Merchandise Export from India Scheme

• What it is?
• Major Export Promotion Scheme of GoI
• Salient Features:
• Result of major consolidation & simplification: 5 merged into 1
• Flexibility in terms of transfers of Duty Credit Scrips (DCS)
• Units located in Special Economic Zones (SEZs) are also covered
• Incentive Rates are country-dependent [Group A-5%/B-3%/C-2%]
• Other objectives are:
• Offset infrastructural inefficiencies & associated costs
• Capable of generating employment & enhance India’s competitiveness
Who are the stakeholders?
Sovereign Global Position
Self-Interest & Image
When ???

September
1stApril 2015: 2019: Finance January 2020:
FTP 2015-20 Ministry RoDTEP was
launched & so announced suppose to take
was MEIS RoDTEP effect

March 2018: October 2019: 1st April 2020:

USA filed WTO ruled in Date of
complaint with favour of US Implementation
WTO about of RoDTEP
MEIS (recent
notification)
Where are the issues??Points of Contention??
• India’s export subsidy schemes flouted rules as the country’s Gross
National Income (GNI) had exceeded the per capita USD 1000 annual
threshold above which members were banned from subsidizing its
exports.
• This is was the issue raised by USA before WTO Panel
Why are we discarding MEIS?
• Besides the WTO case, there are some genuine reasons to replace
MEIS.
• MEIS did not refund the exporter certain taxes/duty outside the
ambit of GST
• Like Duty on Electricity
• These discounted levies were covered by some other scheme i.e.
Rebate of State & Central Indirect Taxes (RoSCTL)
How will RoDTEP serve us better??
• Reimburse the exporters with taxes/duties hitherto not covered like
Electricity/Fuel Duties etc.
• MEIS beneficiary industries are enlisted as it is under RoDTEP
• Being WTO complaint, it will help exporters meet international
standards
• Enhance Competitiveness for Indian Products in the Global
Supply/Value Chains (GVC)
• On the downside, RoDTEP (INR 50,000 Cr.) will create additional
pressure on the Budget, dropping the government revenue when
compared to previous allocations made by MEIS (INR 18000 Cr.)