The scheme focuses on making the export sector more competitive and contributing more to GDP.
- The scheme provides for the refund of taxes, levies, and duties incurred during the manufacture and distribution of exported goods that are not reimbursed under any existing scheme.
- The refund will be issued as digital credits.
- The credits are transferable in nature.
- It has replaced the MEIS (Merchandise Exports from India) Scheme.
- RoDTEP is compliant with WTO provisions, unlike the earlier MEIS scheme.
- The objective of schemes is to provide rewards to exporters to offset infrastructural inefficiencies and associated costs.
- The scheme is administered by the Directorate General of Foreign Trade under the Ministry of Commerce.
How does the domestic manufacturing sector impact?
- The cost of export will increase, affecting the competitiveness of the industry.
- Will contribute to a greater GDP contribution for the country.
Source: The Hindu