Incentives for Exports in India: An Evaluation
Publication dateJan, 1991
DetailsReport submitted to the Ministry of Finance, Government of India.
The study examines the major export incentives in India and their cost to the public exchequer. By analyzing the possibilities of rationalization in the context of the rapidly changing exchange rate, it offers two suggestions for reducing the burden on the exchequer arising through export promotion schemes. First, at the prevailing exchange rate, incentives of the export sector could be limited to about 30 per cent of the export earnings. Second, the existing incentive rates could be made more uniform by scaling down the significant differences found in the present rates, among various commodity groups.