Top 10 Government Schemes Every Indian Exporter Should Know

India’s export sector is growing rapidly, thanks to various government schemes aimed at easing trade, reducing costs, and enhancing global competitiveness. If you’re an aspiring or seasoned exporter, familiarising yourself with these schemes can help you leverage incentives, minimise financial burden, and expand your business globally. Here’s an in-depth look at the Top 10 Government Schemes every exporter in India must know.

The Advance Authorisation Scheme allows exporters to import raw materials, components, and consumables without paying customs duties. The key benefit of this government scheme is that these inputs are used to produce finished goods meant for export. Exporters can save upfront costs, ensuring better cash flow and competitive pricing.

• Duty exemption applies to basic customs duty, IGST, and compensation cess.
• Exports must fulfil minimum value addition criteria.
• Valid for 12 months for imports, with export obligation periods of 18 months.

Manufacturers and merchant exporters looking to reduce the cost of inputs.

The EPCG Scheme allows duty-free imports of capital goods (machinery and equipment) used for manufacturing export products. This enables exporters to invest in modern technology without heavy upfront costs.

• Zero customs duty on imported capital goods.
• Exporters must fulfil an export obligation equivalent to 6 times the saved duty within 6 years.
• Helps improve product quality and production efficiency.

Exporters aim to modernise operations and meet international standards.

This scheme provides refunds of customs and excise duties paid on raw materials and inputs used in exported goods. The idea is to ensure that exported products remain cost-competitive in global markets.

• Refunds are provided as per predefined rates by the government.
• Simplifies cost management for exporters.
• Applicable to both direct and indirect exporters.

Exporters who rely on significant imported components and raw materials.

RoDTEP is a key initiative to refund all embedded taxes and duties that are not otherwise reimbursed. It replaces the older MEIS and ensures better transparency for exporters.

• Refunds are provided as digital credits, which can be transferred or used to pay taxes.
• Focuses on making Indian products globally competitive.
• Covers sectors ranging from agriculture to industrial products.

Exporters of goods face non-refundable domestic taxes like electricity duty, VAT, etc.

Though phased out recently and replaced by RoDTEP, MEIS provided duty scrips (credits) to exporters based on the FOB (Free on Board) value of exports. These scrips could be used to pay duties or traded in the market.

• Incentives ranged from 2% to 5% of export value.
• Focused on boosting India’s merchandise exports.

While MEIS is no longer applicable, exporters transitioning to RoDTEP should adapt to maximise benefits.

SEIS incentivises service providers’ exporting services. It aims to encourage sectors like IT, education, healthcare, and tourism to earn foreign exchange.

• Rewards are provided as duty credit scrips, up to 5% of net foreign exchange earnings.
• Scrips can be used to pay taxes or be traded.
• Covers sectors like legal, accounting, communication, education, and hotel services.

Service-based exporters, particularly in IT, healthcare, and consulting.

TIES addresses gaps in export infrastructure by funding projects like logistics parks, testing labs, and warehousing facilities. The scheme improves supply chain efficiency, enabling exporters to meet global standards.

• Funding is provided for infrastructure development projects.
• State governments and export bodies can propose projects.
• Focuses on reducing logistical costs and delays.

Exporters looking for better supply chain and warehousing support.

The Interest Equalisation Scheme provides a subsidy on interest rates for pre- and post-shipment credit, easing working capital challenges for exporters.

• Applicable to MSME exporters and select sectors.
• Offers interest rate subsidies of up to 3%.
• Reduces financial burdens during the export cycle.

MSMEs and businesses with limited financial resources.

The Agricultural Export Policy focuses on enhancing India’s agricultural export potential by improving value addition, logistics, and market access. The goal is to double agricultural exports and integrate Indian farmers into global markets.

• Focus on perishables like fruits, vegetables, and dairy.
• Incentives for infrastructure like cold storage and processing units.
• Policy support for organic and processed food exports.

Agro-exporters, farmers, and businesses in the food processing industry.

The EDF is aimed at promoting export-related activities such as trade fairs, market studies, and brand building. It provides financial support to expand Indian exporters’ reach into new markets.

• Helps fund market research, promotional events, and trade missions.
• Provides tools to understand and enter global markets.
• Assists in building a strong international brand presence.

Exporters seeking to expand into new territories and build their brand internationally.

The government has introduced these schemes to help exporters reduce costs, improve production quality, and explore new markets. Programs like EPCG, RoDTEP, and Interest Equalisation make it easier to invest in technology, recover taxes, and manage finances effectively. 

By making the most of these opportunities, exporters can grow their businesses, offer competitive prices, and strengthen their presence in global markets. With the right knowledge and planning, these schemes can be a stepping stone to long-term success for every exporter.