Govt may hike outlay under two key tax refund schemes for exporters to ₹2 trillion over five years

According to a report by Mint, the Indian government is considering a significant increase in the financial outlay for two primary export incentive programs: the Remission of Duties and Taxes on Exported Products (RoDTEP) and the Rebate of State and Central Taxes and Levies (RoSCTL). The proposal aims to raise the total allocation to approximately ₹2 trillion over the next five years. This strategic move is intended to provide exporters with greater liquidity and support as they navigate complex global market conditions and rising competitive pressures.

The RoDTEP and RoSCTL schemes are critical components of India's export strategy, designed to neutralize taxes and duties that are embedded in the cost of exported goods, which are not otherwise refunded under existing tax frameworks. By increasing the budgetary support for these programs, the government seeks to lower the effective cost of production for Indian exporters, thereby enhancing their price competitiveness in international markets. This initiative comes at a time when global demand for goods has shown signs of recovery, yet remains sensitive to geopolitical shifts and supply chain volatility.

Industry analysts suggest that if implemented, this increased outlay would provide much-needed stability for sectors such as textiles, engineering, and chemicals, which rely heavily on these refunds to maintain margins. The move is viewed as part of a broader effort to boost India's export volume and achieve ambitious long-term trade targets. While the proposal is currently under consideration, it signals a proactive approach by the administration to address liquidity constraints that have historically hindered small and medium-sized enterprises in the export sector.