$1 trillion goods exports likely by FY28, RoDTEP rates notification by weekend: Trade Secretary

At an event organised by the Confeeration of Indian Industry, he also said the government is likely to notify the tax refund rates for the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme by this weekend and for the textile-specific Rebate of State and Central Levies and Taxes (RoSCTL) Scheme by tomorrow.

“We have laid down a roadmap on how we hit $50 billion in goods exports and when do we hit $1 trillion. Our guess is by 2027-28, very modest estimates, we should hit $1 trillion,” he said at CII’s annual meeting, adding that by then, 20-30% of India’s economy would consist of trade, similar to advanced export based economies like Japan, EU and the US.

A market intelligence network will also be set up by the government for the same.

“India has 140 embassies and 60 consulates globally and all of them have a commercial wing with a minister, counsellor or attache. No one has been asking them what you do,” Subrahmanyam said, adding that now, they’ve been given targets for exports with the countries they are based in, identify export opportunities and report on sudden trade barriers put up by countries.

The commerce department has conducted a detailed exercise breaking up exports to more than 200 countries and regions, across 31 commodity groups, he said.

“Afterwards a cumulative annual export target of $419 billion has been set,” he said. India’s exports have ranged between $290-330 billion over the last few years.

On the incentive schemes for exporters, he said the drawals of incentives in the last five years have tripled while exports have remained static and that is worrying the government.

“Any incentive should lead to better performance and that is being put in the guidelines. We need to promote genuine exports but taxes should not be exported,” Subrahmanyam said.

This assumes significance as the RoDTEP scheme aims to refund the embedded duties and taxes such as VAT on fuel used in transportation, Mandi tax and duty on electricity used during manufacturing, that were so far not refunded to exporters.

The government will bring out the Foreign Trade Policy by mid-September and the policy would be aligned with the country’s aspirations, he said.

He also said that work is ongoing to ease the process of denotifying empty spaces of above 10 crore square feet

Rs 30,000 crore built-up area in the 250-plus special economic zones (SEZ) in the country.

“We will bring in other features in the SEZ policy where we are going to simplify,” he said.

He added that a new scheme called ‘Districts as an export hubs scheme’ will also be brought out later this year wherein districts would be incentivised to compete with each other and substantial investment of around Rs 50-100 crore is made in each of them.

India will also be launching a ‘Brand India’ campaign later in the year to raise awareness about product standards and ensure Indian products are known globally for quality and value for money.

“Today you’re concerned when you hear the term “Made in China”. It’s time we change our image globally,” he said.

Subrahmanyam also appealed to India Inc to not sit on excess cash and raise investments into their businesses at a time when India’s key export markets are seeing across the board growth.

The PLI schemes have resulted in India becoming a net exporter of mobile phones from being a heavy net importer.

The secretary said the production-linked incentive scheme represents a distinct break from the past and for the first time,

the government has taken a step forward to promote large scale industrial production.