Monetary, tax or legal incentives designed to encourage businesses to export certain types of goods or services. A government providing export incentives often does so in order to keep domestic products competitive in the global market. Types of export incentives include tax exemption on profits made from exports.
Investopedia explains 'Export Incentives'
Export incentives make domestic exports competitive by providing a sort of kickback to the exporter. The government collects less tax in order to deflate the exported good's price, so the increased competitiveness of the product in the global market ensures that domestic goods have a wider reach. This level of government involvement can also lead to international disputes that may be settled by the World Trade Organization (WTO).
FACILITIES AND INCENTIVES TO INDIAN EXPORTERS
Promotion of export has been a major thrust area of the Ministry of Commerce and Industry for the last three decades. Apart from this. many other Central / State
Ministries have also been involved in the promotion of India’s exports. Many Export
Promotion Councils, Public Sector Undertakings, Chambers of Commerce, Industries’
Associations and Services Organisations are also contributing towards the promotion of
The facilities and incentives presently available to the Indian exporters include the following. Marketing Development Assistance (MDA)
The Ministry of Commerce and Industry has a scheme of MDA, which was launched in 1963 with a view to stimulate and diversify the export trade, along with the development of marketing of Indian products and commodities abroad. The MDA is utilized for: Market research, commodity research, area survey and research;
Participation in trade fairs and exhibitions; Export publicity and dissemination of information; Trade delegation and study teams; Establishment of offices and branches in abroad; Grant-in-aid to Export