NEW DELHI : The government on Friday extended export benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme to Special Economic Zones (SEZs), advance authorisation (AA) holders and export-oriented units (EOUs).
This move comes amid a backdrop of global economic uncertainties and supply chain disruptions, where extending RoDTEP benefits to previously uncovered sectors is poised to provide much-needed support.
With these sectors collectively constituting nearly 25% of India’s total exports, the government want to support them in handling international headwinds. The scheme, introduced in January 2021, has already provided support amounting to Rs 42,000 crore to over 10,500 export items.
The current rates of RoDTEP refunds vary between 0.3% and 4.3%, reflecting the diverse needs of different sectors within the export industry. The extension of the scheme, with a budget of Rs 15,070 crore for the current fiscal year and plans for a 10% increase in 2024-25, is a strategic move to boost India’s export competitiveness in international markets.
“Keeping budgetary allocation in view, the extension of RoDTEP to additional sectors is presently till September 30, 2024. The extension of the RoDTEP scheme to these sectors is aimed at enhancing India’s export competitiveness in international markets,” the statement said.
Key sectors such as engineering, textiles, chemicals, pharmaceuticals, and food processing are expected to benefit significantly from this extended support.
By refunding various central, state, and local duties, taxes, and levies that are not covered by other schemes like GST or Duty Drawback, the RoDTEP scheme aims to alleviate the financial burden on exporters and enhance their competitiveness on the global stage.