To boost India’s export growth and help small and medium-sized enterprises (SMEs) take advantage of government schemes, the government announced on Thursday the extension of export benefits under the Scheme for Remission of Duties and Taxes on Exported Products (RoDTEP) to e-commerce exports through post or couriers. The RoDTEP scheme provides for the refund of taxes, duties, and levies incurred by exporters during manufacturing and distribution that are not reimbursed under any existing mechanism at the central, state, or local level.
Commerce and Industry Minister Piyush Goyal stated that the step will help SMEs in the e-commerce sector and overall export growth from the country, contributing towards the target of achieving $1 trillion in merchandise exports by 2030. Goyal also released a handbook for SMEs focusing on e-commerce exports.
Meanwhile, the Apparel Export Promotion Council (AEPC) has urged the government to extend the rebate scheme, Rebate of State and Central Taxes and Levies (RoSCTL), for three more years. AEPC highlighted that this extension is crucial amidst the drop in demand in India’s traditional export markets, such as the US and Europe, due to the current global economic uncertainties.
Furthermore, recent data revealed a dip of 1.81% in engineering exports from April to November, reaching $69.46 billion compared to $70.74 billion in the corresponding period the previous year.
The commerce ministry is now focused on creating the necessary IT framework and other enablers to facilitate the extension of the RoDTEP scheme for e-commerce exporters.
