How Export Incentives Work?

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What are Export Incentives?
Export incentives are provided to exporters as an acknowledgement of bringing in foreign exchange and encouraging them to export specific goods or services. These incentives are a form of economic help the government offers to businesses that facilitate securing foreign markets.

Under the Foreign Trade Policy, numerous schemes provide promotional measures in India to amplify exports. The objective is to offset infrastructural inefficiencies and related costs and provide exporters with a level playing field.


To increase competitiveness in the global market, the government demands lower nepal phone number list taxes on export goods. It helps make domestic exports competitive by providing rebates in terms of export incentives to the exporter. The incentives offered ensure a wider reach of local products and a surge in the Indian export business.

Let us understand this with one of the export incentives examples: when the government gives a tax rebate, the exporter can reduce the product’s price. This helps increase the product’s competitiveness globally and ensures a wider reach.

Export incentives also rely on the availability of the goods. This means that if there is surplus production of a particular product, the government might offer an export incentive to avoid wastage of the goods.

Who Executes Export Incentives?
The DGFT mostly executes the export incentives under the Commerce and Industrial Ministry in India. Furthermore the Central Board of Indirect Taxes and Customs (CBIC) frames policy associated with levying and collecting customs duty, different export fees, penalties, and Goods and Services Tax (GST).