However the exporters demanded more measures to improve market access and cost competitiveness.
Director General of Foreign Trade, Alok Chaturvedi, released the mid-term review of the FTP.
The government today announced Rs 8,450 crore incentives for exporters in sectors like leather and agriculture, as it looks to boost outward shipments, which have been disrupted by implementation of goods and services tax (GST).
It further said MEIS incentives for two sub-sectors of textiles, ready-made garments and madeups, have already been increased to four per cent from two per cent, with an additional annual incentive of Rs 2,743 crore.
Exporters, essentially from MSMEs and labour-intensive sectors will now be eligible for 2% higher incentives under the Merchandise Export from India Scheme (MEIS), as per the mid-term review of the Foreign Trade Policy (FTP) released by Commerce and Industry Minister Suresh Prabhu on Tuesday in New Delhi.
The FTP, Prabhu said, also aims at facilitating increase in farmers' income through a focused policy for agricultural export.
He said that after the soon the process will be completely automated which will reduce processing and time required for refund.
The FTP will provide "additional annual incentive of Rs 749 crore for the leather sector, Rs 921 crore for hand-made carpets of silk, handloom, coir, jute products, Rs 1,354 crore for agri products, Rs 759 crore for marine products, Rs 369 crore for telecom, electronic components, Rs 193 crore for medical equipment", the ministry said in a tweet.
In April 201, the government had announced several incentives in the five-year FTP for exporters and units in the special economic zones (EPZs) to almost double India's exports of goods and services to $900 billion by 2020.
The FTP's mid-term review is aimed at mid-course correction.
A note on discussion by financial advisors dated November 30 reviewed by The New Indian Express shows Adhia's priority is "assessment of impact of GST on schemes and the status of inputs received from the state governments".
The commerce ministry had unveiled FTP 2015-20 in April 2015, with an aim to nearly double India's exports of goods and services to Dollars 900 billion by 2020.
The Ministry also notified that in order to solve the problem of blocked working capital for exporters in the aftermath of the implementation of GST, the export promotion schemes of duty free imports under advanced authorization are restored.
Under the MEIS scheme available to exporters, identified sectors are given duty exemption scrips, which are fixed at a certain percentage of the total value of their exports.