Financial Assistance and Incentives: How PEPC Eases the Export Journey

By AdminPublished On: February 20, 2025Categories: Project Exports Promotion Council of India (PEPC)0 Comments

The Project Exports Promotion Council of India (PEPC) plays a pivotal role in facilitating and promoting the export of Indian engineering and construction services globally. By offering a range of financial assistance programs and incentives, PEPC empowers Indian exporters to navigate the complexities of international markets, enhance their competitiveness, and expand their global footprint.

Financial Support Mechanisms Offered by PEPC

PEPC provides various financial support mechanisms designed to assist Indian exporters in project promotion, product development, and market expansion. These initiatives are tailored to address the unique challenges faced by exporters and to ensure they remain competitive on the global stage.

1. Market Access Initiative (MAI) Scheme

The Market Access Initiative (MAI) Scheme is a flagship export promotion program aimed at supporting exporters in accessing new markets and enhancing their presence in existing ones. The scheme adopts a focus product-focus country approach, enabling exporters to target specific products and markets strategically.

Key Features of the MAI Scheme:

Marketing Projects Abroad: Financial assistance is provided for activities such as product launches, international trade fairs, and buyer-seller meets, facilitating direct engagement with potential buyers.
Capacity Building: The scheme supports training programs, workshops, and seminars aimed at upgrading the skills of exporters, ensuring they are well-equipped to meet international standards.
Support for Statutory Compliances: Assistance is extended to help exporters comply with international regulations and standards, including certifications and quality assessments.
Market Studies: Funding is available for conducting market research and feasibility studies to identify potential markets and understand consumer preferences.
Project Development: Support is provided for developing project reports and detailed project proposals to attract international clients.
Development of Trade Portals: Assistance is offered for creating and maintaining web portals that facilitate international trade and provide exporters with vital market information.

Eligible entities under the MAI Scheme include Export Promotion Councils, trade promotion organizations, national-level institutions, research institutions, and individual exporters, particularly small and medium enterprises (SMEs). The financial assistance typically covers a significant portion of the expenses incurred, with specific percentages varying based on the activity and the size of the enterprise.

2. Merchandise Exports from India Scheme (MEIS)

The Merchandise Exports from India Scheme (MEIS) was introduced to offset infrastructural inefficiencies and associated costs involved in exporting goods produced in India. Under this scheme, exporters are granted duty credit scrips, which can be used to pay various duties levied on imported goods.

Highlights of MEIS:

Incentive Rates: Exporters receive incentives ranging from 2% to 5% of the Free On Board (FOB) value of exports, depending on the product and destination country.
Transferable Duty Credit Scrips: The scrips awarded under MEIS are transferable, allowing exporters to sell them in the market if they choose not to utilize them for their own imports.
Wide Coverage: MEIS encompasses a broad spectrum of products, including engineering goods, textiles, chemicals, and agricultural products, thereby benefiting a large segment of exporters.

In a significant move to support exporters, the Indian government announced the release of ₹56,027 crore under various export promotion schemes, including MEIS. This financial infusion is set to benefit over 45,000 exporters, with approximately 98% belonging to the Micro, Small, and Medium Enterprises (MSME) category. Such substantial support underscores the government’s commitment to bolstering the export sector and ensuring liquidity for businesses to meet international demand.

3. Export Promotion Capital Goods (EPCG) Scheme

The EPCG Scheme facilitates the import of capital goods for pre-production, production, and post-production at zero customs duty. This initiative enables exporters to upgrade their technological infrastructure, thereby enhancing production quality and efficiency.

Key Aspects of the EPCG Scheme:

Zero Customs Duty: Exporters can import capital goods without paying customs duty, reducing the initial investment burden.
Export Obligation: Beneficiaries are required to fulfill an export obligation equivalent to six times the duty saved on the imported capital goods, to be achieved over a period of six years.
Technological Upgradation: The scheme encourages exporters to modernize their production facilities, making them more competitive in the global market.

By alleviating the financial constraints associated with capital investments, the EPCG Scheme empowers exporters to enhance their operational capabilities and meet international quality standards.

4. Services Exports from India Scheme (SEIS)

Recognizing the potential of the services sector, the SEIS aims to encourage and maximize exports of notified services from India. Under this scheme, service providers are rewarded with duty credit scrips for their export performance.

Features of SEIS:

Incentive Rates: Service providers can earn duty credit scrips ranging from 3% to 5% of the net foreign exchange earned, depending on the nature of the service.
Transferable Scrips: Similar to MEIS, the scrips obtained under SEIS are transferable and can be utilized for payment of various duties.
Broad Spectrum of Services: The scheme covers a wide array of services, including professional services, educational services, healthcare, and tourism.

SEIS not only incentivizes existing service exporters but also encourages new entrants to explore international markets, thereby diversifying India’s export portfolio.

Role of PEPC in Facilitating Exporters

Beyond administering financial assistance schemes, PEPC offers a plethora of services aimed at supporting exporters throughout their international business journey.

1. Trade Fairs and Exhibitions

PEPC organizes and facilitates participation in international trade fairs, exhibitions, and buyer-seller meets. These platforms provide exporters with opportunities to showcase their products, network with potential clients, and gain insights into market trends.

Benefits of Participation: