The five-year Foreign Trade Policy is due on September 29 and is expected to encourage settlement in the Remissions of Duties and Taxes on Exported Products (RODTEP) scheme and remove anomalies.
It is anticipated that the emphasis will be on e-commerce, neighborhoods serving as export hubs, and dual-use goods with both civilian and military applications. The current policy was repeatedly extended, with the most recent one lasting from April to September, and was valid until 2020. The new policy, which will go into effect in October, will serve as a roadmap for exports of $1 trillion by 2030.
A revamp of the duty remission program put in place last year and the imposition of a GST on international trade intermediaries are just two of the concrete measures the industry is hoping for in light of the slowing export demand.
Levies not covered by the GST were the focus of the RODTEP scheme.
Due to a number of irregularities, limitations, and extremely low rates, the scheme has not been successful.
Pradeep Multani, the president of the PHD Chamber of Commerce and Industry, has urged the
scheme to specifically reimburse exporters for the actual taxes and duties they paid on outbound shipments. For 8,555 products, including dairy products, yarn, and marine products, RODTEP rates were released in August 2021. Around Rs, 13,500 crores have been set aside in the budget for RODTEP this fiscal year.