RoDTEP scheme extension likely for 5 years, ₹23,000 crore sought for 2026-27
Synopsis
India's RoDTEP export reimbursement scheme — set to expire on 30 September — is headed for a five-year extension, with the Commerce Ministry seeking a jump in allocation to ₹23,000 crore for 2026-27, up from ₹18,232 crore last year. For MSME exporters already battered by shipping disruptions and global uncertainty, the outcome of ongoing inter-ministerial talks could determine whether India sustains its export competitiveness or cedes ground to rival economies.
Key Takeaways
The RoDTEP scheme , set to expire on 30 September 2026 , is likely to be extended for five years , according to a senior official.
The Commerce Ministry has sought ₹23,000 crore from the Finance Ministry for the scheme's implementation in 2026-27 .
Budget allocation for the scheme was ₹18,232 crore in 2025-26 and ₹10,000 crore for the current fiscal year.
The scheme, launched in 2021 , reimburses exporters for taxes and levies not covered by other programmes; refunds range from 0.3% to 3.9% .
The April 2026 extension was granted to protect MSME exporters hit by shipping disruptions and global uncertainty from the Middle East conflict .
The Centre is likely to extend the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for another five years, a senior government official said on Wednesday, 16 September 2026. The Commerce Ministry is in active discussions with the Finance Ministry's Department of Expenditure over the extension, which would provide long-term certainty to India's export community.
Where Things Stand
The RoDTEP scheme was last extended in April 2026 for a period of six months, with the current tenure set to lapse on 30 September 2026. The Commerce Ministry has sought a budget allocation of ₹23,000 crore from the Finance Ministry for the scheme's implementation in 2026-27. This request is pegged against the ₹18,232 crore allocated in 2025-26, while the outlay for the current fiscal year stands at ₹10,000 crore.
What RoDTEP Does for Exporters
First rolled out in 2021, the RoDTEP scheme reimburses exporters for taxes, duties, and levies incurred at the central, state, and local levels during the manufacture and distribution of export goods — charges that are not recovered under any other existing programme. Refunds under the scheme range from 0.3% to 3.9% of exported value, depending on the product category. The mechanism is designed to restore a level playing field for Indian exporters competing in global markets against rivals who benefit from similar reimbursement structures in their home countries.
Why the Extension Was Triggered
The April 2026 extension was part of a broader concession package for exporters who faced severe headwinds from global market uncertainty linked to the Middle East conflict. Disruptions in international shipping lanes triggered a sudden and sharp rise in transport costs, placing particular pressure on micro, small, and medium enterprises (MSMEs), which account for a large share of India's export workforce. The government, according to officials, was keen to sustain export momentum and prevent job losses in this segment.
What Happens Next
Inter-ministerial discussions between the Commerce Ministry and the Department of Expenditure are ongoing, and a formal decision on both the five-year extension and the enhanced budget allocation is awaited before the scheme's 30 September 2026 deadline. Industry stakeholders, particularly MSME exporters, are closely watching the outcome, as any lapse in the scheme would directly erode their cost competitiveness in overseas markets.
Point of View
000 crore this year to ₹23,000 crore for 2026-27 — signals that the Commerce Ministry is not just seeking continuity but a meaningful scale-up of the RoDTEP framework. Yet the scheme's track record raises a structural question: repeated short-term extensions, each justified by an external shock, have prevented exporters from building the scheme into their medium-term pricing models. A five-year horizon would fix that, but only if the Finance Ministry agrees to fund it adequately. India's export ambitions — particularly the push to lift goods exports to $1 trillion — cannot be sustained on rolling six-month lifelines.
NationPress
16 Sept 2026
Frequently Asked Questions
What is the RoDTEP scheme and how does it work?
The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme, launched in 2021, reimburses Indian exporters for taxes, duties, and levies paid at the central, state, and local levels during the production and distribution of export goods that are not refunded under any other programme. Refunds range from 0.3% to 3.9% of export value, depending on the product, helping Indian exporters compete on a level playing field in global markets.
When does the current RoDTEP scheme expire?
The current tenure of the RoDTEP scheme expires on 30 September 2026. It was last extended in April 2026 for six months as part of a relief package for exporters facing global uncertainty and shipping disruptions linked to the Middle East conflict.
How much money has the Commerce Ministry sought for RoDTEP in 2026-27?
The Commerce Ministry has requested ₹23,000 crore from the Finance Ministry's Department of Expenditure for implementing the RoDTEP scheme in 2026-27. This compares with an allocation of ₹18,232 crore in 2025-26 and ₹10,000 crore for the current fiscal year.
Why is extending RoDTEP important for MSMEs?
Micro, small, and medium enterprises (MSMEs) are among the largest employers in India's export sector and are particularly vulnerable to rising input costs and transport disruptions. The RoDTEP scheme's reimbursements help MSMEs offset duties and levies that would otherwise make their products more expensive than competing goods from other countries, directly protecting jobs in the sector.
How does the proposed five-year extension differ from previous renewals?
Previous renewals of the RoDTEP scheme have been short-term — the most recent being a six-month extension in April 2026. A five-year extension, currently under discussion between the Commerce Ministry and the Finance Ministry, would provide exporters with significantly greater planning certainty and allow them to incorporate the incentive into long-term pricing and investment decisions.
