With global demand booming, the Government of India must act swiftly to reorient the export regime in the country. Discuss (200 Words)
Refer - The Hindu
Enrich the answer from other sources, if the question demands.
IAS Parliament 3 years
KEY POINTS
· Government has notified the rules and rates based on which exporters can claim rebates on taxes paid on their outbound cargo.
· A new scheme was necessitated to replace the erstwhile merchandise exports incentive scheme after the WTO dispute settlement body held it was not compliant with the multilateral trade watchdog’s norms.
· The Government is confident that the new scheme, Remission of Duties and Taxes on Exported Products (RoDTEP).
· For some goods, there is a cap on the value of the exported items. Steel, pharmaceuticals and chemicals have been excluded from the RoDTEP.
· Some sectors are concerned about the rates being lower than expected, while engineering firms are worried that taxes on key raw materials are not adequately offset.
· A new foreign trade policy, a couple of smaller export-related schemes and a mechanism to fork out the last two years’ pending dues under the earlier export incentive programme.
· Having opted out of RCEP, India is looking to re-ignite free trade pact negotiations with Australia, the U.K., the EU and the U.S.
· As they look to go beyond China to service domestic consumption demand, India needs to aggressively step up to the opportunity.
· Although the second wave’s damage on the economy is less severe than the wreckage from last year’s national lockdown, domestic recovery is still feeble and uneven.
· Consumption may see some pullback on pent-up demand as well as the impending festive season, but its sustainability is fragile.
· That leaves public capital spending and exports as the two growth engines with feasible firepower to aid the recovery momentum.
