In response to the evolving geopolitical situation linked to the Iran war and its impact on maritime trade, the Centre has decided to reinstate the rates and value caps under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for all eligible export products starting March 23. This move aims to offer timely assistance to Indian exporters grappling with increased freight expenses and trade risks associated with the Gulf and the broader West Asia maritime corridor disruptions.
The restored rates will revert to those effective as of February 22 this year, thereby lifting the earlier 50% restriction imposed on February 23. The Ministry of Commerce and Industry’s statement highlighted that this decision supersedes the previous notifications from February 23 and the subsequent corrigendum from February 24, except for actions taken before this change.
Recent developments in West Asia have brought about logistical challenges in maritime operations, leading to alterations in routing and transit patterns. These changes have resulted in escalated logistics costs and shipping delays for export shipments moving to or through the region. The government’s choice to restore the RoDTEP rates underscores its commitment to maintaining a stable and supportive policy framework for exporters, ensuring India’s export competitiveness amid global uncertainties.
This decision aligns with the government’s dedication to providing a steady and supportive policy environment for exporters, enhancing India’s export competitiveness in a complex global landscape. The move follows the introduction of the RELIEF initiative, which supports exporters during global disruptions, bolstering trade resilience and ensuring operational continuity by alleviating logistics, insurance, and cost challenges in a volatile geopolitical setting.
CII President-designate and TATA Chemicals Ltd Managing Director and CEO, R. Mukundan, emphasized the significance of the RELIEF package for the manufacturing and chemicals sector. He noted that this initiative serves as a crucial safeguard against surging freight, insurance, and input costs, aiding in sustaining production continuity and export competitiveness.
