Commerce Ministry to Restore Full RoDTEP Benefits for Exporters from April 1, 2026

The Commerce Ministry has assured exporters that full benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme will be reinstated from April 1, 2026, offering relief to exporters facing rising costs and global trade disruptions. 

Temporary Reduction in RoDTEP Rates 

The government had reduced RoDTEP duty benefits by 50% on February 23, affecting most sectors except agricultural and processed food products. These reduced rates will remain applicable only until March 31, 2026. 

The assurance regarding restoration of full benefits was communicated by the Directorate General of Foreign Trade (DGFT) during a meeting with the Federation of Indian Export Organisations (FIEO). 

SC Ralhan, President of FIEO, said, “Good news for exporters. The current 50% RoDTEP rates are applicable only up to 31st March 2026. The full restoration of RoDTEP rates will take effect from 1st April 2026, which should provide much-needed support to the exporting community.” 

Exporters Seek Higher Support 

Exporters had earlier expressed disappointment over the reduction in benefits and urged the Commerce Ministry to reconsider the move. Industry groups, including engineering and textile exporters, have also called for restoration of the scheme benefits. 

Introduced in 2021, the RoDTEP scheme refunds taxes, duties and levies incurred during the manufacturing and distribution of exported goods that are not reimbursed under any other mechanism. Refund rates under the scheme range from 0.3% to 3.9%. 

Budget Allocation and Export Challenges 

The scheme received a budget allocation of ₹18,232 crore for FY 2025–26, and it was proposed to increase to ₹21,709 crore for FY 2026–27. However, the allocation currently stands at ₹10,000 crore.  

The Commerce Ministry has sent a proposal to the Expenditure Finance Committee through the Department of Expenditure seeking enhanced funding. 

Exporters are currently dealing with multiple pressures, including higher U.S. tariffs and disruptions from the West Asia crisis triggered by the joint attack by the U.S. and Israel on Iran last month.  

The conflict has increased sea and air freight costs and pushed insurance premiums higher, raising concerns about the price competitiveness of Indian exports. 

Read More: RBI Announces Early Redemption Price at ₹16,063 Per Unit for Two Sovereign Gold Bond Tranches! 

Conclusion 

India’s exports rose 0.61% to $36.56 billion in January, while the trade deficit widened to $34.68 billion, highlighting the challenges exporters continue to face amid global trade uncertainties. 

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