Key Government Schemes and Initiatives to support MSMEs (Export Promotion Schemes )

MSME Sector in India

Part 14

Export Promotion Schemes

6. Export Promotion Schemes –

6.1. SEZ– Special Economic Zone provides simplified procedures and a single window clearance policy on matters relating to central and state governments. Key benefits offered under the scheme include Drawback/ DEPB benefits, CST exemption, Service Tax exemption and income tax holiday.

Exemption from income tax is tapered down over 15 years from the date of commencement - 100 % exemption of export profits from income tax for the first five years, 50 % for the next five years and 50% for the five years subject to transfer of profits to special reserves.

Export Promotion Schemes

6.2. Duty exemption schemes enable duty free import of inputs required for export production.

ICT support Schemes

7. ICT support Schemes –

7.1. Software Technology Parks of India (STPI) – STPI offers a single-window clearance for project approvals, import certification software valuation and certification of exports for software exporters.

The STPI Scheme is considered as one of the most effective schemes for the promotion of exports of IT and BPM; ~ 51 STPI centers have been established under the scheme since inception.

ICT support Schemes

Key benefits offered include exemption from customs duty available for capital goods, exemptions from service tax, excise duty, and rebate for payment of Central Sales Tax. STPI is pan India Scheme with over 8,000 units registered under this scheme.

ICT support Schemes

7.2. Export Promotion of Capital Goods (EPCG) scheme provides support to exporters of electronic products by allowing import of capital goods for pre- production, production and post-production at 0% customs duty, subject to an export obligation equivalent to 6 times of duty saved on capital goods imported under EPCG scheme, to be fulfilled in 6 years reckoned from the date of authorization issue.

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