In a relief to exporters, the government has reduced the export obligation under a key incentive scheme for 192 products whose exports declined more than 5% on-year in FY22.
These products include certain types of silver, precious metals and concentrates, revolvers and pistols, wrist watches, citrus fruits and some textiles.
In a notification, the Directorate General of Foreign Trade (DGFT) said that its regional offices will re-fix the average annual export obligations under the EPCG scheme, which allows import of capital goods for pre-production, production and post- production at zero customs duty.
“This implies that the sector/product group that witnessed such decline in 2021-22 as compared to 2020-21 would be entitled for such relief,” the DGFT said.
Spices such as ginger and turmeric, woven cotton fabrics, cheese and curd, paint varnishes, garments, and tomatoes are also among the goods identified for the relief.
The relief comes amid India’s merchandise exports contracting a sharp 16.65% to $29.78 billion in October with key sectors such as petroleum products, engineering goods and textiles. India’s goods exports in FY22 were $422 billion as against $291.8 billion in FY21.