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Govt halves rate of duty benefits under RoDTEP scheme for exporters

24 Feb 2026 Evaluate

The government has reduced the duty benefits under the export support scheme, the Remission of Duties and Taxes on Exported Products (RoDTEP), by half, prompting the exporting community to seek a reconsideration of the decision. The RoDTEP Scheme, introduced in 2021, provides for a refund of taxes, duties and levies that are incurred by exporters in the process of manufacturing and distribution of goods, and are not being reimbursed under any other mechanism at the Centre, state or local level.

With immediate effect, the Directorate General of Foreign Trade (DGFT) said the applicable RoDTEP rates shall be limited to 50 per cent of the existing rates. Refunds under the scheme range from 0.3 per cent to 3.9 per cent. Besides, talking about the decision, Federation of Indian Export Organisations (FIEO) President S C Ralhan said the reduction in rates and the 50 per cent cut in value caps come at a particularly challenging when Indian exports are already facing significant global headwinds, including slowing demand, increasing uncertainty and rising protectionism. 

He stated ‘We request the government to reconsider the decision.’ According to government data, the country's exports rose marginally by 0.61 per cent to $36.56 billion in January, while trade deficit widened to a three-month high of $34.68 billion.

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