How Will the Restoration of RoDTEP Benefits Impact MSMEs and Investor Confidence?
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Synopsis
Assocham reveals that the government's reinstatement of RoDTEP benefits is a game-changer for MSMEs, aiming to strengthen India's export logistics and instill greater confidence among investors. This vital move comes at a crucial juncture in the global market.
Key Takeaways
- RoDTEP scheme reinstated for effective support of MSMEs.
- Over Rs 57,976.78 crore disbursed under the scheme to date.
- Benefits extend to 10,795 HS lines applicable to various export frameworks.
- Ensures compliance with World Trade Organisation (WTO) norms.
- Critical for enhancing investor confidence in India’s industrial corridors.
New Delhi, May 28 (NationPress) The reinstatement of benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme by the government is poised to significantly assist micro, small, and medium enterprises (MSMEs), enhance export logistics, and bolster investor confidence in India's industrial sectors, according to Assocham on Wednesday.
The prominent industry organization praised the Centre for reinstating the benefits of the RoDTEP scheme for exports from Advance Authorisation (AA) holders, Export-Oriented Units (EOUs), and Special Economic Zones (SEZs), effective from June 1, 2025.
This restoration guarantees that vital contributors to India's export landscape are not deprived of essential incentives, particularly at a time when global competitiveness and domestic industrial resilience are critical.
"Assocham has long advocated for the extension of RoDTEP to encompass all exporting entities, including those functioning within SEZs, AA, and EOU frameworks. This adjustment will rectify the disparity that has imposed cost burdens on such units and aligns with India's WTO commitments," stated Manish Singhal, Secretary General of Assocham.
As of March 31, 2025, the total disbursement under the RoDTEP scheme has exceeded Rs 57,976.78 crore, highlighting its vital role in fortifying India's merchandise exports. For the financial year 2025–26, the government has set aside Rs 18,233 crore for the scheme.
Initiated on January 1, 2021, the RoDTEP scheme reimburses embedded taxes and duties that are not refunded through other initiatives, thereby promoting fair pricing and enabling exporters to remain competitive.
The recent notification reinstates these benefits, which were in effect until February 5, 2025, creating uncertainty and financial pressure for many exporters.
The renewed benefits will now encompass over 10,795 HS lines applicable to AA, SEZ, and EOU exports, delivering a crucial uplift to industries such as engineering goods, electronics, pharmaceuticals, and textiles that heavily rely on these frameworks, as reported by Assocham.
The RoDTEP scheme adheres to World Trade Organisation (WTO) regulations and is executed through a comprehensive digital platform to ensure transparency and efficiency.
Point of View
It is vital to recognize that the restoration of RoDTEP benefits aligns with India's commitment to fostering a robust export environment. This initiative not only supports MSMEs but also strengthens investor trust, essential for the country's economic growth and resilience.
NationPress
20/07/2025
Frequently Asked Questions
What is the RoDTEP scheme?
The RoDTEP scheme is designed to refund embedded duties and taxes on exported products that are not reimbursed under other existing schemes, thereby supporting exporters' competitiveness.
How does the RoDTEP benefit MSMEs?
By reinstating RoDTEP benefits, MSMEs gain access to essential incentives that help mitigate costs and improve their export capabilities.
What are the financial allocations for RoDTEP?
For the financial year 2025-26, the government has allocated Rs 18,233 crore under the RoDTEP scheme, supporting its objectives to bolster merchandise exports.
Why is RoDTEP important for India's exports?
RoDTEP plays a critical role in ensuring that Indian exporters can compete globally by providing necessary financial support and incentives.
What sectors will benefit from the RoDTEP restoration?
Key sectors such as engineering goods, electronics, pharmaceuticals, and textiles are expected to significantly benefit from the restoration of RoDTEP.
