&w=3840&q=100)
Govt restores Rodtep export benefits for SEZs, EOUs starting June 1
The government on Monday restored benefits under the Remission of Duties and Taxes on Exported Products (Rodtep) scheme for exports of goods manufactured in special economic zones (SEZs) and export-oriented units (EOUs), starting June 1 this year.
The commerce ministry had announced the withdrawal of Rodtep benefits for such units starting February 6 this year.
Under the Rodtep scheme, various central and state duties, taxes, and levies imposed on input products, among others, are refunded to exporters to boost India's exports. The scheme ensures zero-rating of exports, making them competitive.
'The support under the Rodtep scheme for exports of products manufactured from advance authorisations, SEZs, and EOUs is restored with effect from June 1, 2025,' the Directorate General of Foreign Trade said in a notification.
FIEO President S C Ralhan said the industry has been earnestly seeking parity in Rodtep coverage for all export segments, particularly those contributing substantially to India's value-added exports.
'The extension of Rodtep benefits to advance authorisation, EOU, and SEZ units reflects the government's recognition of their critical role in India's export ecosystem. The restoration will not only ensure a level playing field for these entities but also boost the price competitiveness of their products in international markets,' Ralhan said.
He added that this is vital support at a time when Indian exporters are navigating intense global competition and demand uncertainties.
'It will certainly help in pushing exports and improving India's share in global trade,' he said, urging the government to consider making this restoration effective from February 7, 2025, so there is no gap in Rodtep coverage.
According to the earlier notification, the existing Rodtep benefits for these entities were applicable only up to February 6, 2025.
'A seamless transition would ensure stability and predictability for exporters and avoid any disruption in trade planning or pricing,' Ralhan said.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Time of India
20 hours ago
- Time of India
Iran-Israel war: Exporters push for urgent shift to Chabahar port as conflict threatens trade routes - Here's what you need to know
This is an AI-generated image, used for representational purposes only. Amid the escalating Iran-Israel conflict, Indian exporters have suggested shifting cargo operations from Iran's Bandar Abbas port to the India-managed Chabahar port , citing fears of a wider regional disruption that could severely impact trade with Afghanistan, Central Asia, and Russia. According to the news agency PTI, the recommendation was made during a high-level meeting convened by the commerce ministry on Friday to assess the fallout of the conflict on India's trade. Commerce secretary Sunil Barthwal chaired the meeting, which was attended by representatives from the petroleum, shipping, revenue, and financial services departments, as well as shipping lines and airport authorities. An industry official who attended the meeting was quoted by PTI as saying, 'If Bandar Abbas port doesn't function, it will affect exports not only to Iran but also to Afghanistan and Central Asia. We have been informed that there is adequate capacity at Chabahar, and this needs to be explored urgently.' While Iran's Bandar Abbas port remains operational, exporters flagged that further escalation of hostilities could block key maritime routes, particularly the Strait of Hormuz, a chokepoint that handles nearly a fifth of the global oil trade. The narrow 21-mile-wide waterway is vital to India, which relies on it for over 80 per cent of its energy imports. The Federation of Indian Export Organisations (FIEO) confirmed it would soon hold consultations with Chabahar port authorities. 'We will enquire about the facilities at the port,' a senior FIEO official said, noting that a final decision would rest with the shipping lines, while DG Shipping would also review the feasibility. Exporters also raised concerns over a sharp rise in freight charges. Air freight rates have already jumped 15 per cent, while ocean freight to Europe and Mediterranean ports has surged by $1,000 per TEU (twenty-foot equivalent unit). The cost of transporting a 20-foot container has also gone up by $500–600. Many buyers have paused orders, and exporters are delaying shipments, fearing that goods may get stranded at ports, leading to heavy demurrage charges. India's exports to Israel have already declined from $4.5 billion in FY24 to $2.1 billion in FY25, and imports have also dipped. Trade with Iran remains flat at $1.4 billion, but exporters worry the ongoing conflict could further damage these fragile trade ties. Basmati rice exports to Iran have reportedly halted, and shipping to the Middle East has become more expensive. If access to the Strait of Hormuz is impacted, India may have to consider alternate routes via Fujairah port in the UAE or ports in Oman. The commerce secretary acknowledged the concerns and assured stakeholders that the feasibility of moving consignments to Chabahar would be examined. He stressed the need to monitor freight and insurance rates closely and explore all possible alternatives as the situation evolves. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
&w=3840&q=100)

Business Standard
a day ago
- Business Standard
Iran-Israel conflict: Exporters urge shift from Bandar Abbas to Chabahar
Exporters have suggested shifting cargo movement from Bandar Abbas port to the Chabahar port in the wake of Iran-Israel conflict, stating any further escalation in the war would severely impact trade with Afghanistan, Central Asia, and Russia, an industry official said on Friday. The official also said that the air freight rates have already seen a 15 per cent rise, and traders expect both air and sea freight costs to increase further if the conflict escalates. This was suggested during a meeting convened by the commerce ministry on assessing impact of the war on India's trade. It was chaired by Commerce Secretary Sunil Barthwal. The official also said that while there has been no immediate impact on shipments to Iran, disruptions are likely if the situation worsens. "If Bandar Abbas port doesn't function, it will affect exports not only to Iran but to Afghanistan and Central Asia also. We have been informed that there is adequate capacity at Chabahar, and this needs to be explored urgently," the exporter said. The official, who attended the meeting, said that the secretary assured that the feasibility of shifting operations to Chabahar port would be examined. A Federation of Indian Export Organisations (FIEO) official said that they would soon hold a meeting with Chabahar port authorities on the issue of shifting the movement of consignments. "We will enquire about the facilities at the port," the official said, adding, "The shifting call will have to be taken by the shipping lines. DG shipping would look into that." If Strait of Hormuz gets impacted due to the war, "we have to look at Fujairah port in UAE and Oman port", the official said. FIEO flagged that as of now, Iran's Bandar Abbas port is operational and being used for cargo movement to Afghanistan and other CIS (Commonwealth of Independent States) countries, including Russia. However, if the conflict continues beyond Monday, the route may be impacted. "In case ship movement in the Persian Gulf is blocked, exports to Gulf and Mediterranean countries will also suffer. Currently, buyers have put orders on hold, and exporters are delaying shipments due to concerns that goods may get stuck at ports, leading to heavy demurrage," another industry official said. Although certain factors remain beyond control, in the current circumstances, focus on Chabahar Port -- an Indian-managed port in Iran -- could help the industry. There is connectivity via Dubai and direct linkage from Kandla Port. Due to the conflict, Basmati rice exports to Iran have reportedly stopped, and shipments to the Middle East have become expensive. An exporter said there is a need to improve Chabahar's connectivity to Uzbekistan by engaging local players who may otherwise lose business if Bandar Abbas operations are affected. As per the exporting community, freight has risen by USD 500-600 per 20-feet container. Ocean freight from Indian ports to EU and Mediterranean ports has surged by USD 1,000 per TEU (twenty-foot equivalent unit). The meeting was attended by senior officials from the petroleum, commerce, shipping, and financial services, revenue departments, along with representatives from shipping lines, cargo handlers, and airport authorities. While the Red Sea route remains unaffected and 90 per cent of Indian cargo currently moves via the Cape of Good Hope, concerns were raised about potential disruptions at the Strait of Hormuz. This narrow waterway, only 21 miles wide at its narrowest point, handles nearly a fifth of global oil trade and is indispensable to India, which depends on imports for over 80 per cent of its energy needs. Meanwhile, the exchange of strikes between Iran and Israel has entered the second week on Friday even as President Donald Trump weighed US military involvement and new diplomatic efforts appeared to be underway. At the same time, Iran's foreign minister is in Geneva for holding talks with his counterparts from France, Germany and the UK and the European Union's foreign policy chief. It is the first face-to-face meeting between Western and Iranian officials since the start of the conflict.


Time of India
a day ago
- Time of India
Exporters suggest shifting shipments from Bandar Abbas port to Chabahar amid Iran-Israel conflict
Exporters have suggested shifting cargo movement from Bandar Abbas port to the Chabahar port in the wake of Iran-Israel conflict , stating any further escalation in the war would severely impact trade with Afghanistan, Central Asia, and Russia, an industry official said on Friday. The official also said that the air freight rates have already seen a 15 per cent rise, and traders expect both air and sea freight costs to increase further if the conflict escalates. This was suggested during a meeting convened by the commerce ministry on assessing impact of the war on India's trade. It was chaired by Commerce Secretary Sunil Barthwal. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo The official also said that while there has been no immediate impact on shipments to Iran, disruptions are likely if the situation worsens. "If Bandar Abbas port doesn't function, it will affect exports not only to Iran but to Afghanistan and Central Asia also. We have been informed that there is adequate capacity at Chabahar, and this needs to be explored urgently," the exporter said. Live Events The official, who attended the meeting, said that the secretary assured that the feasibility of shifting operations to Chabahar port would be examined. A Federation of Indian Export Organisations (FIEO) official said that they would soon hold a meeting with Chabahar port authorities on the issue of shifting the movement of consignments. "We will enquire about the facilities at the port," the official said, adding, "The shifting call will have to be taken by the shipping lines. DG shipping would look into that." If Strait of Hormuz gets impacted due to the war, "we have to look at Fujairah port in UAE and Oman port", the official said. FIEO flagged that as of now, Iran's Bandar Abbas port is operational and being used for cargo movement to Afghanistan and other CIS (Commonwealth of Independent States) countries, including Russia. However, if the conflict continues beyond Monday, the route may be impacted. "In case ship movement in the Persian Gulf is blocked, exports to Gulf and Mediterranean countries will also suffer. Currently, buyers have put orders on hold, and exporters are delaying shipments due to concerns that goods may get stuck at ports, leading to heavy demurrage," another industry official said. Although certain factors remain beyond control, in the current circumstances, focus on Chabahar Port -- an Indian-managed port in Iran -- could help the industry. There is connectivity via Dubai and direct linkage from Kandla Port. Due to the conflict, Basmati rice exports to Iran have reportedly stopped, and shipments to the Middle East have become expensive. An exporter said there is a need to improve Chabahar's connectivity to Uzbekistan by engaging local players who may otherwise lose business if Bandar Abbas operations are affected. As per the exporting community, freight has risen by USD 500-600 per 20-feet container. Ocean freight from Indian ports to EU and Mediterranean ports has surged by USD 1,000 per TEU (twenty-foot equivalent unit). The meeting was attended by senior officials from the petroleum, commerce, shipping, and financial services, revenue departments, along with representatives from shipping lines, cargo handlers, and airport authorities. While the Red Sea route remains unaffected and 90 per cent of Indian cargo currently moves via the Cape of Good Hope, concerns were raised about potential disruptions at the Strait of Hormuz. This narrow waterway, only 21 miles wide at its narrowest point, handles nearly a fifth of global oil trade and is indispensable to India, which depends on imports for over 80 per cent of its energy needs. Meanwhile, the exchange of strikes between Iran and Israel has entered the second week on Friday even as President Donald Trump weighed US military involvement and new diplomatic efforts appeared to be underway. At the same time, Iran's foreign minister is in Geneva for holding talks with his counterparts from France, Germany and the UK and the European Union's foreign policy chief. It is the first face-to-face meeting between Western and Iranian officials since the start of the conflict.