The Government of India, under the leadership of Union Minister of Commerce & Industry, Piyush Goyal, announced the extension of the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme to additional export sectors, including Advance Authorisation (AA) holders, Export Oriented Units (EOU), and Special Economic Zones (SEZ) export units. This extension comes as a recognition of the vital role played by these sectors, constituting approximately 25% of India’s total exports. Amidst global economic uncertainties and supply chain disruptions, the government aims to bolster the competitiveness of these sectors in handling international challenges.
Changes in the Scheme as in 2024
The RoDTEP Scheme, introduced in January 2021, has already provided substantial support amounting to ₹42,000 Crores to more than 10,500 export items categorized at the 8-digit ITC HS Code level. With the recent extension, the scheme is now applicable to additional sectors until 30th September 2024. This strategic move seeks to fortify India’s export competitiveness across various industries, including Engineering, Textiles, Chemicals, Pharmaceuticals, and Food Processing, among others.
About the Scheme
The Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme is a pivotal initiative by the Government of India designed to refund embedded taxes and duties on exported products. By alleviating the tax burden on exporters, the scheme aims to create a level playing field in the international market and stimulate the growth of India’s export-oriented industries. Through targeted support to critical export sectors, RoDTEP aligns with the government’s vision of fostering an Aatmanirbhar Bharat and promoting sustainable economic development.
Benefits of the Scheme
The extension of the RoDTEP Scheme to additional sectors such as AA, EOU, and SEZ units is expected to have several benefits. It will ensure predictability and stability in policy regime, remove the burden of taxes and levies, and provide a level playing field for exporters. Moreover, the scheme aims to boost employment opportunities, stimulate economic growth, and align with the vision of building an Aatmanirbhar Bharat.
Data Insights
– The RoDTEP Scheme has provided support amounting to ₹42,000 Crores to more than 10,500 export items since its inception in January 2021.
– The scheme has a budget of ₹15,070 Crore for the current financial year, with an additional increase of 10% in FY 2024-25.
– The extension of RoDTEP to additional sectors is presently applicable until 30th September 2024.
– The RoDTEP Scheme aims to refund embedded taxes and duties on exported products, fostering competitiveness and growth in key export sectors.
The extension of the RoDTEP Scheme to additional export sectors reflects the government’s commitment to supporting exporters and enhancing India’s competitiveness in the global market.
