Commerce Ministry Proposes ₹23,000 Crore RoDTEP Outlay for FY27, Seeks Five-Year Extension

The Commerce Ministry has asked the government to increase the allocation for the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme to ₹23,000 crore for FY27, as per news reports. 

The Union Budget has provided ₹10,000 crore for the scheme this financial year. The Department of Commerce has taken up the higher allocation with the Department of Expenditure, which will make the final decision. 

Five-Year Extension Proposed 

The ministry has also sought a five-year extension of RoDTEP. The scheme is currently valid until September 30, 2026, and discussions on its continuation are taking place with the expenditure department. 

The Commerce Ministry expects clarity on the matter by September 30. The government is also looking at a framework that would provide exporters with more certainty on the scheme’s duration and refund rates. 

Refund Rates for Exporters 

RoDTEP covers duties, taxes and levies paid at the central, state and local levels on inputs used for exports, where the amounts cannot be claimed as credit. 

The refund depends on the product being exported. Rates currently range from 0.3% to 3.9% of export value. 

Spending Has Been Higher 

The proposed increase comes with spending on the scheme already above the current FY27 allocation. The revised estimate for FY26 is ₹18,233 crore, compared with ₹18,313 crore spent in FY25. 

Expenditure stood at ₹15,019 crore in FY24 and ₹13,175 crore in FY23. Spending for Q4 FY21 and FY22 together was ₹13,843 crore. 

Scheme Has Seen Several Extensions 

RoDTEP was launched in January 2021, replacing the Merchandise Exports from India Scheme (MEIS). It was introduced to bring India’s export incentives in line with World Trade Organization rules. 

The scheme was initially approved for 27 months, until March 2023, with an allocation of ₹27,018 crore. Since then, it has been extended at least five times, generally for six months to one year. The latest extension came in April for six months. 

Export Figures in August 2026 

The request comes after a rise in merchandise exports in August 2026. Exports increased 26.1% year-on-year to $43.8 billion from $34.7 billion, while imports rose 14.1% to $70.6 billion. 

The merchandise trade deficit was $26.86 billion, compared with $27.2 billion a year earlier. Overall exports increased 25.4% to $82.7 billion, while exports in rupee terms rose 37.6%. 

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Conclusion 

The Commerce Ministry has proposed a ₹23,000 crore RoDTEP allocation for FY27 and a five-year extension of the scheme. The Department of Expenditure will decide on both proposals. 

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