Elevating Ecommerce Horizons: RoDTEP Unveils Extended Incentives, Fuelling India's Export Aspirations

By Ritwik Ghosh,Kolkata India

Piyush Goyal - Fuelling India's Export Aspirations

In a declaration on the 28th of December, Union Commerce Minister Piyush Goyal unfolded the continuation of incentives within the ambit of the Remission of Duties and Taxes on Exported Products (RoDTEP) initiative, particularly for the sphere of ecommerce.

During an assembly orchestrated by the Director General of Foreign Trade (DGFT), Goyal articulated, “The extension of RoDTEP benefits shall encompass the realm of exports facilitated through ecommerce platforms.”

He augmented this statement by affirming that the forthcoming notification of these incentives shall be disseminated by the DGFT within the upcoming weeks.

The RoDTEP program, designed to alleviate exporters from the burden of taxes, duties, and levies incurred during the production and dispersal of goods, stands as a distinctive mechanism unparalleled at the central, state, or local echelons.

An authoritative source also conveyed that imminently, the Union Commerce Ministry will lay the foundation for the requisite IT infrastructure and other facilitators essential for the elongation of this scheme’s benefits to exporters.

In tandem with this development, it is anticipated that ecommerce export s will witness an upsurge, concurrently furnishing incentives and advantages to indigenous micro, small, and medium enterprises (MSMEs). This move aligns with the government’s overarching goal of achieving a noteworthy $1 trillion in merchandise exports by the year 2030.

As part of the event, a Memorandum of Understanding (MoU) was formalized between the DGFT and the logistics startup Shiprocket, delineating collaborative efforts in ‘holding capacity building and handholding sessions’ within the DGFT’s ecommerce outreach initiative.

Delving into discussions about the impending ecommerce policy, Minister Goyal disclosed that the proposed regulations are in the conclusive stages of deliberation. He expressed optimism regarding the expeditious release of the policy by the government.

The RoDTEP incentives materialize against a backdrop of concerted efforts by the DGFT and the Central government to stimulate ecommerce exports within the nation. In November, an announcement was made regarding the collaboration between the foreign trade agency and the Department of Revenue to formulate an initiative akin to the ‘composition levy scheme.’ This initiative aims to waive GST for smaller MSME players.

Further, the DGFT has solidified partnerships, including one with the Department of Post, to fortify and expand Dak Niryat Kendras and foreign post offices (FPOs) with the objective of fortifying ecommerce exports. On a global scale, the government is actively engaged with the postal services of multiple nations to construct a comprehensive online tracking mechanism for export consignments.

On the domestic front, the DGFT has joined forces with ecommerce giant Amazon to pilot an initiative designed to train ecommerce exporters in 20 districts. Amazon, in turn, harbors ambitious plans for ecommerce exports from India, with a target to elevate the figure to $20 billion by the year 2025.

Except for the headline, this story has not been edited by Foundr Magazine India and is auto-published from a syndicated feed.

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