Government Extends RoDTEP Scheme to Support Exporters Amid Global Trade Challenges

The Indian government has announced a six-month extension of the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme, now valid until March 31, 2026. This decision, communicated by the Directorate General of Foreign Trade (DGFT), aims to provide continued fiscal support to exporters facing global trade uncertainties. Launched in January 2021, the RoDTEP scheme reimburses exporters for embedded non-creditable central, state, and local levies paid on inputs, ensuring zero-rating of exports and enhancing their global competitiveness. The Union Budget 2025-26 allocated ₹18,232 crore (US$ 2.05 billion) to the scheme, up from ₹16,000 crore (US$ 1.80 billion) in FY25. The extension applies to exports from Domestic Tariff Area (DTA) units, Advance Authorisation (AA) holders, Special Economic Zone (SEZ) units, and Export Oriented Units (EOUs). The revised rates under the scheme, ranging from 0.3% to 3.9%, will remain applicable across all eligible export items. Merchandise exports in the first five months of FY26 (April-August) grew 2.5% to ₹16,34,472 crore (US$ 184 billion), with exports to the United States rising 18% to over ₹3,55,320 crore (US$ 40 billion) due to frontloading. Federation of Indian Export Organisations (FIEO) President S.C. Ralhan welcomed the extension, noting that it provides exporters with policy certainty at a critical time and helps sustain export momentum by neutralising the impact of non-creditable taxes. He also highlighted that the scheme encourages diversification of export destinations and product portfolios, strengthening India's presence in global markets and supporting exporters in navigating challenging international trade conditions.? DisclaimerThis article is published by PolyMart Pvt. Ltd. for informational purposes only. All regulatory actions are subject to updates from the Government of India. For official documentation or submissions, consult with relevant legal and trade professionals.