b) Export Promotion Capital Goods (EPCG) Scheme has not liberalized th

Question

b) Export Promotion Capital Goods (EPCG) Scheme has not liberalized the import of capital goods

09 Apr 2024

Answer :

Word Count : 622

The Export Promotion Capital Goods (EPCG) Scheme is a vital component of India's export promotion strategy aimed at enhancing the competitiveness of Indian exporters in the global market. The scheme allows import of capital goods for pre-production, production, and post-production at zero customs duty, with the condition that the goods imported under this scheme are used for producing goods for export purposes. While the EPCG Scheme offers various benefits to exporters, it does not fully liberalize the import of capital goods. Let's delve deeper into the reasons behind this and understand the intricacies of the EPCG Scheme in the context of import liberalization.

1. Objective of EPCG Scheme: The primary objective of the EPCG Scheme is to facilitate the import of capital goods for the enhancement of export competitiveness. However, it is not designed to completely liberalize the import of capital goods without any restrictions. The scheme operates under certain conditions and obligations imposed on _________ _______ ___ _________ _________ ________ ________ ________.
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