Govt Allocates ₹18,233 Crore Under RoDTEP for FY26; Restores Benefits for SEZs, EOUs from June

The Centre has earmarked Rs 18,233 crore for the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme in the financial year 2025-26, aimed at supporting over 10,750 product categories, the Ministry of Commerce and Industry announced on Tuesday.

As of March 31, 2025, total disbursements under the scheme have surpassed Rs 57,976 crore, reinforcing the government’s commitment to incentivising exports through tax relief. The RoDTEP scheme, operational since January 1, 2021, reimburses exporters for various embedded duties, taxes, and levies not refunded under other schemes. The current benefit rates range between 0.3% and 4.3%.

A significant update in the scheme is the restoration of RoDTEP benefits from June 1, 2025, for exports from Special Economic Zones (SEZs), Export-Oriented Units (EOUs), and those under Advance Authorization (AA)—categories that had been temporarily excluded.

According to the ministry, the scheme for FY26 will cover 10,780 Harmonised System (HS) lines for exports from the Domestic Tariff Area (DTA) and 10,795 HS lines for SEZs, EOUs, and AA holders, ensuring comprehensive sectoral coverage.

“The reinstatement of RoDTEP benefits for these special categories demonstrates the government’s sustained efforts to build a robust, competitive, and compliant export ecosystem that propels India’s long-term trade ambitions,” the official release stated.

The scheme is fully WTO-compliant and operates on a digital platform to enhance transparency and efficiency in disbursement.
However, the move has drawn criticism from some trade analysts. The Global Trade Research Initiative (GTRI)pointed out that the government had suspended RoDTEP benefits for SEZs, EOUs, and AA holders between February 5 and May 31, 2025, creating uncertainty for exporters during that period.

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“The government’s inconsistent approach weakens the core objective of the RoDTEP scheme,” said GTRI founder Ajay Srivastava. “Exporters are left in a dilemma when benefits are suddenly withdrawn mid-cycle. It becomes difficult to price products accurately or negotiate long-term deals.”

Srivastava emphasized that while the reinstatement is a welcome step, such intermittent disruptions harm India’s image as a stable export hub. “To truly support exporters and attract long-term trade investments, the government must ensure uninterrupted RoDTEP coverage for a minimum of five years,” he added.

The RoDTEP scheme remains a crucial pillar in India’s export strategy, especially as the country works towards boosting outbound shipments and positioning itself as a reliable alternative in global supply chains.