doubled the rates for incentives under an export promotion scheme to 4 percent for readymade garments and made-ups to boost shipments of the sector

The estimated annual incentives will be Rs 1,143.15 crore for 2017-18 and Rs 685.89 crore for 2018-19, it added.

It said the measure will incentivise the exports of labour-intensive sectors of readymade garments and made-ups and contribute to employment generation.

The rate of incentives is increased from 2 percent to 4 percent under Merchandise Exports from India Scheme (MEIS).

Under this scheme, the commerce ministry gives duty benefits to several products. It provides duty benefits at 2 percent, 3 percent and 5 percent depending upon the product and country.

The Directorate General of Foreign Trade (DGFT) said rates for incentives under this scheme for two subsectors of textiles industry — readymade garments and made-ups — have been enhanced “from two percent to four percent of the value of exports with effect from November 1 till June 30 next year”.

Commenting on this, Chairman Export Promotion Council for EOUs and SEZs (EPCES) Rahul Gupta said that the commerce ministry has assured exporters to resolve refund-related problems.

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