Indian government offers export incentives to auto sector

In a bid to boost automobile exports from the country, the Indian government is now offering extended incentives to the auto sector, by adding cars and two-wheelers (of certain specifications only) under the market linked focus products category.

Under the market linked focus products category, items of high export intensity but low penetration in particular countries enjoy the benefit of import duty credit equivalent to 1.25 percent of the freight-on-board value of exports.

The Directorate General of Foreign Trade said passenger cars with engine capacities of up to 1,500cc have been placed under the market linked focus products category, for exports to some countries, including Russia, Singapore, Philippines, Pakistan, Saudi Arabia, the UAE and Turkey.

The notice also said that two-wheelers, including mopeds, not exceeding engine displacement of 500cc, have also been extended the export benefit for exports to Nigeria, Indonesia, Kenya, Tanzania, Mexico, Singapore, South Africa and Egypt.