New Delhi: India will restore benefits under a key scheme that reimburses exporters for embedded duties, taxes, and levies not covered by any other government refund programme in an effort to boost export competitiveness, the trade ministry said on Tuesday.
The benefits under the Remission of Duties and Taxes on Exported Products were introduced on January 1, 2021, but ended on February 5 this year.
They will now be applicable for all eligible exports from June 1, covering sectors including textiles, chemicals, pharmaceuticals, cars, agriculture, and food processing, the ministry said in a statement.
“Their reinstatement is expected to provide a level playing field for exporters across sectors,” the statement said, adding the scheme would use a digital platform “to ensure transparency and efficiency”.
Total disbursements under the programme exceeded 579.77 billion Indian rupees ($7 billion) as of March 31, the ministry said.
The benefits were earlier paused to review the support required by exporters, an official who did not want to be named told Reuters.
“In the current environment, the government has felt the need to continue to give such benefits,” the official said.
The announcement comes days after India clinched a trade agreement with Britain and as it races to seal a trade deal with the U.S. before the end of the 90-day pause on hefty additional import tariffs imposed by U.S. President Donald Trump.
($1 = 85.2520 Indian rupees)
(Reporting by Aftab Ahmed; writing by Sakshi Dayal; Editing by Kate Mayberry)
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