Export Promotion Scheme

10/30/2019 Export Promotion Scheme
Press Information Bureau

Government of India
Ministry of Commerce & Industry
17-July-2019 17:36 IST
Export Promotion Scheme
The Government of India has launched a scheme namely, Trade Infrastructure for Export Scheme (TIES) from
FY 2017-18 with the objective to assist Central and State Government Agencies for creation of appropriate
infrastructure for growth of exports from the States. The Scheme provides financial assistance in the form of
grant-in-aid to Central/State Government owned agencies for setting up or for up-gradation of export
infrastructure as per the guidelines of the Scheme. The scheme can be availed by the States through their
Implementing Agencies, for infrastructure projects with overwhelming export linkages like the Border Haats,
Land customs stations, quality testing and certification labs, cold chains, trade promotion centres, dry ports,
export warehousing and packaging, SEZs and ports/airports cargo terminuses. The Scheme guidelines are
available at http://commerce.gov.in.
Under the TIES Scheme, a total of 28 export infrastructure projects have been provided financial assistance
during FY 2017-18, 2018-19 and 2019-20 (as on 1st July, 2019). The state-wise and Year-wise details of
projects, located in various States/UTs, is given at Annexure-I.
The Government of India strives to ensure a continuous dialogue with the State Governments and Union
Territories on measures for promoting exports and for providing an international trade enabling environment in
the States, and to create a framework for making the States active partners in boosting exports from India.
Under the Foreign Trade Policy (FTP), DGFT operates various Export promotion schemes such as Advance
Authorization, Duty Free Import Authorization, Export Promotion of Capital Goods, Merchandise Exports
from India Scheme (MEIS) and Services Exports from India Scheme (SEIS). To give effect to these schemes,
Central Board of Indirect Taxes and Customs has issued various exemption notifications. The details of
various exemptions provided for these schemes are given in the FTP.
MEIS was introduced in the FTP from 01.04.2015, providing rewards for exporters of specified goods. The
objective of the MEIS is to offset infrastructural inefficiencies and associated costs involved in exporting
goods/products which are produced/manufactured in India. The scheme incentivizes exporters in terms of
https://pib.gov.in/newsite/PrintRelease.aspx?relid=191875 1/7
Duty Credit Scrips at the rate of 2, 3, 4, 5, 7 % of FOB Value of exports realized. These scrips are transferable
and can be used to pay certain Central Duties/taxes including Customs Duties.
As regards promotion of trade in services, Government of India provides fiscal benefits through Services
Exports from India Scheme (SEIS) for some identified sectors. Government of India is following a multi-
pronged strategy, including negotiating meaningful market access through multilateral, regional and bilateral
trade agreements, trade promotion through participation in international fairs/exhibitions and focused
strategies for specific markets and sectors to promote Trade in Services. An ‘Action Plan for Champion
Sectors in Services’ has also been approved in February, 2018 to give focused attention to 12 Champion
Services Sector like Information Technology / Information Technology Enabled Services, Tourism and
Hospitality Services and Medical value Travel.
The Agriculture Export Policy was launched in 2018 to harness export potential of Indian agriculture, through
suitable policy instruments, to make India global power in agriculture and raise farmers’ income. This
comprehensive “Agriculture Export Policy” aims to increase agricultural exports by integrating Indian farmers
and agricultural products with the global value chains.
Section 10AA of the Income-tax Act, 1961 provides for deduction of profits and gains derived from the export
of articles or things or from services in respect of newly established Units in Special Economic Zones. Such
deduction is allowed to an entrepreneur as referred to in clause (j) of section 2 of the Special Economic Zones
Act, 2005, from his Unit, who begins to manufacture or produce articles or things or provide any services
during the previous year relevant to any assessment year commencing on or after the 1st day of April, 2006,
but before the first day of April, 2021. The deduction is allowed as under:
hundred per cent of profits and gains derived from the export, of such articles or things or from services for a
period of five consecutive assessment years beginning with the assessment year relevant to the previous year
in which the Unit begins to manufacture or produce such articles or things or provide services, as the case may
be, and fifty per cent of such profits and gains for further five assessment years and thereafter.
For the next five consecutive assessment years, so much of the amount not exceeding fifty per cent of the
profit as is debited to the profit and loss account of the previous year in respect of which the deduction is to be
allowed and credited to a reserve account (to be called the "Special Economic Zone Re-Investment Reserve
Account") to be created and utilized for the purposes of the business of the assesse in the manner laid down.
Annexure-I
Details of projects approved under TIES [FY 17-18 to FY 19-20 (till

01.07.2019)]
TIES fund
Name of Number of new
S.No. Year released (in
State/UT projects approved
Rs.Cr.)
2017-18 3 5.85
2018-19 0 2.85*
1 Karnataka
2019-20 0 0
Total 3 8.7
2017-18 1 6.5
2018-19 0 6.5*
2 Kerala
2019-20 0 0
Total 1 13
3 Manipur 2017-18 1 6
2018-19 1 5.83
2019-20 0 0
Total 2 11.83
2017-18 2 8.15
2018-19 0 26.01*
Andhra
4
Pradesh
2019-20 0 1.99*
Total 2 36.15
2017-18 2 14.78
2018-19 4 15.65
5 Tamil Nadu
2019-20 3 6.56
Total 9 36.99
6 Madhya 2017-18 2 25.71

Pradesh
2018-19 0 0
2019-20 0 0
Total 2 25.71
2017-18 1 1.07
2018-19 0 0
Uttar
7
Pradesh
2019-20 0 0
Total 1 1.07
2017-18 1 1.52
2018-19 0 0
8 Maharashtra
2019-20 0 0
Total 1 1.52
2017-18 1 6.15
2018-19 0 0
9 Tripura
2019-20 0 0
Total 1 6.15
10 West Bengal 2017-18 1 4.27
2018-19 0 2.56*
2019-20 0 0
Total 1 6.83
2017-18 0 0
2018-19 1 8
11 Delhi
2019-20 0 0
Total 1 8
2017-18 0 0
2018-19 2 3.06
12 Rajasthan
2019-20 0 0
Total 2 3.06
2017-18 0 0
2018-19 1 2.81
13 Chandigarh
2019-20 0 0
Total 1 2.81
14 Assam 2017-18 0 0
2018-19 0 0
2019-20 1 3.95**
Total 1 3.95**
GRAND
28 165.77
TOTAL
* Includes disbursement of subsequent installments for a previously

sanctioned project
**Funds yet to be disbursed
This information was given by the Minister of State in the Ministry of Commerce and Industry, Hardeep
Singh Puriin a written reply in the Lok Sabha today.
***
MM/SB

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10/30/2019 Export Promotion Scheme

Press Information Bureau

Details of projects approved under TIES [FY 17-18 to FY 19-20 (till

6 Madhya 2017-18 2 25.71

10 West Bengal 2017-18 1 4.27

* Includes disbursement of subsequent installments for a previously

**Funds yet to be disbursed

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