Export Promotion Measures in Budget 2020
Post-1991 reforms of Liberalisation Privatisation and Globalisation, the Indian export market share has grown up drastically, as last estimated in 2018. The Economic Survey 2020 says for an unprecedented opportunity for India to become a China like a labor-intensive export house by integrating an “Assemble in India” program under its “Make in India initiative”. The Survey said India must focus on its export strategies where the government has a good role to play to raise the export market share to 3.5% by 2025 and 6% by 2030 through its export promotional schemes and initiatives.
1. Export of Fisheries:
To promote a culture of the fish production to 200 lakhs tonne and export of fisheries to 1 lakh crore by 2025, the government in its Budget 2020 proposed development of 3477 Sagar Mitras and 500 Fish Farmer Producer Organisations (FFPOs).
2. Export of Horticulture produce:
With production over 311 million MT, the horticulture produce in India exceeds the level of food grain production. Thus, to support the sector with expansion facilities to foreign markets, the government in its Budget 2020, proposed for more export facilities to be delivered to districts through the “One Product One District” scheme.
About One Product One District Scheme
- The Scheme aims to provide financial aid to small producers, manufacturers, and promoters of goods which are not easily available in other districts or localities i.e they are manufactured nowhere.
- The Scheme aims to promote the business of MSMEs and create more job opportunities.
- The Scheme aims to provide technical inputs and assistance in gaining resources to MSMEs.
- The Scheme empowers SMEs in the market expansion of their products and provides assistance on exports and imports.
3. Development of Districts as Export Hubs:
To scale-up exports, the government looks forward to forming institutional mechanisms in districts with collective policy efforts of Central and State government for their transformation as export hubs.
4. Export promotion of Mid-Size companies:
For mid-size companies engaged in selected sectors of pharmaceuticals, auto components, and others, government through its Budget 2020 tends to allocate Rs 1000 crore through an anchored scheme of EXIM Bank with SIDBI, which will be granted to exporters for technology up-gradation, Research & Development, business strategy making, and related purposes.
5. Export credit disbursement through NIRVIK:
Through Introducing a new Niryat RIN Vikas Yojana (NIRVIK), higher export credit, easy disbursement, higher insurance coverage, reduction in premiums and simplified claim settlement procedures for export credit shall be placed forward for small exporters. The Scheme will be prepared by the Commerce and Industry Ministry.
6. Increased limit of Insurance in ECIS:
Through ECIS (Export Credit Insurance Schemes ) guarantee for the insurance cover of up to 90% (from 60% earlier) of principal and interest shall be provided.
7. Scheme for Reversion of Duties and Taxes:
A new Scheme for Reversion of duties and taxes on exported products shall be made for digitally transferring of export duties, refunds and taxes levied at Central and State level, such as electricity dues, VAT, fuel for transportation, etc not refunded or exempted under any existing mechanism.
Other than bringing the above export promotion schemes and policy decisions to existence through Budget 2020, FM promised to bring some more schemes and required changes in the export rules for giving a boost to the export sector.
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