RoDTEP scheme extension likely for exporters as September 30 deadline nears

Sep 29, 2026

Synopsis
The government plans to extend the Remission of Duties and Taxes on Exported Products scheme to support exporters. This initiative aims to provide refunds for various embedded taxes, which could otherwise raise costs for Indian goods abroad. The commerce ministry is consulting with the finance ministry regarding the extension of the scheme. The RoDTEP scheme was introduced in 2021 and has varying refund rates from 0.3% to 3.9%.

The government is likely to extend the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme beyond September 30, when the current tenure of the export duty refund programme is set to end, PTI reported on Tuesday, citing an official.

The extension would provide continuity to exporters who receive refunds of taxes, duties and levies incurred during the manufacture and distribution of goods but not reimbursed through any other mechanism at the central, state or local level, the report said.

The RoDTEP scheme, launched in 2021, currently provides refunds ranging from 0.3% to 3.9%, depending on the exported product. Its continuation is being considered as exporters remain eligible for relief on embedded costs that can otherwise add to the cost of Indian goods in overseas markets.

The commerce ministry is in discussions with the finance ministry on the issue, PTI reported.

The scheme had a budget allocation of ₹18,232 crore in 2025-26. The allocation was reduced to ₹10,000 crore for the current fiscal year, according to the report.

Under RoDTEP, exporters receive refunds for eligible duties, taxes and levies incurred in the production and distribution of goods when those costs are not refunded under any other mechanism.

The scheme was introduced in 2021 as part of efforts to ensure that such embedded taxes and duties are not built into the cost of exports. PTI reported that the refund rates under the scheme range from 0.3% to 3.9%.

[The Economic Times]