Govt plans Dubai-like shopping festival in India to boost exports
A mega shopping festival like Dubai shopping festival will be held across the country in four destinations, by March 2020 to boost exports. "It is greater push for people to make contacts and connections," Finance Minister Nirmala Sitharaman said.
Inflation is under control and there is a clear sign of revival of industrial production and fixed investment, Finance Minister Nirmala Sitharaman said on Saturday (September 14).
A mega shopping festival like Dubai shopping festival will be held across the country in four destinations, by March 2020 to boost exports. “It is greater push for people to make contacts and connections,” she said.
Sitharaman announced a new scheme – Remission of Duties or Taxes on Export Product (RoDTEP) – to incentivise exporters at an estimated cost of Rs 50,000 crore to the exchequer.
The announcement comes in the backdrop of India’s merchandise exports declining by 6.05 per cent to USD 26.13 billion in August compared to the year-ago month. The minister also said there will be a fully automated electronic refund route for input tax credits (ITC) in GST.
Stating that she would meet the chiefs of public sector banks on September 19, Sitharaman said transmission of interest rate cuts was being effected by banks for the benefit of customers.
Measures are being taken to improve credit outflow from banks, she said at a press conference in New Delhi.
The government is working to reduce ‘Time to export’ by leveraging technology further, and is coming up with an action plan to reduce turn around time at airports and ports bench marked to international standards to be implemented by December 2019. An Inter-Ministerial group will monitor this, she said.
The statement comes amid a slowdown in economy, triggered by a crash in sales of automobile and slowing demand.
Sitharaman said the government will offer higher insurance cover to banks lending working capital for exports in a move which will cost ₹1,700 crores per annum to the government.
Sitharaman had on Tuesday claimed that the current slowdown in the automobile industry is due to several factors including millennials preferring to travel by app-based cab services like Ola and Uber.
Other highlights of Sitharaman’s press statement was:
– Remission of duties or taxes on export products to replace MEIS
– Existing Merchandise Exports from India Scheme (MEIS) for textiles will continue up to December 31
– ₹50,000 cr revenue will be foregone with introduction of remission of duties or taxes on export products
– Fully automated electronic refund route for input tax credits in GST
– Export Credit Guarantee Corp (EGC) will expand scope of export credit insurance scheme; incentive to cost Rs 1,700 cr per annum
– ₹36,000 cr to ₹68,000 cr of credit will be available for exports after priority sector lending tag
