Authorities more likely to prolong export advantages beneath RoDTEP scheme for pharma, metal, chemical sectors

“As exports aren’t doing good for the previous couple of months, there’s a demand to increase it for about six months until March 2024. It’s into consideration. We could prolong it,” the official mentioned.

These three sectors had been late entrants into the scheme that goals to refund duties, taxes and levies on the central, state and native degree that will get added to the price of merchandise meant for exports.

This scheme is a substitute for the Merchandise Exports from India Scheme (MEIS) which ended final yr.

At current, over 10,342 export gadgets get the RoDTEP advantages.

The inducement is paid within the type of transferable obligation credit score scrip which can be utilized to pay import duties or offered out there by exporters. When the RoDTEP scheme was first introduced in late 2020 and notified in August 2021, these sectors weren’t included as a result of they had been already performing effectively on the export entrance. From final yr, the nation’s exports began dealing with international headwinds resulting from international uncertainties and disruption in provide chains resulting from Russia-Ukraine warfare.

Medication and prescription drugs accounted for five.68 per cent of India’s exports in 2022-23 at USD 23.5 billion.

Exports of iron and metal merchandise had been at USD 9.7 billion final yr or 2.17 per cent of the whole merchandise exports.

Share of chemical substances in exports within the final fiscal was 3.33 per cent or USD 14.9 billion.

Throughout April-July this fiscal, exports of natural and inorganic chemical declined 15.17 per cent to USD 9.1 billion.

Iron and metal exports rose 8.81 per cent to USD 9.9 billion whereas shipments of medicine and prescription drugs have proven a development of three.99 per cent to USD 8.71 billion.

Nevertheless, in July pharma exports had declined.

In 2022-23 the RoDTEP supported USD 450 billion value of exports at the price of Rs 13,020 crore. Whereas in 2021-22 the scheme aided USD 421 billion of exports and value Rs 12,100 crore.