Commerce Ministry seeks five-year RoDTEP extension to support exporters
The Commerce Ministry has proposed extending the RoDTEP duty-remission scheme for five years beyond its September 30, 2026 expiry, seeking greater certainty and cost competitiveness for exporters. The scheme covers 10,780 products; apparel, garments and made-ups remain under RoSCTL.
What happened
Ministry of Commerce and Industry · Commerce Ministry has sought a five-year RoDTEP extension to improve exporter certainty and cost competitiveness. The
Key facts
- 5-year extension sought
- September 30, 2026 expiry
- 10,780 products covered
- Refund rates of 0.3% to 3.9%
- Rs 15,728 crore allocation for 2026-27
- Rs 5,346 crore for past dues
- Rs 10,382 crore effective benefits availability
- Rs 19,080 crore earmarked for 2025-26
- Rs 991 crore arrears allocation for 2025-26
- Rs 77,262.60 crore cumulative benefits from April 1, 2021 to December 31, 2025
Why this matters
A longer RoDTEP runway could enhance the attractiveness of eligible Indian export suppliers and acquisition targets, while apparel-focused businesses remain more dependent on the separate RoSCTL regime.
What to watch
- Cabinet or Union Budget approval of the extension before the September 30, 2026 expiry.
- Notification of revised RoDTEP rates, eligible HS codes, annual outlay and any rate caps.
- Exporters' reports of RoDTEP credit issuance delays, utilization constraints or customs-processing changes.
- Changes to RoSCTL terms for apparel, garments and made-ups.
- Indian export-order growth and supplier capacity additions in eligible retail-linked categories.
- Any WTO-related challenge, fiscal-consolidation measure or budget shortfall that prompts narrowing of the scheme.
- Map Indian supplier exposure by RoDTEP eligibility, product code, current remission rate and share of export-margin contribution.
- Seek longer-term sourcing agreements with eligible suppliers, including clauses that share any realized RoDTEP benefit through lower FOB pricing or reinvestment in quality and lead-time improvements.
- Separate apparel, garments and made-ups sourcing analysis from other categories because these remain under RoSCTL rather than RoDTEP.
- Model a downside case in which remission rates are reduced or payments are delayed, particularly for low-margin suppliers.
- Use the policy uncertainty window to identify suppliers likely to accelerate export capacity, automation and compliance investments if a five-year extension is approved.