Business/Economy

Government unveils huge export project

Government unveils huge export project

With the onset of Gujarat Assembly elections campaigns, the ruling government played a smart move and  announced export incentives of Rs 8,500 crore for labour-intensive sectors such as leather, agriculture, carpets, and marine products and services as it plans to blunt the impact of the Goods and Services Taxes (GST) and push shipments from the country amidst positive signs of a pickup in global demand.

The government has recently faced criticism from exporters over tardy refunds and a reduction in drawback rates which resulted in an offset impact of taxes. Thus, by increasing the incentives to 4 per cent under MEIS, the Central Government is hoping to address the concerns and protect Indian businesses from the negative impact of competition.

The announced incentive of the huge amount which will be applicable from November 2017 includes higher benefits of around Rs 2,743 crore offered to ready-made garments and made-ups a few days ago. Altogether, there will a rise of 34 per cent in sops from the current Rs 25,000 crore.