RoDTEP Gets Three-Month Extension as Exporters Push for Long-Term Continuity

The government on Wednesday extended the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for three months till December 31, providing continued duty remission to eligible exporters after the scheme was due to expire on September 30.

The Directorate General of Foreign Trade said the extension would apply to eligible exports from Domestic Tariff Area (DTA), Advance Authorisation, Special Economic Zone (SEZ) and Export-Oriented Unit (EOU) units.

Launched in 2021, RoDTEP provides remission of taxes, duties and levies incurred during the manufacturing and distribution of exported goods that are not reimbursed through another mechanism at the Centre, state or local level. The notified remission rates currently range from 0.3 per cent to 3.9 per cent.

The budget allocation for RoDTEP stood at ₹18,232 crore in 2025-26, while the allocation for the scheme in the current fiscal is ₹10,000 crore.

Exporters welcomed the three-month extension but sought a longer-term continuation of the scheme. Apparel Export Promotion Council Chairman A Sakthivel said the extension would support MSME exporters.

Federation of Indian Export Organisations Director General Ajay Sahai said the decision provided continuity to exporters amid global trade uncertainties. He said a longer extension with adequate budgetary support would provide greater predictability while negotiating contracts, securing orders and entering new markets.

Economic think tank GTRI founder Ajay Srivastava also called for a five-year extension, saying exporters finalise orders months before shipment and need clarity on tax refunds while determining prices.

Srivastava said RoDTEP is not an export incentive or subsidy, but a mechanism for returning taxes already paid during production that are not otherwise refunded. He cited taxes including state levies on fuel, electricity duties and mandi charges among the costs covered by the mechanism.

The extension comes as India continues to target USD 1 trillion in exports of goods and services during the current fiscal. During April-August, exports rose 17.85 per cent year-on-year to USD 215.91 billion, while imports increased 18.21 per cent to USD 363 billion, according to the government data cited in the report.