Daily News Analysis

Exports

3rd September, 2021 Economy

Context:

  • India’s merchandise exports in August touched $33.14 billion. This marks a significant rise as compared to even the pre-pandemic phase as well.
  • In the first five months of 2021-22, India’s merchandise exports have now touched $163.67 billion, nearly 67% higher than that of the corresponding period last year and 22.9% higher than 2019. The steady recovery in global trade seems to be aiding the uptick in exports from India.

Figure 2: No Copyright Infringement Intended

Government Targets:

  • The government has set a target of merchandise exports worth $400 billion for the current fiscal year. Subsequently, the government also aims to reach a merchandise exports target of $500 billion for FY23 and $1 trillion in 2027-28.
  • The government is aiming to target $2 trillion exports by 2030, with $1 trillion from merchandise exports and $1 trillion from services exports.

Export Promotion Schemes:

Duty Drawback Schemes:

  • Under this scheme, custom/excise duty paid by exporters of selected products is partially or wholly reimbursed.

Export Promotion Capital Goods (EPCG)

  • Under this scheme, exporters can import capital goods at zero or concessional custom duty subject to an export obligation.

Focus Market Scheme

  • Exporters are provided duty credit scripts equivalent to 3% of Free on Board (FOB) value of exports if they are exporting to selected destinations/countries.

Focus Product Scheme

  • Under this exporter of selected labour intensive product (e.g. handicraft) are provided duty credit script equivalent to 2% of FOB value of exports.