The government on Monday restored full benefits under the RoDTEP scheme to exporters amidst the ongoing West Asia crisis disrupting global trade.
Last month, the government halved the rate of duty benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme. The exporting community expressed disappointment and had sought reconsideration of the decision.
"The RoDTEP rates and value caps as specified…as applicable on February 22, 2026, are hereby restored with effect from February 23, 2026, to March 31, 2026, for all eligible export products," the Directorate General of Foreign Trade (DGFT) said in a notification.
The Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme, launched 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 not being 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 scheme is valid till March this year.
The budget allocation under the scheme for 2025-26 was Rs 18,232 crore. It was proposed to increase to Rs 21,709 crore in 2026-27. But the budget allocated was Rs 10,000 crore.
The exporting community was earlier grappling with the high US tariffs and is now facing challenges from the West Asian crisis triggered by the joint attack of the US and Israel on Iran last month.
The conflict has pushed up sea and air freight rates, while insurance premiums are also rising.
The country's merchandise exports dropped marginally by 0.81 per cent year-on-year to USD 36.61 billion in February, while the trade deficit narrowed to USD 27.1 billion from the previous month.
The impact of the West Asia crisis will be reflected in the data for March, as the war began on February 28. The data will be released by mid-May.
Recent developments in West Asia have posed challenges for maritime logistics, including shifts in routing and transit patterns. These have affected logistics costs and shipping schedules for export consignments moving to or through the region.
In view of the evolving geopolitical situation and its implications for maritime trade, the government has decided to restore the rates and value caps under the scheme.
This step is intended to provide timely support to Indian exporters facing elevated freight costs and war-related trade risks arising from disruptions in the Gulf and the wider West Asia maritime corridor, the commerce ministry said.
The government last week launched a Rs 487 crore RELIEF (Resilience & Logistics Intervention for Export Facilitation) scheme to provide relief to exporters.
Federation of Indian Export Organisations President S C Ralhan said this is a welcome decision at a time when exporters are navigating heightened global uncertainties, rising logistics costs, and demand-side caution, this move will go a long way in reinforcing positive sentiment across the exporting community.
"By ensuring full remission of embedded taxes and duties, it directly enhances the cost competitiveness of Indian products in global markets, while also providing much-needed predictability to exporters," he said.
