Amidst global economic uncertainties and supply chain disruptions, the government has broadened the scope of a scheme aimed at enhancing the competitiveness of Indian exports worldwide by reimbursing various central, state, and local duties and taxes. The Remission of Duties and Taxes on Exported Products, RoDTEP scheme has been expanded to include support for advance authorization holders, export-oriented units, and special economic zones (SEZs).
This move is anticipated to particularly benefit sectors such as engineering, textiles, chemicals, pharmaceuticals, and food processing. The extension of the scheme to these additional sectors is currently applicable until 30 September.
Union Commerce Minister Piyush Goyal emphasized that extending the RoDTEP scheme to advance authorization holders, export-oriented units, and SEZs will assist the exporting community in navigating international challenges. Recognizing the significant contribution of these sectors to India’s exports, accounting for approximately 25% of total exports, Goyal highlighted the importance of this decision.
The advance authorization scheme enables exporters to import raw materials duty-free for manufacturing export products.
The RoDTEP scheme aims to refund duties and taxes that are not covered by the goods and services tax (GST) but are incurred in the manufacturing or processing of exported products.
Since its inception in January 2021, the RoDTEP Scheme has provided support totaling ₹42,000 crore to more than 10,500 export items.
For the current financial year, the scheme has a budget allocation of ₹15,070 crore, with plans to increase it by 10% in FY25.
