The Indian government has reinstated full duty benefits for exporters affected by the ongoing war in West Asia, reversing its February decision that halved rebate rates and imposed caps under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme.
The decision, effective from March 23, 2026, restores the rates and value caps under the RoDTEP scheme for all eligible export products, effectively rolling back the 50% reduction notified earlier.
RoDTEP is based on the principle that taxes and duties should not be exported, and that levies incurred during production and logistics should be refunded to exporters if not covered under any other scheme.
The earlier curbs had triggered sharp criticism from exporters, especially as global trade faced volatility and freight costs surged due to disruptions in key maritime routes.
The government had, however, exempted agriculture and food processing exports from the reduction, and a corrigendum issued by the Directorate General of Foreign Trade (DGFT) clarified that reduced rates would not apply to items under ITC HS Chapters 01 to 24.
The February rationalisation was linked to fiscal constraints, with the Union Budget for 2026-27 proposing to cut the scheme's allocation from ₹18,232.50 crore to ₹10,000 crore.
Officials indicated that the allocation may now be reviewed in light of stakeholder feedback and the uncertain global trade environment.
