Top Export schemes offered by the Indian government to boost Entrepreneurs By Vikram Shah - October 3, 2019 Last Updated at: Oct 06, 2020 3929 Top Export schemes offered by the Indian government to boost Entrepreneurs The Government has recently announced a new scheme, RoDTEP (Remission of Duties or Taxes on Export Products) Scheme to boost entrepreneurs. This new scheme will replace MEIS (Merchandise Exports from India) Scheme with effect from 1 January 2021. It aims to reimburse the taxes and duties incurred by exporters such as mandi tax, local taxes, coal cess, electricity duties, and fuel used for transportation -which are not exempted or refunded under any other existing scheme. The Government of India has taken quite a few steps towards enhancing Indian exports by introducing several export benefit schemes. The main objective of these export benefit schemes is to simplify the entire export process and make it easier. In recent times, the government has come up with various export-oriented schemes in order to boost the SME(Small and Medium Enterprises) sector. This helps the economy to draw foreign exchange and make domestic companies competitive in the global market. Its main point is to produce goods for international trade and increase exports. As per the data recorded by RBI, India’s Foreign Capital Inflows were US$405.64 Billion up to the week of 15th March 2019. During a period of 2018-19, India witnessed a steep growth of 8.8% in its export of merchandise and services. The Government also takes a leap in the Ranking of Ease of Doing Business from the 142ndposition, which was 4 years back to the 77thrank. Around 40% of India’s export is contributed by SMEs. Indian government strongly feels SMEs have immense scope in making exports of plastic, processed packaged food, fine chemicals, etc. to countries like West Asia, Africa, and Latin America. These regions are emerging economies and can offer a striking customer base. Government has also taken initiatives to set up Trade promotional bodies in 15 countries to boost exports from SMEs. Here are some of the Special Export schemes introduced by the Government to boost Entrepreneurs and MSMEs for smooth financing: ü In September 2018, Government launched a 59 minute Loan portal for a sanction of the loan value for MSME sector from INR 1 Lakhs up to INR 1 Crore. The small and micro enterprises can easily access credit and get their loan approved under this scheme in less than an hour. ü Under the Pradhan Mantri Mudra Yojana Scheme, small manufacturing units and service sectors units can avail loans from financial institutions up to INR 10 Lakhs without giving any collateral deposit. Get IEC Registration ü According to the Foreign Trade Policy of India (FTP 2015-20), Government has widened the scope and raised the reward incentives under MEIS (Merchandise Exports from India Scheme) and SEIS (Service Exports from India Scheme)by 2%. ü Under the Zero Defect Zero Effect (ZED) model, which is launched by the government, the SMEs and exporters are eligible to get rebates and concessions. This initiative was taken so that the exports are made in adherence to particular standards and are certified. Thus, do not get rejected and returned back to India. ü As per the Credit Guarantee Scheme, banks and financial institutions can extend to each borrowing unit a loan capacity of INR 200 Lakhs. ü Introduced the platform of Trade Receivable Discounting System(TReDS) to finance the Trade Receivables. For SMEs financial assistance is very important as the funds are limited. This shall ease their monetary crisis. ü To boost exports, enhance the trader’s liquidity situation and scout the new global markets, the government hiked the interest subsidy of 3% to 5% for MSMEs on receiving credits at pre and post-shipment. ü For all those MSMEs registered under GST shall receive an interest subvention of 2% up to 1 crore for every fresh or incremental loan. ü Make in India project was undertaken to ensure infrastructural and technological advancements in the economy. The plan behind this idea was to repair and reform the out-dated processes with best class systems so that SMEs can explore more export opportunities. ü The government got created an online portal called Government e-MarketPlace (GeM) for their procurement of common use items through one place. Some of the other popular export promotion schemes that have helped SMEs to grow and make their place in different parts of the world are- Ø Export Promotion Capital Goods Scheme (EPCG), Ø Credit Linked Capital Subsidy Scheme for Technology Upgradation (CLCSS), Ø Mini Tools Room & Training Center Scheme, Ø Financial Assistance on International Participation, Ø Stand up India Scheme, Ø Women Entrepreneurship, Ø Quality Management Standards & Quality Technology tools Ø Incubation Ø Grievance Monitoring System SMEs play a significant role in the Indian economy. With the government’s help and public sector interference, SMEs has the potential to take India to new heights. By providing the right quality of products and satisfying the end customers, it is expected that SMEs may one day overtake China in its volume. It is the right time when India SMEs should reap the advantages of such schemes and earn recognition worldwide.