New Delhi: The government has extended fiscal benefits under the RoDTEP scheme for exporters by six months, until September 30, amid disruptions to global trade caused by the ongoing West Asia crisis.
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.
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.
"Eligible exports made during the period from April 1 to Sep 30, 2026 shall continue to be entitled to RoDTEP benefit at the rates and value caps in force as on March 31, subject to the existing terms and conditions of the scheme," the Directorate General of Foreign Trade (DGFT) has said in a notification.
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.
In a separate notification, the DGFT said the "free" import policy of tur, and urad, extended for one more up to March 31, 2027.
Further it said that the import of yellow peas is 'free' without the minimum import policy condition and without port restriction, subject to the registration under online import monitoring system, with immediate effect, for all import consignments where bill of lading (shipped on board) is issued on or before March 31, 2027.
It also said that MIP (minimum import price) at Rs 67,220 per ton on cost, insurance, freight value, imposed on virgin multi-layer paper board has been extended for one month till April 30 this year.
Source Name : Economic Times