Finance Minister announces New Measures to Boost Exports and Housing

Finance Minister announces New Measures to Boost Exports and Housing

Finance Minister Nirmala Sitharaman on September 14, 2019 made few announcements to boost the Export Sector and Housing Sector. Before this, she had made major announcements on two occasions: 23rd August and 30th August.

In total, she made 15 announcements, out of which 12 are for Export and 3 are for the housing sector. The key highlights of the announcement are listed below:

New Measures to Boost Exports

1. New Scheme for Remission of Duties or Taxes on Export Product (RoDTEP)– It will replace the Merchandise Exports from India Scheme (MEIS). Existing dispensation in textiles of MEIS + old ROSL will continue up to 31.12.2019. 
   MEIS will transit into RODTEP from 1.1.2020.
   It will incentivise exporters at an estimated cost of Rs 50,000 crore to the exchequer.
2. Annual mega shopping festivals– Annual mega shopping festivals in India will be organized in 4 places across 2020 March in 4 themes (Gems & Jewellery, Handicrafts/Yoga/Tourism, Textiles and Leather)
3. Fully automated electronic refund route for Input Tax Credits (ITC) in GST
4. Export Credit Guarantee Corporation (ECGC) will expand the scope of Export Credit Insurance Scheme (ECIS). It is expected that the initiative will cost about Rs 1700 cr per annum
5. Revised Priority Sector Lending (PSL) norms for Export Credit- This will release an additional Rs. 36,000 crs. to Rs 68,000 crores as export credit under priority sector.
6. Effective monitoring of Export Financing by the Department of Commerce.
7. Leverage technology to reduce “Time to Export or Turn-around time”- An action plan to reduce Time to export/turn-around time in airports and ports benchmarked to international standards will be implemented by Dec 2019.
8. Free trade agreement (FTA) Utilisation Mission, headed by a Senior officer in Department of Commerce, will be set up.
9. An Online “Origin Management System” for exporters to enable them to obtain Certificates of Origin – CoO (under Rules of Origin) will be launched by DGFT soon in collaboration with Exports Inspection Council.
10. Time-bound adoption of mandatory Technical Standards
11. Affordable testing and certification infrastructure
12. Enable handicrafts industry to effectively harness e-commerce for exports

Measures to Boost Housing Sector

13. Special Window for affordable and middle income Housing to be setup– Rs 10,000 Crore by GOI and same amount from outside investor (Total amount- Rs 20,000 Crore)

For the construction of unfinished units in Housing Sector, A Special Window to provide last mile funding for housing projects which are non- NPA and non-NCLT Projects and are Net worth positive in affordable and middle income category to be set up.

Fund size : 10,000 crore to be contributed by GOI and roughly same amount from outside investors.

14. Relaxation of ECB guidelines for Affordable Housing.

15. House Building Advance- The interest rate on House Building Advance shall be lowered and linked with the 10 Year G Sec Yields.