&w=3840&q=100)
Govt restores Rodtep export benefits for SEZs, EOUs starting June 1
The government on Monday restored benefits under the Remission of Duties and Taxes on Exported Products (Rodtep) scheme for exports of goods manufactured in special economic zones (SEZs) and export-oriented units (EOUs), starting June 1 this year.
The commerce ministry had announced the withdrawal of Rodtep benefits for such units starting February 6 this year.
Under the Rodtep scheme, various central and state duties, taxes, and levies imposed on input products, among others, are refunded to exporters to boost India's exports. The scheme ensures zero-rating of exports, making them competitive.
'The support under the Rodtep scheme for exports of products manufactured from advance authorisations, SEZs, and EOUs is restored with effect from June 1, 2025,' the Directorate General of Foreign Trade said in a notification.
FIEO President S C Ralhan said the industry has been earnestly seeking parity in Rodtep coverage for all export segments, particularly those contributing substantially to India's value-added exports.
'The extension of Rodtep benefits to advance authorisation, EOU, and SEZ units reflects the government's recognition of their critical role in India's export ecosystem. The restoration will not only ensure a level playing field for these entities but also boost the price competitiveness of their products in international markets,' Ralhan said.
He added that this is vital support at a time when Indian exporters are navigating intense global competition and demand uncertainties.
'It will certainly help in pushing exports and improving India's share in global trade,' he said, urging the government to consider making this restoration effective from February 7, 2025, so there is no gap in Rodtep coverage.
According to the earlier notification, the existing Rodtep benefits for these entities were applicable only up to February 6, 2025.
'A seamless transition would ensure stability and predictability for exporters and avoid any disruption in trade planning or pricing,' Ralhan said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
a day ago
- Time of India
Indian exporters worried over US tariff hikes on steel, aluminium goods, ET Manufacturing
Advt Advt Advt Advt Join the community of Top industry professionals Subscribe to our newsletter to get latest insights & analysis. Get updates on your preferred social platform Follow us for the latest news, insider access to events and more. New Delhi: The Federation of Indian Export Organisations ( FIEO ) has expressed concern over the recent announcement by US President Donald Trump to double import tariffs on steel and aluminium from 25 per cent to 50 per cent, citing potential disruption to India 's steel and aluminium exports, particularly in value-added and finished steel products and auto- to the development, FIEO president S.C. Ralhan stated that the proposed increase in US steel and aluminium import tariffs will have a significant bearing on India's steel exports, especially in semi-finished and finished categories like stainless steel pipes, structural steel components, and automotive steel parts."These products are part of India's growing engineering exports, and higher duties could erode our price competitiveness in the American market," he exported approximately $6.2 billion worth of steel and finished steel products to the USA in the financial year 2024-25, including a wide range of engineered and fabricated steel components and about $0.86 billion of aluminium and its products. The US is among the top destinations for Indian steel manufacturers, who have been gradually increasing their market share through high-quality production and competitive FIEO president further added that while it is understandable that the decision stems from domestic policy considerations in the US, such sharp increases in tariffs send discouraging signals to global trade and manufacturing supply chains."We urge the Government to take up the issue at the bilateral level to ensure that Indian exporters are not unfairly disadvantaged as 25 per cent additional duty on steel shipments will be a huge burden, which is difficult to be absorbed by the exporter or FIEO chief also emphasised the need for Indian exporters to diversify their markets and invest in higher-grade value-added products to mitigate the impact of such protectionist as part of ongoing discussions on the India-US Bilateral Trade Agreement , representatives of India's Department of Commerce and the Office of the US Trade Representative held fruitful discussions at a meeting in Washington from April 23-25 to conclude the first tranche of the Bilateral Trade Agreement by Fall (September-October) of 2025,The ongoing discussions are part of bilateral efforts in line with the Leaders' Statement. Prime Minister Narendra Modi , during his visit to Washington in February this year, held talks with US President Donald Trump on negotiating the first tranche of a mutually beneficial, multi-sector Bilateral Trade Agreement by the fall of two leaders resolved to deepen the US-India trade relationship to promote growth that ensures fairness, national security and job creation. To this end, the leaders set a bold new goal for bilateral trade - 'Mission 500' -- aiming to more than double total bilateral trade to $500 billion by 2030.--IANSsps/uk
Time of India
a day ago
- Time of India
Higher steel tariffs to dent exports as companies look at other markets
Representative image (Picture credit: AP) NEW DELHI: Doubling of import duty on steel and aluminium by the Trump administration will dent export demand, with companies having to scout for alternative markets. Several US importers have gone slow on fresh orders as costs went up significantly after the imposition of 25 per cent duty, although India was not seen to be worse off, given that the same duty applies to all countries. But if Trump decides to move ahead with his threat, several American firms will have to slow down production as such duties are seen to be unviable and unsustainable. This will also reduce demand for inputs. "The economic impact will be significant. US steel prices are already high, at around $984 per metric tonne - far above European prices at $690 and Chinese prices at $392. The doubling of tariffs is expected to push US prices to about $1,180, squeezing US domestic industries such as automotive, construction, and manufacturing that depend on steel and aluminium as key inputs. These sectors may face hundreds of dollars in additional material costs per tonne, driving up prices, reducing competitiveness, and risking job losses or inflationary pressures," said trade research body GTRI. Fieo chief S C Ralhan said the increase in tariffs would have a significant bearing on India's steel exports, especially in semi-finished and finished categories like stainless steel pipes, structural steel components, and automotive steel parts. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch vàng CFDs với sàn môi giới tin cậy IC Markets Tìm hiểu thêm Undo These products are part of India's growing engineering exports, and higher duties could erode our price competitiveness in the US market. EEPC India president Pankaj Chadha said, "It's unfortunate that while bilateral trade talks are going on between India and the US, such unilateral tariff increases have be done. It only makes the work of negotiators more complicated." Last fiscal, India exported steel and finished products of $6.2 billion to the US and about $0.9 billion of aluminium and its products. The US is among the top destinations for Indian exporters, who have been increasing market share through high-quality production and competitive pricing, Fieo said. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
2 days ago
- Time of India
FIEO worried over US tariff hikes on steel, aluminium
New Delhi: The Federation of Indian Export Organisations ( FIEO ) Saturday raised concerns about potential disruption to India's steel and aluminium exports to the US after President Donald Trump's announcement of a plan to double import tariffs on steel and aluminium to 50% from 25%. They particularly fear that the exports of value-added and finished steel products and auto-components, stainless steel pipes, and structural steel components could be hurt. This potential increase comes under Section 232 of the US Trade Expansion Act of 1962, a law that allows the president to impose tariffs or other trade restrictions if imports are deemed a threat to national security. "These products are part of India's growing engineering exports, and higher duties could erode our price competitiveness in the American market," said SC Ralhan, president, FIEO. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like A brain tumor threatens his life. Please save him. Donate For Health Donate Now Undo India exported approximately $6.2 billion worth of steel and finished steel products to the US in FY25 including a wide range of engineered and fabricated steel components and about $0.86 billion of aluminium and its products. The US is among the top destinations for Indian steel manufacturers, who have been gradually increasing market share through high-quality production and competitive pricing. Exporters said that though the decision stems from domestic policy considerations in the US, such sharp increases in tariffs send discouraging signals to global trade and manufacturing supply chains. Live Events India and the US are negotiating a Bilateral Trade Agreement and exporters said that the move will complicate the talks. "It's unfortunate that while BTA negotiations are going on, such unilateral tariff increases should be done. It only makes the work of the negotiators much more difficult and complicated. This will definitely impact the engineering exports, which are about $5 billion under this head," Pankaj Chadha, chairman EEPC India. Chadha added that since the UK has been given exemption from Section 232, the same exemption should also be given with TRQ restrictions to India. "We urge the government to take up the issue at the bilateral level to ensure that Indian exporters are not unfairly 25% additional duty will be a huge burden, which is difficult to be absorbed by the exporter/importer," Ralhan said. On March 8, 2018, the US promulgated safeguard measures on certain steel and aluminium articles by imposing 25% and 10% ad valorem tariffs respectively on such products with effect from March 23, 2018. On February 10, 2025, it revised the safeguard measures on imports of steel and aluminium articles, effective from March 12. New Delhi said that the US failed to notify the WTO Committee about a decision to apply safeguard measures and as an affected member with significant export interest, it has requested consultations with Washington and proposed retaliation against the measure.
