Manufacturers raise concerns over scrapping of export incentives

Citing problems faced by dyes and chemical manufacturers in the wake of the pandemic, members of Gujarat Dyestuff Manufacturers’ Association (GDMA) have raised concerns over the scrapping of export incentives under the Merchandise Export from India Scheme (MEIS). GDMA sent a representation to Union finance minister, Nirmala Sitharaman, seeking to incentivise exports for the industry.

“During the times of pandemic, manufacturing and export has taken a major hit. At such a time, cost competitiveness is a major factor which will drive orders and thus, the government must incentivise exports in some way,” a manufacturer said.

As part of the MEIS, exporters used to get incentives in the range of 2-5%. GDMA comprises some 1,100 members, 95% of which are MSMEs. Gujarat contributes 60% to the pan-India exports of dyes and intermediates and with exports getting incentives, majority of the MSME units will greatly benefit, at a time when their order books are hit. The association has urged the finance minister to reinstate the scheme or the incentives.