India Allocates ₹18,233 Crore Under RoDTEP for FY 2025-26: What It Means for Exporters  


#Government Expands Export Benefits Under RoDTEP  


The Indian government has allocated ₹18,233 crore under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for the financial year 2025-26, covering over 10,750 product categories. As of March 31, 2025, total disbursements under the scheme have surpassed ₹57,976.78 crore, reinforcing India's commitment to supporting exporters.  

In a significant move, the government has restored RoDTEP benefits for exports from Special Economic Zones (SEZs) and Export-Oriented Units (EOUs) starting June 1, 2025. This reinstatement aims to enhance India's export competitiveness by ensuring that embedded duties and taxes are refunded to exporters.  

 What Is RoDTEP and Why Does It Matter?  

RoDTEP is a WTO-compliant scheme designed to reimburse exporters for various central and state duties, taxes, and levies that are not refunded under other existing programs. The current RoDTEP rates range from 0.3% to 4.3%, depending on the product category.  

For FY 2025-26, the scheme will cover:  

✅ 10,780 HS lines for Domestic Tariff Area (DTA) exports  

✅ 10,795 HS lines for Advance Authorization (AA) holders, EOUs, and SEZ exports  


The scheme operates through a fully digital platform, ensuring transparency and efficiency in processing refunds.  


## Industry Experts Raise Concerns Over Policy Uncertainty  


While the reinstatement of RoDTEP benefits for SEZs and EOUs is a positive step, economic think tank Global Trade Research Initiative (GTRI) has criticized the government's stop-and-start approach to the scheme.  


Between February 5 and May 31, 2025, exporters in these categories were denied RoDTEP benefits, creating uncertainty in pricing and long-term trade planning.  


"Exporters struggle to price products or plan long-term deals when they cannot rely on steady refunds," said Ajay Srivastava, founder of GTRI.  


He emphasized that India must ensure uninterrupted RoDTEP coverage for at least five years to establish itself as a stable and competitive export hub.  


## Looking Ahead: Stability Needed for Export Growth  


The government's decision to restore RoDTEP benefits for SEZs and EOUs is a welcome relief for exporters. However, industry experts urge policymakers to maintain consistency in trade incentives to foster long-term growth.  


With ₹18,233 crore allocated for FY 2025-26, the scheme is set to support a broad range of sectors, reinforcing India's position in global trade. The key challenge now is ensuring policy stability so exporters can confidently plan their operations without disruptions.  

#sriglobalco #sriglobal

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