NEW DELHI - India on Tuesday launched a new incentive scheme - compliant with World Trade Organization rules - to boost exports that will enable exporters to get a refund of taxes paid to the federal and state governments, its trade minister said.

The government plans to spend 194.4 billion rupees ($2.61 billion) offering incentives to exporters under the scheme that would be effective from January 2021, a trade ministry official told reporters.

India has set a target of $400 billion in merchandise exports for the current fiscal year ending in March 2022, compared to $291.2 billion in the previous fiscal year.

($1 = 74.3500 Indian rupees)

(Reporting by Aftab Ahmed; Writing by Manoj Kumar; Editing by Catherine Evans) ((manoj.kumar@thomsonreuters.com; +91(11) 49548029;))