RoDTEP Scheme: Proposed Extension and Impact on Exporters

Overview: The government is considering extending the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme beyond September 30, 2026. According to a Business Standard report, discussions with the Finance Ministry were underway. The Commerce Ministry has also sought a five-year extension and a higher FY2026-27 allocation of ₹23,000 crore. India’s exporters are nearing the current RoDTEP deadline.

RoDTEP Scheme: Proposed Extension and Impact on Exporters

India’s exporters are nearing an important Remission of Duties and Taxes on Exported Products (RoDTEP) deadline. While the government is considering continuing the scheme beyond 30th September, 2026, the extension is not yet formally notified. For exporters, the distinction matters because RoDTEP rates and eligibility conditions after the current validity period cannot be assumed until the government issues a fresh notification. 

The latest DGFT notification covers eligible exports from 1st April to 30th September, 2026. Any continuation beyond September 30 will require a fresh government notification.

Government Seeks Longer RoDTEP Extension

The Commerce Ministry has sought a five-year extension of the RoDTEP scheme and a ₹23,000 crore allocation for FY 2026-27, compared with the ₹10,000 crore provided in the Union Budget. The proposal is still under consideration.

A longer policy period could give exporters greater certainty when planning pricing, production and investments. For now, however, exporters should distinguish between the proposed extension and the currently notified RoDTEP provisions.

What Is the RoDTEP Scheme?

Launched in 2021, RoDTEP remits eligible duties, taxes and levies embedded in exported products where these are not otherwise refunded or credited.

The benefit is calculated at a notified rate on the FOB value of eligible exports, subject to product-specific value caps. Depending on the product, current RoDTEP rates range from 0.3% to 3.9%. Eligible exporters receive transferable electronic duty credit e-scrips through the Customs system.

Which Sectors Benefit?

A March 2026 parliamentary response reported ₹15,756.96 crore in RoDTEP remission during FY2025-26 up to December 2025. Major categories included:

Sector Remission (₹ cr)
Textiles and Clothing 2,058.89
Vegetables 2,069.50
Machinery and Electronics 2,056.61
Chemicals 2,272.93
Fish and Marine Products 1,462.09

The response covered 111,324 exporters and more than 11,000 tariff lines.

What Exporters Should Check Now

Until a fresh notification is issued, exporters should not assume that the existing RoDTEP rates and conditions will automatically continue after 30 September, 2026.

Businesses should check their applicable ITC-HS code, RoDTEP rate, value cap and export documentation, and monitor the latest DGFT notifications. DGFT has also revised the RoDTEP schedule in April 2026 to align it with Customs Tariff changes, covering 194 tariff lines.

Setindiabiz Support

Setindiabiz supports exporters and MSMEs with IEC registration and updates, export documentation, regulatory documentation and ongoing compliance support. As export policies and remission schemes change, keeping IEC details, product classification, export records and supporting documents accurate helps businesses stay prepared for applicable export compliance requirements. Setindiabiz also helps businesses review their export documentation and compliance requirements when regulatory or scheme-related changes affect their operations.

FAQs

What is the current validity of RoDTEP?

The current notified arrangement covers eligible exports from 1st April to 30th September, 2026. Any continuation beyond this date requires a fresh notification.

What is the proposed RoDTEP extension?

The Commerce Ministry has sought a five-year extension and a ₹23,000 crore FY2026-27 allocation. The proposal remains under consideration.

Which sectors benefit from RoDTEP?

Eligible exports across sectors including textiles, agriculture, marine products, chemicals, machinery and electronics can receive RoDTEP benefits, subject to the applicable product classification, rate and value cap.

Does RoDTEP provide a direct cash subsidy?

No. RoDTEP is a remission mechanism for eligible embedded duties, taxes and levies. Eligible exporters receive transferable electronic duty credit e-scrips based on the notified rate and applicable value cap.

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    Author Bio

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    Shivani Tyagi

    Shivani Tyagi is a legal professional with background in legal research, drafting, and compliance analysis. Skilled in reviewing legal documents, statutory and case law research, she focuses on simplifying corporate legal topics and brings research-driven clarity to Setindiabiz's compliance-focused blogs.

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