In a major relief for small businesses, the Indian government has extended full export incentives to MSMEs using postal channels for shipments. Announced by the Ministry of Communications on Tuesday, this move integrates postal exports with key benefits like duty refunds and tax exemptions, effective from January 15, 2025.
Small-scale exporters, artisans, and startups often rely on India’s vast postal network for low-value international parcels. Previously, they missed out on crucial incentives available through traditional shipping routes. Now, schemes such as Remission of Duties and Taxes on Exported Products (RoDTEP) and Rebate of State and Central Taxes and Levies (RoSCTL) will apply seamlessly to postal dispatches.
The Department of Posts (DoP) has aligned with notifications from the Central Board of Indirect Taxes and Customs (CBIC) to make this possible. Automated IGST refunds, already in place, further slash costs, improve cash flow, and sharpen the edge of Indian exporters in global markets.
This initiative underscores the government’s push to democratize exports. Over 1,013 Dak Ghar Export Centres (DNKs) across the country now offer end-to-end services—from booking and digital documentation to customs clearance—especially benefiting exporters from remote and underserved regions.
By tapping into the postal system’s reach, MSMEs can now compete more effectively, potentially unlocking billions in new export revenues and fostering inclusive growth.
