Budget Expectations: Export-oriented businesses seek additional incentives

Vijay C Roy

Chandigarh, July 16

Union Commerce and Industry Minister Piyush Goyal has reiterated the NDA government’s commitment towards the ambitious goal of $2 trillion exports by 2030 at a Federation of Indian Chambers of Commerce & Industry event in New Delhi last week.

To achieve the target, exporters say the Central Government should announce result-oriented steps in the upcoming Budget. Let’s have a look at some of the demands:

Extension of RoDTEP scheme

The Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme is a key initiative of the Centre Government aimed at refunding various embedded taxes and duties on exported products and will remain effective till September 30, 2024.

“We wish the scheme to be extended further as this extension is likely to increase India’s international trade and benefit exporters,” said Amit Thapar, president of Ganga Acrowools Limited and former chairman of CII Punjab.

Extension of Interest Equalisation Scheme

The Interest Equalisation Scheme (IES) was recently extended from June 30 to August 31, 2024 for MSMEs. The MSMEs sector wish that the scheme should be further extended as the scheme helps exporters from identified sectors and all MSME manufacturer exporters to avail of rupee export credit at competitive rates at a time when the global economy is facing headwinds. Exporters get subsidies under “Interest Equalisation Scheme for pre and post-shipment rupee export credit”.

Announce more incentives to boost export

“We may expect the government to announce additional incentives or exemptions to export-oriented sectors to enable them to remain competitive in the world market. India has also become the GCC (Global Capability Centre) hub of the world, so we can expect some policies/sops in that direction which can enhance this position further,” said Ajit Banerjee, Chief Investment Officer, Shriram Life Insurance.

Promote Indian shipping lines

The ocean freight has gone up like anything amid the Red Sea crisis as the exporters are heavily dependent on China’s shipping lines for exports in absence of Indian shipping lines. The exporters suggested that the government can think of providing incentives to promote flagging of merchant ships in India as it will also ease container shortage in the country.