The exporting community was earlier grappling with the 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.
Barring agri and processed food products, the government on February 23 halved the rate of duty benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme.
“Good news for exporters. The current 50 per cent 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,” Federation of Indian Export Organisations (FIEO) President SC Ralhan said.
The assurance was given by the Directorate General of Foreign Trade (DGFT) in a meeting with FIEO.
The exporting community had expressed disappointment over the cut in the 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 are incurred by exporters in the process of manufacturing and distribution of goods, and 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 under the scheme for 2025-26 was ₹18,232 crore. It was proposed to increase to ₹21,709 crore in 2026-27. But the budget allocated was ₹10,000 crore.
According to sources, a note to the expenditure finance committee (EFC) has been sent by the Commerce Ministry to the Department of Expenditure for enhanced allocations.
The exporting community was earlier grappling with the 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 decide whether orders are won or lost.
The country’s exports rose marginally by 0.61 per cent to $36.56 billion in January, while the trade deficit widened to a three-month high of $34.68 billion.
Published on March 7, 2026