Two major export promotion schemes likely to get extension
NEW DELHI : Two important export promotion measures–the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme and the Interest Equalisation Scheme (IES)–are likely to be extended to help exporters retain their competitiveness in a choppy global market, sources said.
The RoDTEP scheme, under which all embedded input duties and taxes paid during manufacture of an exported product are reimbursed, is valid only till September 30, 2024. But it is now set to be extended for all 10,000 plus product lines that are currently covered under it.
“The extension of RoDTEP is likely to be at least for the fiscal year 2024-25 and may even be beyond it depending on funds,” an official tracking the matter told businessline. Certain iron and steel items not covered under RoDTEP are likely to continue to be excluded.
A meeting of the Quarterly Monitoring Committee for RoDTEP and the RoSCTL schemes headed by the Finance Secretary will take place soon where a call will be taken on RoDTEP extension and its duration, the official added.
“Our review suggests that if exports continue to grow slow, we can manage with available funds of Rs 16,075 crore for 2024-25. However, if there is substantial growth in exports we will need to ask for more funds. But we foresee some savings under RoSCTL,” the source said.
The RoSCTL or Rebate of State & Central Taxes and Levies scheme is for exports of made-up articles & garments, and is similar to RoDTEP scheme.
“Textile exports are almost flat this year so the10 per cent enhancement in outlay they got in the budget, of about Rs 800 crore, should be available for RoDTEP. But the decision has to be taken by the Finance Secretary-led committee,” the source explained.
An early decision is also likely on extension of the interest equalisation scheme as it already lapsed for the 410 beneficiary sectors (non-MSME) on June 30 2024. Only a two-month extension was given to the MSME sector which will lapse this month-end. Under the scheme, loans are extended at a subsidised rate determined by the government to beneficiary exporters.
A final note seeking extension of the interest subvention scheme, for all beneficiaries covered under the lapsed scheme, will be soon presented before the Expenditure Finance Committee and then to the Union Cabinet. The Commerce Department wants a five-year extension but a final decision will be taken by the EFC and the Cabinet.
Goods exports in the April-July 2024-25 period grew 4.15 per cent (year-on-year) to $144.12 billion while in July exports dipped 1.4 per cent to $33.98 billion affected by geo-political turmoil and increased protectionism.