NewKerala.com

India Extends Export Incentives to Postal Shipments to Boost MSMEs

The Indian government has extended key export incentive schemes to shipments made through the postal mode, effective January 15. This move is designed to level the playing field for MSME exporters, particularly those in smaller towns and remote regions. The initiative leverages India Post's extensive network, including over 1,000 designated Dak Niryat Kendras, to facilitate e-commerce exports. It is part of broader digital and regulatory reforms to transform India's export ecosystem.

Key Points: Export Incentives for Postal Shipments to Boost MSMEs

  • Incentives extended to postal exports
  • Aims to boost MSMEs in remote areas
  • Supports cross-border e-commerce growth
  • Leverages India Post's vast network
2 min read

Govt extends export incentives to postal shipments to boost MSME sector

Govt extends Duty Drawback, RoDTEP & RoSCTL schemes to postal exports to enhance MSME competitiveness and cross-border e-commerce.

"This landmark measure aims to provide a level playing field for exporters using the postal channel - Finance Ministry"

New Delhi, Jan 16

In a bid to strengthen India's e-commerce and MSME sectors, the government on Friday said it has extended export incentives to postal shipments, with effect from January 15.

The Central Board of Indirect Taxes and Customs (CBIC) said it has extended export-related benefits under the Duty Drawback, Remission of Duties and Taxes on Exported Products (RoDTEP) and Rebate of State and Central Taxes and Levies (RoSCTL) schemes to exports made through the postal mode in electronic form, with effect from January 15.

The incentives ate expected to significantly enhance competitiveness of MSME exporters, especially from smaller towns and remote areas, and give a major fillip to postal exports, Finance Ministry said in a statement.

"This landmark measure aims to provide a level playing field for exporters using the postal channel and to create a conducive and inclusive ecosystem for the growth of cross-border e-commerce. The initiative is expected to significantly enhance the competitiveness of MSME exporters, especially those located in smaller towns and remote areas, and give a major fillip to postal exports," the statement added.

India currently has 28 Foreign Post Offices (FPOs) notified under Section 7 of the Customs Act, 1962.

In the past, the CBIC has undertaken several measures to strengthen cross- border trade through the postal and courier modes.

The Postal Export (Electronic Declaration and Processing) Regulations, 2022 enabled end-to-end electronic processing of export declarations for postal exports.

Further, the Postal Import Regulations, 2025 were notified to facilitate electronic processing of postal imports. Automation of IGST refunds for postal exports was successfully implemented in September 2024.

To further promote e-commerce exports, CBIC, in collaboration with the Department of Posts, launched an innovative 'Hub and Spoke' model in December 2022, leveraging India Post's vast nationwide network.

Under this model, over 1,000 Dak Niryat Kendras (DNKs) have been designated across the country to facilitate booking, aggregation and processing of export parcels, particularly benefiting MSMEs and small exporters, informed the ministry.

To boost the MSME sector, the government has undertaken a slew of policy initiatives, digital reforms and regulatory measures to transform India's e-commerce export ecosystem.

- IANS

Share this article:

Reader Comments

R
Rohit P
Finally! The Dak Niryat Kendra model is a game-changer. India Post has a network that reaches every village. Leveraging that for exports is a brilliant idea. Hope the implementation on the ground is smooth and the benefits actually reach the small MSMEs.
A
Arjun K
Good policy, but execution is key. The postal system needs a major upgrade in speed and reliability to compete with private couriers for international shipments. The incentives will help, but service quality must improve for this to be a true success.
S
Sarah B
As someone who imports small batches of textiles from India, this is encouraging. More competitive pricing from smaller Indian exporters could mean better variety and prices for buyers like me. The focus on electronic processing is very welcome.
K
Karthik V
Make in India getting a boost! This will empower so many home-based businesses, especially women entrepreneurs selling products online. The automation of IGST refunds is a crucial step to reduce the cash flow blockage for small exporters. 👏
N
Nisha Z
Hope this is well-publicized in regional languages. Many potential micro-exporters in remote areas may not be aware of these schemes and how to access the 1000+ Dak Niryat Kendras. Awareness is half the battle.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50