Exploring the Types of Export Incentives

Exports are a crucial contributor to a nation's economic growth. To encourage exports, governments across the world offer various types of export incentives. Some of these incentives are:

1. Tax incentives
2. Legal support
3. Monetary incentives
4. Regulatory frameworks designed to boost exports

Unveiling the Trade Infrastructure for Export Scheme (TIES)

The Trade Infrastructure for Export Scheme (TIES) was initiated in 2017 with several objectives:

1. Enhancing export competitiveness
2. Reducing gaps in export infrastructure
3. Developing first mile and last mile connectivity
4. Addressing quality and certification measures

Under the TIES scheme, the following agencies receive financial support from the Government of India.

1. Apex Trade bodies
2. SEZ authorities
3. Commodities board
4. Export Promotion Councils

Unlike the Assistance to States for Development of Export Infrastructure and Allied Activities (ASIDE) scheme, the cost of projects under the TIES scheme is equally shared between the central and state governments. As of 2018, 16 projects were approved under the TIES scheme. Some of the approved projects include:

1. Establishment of a trade promotion centre in Bhopal
2. Implementation of a solid waste management system in Noida
3. Establishment of an integrated cargo terminal at the Imphal International airport
4. Establishment of a laboratory complex for the export inspection agency at Visakhapatnam
5. Establishment of a cold chain in Madhya Pradesh

The scheme will continue until 2020.

What is the ASIDE Scheme?

The Assistance to States for Infrastructure Development of Exports (ASIDE) was launched in 2002 to assist states in developing export-related infrastructure. ASIDE was discontinued in 2015-16 after the state’s share of Centre’s net tax revenues was increased from 32% to 42% as per the recommendations of the 14th finance commission. The TIES scheme replaced ASIDE, and the details of the scheme are mentioned in the above sections.

The information provided above will be beneficial for those preparing for the UPSC 2021.

Related Links