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Home Personal Finance Central Government Extends RoDTEP Scheme for Six More Months: What It Means...

Central Government Extends RoDTEP Scheme for Six More Months: What It Means for Exporters

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FIEO President SC Ralhan said, “The timely extension of RoDTEP has removed the uncertainty that had been looming over the exporting community. This step has been taken at a crucial juncture when exporters are facing challenges at the global level, and it provides the necessary policy continuity to plan exports with greater confidence.”

The Indian government on Tuesday extended the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme by six months, until March 31, 2026, according to the Director General of Foreign Trade (DGFT). The scheme was originally set to expire today, September 30.

The Director General of Foreign Trade informed that the extended benefits will cover eligible exporters from entities such as Domestic Tariff Area Units, Advanced Authorisation (AA) holders, Export Oriented Units (EOUs) and Special Economic Zones (SEZs).

The revised rates under the scheme will range from 0.3% to 3.9% and will apply to all eligible export products. RoDTEP covers over 10,000 products ranging from agriculture and textiles to engineering goods, providing incentives ranging from 1% to 4% of the product value in lieu of taxes paid by exporters.

The decision has brought excitement to the business community.

Under the RoDTEP scheme, launched in January 2021, exporters are reimbursed for various embedded duties, taxes, and charges levied during manufacturing and distribution that are not refunded by the central, state, or local authorities under any other program. The scheme is seen as a means of enhancing competitiveness by reducing the impact of non-creditable levies.

Expressing relief over the decision, SC Ralhan, President of the Federation of Indian Export Organisations (FIEO), said, “The timely extension of RoDTEP has removed the uncertainty that had engulfed the exporting community. This step comes at a crucial juncture when exporters are facing challenges globally, and it provides the necessary policy continuity to plan exports with greater confidence.”

According to official data from the Commerce Ministry, as of March 31, 2025, total disbursements under the RoDTEP scheme have exceeded ₹57,976.78 crore, underscoring its crucial role in supporting the country’s merchandise exports. For the financial year 2025-26, the central government has allocated ₹18,233 crore under the scheme.

 

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