Govt announces enhancement of MEIS for readymade garments - made ups

New Delhi, Nov 25 (KNN) In a bid to ease the burden on the sector The Directorate General of Foreign Trade (DGFT) has issued Public Notice no. 42 today by which rates for incentives under the Merchandise Exports from India Scheme (MEIS) is revised.

The Ministry of Commerce and Industry in a press release informed about the latest decision.

According to the release, rates for incentives under the Merchandise Exports from India Scheme (MEIS) for two sub sectors of Textiles Industry, including the readymade garments and made ups have been enhanced from two per cent to four per cent of value of exports.

The Ministry notified that the decision rolls out with effect from 01.11.2017 and would continue till 30.06.2018.

Citing statistics, the Ministry said that the annual incentives is expected to be around Rs. 1,143.15 crore for 2017-18 and Rs. 685.89 crore for 2018-19.

This measure will incentivise the exports of labour intensive sectors of readymade garments and made ups and contribute to employment generation, the release added.

The decision of providing incentives comes in the aftermath of news reports surfacing and different segments of the apparel sector raising concerns over the sharp drop in exports of the sector due to the bumpy ride under the newly implemented Goods and Services Tax (GST) in the country.

Earlier commenting on the doubling of the MEIS incentive, Animesh Saxena, a leading MSME exporter of garments said that while MEIS benefits for the garment exporters is a highly welcome step, the Government must also work towards restoring the higher Duty Draw back rates in lieu of the GST reimbursements.

Saxena also said that if the Government is interested in revival of the garment sector the scheme for reimbursement of state taxes should be restored in full. (KNN/DA)