Govt's decision to withdraw MEIS incentives set to hit textile exporters

The government has removed the benefit of 4 per cent Merchandise Exports from India Scheme on exports of made ups and garments with retrospective effect, that is, from March 7, 2019

The government’s decision to withdraw the Merchandise Exports from India Scheme (MEIS) with retrospective effect is likely to erode profit margins of textile players. It will also impact exports and fresh investment in the sector.

The government has removed the benefit of 4 per cent MEIS on exports of made ups and garments with retrospective effect, that is, from March 7. Moreover, the MEIS that had been granted to exporters of made-ups and garments till July 31 will be recovered, said a government notification. 

“Withdrawal of 4 per cent MEIS with retrospective effect has caused an extremely serious situation for the exporters