The Central government on Tuesday extended the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme by six months till 31 March 2026, offering relief to exporters grappling with higher tariffs in the United States.
The scheme, introduced in January 2021, offsets non-creditable central, state, and local levies paid on inputs used in exported goods, ensuring zero-rating of exports and enhancing global competitiveness. Refund rates range between 0.3 per cent and 3.9 per cent across sectors.
In a notification, the Directorate General of Foreign Trade (DGFT) said the benefits will continue to be available for shipments from Domestic Tariff Area (DTA) units, Special Economic Zones (SEZs), Export Oriented Units (EOUs) and Advance Authorisation (AA) holders till the end of March 2026.
The extension comes at a time when Washington has doubled tariffs on several Indian goods, with duties climbing as high as 50 per cent on products such as textiles, leather and food items. Exports to the US, which surged 18 per cent to cross USD 40 billion in April–August due to frontloading, are expected to moderate following the tariff hikes.
Exporters had been pressing for policy continuity to navigate these headwinds. “This step comes at a critical juncture when exporters are navigating global challenges. The timely extension has removed uncertainty and will help sustain export momentum,” said SC Ralhan, President of the Federation of Indian Export Organisations (FIEO).
The Union Budget earmarked Rs 18,232 crore for the scheme in FY26, compared with Rs 16,000 crore last year. During April–August, India’s merchandise exports grew 2.5 per cent to USD 184 billion, while overall exports in August alone rose 6.7 per cent to USD 35.1 billion. Imports in the same month fell over 10 per cent to USD 61.59 billion.
The extension is expected to provide a fiscal cushion to exporters as they recalibrate strategies amid rising trade frictions with the US. |
