How to use government export incentives and schemes effectively

Indian exporters have access to a range of government incentive schemes that can significantly improve export profitability — but many SMEs either don't know about them or find the compliance requirements too complex to navigate. The savings are real and worth the effort.

RoDTEP (Remission of Duties and Taxes on Exported Products) replaced the MEIS scheme and is the primary export incentive for most categories. It provides a percentage rebate on FOB export value — the rate varies by HS code, typically 0.5–4%. The rebate is issued as a transferable scrip that can be used to pay customs duties or sold in the market. Ensure your shipping bill is filed correctly to claim RoDTEP.

Advance Authorisation (AA) allows duty-free import of raw materials used in export production. If you're importing materials and paying basic customs duty on them, then exporting the finished product, AA eliminates that duty cost. You get the import duty exemption upfront against an export obligation. For manufacturers with significant imported material content in exported products, AA can save 5–15% of material cost.

EPCG (Export Promotion Capital Goods) scheme allows import of capital goods at zero or concessional duty against an export obligation of 6x the duty saved over 6 years. For manufacturers planning to upgrade machinery, this can significantly reduce the capital cost.

GST refund on exports: exports are zero-rated under GST, meaning you can claim refund of all GST paid on inputs used in export production. Ensure your GST filings are current, your IGST refunds are claimed promptly, and your CA is tracking the refund pipeline. Many exporters leave significant GST refunds unclaimed due to filing errors.

ECGC (Export Credit Guarantee Corporation) provides credit insurance and guarantees that improve your ability to get export finance from banks at better rates. If your bank is reluctant to finance your export receivables, ECGC backing can change that equation.