India expands RoDTEP scheme to bolster international trade

11 Mar '24

2 min read

Pic: Adobe Stock

Insights

India extended its RoDTEP Scheme to crucial export sectors like textiles and chemicals, aiming to boost competitiveness and job creation.
Launched in 2021, RoDTEP has already allocated ₹420 billion ($5.08 billion) to support over 10,500 export items.
With a current budget of ₹150.7 billion ($1.82 billion), the scheme continues until September 30, 2024.

The Government of India has broadened the scope of its Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme, extending support to additional sectors crucial to the country's export economy. Announced by Union Minister of Commerce and Industry, and Textiles, Piyush Goyal in New Delhi, the expansion now includes Advance Authorisation (AA) holders, Export Oriented Units (EOU), and Special Economic Zones (SEZ) export units, which collectively account for approximately 25 per cent of India’s exports.

Significant beneficiaries of this extension will include sectors like textiles and chemicals, among others. The government's goal with this initiative is to not only improve competitive standing internationally but also to stimulate job creation and contribute to the broader economic prosperity, the ministry of commerce and industry said in a press release.

The RoDTEP Scheme, launched in January 2021, aims to refund various embedded taxes and duties levied on exported products, promoting a level playing field in the international market. To date, the initiative has supported over 10,500 export items with a total allocation of ₹420 billion (approximately $5.08 billion). The current financial year sees a budget of ₹150.7 billion (approximately $1.82 billion) for the scheme, with a planned increase of 10 per cent in the following fiscal.

Given the backdrop of global economic uncertainties and supply chain challenges, the extension of RoDTEP to previously uncovered sectors is a strategic move to bolster the exporting community against international headwinds. The scheme is set to continue until September 30, 2024, focusing on enhancing the export competitiveness of India in key markets.

This effort aligns with the vision of fostering an Aatmanirbhar Bharat and is part of a larger strategy, including the negotiation of new free trade agreements (FTAs), aimed at propelling India towards a $1 trillion merchandise export target.

Fibre2Fashion News Desk (DP)

More Ministry of Commerce & Industry News... More Textiles News - India...