Indian exporters unhappy with major export promotion scheme

22-Aug-2024 07:36 PM

Mumbai. Exports from India in July 2024 fell to the lowest level in the last 8 months, which clearly indicates that there are some serious problems and challenges on the shipment front which need to be addressed as soon as possible.

The indigenous industry and exporters need more government policy support. Actually, some incentive schemes are being run by the government to promote exports,

but in view of the rapidly increasing challenges and competition in the global market, these schemes are not proving to be helpful enough.

According to exporters, the time has come to make radical changes in the Remission of Duties and Taxes on Exported Products (RODTEP) scheme, that is, to redesign it so that it can be reorganized in accordance with the changing scenario of the global market.

A major problem with this export promotion scheme is that it has reduced the benefits that exporters used to get.

It seems that this scheme has become a deterrent to the 'Make in India' campaign. This is creating difficulty in export promotion.

However, the stalwarts of the indigenous industry are happy that the Road Tap Scheme has replaced the MEI scheme which had developed many flaws.

They are also relieved that the Road Tap Scheme has been encouraging exports but now the circumstances are changing and hence the time has come to make such changes in this scheme which are timely and practical.

There is a need to change the rates of incentives under the scheme and it is also necessary to increase its coverage area.

It is worth noting that the Indian rupee is very weak compared to the US dollar, which was expected to help in export promotion, but other major exporting countries have also devalued their currencies,

which has increased the challenge for Indian exporters. In India, the cost of products and the expenditure burden of services is higher than many countries.