New Delhi [India], August 18 (ANI): The Indian Electrical and Electronic Manufacturers’ Association (IEEMA) said on Wednesday that the government’s revised rates and norms for exporters under Remission of Duties and Taxes on Exported Products (RoDTEP) scheme have left the industry largely disappointed.
The RoDTEP scheme had kicked in from January 1 after the earlier Merchandise and Services Export Incentive Schemes (MEIS and SEIS) were scrapped as they were found to be impermissible under the World Trade Organisation norms.
The Commerce Ministry announced the scheme on Tuesday in a bid to boost domestic exports. It covers 8,555 export items for a cost of Rs 12,500 crore to the exchequer.
IEEMA President Anil Saboo said the industry was waiting for clarity on the rates for a long time. “We are glad that it has been announced now, but the scheme disappointed many exporters as the rates are much lower than MEIS rates with lesser budget allocation.”
The main aim of the RoDTEP scheme was to give a boost to Indian exports by offering a level playing field to the domestic industry abroad.
“But looking at the present notification, we believe that the ambitious target of achieving one trillion dollars in exports by 2025 will be achieved only if the government review the rates especially for electrical equipment industry which have excellent potential to grow by three times,” said Saboo.
IEEMA members contribute to more than 90 per cent of power equipment installed in India. The volume of Indian electrical equipment industry size is 50 billion dollars with exports at 8.5 billion dollars. The power equipment share in capital goods industry is about 50 per cent. (ANI)
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