New Delhi: India will reinstate benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme from June 1, according to a statement from the trade ministry on Tuesday. The programme, designed to reimburse exporters for embedded taxes, duties, and levies not covered by other refund mechanisms, had been halted on February 5 for a policy review.
First launched on January 1, 2021, RoDTEP aims to enhance export competitiveness by providing a level playing field across multiple sectors, including textiles, pharmaceuticals, agriculture, chemicals, automobiles, and food processing. The trade ministry emphasized that the scheme’s reactivation will be managed through a digital platform to ensure transparency and operational efficiency.
“As per a Reuters report, the decision to resume the scheme follows internal deliberations and reflects the government's renewed commitment to supporting exporters amid global trade uncertainties. An unnamed official cited by Reuters said, “In the current environment, the government has felt the need to continue to give such benefits.”
Total disbursements under RoDTEP had exceeded Rs 579.77 billion (approximately USD 7 billion) as of March 31, underlining its significance in India’s trade policy arsenal.
The timing of the announcement is notable, coming shortly after India finalized a trade agreement with the United Kingdom and is pushing to conclude a deal with the United States. The urgency is driven in part by a 90-day window to avoid the re-imposition of steep import tariffs initially introduced by former U.S. President Donald Trump.
The reinstatement of RoDTEP is seen as a proactive move to reinforce India's export sector at a crucial moment in global trade negotiations.
