Government of India Benefits for Exporters: A Comprehensive Guide

India's export sector plays a pivotal role in driving economic growth, job creation, and foreign exchange earnings. To support and incentivize exporters, the Government of India offers a wide array of schemes and benefits aimed at enhancing competitiveness, reducing costs, and expanding market access. This guide provides a detailed overview of the key incentives available to Indian exporters.

1. Remission of Duties and Taxes on Exported Products (RoDTEP)

The RoDTEP scheme reimburses exporters for various embedded taxes and levies that are not refunded under other mechanisms such as GST. Key features include:

• Issuance of transferable duty credit scrips.
• Covers taxes on transportation fuel, electricity, and local levies.
• Applicable to most sectors, replacing the earlier MEIS scheme.

2. Export Promotion Capital Goods (EPCG) Scheme

EPCG facilitates the import of capital goods for producing quality export products at zero customs duty. Key highlights:

• Import of machinery and equipment without payment of customs duty.
• Export obligation equivalent to 6 times the duty saved, to be fulfilled over 6 years.
• Aimed at technological upgradation and productivity enhancement.

3. Advance Authorization Scheme

This scheme enables duty-free import of inputs required for manufacturing export products, including fuel, oil, and catalyst. Benefits include:

• Reduction in raw material cost.
• Flexibility in sourcing quality inputs.
• Export obligation based on input-output norms.

4. Duty Drawback Scheme

The Duty Drawback Scheme refunds duties paid on imported inputs used in the production of exported goods. Exporters can benefit via:

• All Industry Rates (AIR) or Brand Rate route.
• Simplified claim process.
• Helps in reducing the overall cost of production.

5. Interest Equalization Scheme (IES)

IES provides interest subvention on pre- and post-shipment export credit to reduce the financial burden. Features include:

• Interest subsidy of 3% to 5% depending on the exporter's classification.
• Primarily targeted at MSMEs and select sectors.
• Administered by banks and financial institutions.

6. Market Access Initiative (MAI) and Market Development Assistance (MDA)

These schemes offer financial assistance for activities aimed at exploring and expanding international markets. Support includes:

• Participation in international trade fairs and exhibitions.
• Branding and marketing support.
• Assistance for market research and buyer-seller meets.

7. Transport and Marketing Assistance (TMA)

The TMA scheme is specifically designed to support agricultural exports by offsetting transportation and marketing costs. Key benefits:

• Reimbursement of freight costs for specified agricultural products.
• Applicable to both air and sea transport.
• Aims to enhance India's agri-export competitiveness.

8. Goods and Services Tax (GST) Benefits

Exports are treated as “zero-rated supplies” under GST, offering the following advantages:

• Option to export without payment of IGST under a Letter of Undertaking (LUT).
• Refund of unutilized input tax credit (ITC) or IGST paid on exports.
• Seamless digital refund process through the GSTN portal.

9. Special Economic Zones (SEZ) Incentives

SEZs provide a conducive environment for export-oriented businesses with a range of fiscal and non-fiscal incentives:

• 100% income tax exemption on export income (under Section 10AA of the Income Tax Act).
• Duty-free import/procurement of goods and services.
• Streamlined procedures and regulatory relaxations.

10. Status Holder Certificate

Recognizing consistent export performance, the Directorate General of Foreign Trade (DGFT) grants 'Status Holder' certifications such as:

• One Star to Five Star Export Houses.
• Eligibility for priority customs clearance, reduced documentation, and other benefits.
• Valid for a period of five years.

Conclusion

Exporters in India have access to a comprehensive suite of benefits provided by the government. Leveraging these schemes not only improves cost efficiency but also enhances global competitiveness. Whether you are an MSME or a large exporter, staying informed and compliant with these programs is crucial for sustained growth in international markets.