The government of India enhances export competitiveness by extending RoDTEP support to AA holders, EOUs, and SEZ units, aiming to bolster the economy.
The Indian Government, under the stewardship of Union Minister Piyush Goyal, has announced a significant expansion of the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme, now encompassing Advance Authorisation (AA) holders, Export Oriented Units (EOU), and Special Economic Zones (SEZ) units. This strategic move is set to fortify India’s position in the global export arena by addressing the unique challenges faced by these sectors, which collectively account for about a quarter of the nation’s exports.
Amid global economic uncertainties and the resultant supply chain disruptions, the RoDTEP Scheme’s extension is a timely intervention. It promises to mitigate the impact of international market volatility on Indian exporters, particularly those operating within the AA, EOU, and SEZ frameworks. This decision reflects the government’s acknowledgment of the crucial role these sectors play in sustaining India’s export momentum.
Introduced in January 2021, the RoDTEP Scheme has been a cornerstone policy for promoting export-oriented growth, reimbursing a wide array of domestic taxes and duties that are not refunded through any other mechanism. With an initial disbursement of ₹42,000 crores benefiting over 10,500 export commodities, the scheme has significantly contributed to enhancing the cost-competitiveness of Indian exports on the world stage.
For the fiscal year, the scheme boasts a budgetary allocation of ₹15,070 crore, with plans for a 10 percent increment in the subsequent year. This financial commitment underscores the government’s vision of fostering a self-reliant India through bolstered export capabilities.
The extension, valid through September 30, 2024, is anticipated to catalyse growth across diverse sectors, including engineering, textiles, chemicals, pharmaceuticals, and food processing. By reducing the tax burden on exporters, the RoDTEP Scheme is poised to amplify India’s export volume, thereby generating employment and stimulating economic progress.
In concert with these measures, the government’s efforts to forge new Free Trade Agreements (FTAs) are expected to further secure India’s standing as a formidable global exporter. Embracing these proactive strategies, India is on course to achieve its ambitious target of USD One trillion in merchandise exports, propelling the nation towards sustained economic vitality and global competitiveness.
Source: PIB Delhi
