Finance Minister Nirmala Sitharaman on Saturday announced a new scheme -- Remission of Duties or Taxes on Export Product (RoDTEP) -- to incentivise 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 per cent 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 incentivise exporters than the existing schemes put together".
The minister said the revenue foregone towards the scheme is projected at Rs 50,000 crore.Inflation under control, clear signs of revival in factory output
Finance Minister Nirmala Sitharaman on Saturday said inflation is under control and there is a clear sign of revival of industrial production.
Addressing the third press conference to announce measures to boost economy, the minister said inflation has been kept "very much" below 4 per cent.
The government has mandated the Reserve Bank of India to keep the retail inflation in the band of 2-6 per cent. The latest inflation print based on Consumer Price Index was 3.21 per cent in August.
Sitharaman further said that inspite of all worries on industrial production front in the fourth quarter of 2018-19, "we see clear signs" of improvement up to July 2019.
The minister further said the steps announced to increase credit flow to NBFCs, including the partial credit guarantee scheme, has started showing results.
"Several NBFCs have benefited," the minister said.
Sitharaman also informed that she will be meeting heads of public sector banks on September 19, a day before the GST Council meeting in Goa, to access the credit flow scenario to the economy.