Trade Sector Updates – Falling Exports, TIES, MEIS, Foreign Trade Policy, etc.

Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme

Note4Students

From UPSC perspective, the following things are important :

Prelims level : MEIS, RODTEP Scheme

Mains level : Export promotion measures

The outlay for the RoDTEP scheme is expected to be “much higher” than the NITI Aayog’s much-curtailed estimate of Rs 10,000 crore a year.

Overt allocation

  • The central government had envisaged an annual allocation of about Rs 50,000 crore under the RoDTEP scheme to make exports zero-rated.

Try this PYQ:

Q. Among the following, which one is the largest exporter of rice in the world in the last five years? (CSP 2019)

(a) China

(b) India

(c) Myanmar

(d) Vietnam

RoDTEP Scheme

  • RoDTEP is a scheme for the Exporters to make Indian products cost-competitive and create a level playing field for them in the Global Market.
  • It has replaced the current Merchandise Exports from India Scheme, which is not in compliance with WTO norms and rules.
  • The new RoDTEP Scheme is fully WTO compliant scheme.
  • It will reimburse all the taxes/duties/levies being charged at the Central/State/Local level which are not currently refunded under any of the existing schemes but are incurred at the manufacturing and distribution process.

Back2Basics: Merchandise Exports from India Scheme (MEIS)

  • MEIS was launched with an objective to enhance the export of notified goods manufactured in a country.
  • This scheme came into effect on 1 April 2015 through the Foreign Trade Policy and will be in existence till 2020.
  • MEIS intends to incentivise exports of goods manufactured in India or produced in India.
  • The incentives are for goods widely exported from India, industries producing or manufacturing such goods with a view to making Indian exports competitive.
  • The MEIS covers almost 5000 goods notified for the purpose of the scheme.
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