The Merchandise Exports from India Scheme (MEIS) was introduced by the Government of India on 1 April 2015 under the Foreign Trade Policy (FTP) umbrella for 2015-2020. The scheme aimed to promote India's merchandise exports by offering financial support in terms of freely transferable "duty credit scrips" to exporters. These incentives helped remove some of the costs and infrastructural inefficiencies associated with international trade, making Indian exports more competitive.
MEIS was established with four main objectives:
Under MEIS, exporters of products listed in Appendix 3B to specified markets were rewarded with duty credit scrips. These scrips typically amounted to 2–5% of the FOB value of exports, with certain items eligible for up to 7%.
The duty credit scrips could be used to pay Basic Customs Duty, Additional Customs Duty, excise duty, and service tax (prior to the rollout of GST).
In addition, the scrips were freely tradable, enabling exporters to sell them in the open market. This flexibility allowed non-importing exporters to benefit from the incentives, thereby improving liquidity and strengthening cash flows.
MEIS embraced diverse products and markets, providing incentives suited to different industries and export markets, with certain exclusions.
Benefits under MEIS ranged between 2%-5% of the export's FOB price. The incentives differed based on the product and market destination, with pharma and handicrafts providing as much as a 7% incentive. For instance, if the exporter exported textiles valued at $1,000 to the US, the exporter would be given a duty credit scrip of $50 based on the incentive rate.
In order to avail MEIS benefits, exporters undertook the following procedures:
MEIS was withdrawn for exports shipped after December 31, 2020, because of difficulty at the World Trade Organisation (WTO) with regard to its WTO compliance. It was substituted with the Remission of Duties and Taxes on Export Products (RoDTEP) scheme from January 2021.
| Aspect | MEIS | RoDTEP |
| Type | Direct incentive/subsidy | Refund of embedded taxes like GST. |
| Incentive Rate | 2–7% (product/destination) | 1–3% refund rates |
| WTO Compliance | Challenged as subsidy | Compliant (refund only) |
| Transferability | Scrips transferable | Not transferable |
| Coverage | Notified products/markets | Broader coverage, most products |
MEIS offered several benefits to exporters, ranging from financial incentives to improved market presence. Key advantages included:
Related: Types of Shipping Containers with Size & Dimensions
Although the MEIS scheme provided advantages, it also had a few weaknesses, such as issues with administration and long-term viability concerns.
Conclusion
The Merchandise Exports from India Scheme was instrumental in boosting India's merchandise exports between 2015 and 2020. Through its focused export incentives, the scheme enabled Indian exporters to compete on the global stage, curtail trade deficits and explore new markets. While it has since been replaced by RoDTEP, MEIS continues to have a lasting influence on India's export profile. The shift to RoDTEP marks a transition towards a more WTO-friendly, tax refund mechanism, promoting long-term efficiency gains in exporters
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