How Does the EPCG Scheme Impact the Cost of Imports?
The EPCG (Export Promotion Capital Goods Scheme) is a trade facilitation scheme that allows exporters to import capital goods duty-free for the manufacture of export products. By eliminating import duties, the EPCG scheme significantly reduces the cost of capital goods, making them more affordable for exporters. This, in turn, helps to lower the overall cost of production, enabling exporters to offer their products at competitive prices in the global market. Additionally, the EPCG scheme can promote technology upgradation and enhance the competitiveness of Indian exporters.