India poised to extend RoDTEP export duty refund scheme beyond September

India's export duty refund scheme is likely to be extended as the government holds talks to maintain support for exporters facing the current scheme's September 30 expiration date. Officials confirmed that the commerce and finance ministries are actively discussing the extension of RoDTEP, which has emerged as a key support mechanism for the country's export sector since its launch in 2021.

The RoDTEP scheme provides exporters with refunds of taxes, duties and levies incurred during manufacturing and distribution that are not covered under any other central, state or local reimbursement mechanism. Refund rates under the programme currently range from 0.3 per cent to 3.9 per cent depending on the product category, benefiting a wide range of export-oriented industries.

The government has substantially increased budgetary allocation for the scheme, with Rs 18,232 crore earmarked for the 2025-26 fiscal year compared to Rs 10,000 crore in the current fiscal. The higher allocation signals the government's commitment to supporting export competitiveness amid global trade challenges.

Since its inception, RoDTEP has become integral to India's export promotion strategy, helping domestic manufacturers offset embedded taxes and duties that their international competitors do not face. The expected extension would provide continuity for exporters relying on these refunds to maintain competitive pricing in global markets.