Govt puts Rs 2 crore cap on exports promotion scheme, sparks protests

Exporters fume as notification by Commerce Department confirms January 1, 2021 as end date for scheme

The government has capped benefits under its biggest exports promotion scheme at Rs 2 crore for each business on trade done between September 1 and December 31, sparking protests against the "unilateral step".

A notification issued by the Commerce Department also said benefits under the Merchandise Exports of India Scheme (MEIS) would be stopped from January 1, 2021, effectively confirming the end date of the scheme. The department has argued that the advance notice of four months provides certainty for future pricing decisions.

Exporters and industry insiders don’t agree with the government view. Bajaj Auto, the largest exporter of motorcycles and three