India is well-known for its rich soil and a perfect climate cycle for farming. According to a report, almost 60% of the population works in the agriculture industry, making India one of the biggest exporters of fresh fruits and vegetables.
The government helped the economy by giving tax breaks, low-interest loans, ads paid for by the government, and subsidies to exporters. The government also allows exporters and freight forwarders in India by giving them a lot of incentives to export, which helps them lower the overall cost of exporting.
Types of Government's Schemes in Export Business and Their Benefits
Here are some government schemes in India that help freight forwarders to avail of benefits, including:
This scheme replaced the old MEIS and offered refunds on all hidden and other taxes that other export incentive schemes don't refund. It is also known as the Rebate of Duties & Taxes on Exported Products Scheme, and it came into effect on January 1, 2021. It covers these duties and taxes, including state electricity duty charged on manufacturing goods for export, central and state taxes on fuel used to transport perishable goods, Mandi tax, and coal cess.
With this government program, you can bring raw materials like packaging, fuels, and more into the country duty-free. It helps keep fruits and vegetables fresh. It helps exporters to import raw materials at 0% import duty.
- EOU Scheme
The government put this program in place to make it easier for people to export fruits and vegetables. It lets people off the hook for some rules and taxes. This scheme covers compliance waivers, including domestic procurement of goods and duty-free imports.
The government introduced SEIS to service exporters. You can get a bonus of 3 to 7% of the net foreign exchange earnings if you meet the requirements. The requirement to avail of this scheme's benefits includes an active IEC with a net foreign exchange worth at least US$ 15,000. If multi-currency & exchange rates confuse you, you should choose Citrus Freight, which converts all your quotes into INR.
This plan helps exporters because it lets them bring capital goods with no customs duty. It also allows exporters to reduce their service exporter's capital costs. Choosing the right freight partner can learn more about the government's scheme benefits and requirements. Citrus Freight has rates for many shipping lines, so you can choose the best one for exporting fruits and vegetables.
- NIRVIK Scheme
These government programs help small exporters because they offer high insurance coverage at low premiums and make it easy to settle claims. The ECDC introduced this scheme as an insurance cover guarantee scheme that covers up to 90% of the loan amount and interest.
- GST Refund Scheme
The GST Act offers a few schemes for fruit and vegetable exporters in India, including the IGST Refund, the LUT Bond Scheme, and a 1% GST benefit for merchant exporters. The IGST Refund scheme lets exporters pay integrated GST on exports of goods that will spoil quickly and then get a refund from the customs office. By getting a "Letter of Undertaking" (LUT) bond, exporters can send goods out of the country without paying GST.
Many countries, like the UAE, the US, the UK, Oman, Malaysia, Nepal, Qatar, and others, demand fresh fruits and vegetables from India. The government also encourages agri logistics companies in India to fulfill this massive demand by offering many export incentives. Now, choose Citrus Freight as your export partner for perishable goods, frozen goods and agri products, start exporting fruits and vegetables, and receive benefits from the government.