Govt restores tax sops to help exporters amid West Asia crisis
New Delhi, March 23
In view of the evolving geopolitical situation due to the Iran war and its implications for maritime trade, the Centre has decided to restore the rates and value caps under the Remission of Duties and Taxes on Exported Products scheme for all eligible export products with effect from March 23, according to a statement issued by the Ministry of Commerce and Industry on Monday.
This step is intended to provide timely support to Indian exporters facing elevated freight costs and war-related trade risks arising from disruptions in the Gulf and the wider West Asia maritime corridor, the statement said.
The restored rates will be those that were in force, as on February 22 this year, thereby withdrawing the earlier restriction of 50 per cent that was imposed on February 23.
The present notification supersedes the aforesaid notification dated February 23, along with the corrigendum dated February 24, except in respect of actions already taken prior to such supersession, the statement said.
Recent developments in West Asia have led to challenges in maritime logistics, including changes in routing and transit patterns. These have had an impact on logistics costs and shipping schedules for export consignments moving to or through the region.
The decision reflects the government's continued commitment to ensuring a stable, responsive, and supportive policy environment for exporters, while sustaining India's export competitiveness in a challenging global environment, the statement added.
The measure also comes close on the heels of the government having announced the RELIEF initiative-supporting exporters amid global disruptions, which has strengthened trade resilience and ensured continuity by easing logistics, insurance, and cost pressures in a volatile geopolitical environment.
"For the manufacturing and chemicals sector, the RELIEF package comes as a crucial buffer against rising freight, insurance, and input costs, helping maintain production continuity and export competitiveness," CII President-designate and TATA Chemicals Ltd Managing Director and CEO, R. Mukundan, said.
— IANS
Reader Comments
As someone working in the logistics sector, I can confirm the shipping costs have gone through the roof. The RELIEF initiative and now this step are crucial. Hope it translates to actual relief on the ground quickly.
Good decision, but why impose the 50% cap in February only to remove it now? This policy flip-flop creates uncertainty. The government needs to be more forward-looking, especially with such volatile regions.
This is a welcome step for 'Make in India'. Protecting our export competitiveness is key. The chemicals and manufacturing sectors will benefit greatly, as Mr. Mukundan said. Jai Hind!
Interesting to see India's agile policy response to global crises. Supporting exporters during maritime disruptions is smart economics. Hope this helps maintain India's growth momentum.
My father's textile export business was really worried. Freight costs doubled in some routes. This government support is like a lifeline. Hope the procedures to claim this are simple and online.
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