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Kerala Kaumudi Online
Friday, 18 October 2019 11.43 AM IST

'Mega shopping festival from next year onwards', Finance Minister announces Rs 50,000 cr export incentive scheme

nirmala-

NEW DELHI: Finance Minister Nirmala Sitharaman on Saturday said there are clear signs of revival of industrial production and fixed investment after economic growth plunged to a six-year low.

At a press conference called to announce the third part of the stimulus package for the economy, she said measures are being taken to improve credit outflow from banks.

Also, the transmission of interest rate cuts is being effected by banks, she said, adding she will meet heads of public sector lenders on 19 September to review the transmission.

The Reserve Bank of India (RBI ) has since February cut the benchmark interest rate by 110 basis points but banks have lagged in transmitting the lower rates to borrowers.

The government has been pressing banks to link borrowing rates to an external benchmark to speed up the transmission of rate cuts.

The Minister announced a new scheme -- Remission of Duties or Taxes on Export Product (RoDTEP) -- to incentivize exporters at an estimated cost of Rs 50,000 crore to the exchequer.

The announcement comes in the backdrop of India's merchandise exports declining by 6.05 percent to USD 26.13 billion in August compared to the year-ago month.

The minister also said there will be a fully automated electronic refund route for input tax credits (ITC) in GST. This will be implemented by the month-end.

The move, she added, is aimed at quick and automated refunds of ITC.

She said RoDTEP will replace the existing incentive schemes and "will more than adequately incentivize exporters than the existing schemes put together".

The minister said the revenue foregone towards the scheme is projected at Rs 50,000 crore. She also added that a mega shopping festival in the model of Dubai shopping festival will also be held from next year onwards to boost the country's export sector and industries.

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TAGS: NIRMALA SITHARAMAN, INDIA, FINANCE MINISTER, INDIA TO START MEGA SHOPPING FEST LIKE DUBAI TO PUSH EXPORT SECTOR
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