According to the Mid-term Review of the Foreign Trade Policy (FTP) 2015-20 released by the Minister of Commerce and Industry, Mr Suresh Prabhu, changes in export incentives under Merchandise Exports from India (MEIS) will help handmade carpets and made ups along with other products.
While restoring the benefits under the export promotion schemes of duty free imports under Advanced Authorisation, Export Promotion Capital Goods and 100 percent Export Oriented Units and thus resolving the problem of blocked working capital for exporters following the roll out of GST, the FTP review has focused on increasing the incentives for labour intensive MSME sectors. Export incentives under Merchandise Exports from India (MEIS) have been increased by 2 percent across the board for labour intensive MSME sectors leading to additional annual incentive of Rs. 4,567 crore. This is in addition to the already announced increase in MEIS incentives from 2 percent to 4 percent for Ready-made Garments and Made Ups in the labour intensive Textiles Sector with an additional annual incentive of Rs. 2,743 crore Further, incentives under Services Exports from India Scheme (SEIS) have also been increases by 2% percent leading to additional annual incentive of Rs. 1,140 crore.
Incentives under two schemes have resulted in Rs 2,743 crore for ready-made garments and made ups in textiles sector and Rs 921 crore for handmade carpets of silk, handloom and coir and jute products.