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CARE Ratings Research Report
The rates of rebate under the Remission of Duties and Taxes on Exported Products scheme are significantly lower compared with the earlier Merchandise Exports from India Scheme for majority of the products, sectors.
Further, many industries, viz., pharmaceutical, chemical, and steel, where India enjoys global competitiveness or there is a short supply in the domestic market have been excluded from the scheme.
Amongst the various sectors, cotton-based textile products have received favourable rates under RoDTEP in the range of 3.8%-4.3% as compared to around 2% rate under MEIS although there is a cap on the maximum benefit available under RoDTEP.
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