Centre Extends RoDTEP Export Incentive Scheme Until March 2026 Amid Tariff Pressures

The Government of India has extended the Remission of Duties and Taxes on Export Products (RoDTEP) scheme until March 2026. This decision comes as a major relief for exporters facing rising international tariffs, especially from the US. The scheme offers financial compensation for taxes and duties not refunded elsewhere, supporting more than 10,000 products.

Extension of RoDTEP Scheme to Benefit Key Export Sectors

Originally set to expire on September 30, 2025, the RoDTEP scheme will now continue until March 31, 2026. This export incentive scheme reimburses exporters for various taxes and duties incurred during manufacturing and distribution but not refunded under any other programme. The extension is expected to support sectors like textiles, agriculture, engineering goods and leather, many of which were impacted when the US doubled tariffs on Indian exports, raising levies to as high as 50%.

Coverage and Rebate Structure of RoDTEP

The RoDTEP scheme currently covers more than 10,000 exported products. Exporters receive rebates ranging from 1% to 4% of the value of each product, depending on category and input composition. This move ensures that exporters remain competitive globally by easing cost pressures brought on by currently unrecouped taxation expenses.

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Rationale Behind the Extension

The extension follows continual demand from exporting communities and industry associations. Facing global trade uncertainties and rising competitiveness, the extended RoDTEP framework offers much-needed fiscal stability. Moreover, the higher US tariffs on categories such as food items, textile products and machinery had intensified the urgency for extended government intervention.

Looking Ahead: Strategic Boost for India’s Export Landscape

By sustaining this incentive scheme for an additional 18 months, the government aims to enhance India’s export performance amidst growing geopolitical disruptions and volatile trade policies. Exporters gaining a rebate within this window will find a better footing to expand in global markets and recover from recent setbacks caused by international tariff hikes.

Conclusion

The Centre’s decision to prolong the RoDTEP scheme till March 2026 offers vital relief to exporters navigating an increasingly challenging global market environment. With tax and duty reimbursements secured across 10,000+ products, Indian exporters are now better equipped to maintain competitive pricing and mitigate the impact of rising external trade barriers.

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