CIO Insider

CIOInsider India Magazine

Separator

Government Extends RoDTEP Benefits for E-Commerce Exports

CIO Insider Team | Friday, 29 December, 2023
Separator

Export benefits under the RoDTEP plan for e-commerce exports by courier or postal service have been extended by the government.

Refunds of taxes, duties, and levies that exporters incur during the production and distribution of goods and are not receiving reimbursement under any other mechanism at the federal, state, or local levels are made possible by the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme.

The Directorate General of Foreign Trade (DGFT), an agency of the trade ministry, will shortly set up the required IT infrastructure and other facilitators to expand the program to exporters.

"The government will be extending the RoDTEP benefits to enable the MSME sector to get them, particularly for the exports through e-commerce," Commerce and Industry Minister Piyush Goyal told reporters.

According to him, the gem and jewelry, handloom, handicraft, AYUSH products, pharmaceutical, leather, and textile industries can all profit from the change.

The announcement is significant since e-commerce is the new export route and is predicted to reach $2 trillion globally by 2030.

The RoDTEP program is funded by the government, and for 2023–2024, a budget of Rs 15,070 crore has been set out for it. Approximately Rs 12,000 crore of the annual budget has been used up to December.

The program helped $450 billion worth of exports in FY23 at an expense of Rs 13,020 crore. In 2021–2022, the program cost Rs 12,100 crore and helped export USD 421 billion.

It includes 10,610 goods exports from businesses to businesses. The RoDTEP incentive will be applied to the same exported goods through courier or e-commerce.

By 2030, when overall merchandise exports reach $1 trillion, India hopes to export $200 billion through e-commerce.

The Directorate General of Foreign Trade (DGFT), an agency of the trade ministry, will shortly set up the required IT infrastructure and other facilitators to expand the program to exporters.

Exports from e-commerce have been given a lot of attention in the Foreign Trade Policy of 2023. The maximum amount per consignment of products purchased online is now Rs 10 lakh, up from Rs 5 lakh.

Goyal also published a manual for MSMEs that emphasizes exporting goods via e-commerce.

With a growing online customer base, a strong digital infrastructure, and favorable government policies, the nation is well-positioned to take advantage of this global market's enormous potential.

DGFT regional authorities inked an MOU with Shiprocket to perform capacity building and handholding workshops as part of the Districts as Export Hubs Initiative, which involves e-commerce outreach.

This is a component of the DGFT's partnership with various e-commerce platforms and enablers to conduct training sessions in rural areas around the nation with an emphasis on advancing these exports.

Current Issue
Ace Micromatic : Pioneering Excellence in Comprehensive Manufacturing Solutions