“Manufacturing exports from Special Economic Zones (SEZs) have decreased around 45% on-year till June. However, software and service exports grew 5%.” said The Export Promotion Council for EOUs and SEZs (EPCES) on friday.
Manufacturing Exports made Rs75,346 crore till June in 2019. However, this year manufacturing units made Rs41,699 crore this year till June. On the other hand, software and services rose to Rs1.11 lakh crore till June this year. Comparing Rs1.05 lakh crore last year.
India’s exports contracted 10.2% in July at $23.64 billion. On the other hand, imports dipped 28.4% to $28.47 billion.
“Under Atmanirbhar Bharat mission, SEZs and export-oriented units (EOU) should be allowed to manufacture goods . As well as, supply them to domestic market without any import duties. However, Import duties can be imposed on all supplies from SEZ units to domestic market.”, said The Council.
The goods manufactured in SEZ and EOUs and supplied to domestic market will be treated as exports as import substitution.
“These imported goods may include defense products, health products and other non-essential goods, which can be identified,” the council said in a statement on Friday.
“All the benefits under the MEIS and Rebate of State and Central Taxes and Levies (RoSCTL) schemes will be extended to apparel/ garment sector for exporters in SEZ and EOUs.” the council said under new MEIS.
“It will be difficult for the exporters to properly price their products now which would be exported post December 31, 2020,” EPCES said.
Recently, Government of India has sealed the benefits under the Merchandise Exports from India Scheme at Rs2 crore per exporter. This is applicable for the exports from SEP-DEC 2020. Moreover, the new Import Export Code obtained on or after Sep 1 will be ineligible to submit MEIS claim. Ceiling would be subject to downward revision, claims should not exceed Rs, 5000 crore.