Extension of RoDTEP Scheme for Exporters
The government has extended fiscal benefits under the RoDTEP scheme for exporters by six months until September 30, amidst ongoing global trade disruptions due to the West Asia crisis.
RoDTEP Scheme Overview
- Launched in 2021 to provide refunds on taxes, duties, and levies incurred by exporters during manufacturing and distribution.
- Covers expenses not reimbursed under any other central, state, or local mechanisms.
- Refund rates range from 0.3% to 3.9%.
Current and Proposed Budget Allocations
- The scheme was initially valid until March 31.
- 2025-26 budget allocation: Rs 18,232 crore.
- Proposed increase for 2026-27: Rs 21,709 crore; actual allocation: Rs 10,000 crore.
Challenges for Exporters
- High US tariffs and the West Asian crisis impact exporters.
- Freight and insurance costs are rising due to tensions involving the US, Israel, and Iran.
- February merchandise exports dropped by 0.81% year-on-year to USD 36.61 billion.
Logistical and Trade Impacts
The crisis in West Asia has led to altered maritime logistics, affecting shipping schedules and costs. The government aims to support exporters by restoring scheme rates and value caps.
Additional Government Measures
- Launch of Rs 487 crore RELIEF (Resilience & Logistics Intervention for Export Facilitation) scheme.
Import Policy Updates
- Extension of "free" import policy for tur and urad until March 31, 2027.
- No minimum import policy conditions for yellow peas, with immediate effect.
- Minimum import price for virgin multi-layer paper board set at Rs 67,220 per ton, extended until April 30.
