Is the RoDTEP Scheme Revived to Boost Exports?

Synopsis
The Indian government has announced the revival of the RoDTEP benefits, effective June 1, to enhance export competitiveness. This restoration aims to level the playing field for exporters and is part of ongoing efforts to strengthen India's position in global trade. Explore how this initiative could reshape the future of Indian exports.
Key Takeaways
- RoDTEP benefits reinstated for exporters.
- Effective from June 1.
- Applicable to AA holders, EOUs, and SEZs.
- Over Rs 57,976.78 crore disbursed since inception.
- Government allocated Rs 18,233 crore for FY 2025-26.
New Delhi, May 27 (NationPress) In ongoing endeavors to enhance India's export strength in international markets, the government declared on Tuesday the revival of advantages under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme.
The reinstatement of benefits applies to exports conducted by Advance Authorization (AA) holders, Export-Oriented Units (EOUs), and operations based in Special Economic Zones (SEZs).
These benefits will apply to all qualifying exports starting from June 1, as announced by the Commerce Minister.
The RoDTEP benefits for these categories were previously accessible until February 5, 2025, and their revival is anticipated to offer a fair competitive landscape for exporters in various sectors.
Launched on January 1, 2021, the RoDTEP scheme aims to reimburse exporters for embedded duties, taxes, and levies that are not refunded through other existing programs.
This scheme complies with World Trade Organisation (WTO) standards and is executed through a robust digital platform, ensuring transparency and efficiency.
By March 31, 2025, total disbursements under the RoDTEP initiative surpassed Rs 57,976.78 crore, highlighting its crucial role in bolstering India's merchandise exports.
For the fiscal year 2025–26, the government has designated Rs 18,233 crore for the scheme.
This support will encompass 10,780 HS lines for Domestic Tariff Area (DTA) exports and 10,795 HS lines for AA/EOU/SEZ exports, ensuring extensive coverage across diverse economic sectors, as stated by the ministry.
“The revival of RoDTEP benefits for specific export categories signifies the government's unwavering dedication to fostering a favorable, competitive, and compliant export environment that propels India's long-term trade expansion,” it added.
An opportunity for export growth is emerging for India as global supply chains are being restructured, and initiatives that enhance mid-tech labor-intensive exports can elevate the country’s trade interconnections, mass consumption, investment, and GDP growth, according to a recent HSBC report.
While there’s a prevalent belief that India is predominantly a domestic demand-driven market, it is during periods of increased global integration that India has experienced its most rapid growth, the report indicated.