Educational institutes providing services to NRI students eligible for export incentives
Institutes providing education to non-resident Indians (NRIs) will be eligible to claim services export incentives under the commerce ministry's SEIS scheme.
Providers of eligible services are entitled to duty credit scrips on net foreign exchange earned under the Services Exports from India Scheme (SEIS). The directorate general of foreign trade (DGFT), under the commerce ministry, has stated that it has received references from members of trade seeking clarification on eligibility of firms providing educational services to NRI students for benefits under the scheme.
"It is clarified that for the purpose of claim of SEIS benefits...the educational services rendered by Indian institutes to NRIs (who constitute foreign consumers) are eligible for SEIS benefits under the foreign trade policy," the DGFT said in a policy circular. However, it said that services given to Indian students sponsored by NRIs would not be eligible, since such category of students cannot be considered as foreign consumers.
Along with goods, the ministry is taking several steps to promote exports of India's services as it accounts for over 55 per cent in the country's economy. The services exports increased to USD 160.7 billion in 2016-17 from USD 154 billion in the previous fiscal. India has also submitted a proposal in the World Trade Organisation (WTO) to relax global trade norms to promote services trade.