Allocations has been increased for some of the key exports. This has boosted the schemes at a point of time when the tepid external demand comes from the developed countries and has weighed an outbound shipment from India specifically.
As per the budget announced, the allocation for the commerce industry has increased by 10%. As compared to previous year’s value (Rs.13,699 crore), this year’s value has been increased to Rs.15,069 crore. Similarly, a hike in the allocation was announced for garments nad made-ups. The current allocation given was Rs.8045 crore. Both the schemes allotted were embedded as a non-creditable source. This also includes the central, state and the local levies.
The allocation on the interests have been hiked for the 4th time in a row. The current allocation given is Rs. 2,376 crore. According to the Federation of Indian Export Organization (FIEO), “the increase in the allocation may result in increasing the subvention support on the interest rate”.
In a survey taken by the FIFO, it was found out that the survey outlook for a merchandise export will continue to remain flat if there is no increase in the global growth in 2023. Due to this, the robust services will widen the trade deficit. In between in all this, the Transport and Marketing Assisstance (TMA) will be ruled out of the scheme allocation. The amount of scheme allocation is hardly Rs.1 lakh. It is comparatively to last year’s allocation of Rs.545 crore. The people having knowledge must be aware that the commerce department does not need any support or allocation from the government.
The TMA was launched in 2019, keeping in mind specific agricultural products. Its provides aid for the international component of agricultural product so as to mitigate the cost of exports. The scheme was valid until 2021. After which it was given a new look and introduced to the farmers and exporters who were going through the challenges like freight costs and container shortage.
