Government reinstates RoDTEP benefits for export push

The government has restored RoDTEP scheme benefits for Special Economic Zones (SEZs), Export Oriented Units (EOUs), and Advance Authorisation holders from June 1, 2025. The WTO-compliant scheme refunds embedded taxes not covered under other mechanisms and has disbursed over ₹57,976 crore so far.

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In a move aimed at strengthening India’s export competitiveness, the government has reinstated benefits under the RoDTEP (Remission of Duties and Taxes on Exported Products) scheme for units operating under Advance Authorisation, Export Oriented Units (EOUs), and Special Economic Zones (SEZs), effective from June 1, 2025. These categories were earlier eligible for RoDTEP only until February 6, 2025.

The RoDTEP scheme, introduced in January 2021, was launched following a World Trade Organization (WTO) ruling against India’s earlier export incentive programmes. It is designed to neutralise the burden of taxes and levies—such as electricity duties and mandi fees—that are not refundable under other schemes. Being WTO-compliant and fully digital, RoDTEP ensures seamless and direct benefit transfers to exporters.

By March 31, total disbursements under the scheme had crossed ₹57,976.78 crore, reflecting its growing significance in supporting India’s merchandise exports. Benefit rates vary between 0.3% and 4.3%, depending on the product category.

Exporters have broadly welcomed the move. With global demand remaining uneven and profit margins under pressure, the restoration of RoDTEP benefits is expected to provide timely relief, particularly for small and medium enterprises (SMEs). Operating on tight margins, these businesses often struggle to price their products competitively in international markets. The renewed financial support could help them bridge that gap.

“The reinstatement of RoDTEP benefits for special export categories reflects the government’s continued commitment to creating a conducive, competitive, and compliant export ecosystem that drives India’s long-term trade growth,” the Commerce & Industry Ministry said.

This policy shift also coincides with an uptrend in India’s trade performance. Merchandise exports rose by 9.03% year-on-year in April 2025, reaching US$ 38.49 billion—the highest in six months. The timing aligns with India’s efforts to deepen its global trade engagements, as the country continues negotiating Free Trade Agreements (FTAs) with the US and the EU. India and the UK have already concluded an FTA, which is expected to further open market access for Indian goods.

Additionally, the revival of RoDTEP benefits is expected to offer a boost to sectors such as aluminium, mining, and manufacturing, which have significant export potential. Industry bodies have noted that extending these benefits to SEZs, EOUs, and Advance Authorisation holders helps ensure a level playing field across all export segments, rather than limiting support to the domestic tariff area exporters alone.

With global trade conditions remaining uncertain and geopolitical tensions affecting supply chains, this move signals India’s commitment to bolstering its export ecosystem through transparent, WTO-compliant mechanisms. It also reinforces the government’s broader vision of making Indian exports globally competitive, sustainable, and inclusive.