Extension of RoDTEP Scheme for Export Sectors

Amidst global economic uncertainties, there is a call for the government to extend the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for export-oriented units (EOUs) and special economic zones (SEZs) until the end of September.

Current Status and Expiry

• The RoDTEP scheme for exports from the domestic tariff area (DTA) is operational until September 30 of this year.
• For SEZs, EOUs, and advance authorisation (AA) holders, it expired on December 31 of the previous year.

Purpose and Implementation

• The scheme refunds non-creditable central, state, and local levies to boost India’s exports.
• Initially effective in 2021, it covered additional export sectors from March 11, 2024, to aid exporters facing international challenges.

Concerns and Suggestions

• The Export Promotion Council for EOUs and SEZs (EPCES) argues against denying RoDTEP benefits to specific exporters like EOUs, SEZs, and AA holders.
• In case of budget constraints, they suggest limiting the scheme to certain sectors/products instead of excluding small exporter groups.
• Export contributions from EOUs and SEZs comprise approximately 15% of total merchandise exports, indicating limited budget needs for their inclusion.
• A recommendation is made that all exporters be covered under RoDTEP until March 31 in constrained budget scenarios.

Financial Allocation

• An allocation of Rs 16,575 crore has been made for the RoDTEP scheme in the Union Budget 2014-25.

Additional Sector Insights

• Government capital expenditure and safeguard duties are crucial for the steel sector's performance.
• Saudi oil price adjustments indicate a tightening supply for Asian markets.
• The UP government's new export policy aims to provide additional benefits to exporters.
• The services Purchasing Managers' Index (PMI) rose to 59.3 in December, indicating demand buoyancy.