Lok Sabha Question No. 2488 (UNSTARRED), answered on 2017-07-31
Subject: Export Development Fund
Ministry: COMMERCE AND INDUSTRY
Asked by: KONAKALLA NARAYANA RAO

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 2488 TO BE ANSWERED ON 31 st JULY, 2017

## EXPORT DEVELOPMENT FUND

## 2488. SHRI KONAKALLA NARAYANA RAO:

Will the Minister of COMMERCE & INDUSTRY ( वािणÏय एवं उɮयोग मंत्री ) be pleased to state:

- (a) whether the Government is planning to create an Export Development Fund to help marketing of the products of small and medium exporters;
- (b) if so, the details thereof;
- (c) whether the Government is planning to extend the 3% Interest Equalisation Scheme to merchant exporters; and
- (d) if so, the details thereof and if not, the measures taken by the Government to help marketing of the products of small exporters in global markets?

## ANSWER

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## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)

- (a) No, Madam.
- (b) Does not arise in view of reply to (a) above.
- (c) No, Madam.
- (d) Department of Commerce is already running two schemes i.e. Market Access Initiative Scheme (MAI) and Marketing Development Assistance Scheme (MDA)  for development and promotional activities to promote exports from India and marketing assistance in foreign markets by providing financial support to  exporters  through  Export  Promotion  councils/  Trade  bodies  and  other  eligible  agencies  including MSMEs .

Government  has  introduced  Interest  Equalisation  Scheme  on  Pre  &  Post  Shipment  Rupee  Export Credit with effect from 1.4.2015 for five years. The scheme is available to manufacturers for all exports under  416  specified  tariff  lines  [at  ITC  (HS)  Codes  at  4  digit  level]  and  to  exports  made  by manufacturers in Micro, Small and Medium Enterprises across all ITC (HS) Codes. The rate of interest equalisation is 3% per annum.

The New Foreign Trade Policy (2015-20) was announced on 1st April, 2015 with a focus on supporting both merchandise and services exports.

Merchandise  Exports  from  India Scheme  (MEIS)  aims  to  incentivize  export of  merchandise goods produced/manufactured in India. Rewards @ 2-5% under MEIS are payable as a percentage of realized  FOBvalue  of  covered  exports,  by  way  of  the  MEIS  duty  credit  scrip,  which  are  freely transferable.  At  present,  7914  tariff  lines  at  8  digit  HSCodes  are  covered  under  MEIS  scheme.  The benefits of MEIS are available to all exporters including the small exporters and the MSME  sector.

Services Exports from India Scheme (SEIS) provides rewards in the form of duty credit scrips to service providers  of  notified  services  who  are  providing  service  from  India.  The  rate  of  reward  under  the scheme is based on net foreign exchange earned. The present rates of reward are 3 % and 5%.  The benefits of MEIS are available to all exporters including the small exporters.

The Status Holder Recognition Scheme provides  recognition in the category of One Star, Two Star, Three  Star,  Four  Star  and  Five  Star  to  exporters  making  exports  beyond  a  threshold  level.  The Recognition entitles such Status Holders to certain privileges under the Schemes of the  Foreign Trade Policy. Double  weight-age is granted in calculation of threshold level while  granting one star status   in case  of  exporters  belonging  to   Micro,  Small  &  Medium  Enterprises  (MSME)  as  defined  in  Micro, Small& Medium Enterprises Development (MSMED) Act 2006.

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