What Happens After SEIS? ASSSE Pilot Survey 2025 and Incentives for Service Exporters Under India’s Current Trade Framework

In April 2025, the Ministry of Statistics & Programme Implementation (MoSPI) announced the successful completion of a Pilot Study for the Annual Survey of Services Sector Enterprises (ASSSE), a first-of-its-kind initiative aimed at bridging data gaps in India’s incorporated services economy (PIB Press Release). The pilot study was intended to provide valuable operational insights and a foundation for launching a robust, full-scale annual survey of incorporated service sector enterprises from January, 2026. The stated objective in the report is as follows:-

"Objective of the Pilot Survey on ASSSE

(i.) The service sector is a key driver of India's economy, contributing more than 50% to the country's GDP and providing millions of jobs. Accurate and comprehensive data on this sector is crucial for informed policymaking, strategic planning, and investment decisions. While the unincorporated part of the service sector is covered in Annual Survey of Unincorporated Sector Enterprises (ASUSE) conducted by National Statistics Office, there is a lack of granular data on the economic and operational characteristics, employment, and other related aspects of the incorporated service sector. This gap in data is primarily due to the absence of a regular national-level survey covering the various sub-sectors of the incorporated non-agricultural non-manufacturing sectors.

(ii.) The main objective was to test operational processes - enterprise response, clarity of survey instructions, efficacy of the questionnaire and the availability of key data from official records such as books of accounts, profit and loss statements, and labour registers."

Key Highlights:

• The pilot was conducted in two phases, covering over 15,000 enterprises using the GSTN database.
• Over 80% were private limited companies, many representing IT, legal, education, and creative services sectors.
• SMEs contributed significantly to employment and exports, validating the importance of incentive support.

Relevance to Service Exporters:

• The full rollout of ASSSE in 2026 is expected to provide granular, nationally comparable data on India’s dynamic service economy.
• Future policies may prioritize digital services, SaaS, legal tech, edtech, and outsourced analytics with an emphasis on SME inclusion.

SEIS: Service Exports

The Service Exports from India Scheme (SEIS) was once a powerful tool in the Indian government’s arsenal to support services-led exports. Introduced under the Foreign Trade Policy (FTP) 2015–2020, SEIS provided duty credit scrips ranging from 3% to 7% of net foreign exchange earned. These government-issued notes (scrips) could be used to pay for certain liabilities vis-à-vis the Government and were freely transferable. For software development firms, legal process outsourcing (LPO) providers, knowledge process outsourcing (KPO) outfits, SaaS companies, and professional consultants exporting services from India to global markets, SEIS offered a tangible reward for export success.

However, with SEIS officially ending after FY 2019–20, service exporters are left asking: What now? Its thus essential to break down the current status of SEIS, explores alternative incentive schemes available in 2025, and outline practical next steps for Indian service-sector businesses.

Part I: Where SEIS Stood and Why It Ended

The SEIS scheme was introduced as part of the Foreign Trade Policy 2015–20 by the Directorate General of Foreign Trade (DGFT). It applied to services exported under Mode I (Cross-border supply) and Mode II (Consumption abroad), with eligibility requiring minimum net free foreign exchange earnings of USD 10,000–15,000 depending on business structure.

The scheme:

• Applied only to services rendered from India to entities abroad.
• Granted benefits in the form of transferable duty credit scrips, not cash.
• Scrips could be used to pay customs duties and were freely sellable.

The Services Exports from India Scheme (SEIS) was discontinued due to a World Trade Organization (WTO) dispute regarding such measures being a prohibited form of subsidy. Consequently, the Indian government suspended SEIS and its counterpart for goods, the Merchandise Exports from India Scheme (MEIS).

The last year for which claims could be made was FY 2019–20. The government allowed a delayed application window with late fees up to 31 March 2021. No further extensions have been granted.

Part II: What’s the Status of SEIS in 2025?

As of July 2025:

• No SEIS benefits are available under the FTP 2023–28.
• Previously issued duty credit scrips remain usable within their original validity periods (18 months) but cannot be revalidated unless they expired while in Customs custody.
• Several industry bodies, particularly those representing IT/ITES, SaaS, and professional services, have made representations for a new service export promotion scheme. A Parliamentary Standing Committee Report [Report No. 179 dated 20.03.2023] recommended reviving SEIS or launching a replacement. However, no new scheme has been notified yet. It is hoped that the Pilot Survey on ASSSE is a step towards providing much required relief for service exporters.

Part III: Alternative Incentive Schemes for Service Exporters?

While SEIS may be gone, exporters in India's booming services sector - including software, legal, accounting, fintech, and creative industries - can still benefit from other schemes under India's evolving policy landscape.

EPCG (Export Promotion Capital Goods) Scheme

The EPCG Scheme allows duty-free import of capital goods for use in producing exportable services.

• For KPOs and IT firms, this may include servers, telecom equipment, or advanced software systems.
• Export obligation: Typically 6x of duty saved, to be fulfilled over 6 years.

Interest Equalisation Scheme (IES).

This scheme subsidized interest on working capital and export-related credit.

• As of the latest extension, valid until 31 December 2024.
• Offers a 3–5% interest rebate to MSMEs, especially relevant to startups in software services or compliance consultancies.

Market Access Initiative (MAI)

The MAI Scheme helps Indian service providers establish an international presence.

• Partial cost coverage for trade missions, events, and client acquisition.
• Beneficial for SaaS and design/UX agencies looking to tap overseas clients.

Duty Drawback Scheme

• Offers refunds on duties paid on imported software tools, licenses, or services used in export.
• Relevant for digital service exporters using licensed platforms or cloud infrastructure from abroad.

Summary Table

What Should Service Exporters Do Now?

1. Map your services to HS codes and DGFT notifications.
2. Apply for EPCG if investing in capital-heavy IT infrastructure.
3. Use IES to manage loan costs or working capital.
4. Apply under MAI via your EPC for foreign outreach funding.
5. Maintain all export documentation and foreign remittance proofs.

Even in the absence of SEIS, legal assistance can be critical to:

• Draft effective export contracts with jurisdiction and remittance safeguards.
• Assist in IEC registration, scheme application strategy, and compliance.
• Resolve disputes involving DGFT audits, Customs authorities, or FEMA/RBI rules.
• Help early-stage LPOs, SaaS platforms, and creative agencies align with applicable trade schemes.

Final Thoughts

India’s services sector, led by software, consultancy, legal, and creative firms, continues to grow as a global export force. While SEIS may have closed, a layered network of trade-linked incentives, credit support, and emerging data-backed reforms is taking shape. The future belongs to exporters who not only innovate in delivery, but also navigate incentives with strategic clarity.

Disclaimer: This article is based on publicly available information and DGFT notifications as of July 2025. It does not constitute legal advice. For tailored guidance or dispute resolution, contact KTB Law Offices.