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Merchandise Exports from India Scheme (MEIS)

Topics Covered: Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth.

Merchandise Exports from India Scheme (MEIS):


Why in News?

A limit has been imposed on total rewards under the Merchandise Exports from India Scheme (MEIS).

Limits imposed (Not so important for the exam. However, have a brief overview of the changes):

  • The total reward which may be granted to an Import Export Code (IEC) holder under the scheme shall not exceed Rs.2 Crore per IEC of exports made in the period 1.9.2020 to 31.12.2020.
  • Any IEC holder who has not made any exports for a period of one year preceding 1.9.2020 or any new IECs obtained on or after 1st September would not be eligible for submitting any claim under MEIS.

About MEIS- What is it?

Merchandise Exports from India Scheme (MEIS) under Foreign Trade Policy of India (FTP 2015-20) is one of the two schemes introduced in Foreign Trade Policy of India 2015-20, as a part of Exports from India Scheme (The other scheme is Service Exports from India Scheme (SEIS)).

  • The rewards are given by way of duty credit scrips to exporters.
  • The MEIS is notified by the DGFT (Directorate General of Foreign Trade) and implemented by the Ministry of Commerce and Industry.

Objective of the scheme:

To offset infrastructural inefficiencies and associated costs involved in export of goods/products, which are produced/manufactured in India, especially those having high export intensity, employment potential and thereby enhancing India’s export competitiveness.

MEIS replaced the following five other similar incentive schemes present in the earlier Foreign Trade Policy 2009-14:

1.       Focus Product Scheme (FPS).

2.       Focus Market Scheme (FMS).

3.       Market Linked Focus Product Scheme (MLFPS).

4.       Infrastructure incentive scheme.

5.       Vishesh Krishi Gramin Upaj Yojna (VKGUY).

InstaLinks:

Prelims Link:

  1. Objectives of Foreign Trade Policy of India (FTP 2015-20).
  2. Schemes launched under Foreign Trade Policy of India (FTP 2015-20).
  3. MEIS is notified by?
  4. MEIS is implemented by?
  5. Schemes replaced by MEIS.
  6. What are duty credit scrips?
  7. About DGFT.

Mains Link:

Discuss the key features and significance of the Merchandise Exports from India Scheme (MEIS).

Sources: pib.