Govt likely to roll back MEIS incentive as part of new export-import policy

Textile industry fears that the Commerce Ministry's decision would kill exports.

The Commerce Minsitry is considering a recast of export incentives and is expected to roll back the Merchandise Exports from India Scheme (MEIS). Apparel exporters are concerned about the move, which could be a part of a new export-import policy as the current policy is expiring in 2020.

A four per cent incentive is given to garments exporters under MEIS. Industry insiders said the move, if implemented, will “kill” the sector, which is the second largest employment generator after agriculture.

MEIS has helped exporters take on competition from Bangladesh and Vietnam as it provides duty credit to address infrastructure issues.