Government Schemes and Incentives for Exporters in India You Should Know About

India’s export ecosystem has evolved significantly over the years, offering countless opportunities for businesses to expand globally. Recognizing the potential of Indian exporters — especially MSMEs — the Government of India has introduced a variety of support schemes aimed at enhancing global competitiveness, improving profitability, and reducing trade-related costs.

If you’re a manufacturer, merchant exporter, or MSME looking to scale your exports, here are three major schemes you need to know about: MEIS, RoDTEP, and EPCG.

1. Remission of Duties and Taxes on Exported Products (RoDTEP)

What is it?

RoDTEP is one of India’s most comprehensive export incentive schemes, launched to replace the earlier MEIS. It ensures that exporters are reimbursed for various embedded taxes and duties not refunded through GST.

Benefits:

• Refunds cover taxes like electricity duties, fuel used in transportation, and mandi tax — which were previously non-recoverable.

• The rebate is provided in the form of transferable duty credit scrips.

• Applies to both manufacturers and merchant exporters across sectors.

How MSMEs Benefit:

• Helps MSMEs maintain competitive pricing in international markets.

• Improves cash flow as the refund is directly credited to the exporter’s account or e-wallet.

• Removes the hidden cost burden of indirect taxes, increasing margins.

2. Export Promotion Capital Goods (EPCG) Scheme

What is it?

The EPCG Scheme enables exporters to import capital goods (like machinery and equipment) at zero customs duty, provided they commit to fulfilling a certain export obligation within a defined period.

Benefits:

• Reduces upfront investment in high-value capital goods.

• Boosts production capacity with modern machinery.

• Enhances product quality and consistency.

Export Obligation:

• Typically 6x the duty saved on imported machinery, to be fulfilled over a 6-year period.

• Exporters can supply to foreign markets or EOUs/SEZs to meet this requirement.

How MSMEs Benefit:

• Lowers entry barriers to adopt advanced technology.

• Helps small businesses scale operations and meet global standards.

• Saves significant cost on import duties, leading to quicker ROI.

3. Market Access Initiative (MAI) and Market Development Assistance (MDA)

While not as widely known, these schemes provide financial assistance for:

• Participation in international trade fairs and exhibitions.

• Conducting market studies and buyer-seller meets.

• Developing export promotional material and branding.

How MSMEs Benefit:

• Boosts brand visibility in global markets.

• Enables small exporters to explore new countries without heavy upfront costs.

• Encourages collaboration with Export Promotion Councils for targeted outreach.

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  About the Author

  Sourav Bhatt Export & Business Consultant

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