India extends export incentive scheme to steel

The Indian government has extended the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme to include iron and steel from 15 December, the commerce and industry ministry said today.

The scheme now includes chapter 73 items — which include iron and steel products such as tubes, pipes, sheet piling, angles and railway construction materials — in what the ministry called a "major step to boost exports".

The RoDTEP scheme, which offers refunds on central, state and local duties and taxes, is applicable to exports until 30 September 2023.

"This was a long-standing industry demand... and will go a long way in boosting our exports and competitiveness in the global markets, generate employment and contribute to the overall economy," the ministry said.

The inclusion of iron and steel products follows last month's removal of export duties on steel products. Indian steel exports are still weak, despite the removal of the tax, reflecting a weaker international market and increased competition.

The RoDTEP scheme also includes chemical and pharmaceuticals products listed under chapters 28, 29 and 30.

By Sumita Layek