The Union Finance Minister, Mr. Nirmala Sitharaman, on Saturday announced a new scheme—Remission of Duties or Taxes on Export Product (RoDTEP)—to incentivise exporters at an estimated cost of Rs 50,000 crore to the exchequer.
The announcement comes in the backdrop of exports declining by 6.05 per cent to 26.13 billion dollars in August compared to last year. She also said there will be a fully automated electronic refund route for input tax credits (ITC) in GST. This will be implemented by the month-end.
The move, she added, is aimed at quick and automated refunds of ITC. She said RoDTEP will replace the existing incentive schemes and 'will more than adequately incentivise exporters than the existing schemes put together'.
She said the revenue foregone towards the scheme is projected at Rs 50,000 crore. Mrs. Sitharaman also announced revised priority sector lending (PSL) norms for exporters, which will release an additional funding of Rs 36,000 crore to Rs 68,000 crore to them.
PSL norms for export credit have been examined and enabling guidelines are under consideration of the Reserve Bank of India, she said.
She also said export finance will be actively monitored by an inter-ministerial working group in the Department of Commerce.