Government Initiatives
With the growing need for electronic goods, the Ministry of Electronics and Information Technology (MeitY) has implemented several production-linked incentives (PLI) to improve electronics production in India. The government has launched schemes such as the Manufacturing of Electronic Components and Semiconductors (SPECS), Modified Electronic Manufacturing Clusters (EMC 2.0), etc., to promote the country's electronic goods industry.
To further develop and increase the market share of the Indian BPO industry, the Government of India has implemented schemes such as Northeast BPO Promotion Scheme (NEBPC) and India BPO Promotion Scheme (IBPS).
Software Technology Parks of India (STPI) Scheme
An autonomous society under Ministry of Electronics and Information Technology is implementing STPI scheme, which is a 100% export-oriented scheme for developing and exporting computer software, including exporting professional services using communication links or physical media.
Apart from the above-mentioned specific schemes, the Government of India has taken several measures to offset infrastructural inefficiencies and associated costs to provide exporters with a level playing field. Some of these can be mentioned as below.
Remission of Duties and taxes on Exported Products (RoDTEP)
Under this scheme, goods and products exporters are granted freely transferable duty credit scrips on realized FOB value of exports in free foreign exchange at a specified rate. Such duty credit scrips can be used to pay basic custom duties for importing inputs or goods.
Service Exports from India Scheme (SEIS)
The government initiated this scheme to offer service providers freely transferable duty credit scrip at 5% to 7% of net foreign exchange earned through exports.
Duty Exemption & Remission Schemes
These schemes enable duty free import of inputs for export production with export obligation. These schemes consist of Advance Authorization Scheme, Duty Free Import Authorization (DFIA) Scheme, Interest Equalization Scheme (IES), Zero duty EPCG scheme, Post Export EPCG Duty Credit Scrip Scheme, etc.