Compare and contrast the Remission of Duties or Taxes on Export Products’ (RoDTEP) scheme and Merchandise Exports from India Scheme (MEIS). Do you think RoDTEP can boost exports and increase competitiveness of Indian goods globally? Comment. – INSIGHTSIAS

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Topic: changes in industrial policy and their effects on industrial growth.

6. Compare and contrast the Remission of Duties or Taxes on Export Products’ (RoDTEP) scheme and Merchandise Exports from India Scheme (MEIS). Do you think RoDTEP can boost exports and increase competitiveness of Indian goods globally? Comment. (250 words)

Difficulty level: Moderate

Reference: The Hindu

Why the question:

In a major move aimed at boosting exports and offering relief to exporters, the government has notified the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme scheme guidelines and rates.

Key Demand of the question:

To compare and contrast RoDTEP and MEIS as well as to comment on the potential of RoDTEP in boosting exports.

Directive word: 

Compare and contrast – provide for a detailed comparison of the two types, their features that are similar as well as different. One must provide for detailed assessment of the two.

Comment– here we have to express our knowledge and understanding of the issue and form an overall opinion thereupon.

Structure of the answer:

Introduction: 

Begin by mentioning the aims and objectives of RoDTEP scheme which replaced the MEIS.

Body:

You can draw a table to compare RoDTEP and MEIS. You can use parameters such as nature of incentives offered, WTO Compliance, Incentive Percentage, Mode of Issuance and Transferability.

Next, mention how RoDTEP will support domestic industry and make it more competitive in the international markets. Export centric industries will be reformed and introduced to better mechanisms so as to boost exports, generate employment and contribute to the overall economy.

Also, mention some concerns with the RoDTEP scheme – Rate of tax reimbursement, pandemic related bottlenecks and leveraging on future opportunities etc. Suggest steps to address these concerns.

Conclusion:

Summarise how if properly executed RoDTEP can achieve ambitious target of achieving $1 trillion in exports by 2025.

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