Launched in 2015, Service Exports from India Scheme is an incentive scheme that offers reward at 5% or 7% of net foreign exchange earned and covers service providers located in India.
Services such as animation, visual effects, nursing and tele-medicine may soon enjoy the benefits offered under the Service Exports from India Scheme (SEIS) as the government plans to expand the ambit of the flagship incentive programme. The department of commerce is considering adding more services to the already 120-odd services that get the benefits. “We want to broaden the scope of the scheme in line with the Central Product Classification (CPC). We need more services in it such as VFX, animation and telemedicine,” said an official.
Launched in 2015, SEIS is an incentive scheme that offers reward at 5% or 7% of net foreign exchange earned and covers service providers located in India. Under the scheme, the incentive scrips issued are transferable and can be used for payment of basic and additional customs duties.
Incentives to services exporters under the scheme in 2018-19 were Rs 4,262.8 crore. In the April-September, the government issued 4,260 scrips worth Rs 3,938 crore. At present, the scheme covers nine broad services sectors including communication, business, construction and tourism, among others. Only those service providers who are members of the Services Export Promotion Council can benefit. “We are pressing to widen the SEIS so that it can cover more services,” said Sangeeta Godbole, director general at SEPC. Experts said adding more services will make exports of those services globally competitive.
“The government should actually include software, telecom and financial services, which have been currently kept out of the regime. This move will make India’s services sector competitive by offering rewards to offset infrastructural inefficiencies and associated costs involved, especially in the upcoming sectors,” said a Delhibased expert.
BipinSapra, partner at EY, said the initiative will promote services exports and boost the foreign exchange reserves, given that incentives linked to exports of goods are already disputed at WTO.
