Government Extends RoDTEP Scheme Benefits For Exporters Till September Amid West Asia Crisis
· Free Press Journal
In a relief to exporters grappling with rising logistics costs and global trade disruptions, the government has extended benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme by six months till September 30.
As per a notification by the Directorate General of Foreign Trade (DGFT), the extension will apply to all eligible exports made between April 1 and September 30, 2026, at the same rates and value caps that were in force as of March 31.
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Launched in 2021, the RoDTEP scheme refunds taxes and duties incurred during the manufacturing and distribution of exported goods that are not reimbursed through other mechanisms. The incentives generally range from 0.3 percent to 3.9 percent of the export value.
Centre Removes ₹10 Lakh Cap, Operationalises E-Commerce Export Reforms From April 1 To Boost Courier TradeThe government had allocated a budget of Rs 18,232 crore for FY26 for the scheme. It was expected to increase to Rs 21,709 crore in FY27. However, Rs 10,000 crore has been allocated for the new financial year.
The move comes at a time when exporters are facing headwinds due to the ongoing West Asia conflict, which has disrupted key maritime routes, pushed up freight charges, and increased insurance costs. These disruptions have also led to changes in shipping routes and delays in export consignments.
Indian exporters were already facing high tariffs, and the latest geopolitical tensions have further increased the pressure. The extension is aimed at providing stability and cost support to exporters amid these uncertainties.
Union Budget 2026: Exporters Seek Tax Incentives, Import Duty Rationalisation To Boost GrowthIndia’s merchandise exports have fallen marginally by 0.81 percent year-on-year to $36.61 billion in February, even as the trade deficit narrowed to $27.1 billion.
The full impact of the West Asia crisis is expected to be visible in March data, according to experts, as the conflict began towards the end of February.
In response to the evolving situation, the government has also restored rates and value caps under the scheme to ensure continuity of support.
The commerce ministry said the decision was intended to help exporters manage elevated logistics costs and mitigate risks arising from disruptions in the Gulf region and the wider maritime corridor.
The government had also last week launched a Rs 487 crore RELIEF (Resilience & Logistics Intervention for Export Facilitation) scheme to provide relief to exporters.