The recommendation comes amid continued pressure from US President Donald Trump to lower tariffs and provide greater market access for American products in the Indian market.
Recognising the government’s acknowledgment of inverted duty structures and the steps taken to address specific instances, the committee has called for a systematic approach to the recurring issue by establishing a dedicated resolution framework for the prompt identification and resolution of inverted duty structure issues, rather than relying on an ad-hoc approach.
It has also recommended a comprehensive review of all existing Free Trade Agreements (FTAs) to identify sectors affected by the inverted duty structure and develop a long-term strategy to prevent future occurrences.
Regarding the reconstitution of the Committee on Remission of Duties or Taxes on Export Products (RoDTEP) to reassess ceiling rates under the scheme, the parliamentary committee reiterated its concerns over low rates that limit export competitiveness.
To address this issue, it has recommended the expeditious submission of the RoDTEP Committee’s report to enable timely rate revisions and restore export competitiveness. The committee has also reiterated its recommendation to expand the RoDTEP scheme to include iron and steel, enhancing exports from the engineering sector.
While the government has highlighted budgetary constraints, the committee has advised that the RoDTEP Committee should evaluate the feasibility of including iron and steel by balancing potential export benefits with fiscal limitations.
On EXIM logistics, the committee noted that the current budgetary allocation is insufficient to meet the needs of the remaining 37 ongoing projects, given rising infrastructure costs. It has recommended an immediate revaluation of funding requirements, factoring in cost escalations and state proposals.
Additionally, the committee has urged the government to increase budget allocations to prevent delays in critical export infrastructure projects, such as port connectivity and laboratory setups, as part of export capacity expansion.
While recommending the expedited finalisation and implementation of a National E-commerce Policy for cross-border e-commerce, the committee also called for the creation of a comprehensive platform that goes beyond auto-validation of Importer-Exporter Code (IEC) credentials.
This platform should integrate the Directorate General of Foreign Trade (DGFT) with regulatory bodies such as the Central Board of Indirect Taxes and Customs (CBIC), the Central Board of Direct Taxes (CBDT), and the Ministry of Corporate Affairs (MCA) to streamline export-related compliance. Additionally, the committee has recommended the implementation of robust cybersecurity measures to safeguard sensitive exporter data.
(Edited by : Anand Singha)