- 10 Oct 2022
- ICICIdirect Research
Government may extend key export scheme to steel sector
India could be looking at extending a key export scheme to pharmaceuticals, chemicals and steel products, eyeing measures to support exports hit hard by falling demand in advanced economies. Discussions have started between the Ministries of Commerce & Industry and Finance on including steel sector under the Refund of Duties and Taxes on Exported Products (RoDTEP) scheme.
The input duty remission scheme for exporters was implemented from January 1, 2021 but had excluded the steel sector. However, recently, as per industry sources, a proposal to include the steel sector under RoDTEP is under discussion and sources indicate that a Cabinet note could be moved after discussions with the Finance Ministry. Recently, steel exports have been sharply hit and any step to support exports augurs well for the sector. The time when such support measure comes (if any) remains a key monitorable, going forward.