The Indian government offers several incentive schemes to encourage exports. Understanding these can help you negotiate better pricing and understand your supplier's cost structure.
RoDTEP (Remission of Duties and Taxes on Exported Products)
The primary current incentive scheme. It refunds the embedded central, state, and local taxes/duties that are not refunded under other mechanisms. The benefit varies by product — typically 0.5-4.3% of FOB value.
How This Affects Your Pricing
Indian suppliers factor export incentives into their pricing. If a supplier receives RoDTEP benefits, they may be able to offer slightly better pricing than a supplier who doesn't export regularly and doesn't claim these benefits.
Other Schemes
India has had various export promotion schemes over the years. Some older schemes (MEIS) have been replaced. Your supplier should be aware of applicable schemes and claim benefits where eligible.
Negotiation Insight
When negotiating with Indian suppliers, understanding that they receive government incentives gives you insight into their margins. A supplier who claims they 'can't go lower' may actually have more room than they're admitting.
Need Help Sourcing or Inspecting Products from India?
We're based in Jodhpur and specialise in stone, furniture, handicrafts, textiles, carpets and more. First consultation is free.
Get In Touch