Context:
The Union Government has allocated ₹18,233 crore for the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for the financial year 2025–26. Government also restored benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for exports made by Advance Authorization (AA) holders, Export-Oriented Units (EOUs), and units operating in Special Economic Zones (SEZs).
About RoDTEP scheme:
The RoDTEP scheme, launched on January 1, 2021, is designed to reimburse embedded central and state taxes and duties that are not refunded under other export promotion schemes. These include levies such as:
- Electricity duties,
- VAT on fuel used in transportation,
- Mandi taxes,
- Stamp duties, etc.
These often-unseen costs reduce exporters’ competitiveness, especially when competing against countries with zero-tax regimes for exports.
RoDTEP aims to neutralize these costs to ensure that Indian goods are price-competitive in international markets. The scheme is fully compliant with WTO norms and is executed through a transparent, end-to-end digital platform.
Key Highlights of FY26 Allocation:
- Total Allocation: ₹18,233 crore
- HS Lines Covered:
- 10,780 for Domestic Tariff Area (DTA) exports
- 10,795 for AA holders, EOUs, and SEZ units
- RoDTEP Reinstated for SEZs and EOUs effective June 1, 2025
Implications of the new allocation:
- Creating a level playing field for exporters,
- Strengthening India's global trade positioning,
- Facilitating predictable policy environments for export planning.
It also emphasized that reinstating benefits for special export categories demonstrates India’s resolve to foster a competitive and compliant export ecosystem.
Strategic Context:
The RoDTEP allocation comes at a crucial time when:
- India aims to boost non-oil merchandise exports, especially amid geopolitical realignments and supply chain diversification.
- Global competition is intensifying, particularly from Southeast Asian economies like Vietnam and Indonesia.
- Domestic manufacturers are being nudged toward global integration under Make in India and Atmanirbhar Bharat campaigns.
Way forward:
To maximize the impact of this allocation:
- The government may need to streamline disbursement timelines,
- Ensure long-term policy predictability,
- Provide clarity on sector-specific benefits to help exporters optimize their pricing strategies.
