In a move to boost exports and support businesses amid global economic uncertainties, the Indian government has extended export benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme to companies in special economic zones (SEZs) and export-oriented units (EOUs). This decision aims to provide relief to exporters facing
international headwinds and supply chain disruptions.
Inclusion of Uncovered Sectors
The commerce ministry announced the extension of RoDTEP benefits to previously uncovered sectors, including Advance Authorisation (AA) holders, EOUs, and SEZ units.
These sectors collectively account for approximately 25% of India’s total exports. By incorporating these sectors into the scheme, the government intends to enhance the competitiveness of Indian exports in global markets.
Scheme Extension Details
According to a notification issued by the Directorate General of Foreign Trade (DGFT), the RoDTEP scheme will be extended to AA holders and EOUs from March 11, 2024, until September 2024. The extension for SEZ units will be implemented once their IT systems are integrated with the customs automated system ICEGATE.
Additionally, the scheme has been extended by three months, until September 30, 2024, to provide continued support to exporters.
Background and Objectives of RoDTEP
The RoDTEP scheme was introduced in August 2021 as an export promotion initiative. It aims to refund various central and state duties, taxes, and levies imposed on input products used in the manufacturing and distribution of exported goods. These refunds are intended to make Indian exports more competitive in international markets.
Since its inception in January 2021, the RoDTEP scheme has disbursed approximately Rs 42,000 crore in support to over 10,500 export items. The current scheme budget for the financial year stands at Rs 15,070 crore, with an additional 10% increase planned for 2024-25.
Key Beneficiaries
The extension of RoDTEP benefits to SEZs, EOUs, and AA holders is expected to provide significant relief to key export sectors, including engineering, textiles, chemicals, pharmaceuticals, and food processing. These sectors will benefit from reduced costs and enhanced competitiveness in international markets.
The government’s decision to extend RoDTEP benefits to SEZs, EOUs, and AA holders is a positive step towards supporting exporters and boosting India’s export competitiveness. By addressing the concerns of these sectors and providing timely financial assistance, the government aims to mitigate the impact of global economic challenges and position India as a strong player in international trade.
