New Delhi: The government is likely to extend the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme to boost exports, a senior official said on Wednesday.
The scheme was extended in April this year for six months till September 30.
The official said the Commerce Ministry is in discussion with the Finance Ministry’s Department of Expenditure on extending the incentive scheme for another five years. It has also sought Rs 23,000 crore from the Finance Ministry for implementing the scheme in 2026-27.
The budget allocation under the scheme for 2025-26 was Rs 18,232 crore. The budget for the scheme for this fiscal year was Rs 10,000 crore. The official said that the Commerce Ministry’s request for the allocation for the current financial year is based on last financial year’s allocation.
The export incentive scheme, which was first rolled out in 2021, provides for a refund of taxes, duties, and levies that are paid by exporters during the production and distribution of goods. It reimburses exporters for taxes, duties, and levies at the central, state, and local levels that are not refunded under any other programme but are incurred during the manufacture and distribution of export products. The refunds help to restore a level playing field vis-a-vis exporters of other countries with whom Indian exporters have to compete in global markets. Refunds under the scheme range from 0.3 per cent to 3.9 per cent.
It was extended in April as part of the concession package to exporters following the uncertainty in global markets triggered by the Middle East conflict. Exporters were going through immense hardship due to the economic uncertainty as well as the disruption in shipping, which led to a sudden surge in transport costs. The government was keen to keep up the momentum in exports to prevent job losses, especially for MSMEs, which are large employers.
(IANS)
