Policy Frame for Support to Deemed Exports

Kalyan M Raipuria Purnima M Gupta In a country faced with a persistent balance of payments deficit, deemed exports are valuable to the extent they result in earning or saving of foreign exchange. However, over the period since 1970, the list of items covered under deemed exports has been enlarged considerably Even transactions not resulting in foreign exchange earning have been included under deemed exports. It is worthwhile examining whether the incentives extended to deemed exports, and the implied cost, are justified.