Introduction
Exporting from India is not just about finding buyers and shipping goods—it’s also about understanding the ecosystem of government incentives and schemes designed to support exporters.
India’s foreign trade policy provides several programs to reduce costs, promote competitiveness, and encourage businesses of all sizes to participate in global markets. Whether you are an MSME exporter or a large manufacturer, knowing which scheme applies to you can make a major difference to your margins.
This guide walks you through the most important government schemes for exporters in India—from RoDTEP to EPCG and MSME-specific support—along with eligibility, benefits, and application processes.
Why Government Schemes Matter
Global trade is highly competitive. Exporters from countries like China, Vietnam, and Bangladesh often receive heavy government support in the form of subsidies, duty refunds, and low-interest credit. To level the playing field, India offers a set of export promotion schemes that:
- Reduce production and logistics costs.
- Compensate for taxes/duties that cannot otherwise be claimed back.
- Help MSMEs access finance and global markets.
- Encourage investment in technology and capacity building.
In short, these schemes are not “extra perks”—they are essential tools to remain competitive internationally.
Key Government Schemes for Exporters in India
1. RoDTEP (Remission of Duties and Taxes on Exported Products)
- What it does: Refunds hidden taxes and duties (such as electricity duty, mandi tax, VAT on fuel, etc.) that are not refunded under GST.
- Benefit: Exporters get duty credit in an electronic ledger, which can be used to pay customs duty or transferred to others.
- Eligibility: All exporters, including MSMEs and merchant exporters, are eligible unless specifically excluded.
- Application:
- Declare RoDTEP claim when filing the shipping bill.
- Customs processes the claim after export realization.
- Credit appears in the exporter’s RoDTEP ledger on the ICEGATE portal.
2. EPCG (Export Promotion Capital Goods) Scheme
- Purpose: Allows import of capital goods (machinery, equipment, spares) at zero customs duty for producing quality goods and services for export.
- Export Obligation: Export value equivalent to 6 times the duty saved must be achieved within 6 years.
- Benefit: Reduces upfront investment costs, especially for manufacturers upgrading technology.
- Eligibility: Manufacturers and service providers who are exporters.
- Application:
- Apply online via the DGFT portal.
- Submit project report, machinery details, and bond.
- Once approved, import at zero duty and fulfill obligations.
3. Advance Authorization Scheme (AAS)
- What it does: Allows duty-free import of raw materials and components required for manufacturing export products.
- Benefit: Saves cost of customs duty on essential inputs.
- Eligibility: Manufacturers and merchant exporters tied with supporting manufacturers.
- Application:
- File application with DGFT.
- Provide standard input-output norms (SION).
- Import materials and export finished goods within a given timeframe.
4. Duty Drawback Scheme
- Purpose: Refunds customs and excise duties paid on inputs used in the manufacture of export products.
- Benefit: Improves competitiveness by lowering costs.
- Eligibility: Available to most exporters, rates vary by product category.
- Application: Claim is processed at the time of export through the shipping bill.
5. Interest Equalization Scheme (IES) for MSMEs
- What it does: Provides interest subvention (usually 3–5%) on pre-shipment and post-shipment export credit.
- Benefit: Reduces financing costs for MSMEs.
- Eligibility: MSMEs and certain identified sectors.
- Application:
- Apply through your commercial bank when availing export credit.
- Bank claims subsidy from RBI, and passes benefit to exporter.
6. Market Access Initiative (MAI) and Market Development Assistance (MDA)
- Purpose: Financial assistance for exporters to participate in international trade fairs, buyer-seller meets, and overseas exhibitions.
- Benefit: Helps businesses explore new markets and connect with foreign buyers.
- Eligibility: Export Promotion Councils, trade bodies, and individual exporters.
- Application: Apply through Export Promotion Councils with event details and proof of expenses.
7. MSME-Specific Export Support
Apart from IES and marketing schemes, MSMEs can also avail:
- Technology Upgradation Fund: Support for modernizing equipment to meet international standards.
- Cluster Development Schemes: Shared infrastructure for MSME clusters to improve efficiency.
- Export Credit Guarantee Corporation (ECGC) Cover: Protects against payment risks from foreign buyers.
Who Is Eligible for These Schemes?
Most schemes are open to all exporters, but conditions vary.
- RoDTEP & Duty Drawback: Available to almost all exporters, including merchant exporters.
- EPCG & Advance Authorization: Limited to manufacturers/service providers with export obligations.
- MSME Schemes: Available only to businesses registered under Udyam (MSME) portal.
- MAI/MDA: Typically routed through EPCs or trade associations.
In all cases, an Import Export Code (IEC) issued by DGFT is mandatory.
Step-by-Step Application Overview
- Get the Basics Right
- Obtain IEC (Import Export Code) from DGFT.
- Register on ICEGATE (customs portal).
- MSMEs should register on Udyam portal.
- File Correctly at the Time of Export
- Declare RoDTEP or Duty Drawback claims in shipping bills.
- Ensure HS codes and product details are accurate.
- Apply Online for Advance Schemes
- Use DGFT portal for EPCG, Advance Authorization.
- Keep documents like project reports, financials, and IEC ready.
- Work with Your Bank
- For Interest Equalization and export credit, apply via your lending bank.
- Banks forward claims to RBI.
- Maintain Compliance & Records
- Track export obligations (especially under EPCG/AAS).
- Keep copies of invoices, shipping bills, and bank realization certificates.
Resources for Exporters
Here are key portals every exporter should bookmark:
- DGFT Portal – EPCG, Advance Authorization, IEC
- ICEGATE – Customs filings, RoDTEP ledger
- Udyam Registration – MSME registration
- MSME Schemes – List of MSME benefits
- ECGC – Export credit insurance
Conclusion
Government schemes are not optional—they are an essential part of every exporter’s strategy. From RoDTEP refunds to EPCG duty waivers, from interest subsidies for MSMEs to marketing assistance for global outreach, these programs collectively lower costs and boost competitiveness.
The key is to stay updated, file applications correctly, and maintain compliance. For businesses new to exports, even one or two schemes can mean the difference between struggling with thin margins and running a profitable global trade operation.
If you’re planning to expand in international markets, start by exploring which schemes apply to your product, industry, and business size—because in exports, government incentives are fuel for growth.
