The government on Monday restored full tariff benefits to exporters affected by West Asia war-related disruptions, withdrawing its February 22 decision that halved discount rates and imposed caps under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme.
“In view of the evolving geopolitical situation and its implications on maritime trade, the Government of India has decided to restore the rates and maximum value under the RoDTEP scheme for all eligible export products with effect from March 23, 2026,” the Indian Commerce Ministry said.
The restored prices will revert to those in effect from February 22, effectively undoing the 50% reduction notified the next day. “The restored rates shall be those that were effective from February 22, 2026, thereby withdrawing the previous 50% restriction,” the ministry said, adding that the latest notification supersedes the February 23 order and its correction issued on February 24, excluding measures already taken.
RoDTEP is based on the principle that taxes and duties should not be exported, and that duties incurred during production and logistics should be returned to exporters if they are not covered by any other scheme.
Previous restrictions sparked sharp criticism from exporters, especially as global trade faced fluctuations and shipping costs rose due to disruptions in major sea routes. However, the government has exempted agriculture and food processing exports from the reduction. A corrigendum issued by the Directorate General of Foreign Trade (DGFT) clarified that the reduced rates will not apply to items listed in Chapters 01 to 24 of the ITC Harmonized System, which cover products such as tea, coffee, cereals, meat, fruits, vegetables and beverages.
The February rationalization was linked to financial restrictions, as the Union Budget for the period 2026-2027 proposed reducing the scheme’s allocations from $18,232.50 crore to $10,000 Crores. He also suggested that the scheme be included within a broader scope $Rs 25,060 crore for Export Promotion Mission, subject to approval.
Officials indicated that the allocation may now be reviewed in light of stakeholder feedback and the uncertain global trade environment.
“The decision aims to provide timely support to Indian exporters facing high shipping costs and war-related trade risks resulting from unrest in the Gulf and the broader West Asian sea lane,” the ministry said, stressing its commitment to maintaining export competitiveness.
Launched in 2021, RoDTEP recovers taxes and duties charged at the central, state and local levels that are not paid through other mechanisms, with rebates calculated as a percentage of the FOB value, subject to notified caps.
