New Delhi: The commerce ministry has assured exporters that full benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme will be restored from April 1, 2026, providing relief to the exporting community grappling with global trade disruptions, according to the Federation of Indian Export Organisations (FIEO).

The announcement comes amid mounting challenges for exporters, including higher freight and insurance costs due to the ongoing West Asia crisis.

RoDTEP rates cut temporarily

The government had earlier reduced the RoDTEP duty benefits by 50 per cent on February 23, excluding agriculture and processed food products. The move had triggered concerns among exporters, who urged the commerce ministry to reconsider the decision.

However, the temporary cut will remain in place only until the end of the current financial year.

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FIEO President S C Ralhan welcomed the government’s assurance.

“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,” he said.

The assurance was given by the Directorate General of Foreign Trade (DGFT) during a meeting with FIEO representatives.

The exporting community had earlier expressed disappointment over the reduction in benefits and sought immediate intervention from the commerce ministry.

What is the RoDTEP scheme?

Launched in 2021, the RoDTEP scheme reimburses taxes, duties and levies incurred during the manufacturing and distribution of exported goods that are not refunded under other central, state, or local mechanisms.

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Refunds under the scheme typically range from 0.3 percent to 3.9 percent depending on the product category.

The scheme had a budget allocation of ₹18,232 crore for 2025–26. Although the allocation was proposed to increase to ₹21,709 crore for 2026–27, the budgeted amount was set at ₹10,000 crore, raising concerns within the exporting community.

According to sources, the commerce ministry has already sent a proposal to the Department of Expenditure seeking enhanced allocations through the Expenditure Finance Committee (EFC).

Exporters face global trade pressures

Indian exporters are already facing multiple global challenges, including higher tariffs in the United States and disruptions caused by the US–Israel attack on Iran last month.

The conflict has significantly pushed up sea and air freight rates, while insurance premiums for shipments have also risen.

Industry experts warn that if the situation continues, it could affect the price competitiveness of Indian exports in global markets.

In price-sensitive sectors, even a 1-2 per cent increase in costs can determine whether exporters secure orders or lose them to global competitors.

India’s exports rose marginally by 0.61 per cent to USD 36.56 billion in January, while the country’s trade deficit widened to a three-month high of USD 34.68 billion.