The central government on March 8 extended the scope of benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme to companies functioning in Special Economic Zones (SEZ) as well as those in Advance Authorisation (AA) holders and Export Oriented Units (EOU).
Keeping budgetary allocation in view, the extension of RODTEP to these additional sectors is presently applicable till September 30, 2024. This move is expected to benefit sectors, including engineering, textiles, chemicals, pharmaceuticals and food processing.
“This decision comes in recognition of the significant contribution these sectors make to India’s Exports, constituting approximately 25 percent of our exports. Amidst global economic uncertainties and supply chain disruptions, extending RoDTEP to the uncovered sectors such as AA, EOU, and SEZ units will help the exporting community in handling the international headwinds,” the commerce ministry said in a statement.
The RoDTEP scheme is based on globally accepted principle that taxes and duties should not be exported, thereby providing rebates or refunds on embedded central, state and local duties to the exporters on certain products.
Since its inception in January 2021, the RoDTEP Scheme has already provided support amounting to Rs 42,000 crore to more than 10,500 export items at 8-digit ITC HS Code level. In the current financial year, the scheme has a budget of Rs 15,070 crore, while for 2024-25, the allocation has been increased by 10 percent.
“By providing support to crucial export sectors, the government aims to not only enhance their competitiveness but also create employment opportunities and contribute to overall economic growth, aligning with the vision of building an Aatmanirbhar Bharat,” according to the statement.
The government said that it is confident that the proactive measures being taken, including efforts to negotiate new Foreign Trade Agreements (FTAs), will further accelerate India’s journey towards achieving $1 trillion in merchandise exports.
