New Delhi, March 7 The commerce ministry has assured that the full benefits under the export support scheme, RoDTEP, will be restored from April 1 this year, providing much-needed relief to exporters facing challenges due to the West Asian crisis, FIEO said on Saturday.
Except for agricultural and processed food products, the government halved the duty benefit rates under the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme on February 23.
"This is good news for exporters. The current 50 per cent RoDTEP rates are applicable only up to March 31, 2026. The full restoration of RoDTEP rates will take effect from April 1, 2026, which should provide much-needed support to the exporting community," said SC Ralhan, President of the Federation of Indian Export Organisations (FIEO).
The assurance was given by the Directorate General of Foreign Trade (DGFT) during a meeting with FIEO.
The exporting community had expressed disappointment over the reduction in rates and had urged the commerce ministry to reconsider the decision.
The RoDTEP scheme, launched in 2021, provides for a refund of taxes, duties, and levies that exporters incur during the manufacturing and distribution of goods, and which are not being reimbursed under any other mechanism at the Centre, state, or local level.
Refunds under the scheme range from 0.3 per cent to 3.9 per cent.
The budget allocation for the scheme for 2025-26 was Rs 18,232 crore. It was proposed to increase to Rs 21,709 crore in 2026-27. However, the budget allocated was Rs 10,000 crore.
According to sources, the commerce ministry has sent a note to the Expenditure Finance Committee (EFC) requesting enhanced allocations.
The exporting community is currently grappling with high US tariffs and is now facing challenges from the West Asian crisis triggered by the joint attack of the US and Israel on Iran last month.
The conflict has pushed up sea and air freight rates, while insurance premiums are also rising. If the situation persists, it could affect the price competitiveness of Indian goods in global markets.
In price-sensitive sectors, even a 1-2 per cent increase in costs can determine whether orders are won or lost.
India's exports rose marginally by 0.61 per cent to USD 36.56 billion in January, while the trade deficit widened to a three-month high of USD 34.68 billion.
