Export Promotion Schemes

Export Promotion Schemes are policy instruments and institutional mechanisms designed to enhance the international competitiveness of domestic goods and services by reducing transaction costs and offsetting fiscal disabilities.

Under Indian Economy

• They directly impact India's current account balance, foreign exchange stability, and economic growth objectives under General Studies Paper III.
• Understanding these schemes is essential for analyzing India's compliance with World Trade Organization mandates on export subsidies.
• They illustrate the transition of Indian trade policy from indirect tax concessions to production-linked and infrastructure-focused support mechanisms.

UPSC frequently frames questions around the shift from traditional duty-drawback subsidies to WTO-compliant instruments like RoDTEP and the Production Linked Incentive scheme. Questions test candidates on whether fiscal incentives effectively address underlying structural bottlenecks such as high logistics costs, infrastructure deficits, and MSME integration into global value chains. Examiners also expect candidates to critically evaluate how these schemes support diversification of both export markets and product baskets.

• Government policies and interventions GS2
• Liberalization GS3