Extension of the RoDTEP Scheme
The Indian government has extended the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme by six months, now set to end in March 2026. This decision aims to provide relief to exporters facing challenges due to increased tariffs from the US, a significant market for Indian exports.
Details of the RoDTEP Scheme
- Launch and Purpose:
- Introduced in 2021, the scheme refunds taxes, duties, and levies incurred during the manufacturing and distribution of goods.
- Addresses costs not reimbursed under other mechanisms at the central, state, or local levels.
- Rationale for Extension:
- The scheme was initially set to conclude on September 30.
- Extension aims to assist exporters during a period of global economic challenges and higher US tariffs.
- Benefit Eligibility:
- Entities such as advance authorization holders, export-oriented units, and those in special economic zones can avail benefits until March next year.
- Refund Rates:
- Refunds range from 0.3% to 3.9%, with revised rates applicable to all export items.
Impact on Exporters
- Industry Reaction:
- According to SC Ralhan, President of the Federation of Indian Export Organisations, the extension removes uncertainty for exporters.
- The scheme's continuation is seen as critical for maintaining export momentum amid global trade challenges.
- Competitiveness:
- The RoDTEP scheme helps in neutralizing non-creditable taxes and duties.
- It is instrumental in keeping Indian exports competitive on the global stage.
