EPCG Scheme Explained: How to Reduce Capital Costs in Export-Linked Projects

The EPCG Scheme is a government initiative in India aimed at boosting exports by enabling manufacturers and service providers to import capital goods at reduced customs duty. These goods, essential for producing exportable products or rendering export services, can be imported with zero or concessional duty under this scheme. The scheme mandates that beneficiaries fulfill an export obligation equivalent to six times the duty saved within six years. By promoting technological upgrades and enhancing production capabilities, the EPCG Scheme facilitates cost competitiveness for exporters. Its benefits extend to various industries, fostering economic growth and global trade participation. This initiative underscores the government's commitment to strengthening India's export sector.