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India Launches Exporter Performance Index, Phases Out Subsidies for Global Compliance

India is developing an exporter performance index to evaluate Importer Exporter Codes over five years, enhancing data-driven export promotion. The government has eliminated export subsidies, including FoB subsidies, to align with global trade rules under its New Trade Policy. Instead, it relies on duty remission mechanisms like RoDTEP to ensure exports aren't burdened by domestic taxes. This shift supports market diversification and ongoing reforms, such as SEZ updates, to address long-term exporter challenges.

Key Points: India's Exporter Performance Index & End of Export Subsidies

  • Exporter performance index for IEC tracking
  • End of export subsidies under New Trade Policy
  • Duty remission schemes like RoDTEP to replace subsidies
  • Focus on market diversification and SEZ reforms
2 min read

India plans exporter performance index, rules out export subsidies: DGFT

India introduces a data-driven exporter performance index and shifts from subsidies to duty remission schemes under its new trade policy for global alignment.

"Not subsidizing exports, FoB subsidy done away with under New Trade Policy. – Ajay Bhadoo, DGFT"

New Delhi, December 31

India is working on creating an index to evaluate exporters performance based on their Importer Exporter Codes, tracking performance over a five-year period, Director General of Foreign Trade Ajay Bhadoo said on Wednesday, as the government sharpens its focus on data-driven export promotion and market diversification.

"Trying to create an index for exporters to evaluate IECs how they've fared over 5 years," Bhadoo said, adding that the data could be compiled over the next year to support the "acceleration of new market for diversification, bring more exporters."

Bhadoo reiterated that India has moved away from export subsidies under its New Trade Policy, aligning its trade framework with global rules. "Not subsidizing exports, FoB subsidy done away with under New Trade Policy," he said.

Instead, the government is relying on duty remission mechanisms that ensure exports are not burdened with domestic taxes. "Remission is fine to not export taxes on duty foregone basis," Bhadoo said, noting that reforms of Special Economic Zones are ongoing. "SEZ reforms underway," he added.

On trade frictions, Bhadoo said some policy measures should not be seen as direct responses to external actions. "AS 11 inventory under sport promotion mission not per se in response to US tariffs," he said. He also acknowledged structural limits in responding to higher global tariffs. "Tariff for over 50% cannot be countered," Bhadoo added.

The export promotion mission, according to him, is aimed at addressing deep-rooted challenges faced by exporters. "Export promotion mission trying to resolve long-term Disability that exporters were facing," he said.

DGFT Bhadoo said the government continues to work on a broad set of policy tools to support exporters, including "other inventories, FTAs, Policy initiatives, preferential market access," as well as reimbursements through the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme. "Reimbursement via RoDTEP, Advance authorisation scheme is continuing," he said.

He added that the proposed exporter index could become a key instrument for policy calibration once sufficient data is available.

- ANI

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Reader Comments

P
Priya S
Moving away from subsidies and focusing on duty remission like RoDTEP is a smarter, WTO-compliant strategy. It helps our exporters compete globally without trade disputes. The five-year performance tracking sounds promising.
R
Rohit P
As a small exporter, I welcome any initiative that resolves our "long-term disabilities". But I hope this index doesn't become another bureaucratic hurdle. The focus should be on support, not just evaluation. Simplify processes, please.
S
Sarah B
Interesting read. The acknowledgment that tariffs over 50% can't be countered is a sobering reality check. India's shift to data and policy tools like FTAs seems more sustainable than direct subsidies in the long run.
V
Vikram M
SEZ reforms are crucial! They've been pending for ages. If the government is serious about export promotion, making SEZs globally competitive should be top priority. The index is a good idea, but execution is key. 🤞
K
Karthik V
Market diversification is the real game. We rely too much on traditional partners. This performance tracking over five years should help identify new opportunities. Hope MSMEs get adequate handholding in this process.

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