Need for the RoDTEP Scheme
- The main purpose of RoDTEP is to provide a level playing field to Indian exporters and to make their products competitive in the global market.
- America challenged India’s key export subsidy schemes in the WTO (World Trade Organisation) by claiming them to harm American workers.
- A dispute panel of the World Trade Organization has ruled against India by saying that the export subsidy program provided by the Indian government violates provisions of the trade body’s norms
- The panel recommended that the export subsidy program be withdrawn.
- To ensure that India remains WTO compliant, the government launched the RoDTEP scheme.
Remission Of Duties And Taxes On Exported Products (RODTEP) Scheme
RoDTEP stands for Remission of Duties and Taxes on Export Products. This is a new scheme that has come into effect from 1 January 2021. The scheme is designed to replace the existing MEIS (Merchandise Export from India) scheme. The scheme will ensure that exporters get refunds on embedded taxes and duties which were earlier non-recoverable. This scheme was brought with the objective of promoting exports that were relatively less in quantity earlier.