Union Finance Minister Nirmala Sitharaman at a press conference has announced host of new measures . Among them is a new scheme — Remission of Duties or Taxes on Export Product (RoDTEP) — to incentivise exporters at an estimated cost of Rs 50,000 crore to the exchequer.
The announcement comes in the backdrop of India’s merchandise exports declining by 6.05 per cent to USD 26.13 billion in August compared to the year-ago month.
The minister also said there will be a fully automated electronic refund route for input tax credits (ITC) in GST. This will be implemented by the month-end.
The move, she added, is aimed at quick and automated refunds of ITC.
She said RoDTEP will replace the existing incentive schemes and “will more than adequately incentivise exporters than the existing schemes put together”.
The minister said the revenue foregone towards the scheme is projected at Rs 50,000 crore.
In the housing sctor, Centre will contribute Rs 10,000 crore to complete construction of unfinished projects in affordable and middle income category housing.
In the exports sector, the finance minister also said that annual mega shopping festivals will be organised at four places in India similar to the ones held in Dubai. She said these will be held in March 2020 on four themes — gem and jewellery sector/ handicrafts, yoga/tourism, textiles and yoga.
The finance Minister also stated that Foreign Direct Investment (FDI) inflows are robust as of now and there is a sign of revival. Forex reserves (Foreign exchange reserves) have gone up particularly in August end.