The government has extended the RoDTEP scheme for exporters by three months till December 31, with exporters seeking a longer-term extension and adequate budgetary support.
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VIPIN CHANDRAN
The government on Wednesday extended the duty refund scheme, Remission of Duties and Taxes on Exported Products (RoDTEP), for exporters by three months till December 31.
The scheme was set to end on September 30.
“The RoDTEP scheme is extended and shall apply to eligible exports from DTA (domestic tariff area), AA (advance authorisation), SEZ (special economic zone) and EOU (export-oriented unit) units up to December 31, 2026,” the Directorate General of Foreign Trade (DGFT) said in a notification.
Though exporters welcomed the extension, they urged the Government to consider a long-term extension of the scheme.
RoDTEP refunds taxes and duties paid by exporters
The scheme, launched in 2021, provides a refund of taxes, duties and levies incurred by exporters in the process of manufacturing and distributing goods that are not reimbursed under any other mechanism at the Centre, state, or local level.
Refunds under the scheme range from 0.3 per cent to 3.9 per cent.
The budget allocation under the scheme for 2025-26 stood at Rs 18,232 crore. The budget for the scheme for this fiscal was Rs 10,000 crore.
Exporters seek longer-term extension
Welcoming the decision, Apparel Export Promotion Council (AEPC) Chairman A Sakthivel said the move would help MSME exporters.
Federation of Indian Export Organizations (FIEO) Director General Ajay Sahai said the extension provides continuity and much-needed reassurance to exporters amid global trade uncertainties.
“The extension will help exporters honour commitments and price orders with greater confidence,” he said, adding that going forward, a longer-term extension with adequate budgetary support would provide the predictability needed to negotiate contracts, secure fresh orders and expand into new markets.
Economic think tank GTRI Founder Ajay Srivastava said that such short extensions defeat the scheme’s core purpose as exporters finalise orders months before shipment and cannot factor tax refunds into their pricing without knowing whether the scheme will continue.
GTRI calls for five-year extension
“RoDTEP is not an export incentive or subsidy. It returns taxes already paid during production, including state taxes on fuel, electricity duties and mandi charges, that are not otherwise refunded,” he said.
Srivastava said that the government should announce a five-year extension to give exporters certainty, help them price orders competitively and avoid losing contracts because of policy uncertainty.
This certainty is especially important in today’s difficult export environment, when exporters need every cost advantage to retain business, he added.
Exports rise 17.85% during April-August
During April-August this fiscal year, exports jumped 17.85 per cent year-on-year to USD 215.91 billion, and imports climbed 18.21 per cent to USD 363 billion.
The government is targeting USD one trillion worth of exports of goods and services this fiscal from USD 863 billion in 2025-26.
Published on September 30, 2026
