New Delhi, Oct. 1 -- I welcome the government's decision to extend the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme till December 31, particularly at a time when Indian exporters are facing geopolitical uncertainties. But one question comes to my mind: why has the scheme been extended for only three months?
RoDTEP matters to MSME exporters because it refunds certain taxes, duties and levies incurred in the manufacturing and distribution of goods that are not refunded through other mechanisms. RoDTEP rates vary from 0.3 to 3.9 per cent, depending on the product and subject to applicable caps. If not reimbursed, these costs can make Indian goods more expensive and less competitive in overseas markets.
For Indian MSMEs,...