PIB Analysis 21-01-23 Part 2

PIB Analysis 21-01-23 – Part 2

Export Promotion Capital Goods (EPCG) Scheme

  • The Indian government has announced a one-time relaxation from maintaining average export obligation and an option to extend the export obligation period for certain sectors under the Export Promotion Capital Goods (EPCG) Scheme.
  • The sectors that are eligible for this relief are the Hotel, Healthcare, and Educational sectors.
  • For the years 2020-21 and 2021-22, these sectors will not be required to maintain average export obligation for EPCG authorizations issued to them.
  • These sectors will also have the option to extend the export obligation period for a longer duration, without having to pay any additional fees.
  • This relaxation has been provided in light of the economic slowdown caused by the COVID-19 pandemic.
  • This relief will help the Hotel, Healthcare and Educational sectors to cope with the negative impact of the pandemic on their export activities.
  • The Export Promotion Capital Goods (EPCG) scheme is a trade promotion scheme implemented by the Indian government that allows duty-free import of capital goods for the purpose of export production in India.
  • The scheme aims to encourage the production of goods for export by providing import duty concessions on capital goods.
  • The EPCG scheme is administered by the Directorate General of Foreign Trade (DGFT) and is governed by the Foreign Trade Policy of India.

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