RoDTEP Export Tax Refund Scheme Extended Till 31 December 2026: How India Supports Its Exporters
The government has extended the RoDTEP scheme (Remission of Duties and Taxes on Exported Products) by three months, until 31 December 2026. The notification was issued on 30 September 2026, the day the scheme was due to end.
RoDTEP gives exporters back the hidden taxes and duties they paid while making their goods, which are not refunded through any other route.
The rates and value caps (the maximum amount that can be claimed per unit) stay the same as they were on 30 September 2026, as listed in Appendix 4R and Appendix 4RE of the trade policy.
The scheme continues for exports from four kinds of units: Domestic Tariff Area (DTA) units (normal factories in India), Advance Authorisation (AA) holders, Special Economic Zone (SEZ) units and Export Oriented Units (EOUs).
RoDTEP covers more than 10,700 tariff lines (product categories). Total payouts had crossed about ₹57,976 crore by 31 March 2025.
The extension is meant to give exporters continuity at a time of difficult global trade conditions.
Foreign Trade Policy (FTP) 2023
The Foreign Trade Policy (FTP) 2023 is the Government of India's main rulebook for exports and imports. It decides which goods can be freely traded, which need a licence, and what help the government gives to exporters. It came into force on 1 April 2023. Its big goal is to raise India's total exports of goods and services to US$ 2 trillion by 2030.
RoDTEP is a key tool under the "incentive to remission" pillar of FTP 2023. Its rates are notified by the DGFT in the FTP's Appendix 4R and 4RE, and the latest extension to 31 December 2026 was issued as a DGFT notification under this policy.
RoDTEP Scheme: Design, Objectives, and WTO Compliance
RoDTEP (Remission of Duties and Taxes on Exported Products) is a scheme that gives back to exporters the hidden central, state and local taxes built into the cost of their goods, which are not refunded through GST or duty drawback. Examples are taxes on diesel used in transport, electricity duty and mandi tax. The idea is that a country should export goods, not its taxes. The refund is given as an electronic credit (scrip) that can be used to pay customs duty.
The three-month extension keeps RoDTEP alive for all four types of exporting units at the same rates, giving exporters short-term certainty while the longer-term shape of export support is decided.
WTO Agreement on Subsidies and Countervailing Measures (SCM Agreement)
The SCM Agreement is the World Trade Organization's rulebook on subsidies. It bans export subsidies (government money given on the condition that goods are exported), because they give an unfair price advantage. But it allows a country to refund indirect taxes actually paid on exported goods, as long as the refund is not more than the taxes paid. If a country finds that imports are unfairly subsidised and hurt its industry, it can charge an extra import tax called a countervailing duty (CVD).
The RoDTEP extension keeps the same rates and value caps, so payouts stay linked to the taxes exporters actually bear. This "refund, not reward" design is how India keeps its export support within WTO rules.
- RoDTEP extended till 31 December 2026 (notification dated 30 September 2026)
- Rates and value caps unchanged (Appendix 4R and Appendix 4RE)
- Covers DTA units, Advance Authorisation holders, SEZ units and EOUs
- More than 10,700 tariff lines covered
- Cumulative payouts: over ₹57,976 crore (as of 31 March 2025)
- RoDTEP started 1 January 2021, replacing MEIS after the 2019 WTO ruling (DS541)
- FTP 2023 target: US$ 2 trillion exports by 2030