India Restores Full RoDTEP Rates to Support Exporters Amid West Asia Trade Disruptions
On 24 March 2026, the government announced a RoDTEP scheme restore, reinstating export incentives for Indian exporters. However, the relief is extremely short-lived, as the scheme is set to expire on 31 March—just six days later. Experts, including Ajay Srivastava of think tank GTRI, warn that without clarity beyond March, exporters cannot factor RoDTEP benefits into long-term commitment contracts, creating uncertainty in crucial sectors like textiles, leather, handicrafts, and agricultural commodities.
Why RoDTEP Scheme Restore Matters
The RoDTEP (Remission of Duties and Taxes on Exported Products) refunds hidden taxes and levies that exporters pay during production—state taxes, central taxes, electricity, and transport levies—allowing Indian goods to compete globally. Launched in 2021, refunds range from 0.3% to 3.9% depending on the product. But with a budget allocation of only ₹10,000 crore against the requested ₹21,709 crore, the restored scheme covers less than half of the needed funds.
Ground Reality: Short-Term Relief
Even with the RoDTEP scheme restore, exporters face surging container freight rates, war-risk premiums, and insurance costs due to the West Asia conflict. February 2026 saw merchandise exports fall 0.81% to $36.61 billion, with a trade deficit of $27.1 billion. The six-day scheme offers minimal financial support compared to skyrocketing operational costs, leaving exporters without long-term commitment or stability.
Conclusion
The recent RoDTEP scheme restore is more symbolic than substantial. Without increased budget allocation and predictable rates, Indian exporters continue to struggle against competitors like Vietnam, Bangladesh, and China, which have stable and robust export incentives. True relief will require long-term policy consistency and adequate funding.
