Export Incentives in India
The Government of India provides several export incentives under the Foreign Trade Policy (FTP) to promote exports, reduce costs, and make Indian goods & services competitive in global markets. The main current incentives and facilities are:
- Remission of Duties and Taxes on Export Products (RoDTEP): Refunds duties, taxes, and levies (such as electricity duties, mandi tax, etc.) that are not reimbursed under GST, making exports truly tax-neutral.
- Rebate of State and Central Taxes and Levies (RoSCTL): Specifically for the textile & apparel sector, reimburses embedded state & central taxes to boost textile exports.
- Export Promotion Capital Goods (EPCG) Scheme: Allows import of capital goods at 0% or concessional duty rates, subject to export obligations, to improve production quality for exports.
- Service Exports from India Scheme (SEIS): Provides duty credit scrips to eligible service exporters, which can be used to pay customs duties.
- Interest Equalization Scheme (IES): Offers interest subsidy (3% for large exporters, 5% for MSMEs) on pre- and post-shipment rupee export credit to lower borrowing costs.
- Transport and Marketing Assistance (TMA): Provides partial reimbursement of freight & logistics costs for export of specified agricultural products.
- Market Access Initiative (MAI) & Marketing Development Assistance (MDA): Financial support for exporters to participate in international trade fairs, buyer-seller meets, and undertake export marketing activities.
-  Exchange Earners’ Foreign Currency (EEFC) Account: Allows exporters to retain a portion of foreign currency earnings in a special account to meet future foreign exchange expenses without reconversion losses.
