Govt Restores flFull RoDTEP Duty Benefits Amid War The government on Monday restored full duty benefits to exporters affected by disruptions linked to the West Asia war, withdrawing its February 22 decision that had halved rebate rates and imposed caps under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme.
The restored rates will revert to those in force as of February 22, effectively rolling back the 50% reduction notified a day later. “The restored rates shall be those that were in force as on February 22, 2026, thereby withdrawing the earlier restriction of 50%,” the ministry said, adding that the latest notification supersedes the February 23 order and its February 24 corrigendum, except for actions already taken.
The earlier curbs had triggered sharp criticism from exporters, especially as global trade faced volatility and freight costs surged due to disruptions in key maritime routes. The government had, however, exempted agriculture and food processing exports from the reduction
The February rationalisation was linked to fiscal constraints, with the Union Budget for 2026-27 proposing to cut the scheme’s allocation from ₹18,232.50 crore to ₹10,000 crore. The scheme was also proposed to be subsumed under a broader ₹25,060 crore export promotion mission, subject to approval.
Officials indicated that the allocation may now be reviewed in light of stakeholder feedback and the uncertain global trade environment.
Launched in 2021, RoDTEP refunds taxes and levies borne at the central, state and local levels that are not reimbursed through other mechanisms, with rebates calculated as a percentage of the FOB value, subject to notified caps.