MEIS scheme to be replaced with RoDTEP Scheme

On March 13, 2020, the Union Cabinet approved to withdraw the MEIS (Merchandise Export from India) Scheme in phases. It is later to be replaced with RoDTEP (Remission of Duties or Taxes on Export Product) scheme.

Highlights

The MEIS is being replaced as the exports are to fall further due to Corona Virus outbreak. The exports of India have already fallen by 2% for the year April-January 2019-20. The RoDTEP is compliant with WTO (World Trade Organization) norms.

RoDTEP

The RoDTEP is a scheme for exporters to reimburse their taxes and duties. The scheme was announced by the Finance Minister to incentivize exporters at a cost of Rs 50,000 crores.

MEIS Scheme

The MEIS scheme offers export incentives between 2% and 5%. It was introduced under the Foreign Trade Policy of India (FTP 2015-20). Two schemes were launched under the policy namely MEIS and SEIS. The aim of MEIS scheme is to make Indian products competitive at the Global market.

Month: Current Affairs - March, 2020