Exporters to Benefit as RoDTEP Tax Refund Scheme Resumes from June 1: All You Need to Know

In a significant step towards enhancing India’s export competitiveness, the Commerce Ministry on Tuesday announced the resumption of the RoDTEP (Remission of Duties and Taxes on Exported Products) scheme starting June 1. The scheme, which had been temporarily suspended since February 5, is being reintroduced to provide key financial support to exporters across various industries.

What is RoDTEP and Why It Matters

Launched originally in January 2021, RoDTEP (Remission of Duties and Taxes on Exported Products) scheme reimburses exporters for levies and duties not covered by other government initiatives. As of March 31, it has already disbursed over Rs 57,977 crore ($7 billion) in benefits.

“Their reinstatement is expected to provide a level playing field for exporters across sectors,”
the trade ministry said, adding that the benefit delivery will be digitally enabled to
“ensure transparency and efficiency.”

A senior government official explained that the earlier pause was necessary to reassess the support needed.

“In the current environment, the government has felt the need to continue to give such benefits,”
the official noted.

Strategic Timing Amid Global Trade Deals

The move to restart RoDTEP comes amid India’s strategic international engagements. With a free trade agreement recently concluded with the UK, and negotiations ongoing with the United States—ahead of the end of a 90-day reprieve from former US President Trump’s tariffs—the scheme aims to provide Indian exporters a competitive edge in global markets.

Key Objectives of the RoDTEP Scheme

Boosting Export Volume

The scheme is designed to bolster India’s export volumes, especially from sectors previously struggling to remain competitive.

Simplifying Tax Refunds

RoDTEP facilitates easy and automated refunds of various central, state, and local taxes that were not previously reimbursed.

Ensuring Global Standards

By reducing tax burdens, the scheme helps Indian exporters meet international quality and pricing standards.

Major Features of the RoDTEP Scheme

Remission of Multiple Duties

It includes reimbursement for all embedded taxes such as education cess and state taxes on utilities like power, oil, and water.

Fully Automated & Digital

A digital, paperless refund system ensures faster processing and reduced fraud through automated verification.

Covers All Major Sectors

RoDTEP applies to sectors such as textiles, pharmaceuticals, automobiles, agriculture, chemicals, and food processing.

WTO Compliant

The scheme adheres to World Trade Organization (WTO) norms, safeguarding India from international trade disputes.

Benefits of RoDTEP for Exporters

Reduces Cost of Production

By reimbursing hidden and unrefunded taxes, RoDTEP helps cut input costs for exporters.

Enhances Global Competitiveness

The scheme aims to make Indian products more price-competitive on the international stage.

Boosts Employment and Business

Reviving exports is expected to generate jobs and promote industrial growth, supporting inclusive development.

Improves Ease of Doing Business

With simplified digital processing, the scheme enhances India’s appeal to global investors and businesses.

Conclusion

The reinstatement of the RoDTEP scheme from June 1 marks a critical move by the Indian government to rejuvenate the country’s export ecosystem.

With global markets becoming increasingly competitive, this initiative comes at a strategic juncture—post-FTA with the UK and ongoing talks with the US.

By reimbursing unclaimed taxes and duties, RoDTEP aims to reduce production costs and make Indian products more competitive globally. The scheme’s automation, multi-sectoral coverage, and digital delivery framework not only promote transparency but also simplify access for exporters. Its WTO compliance ensures long-term stability and global legitimacy.

Sectors ranging from textiles to pharmaceuticals and agriculture stand to benefit significantly. With more than ₹57,977 crore already disbursed, the government’s renewed commitment signals its intent to drive trade-led growth, create employment, and improve ease of doing business. As India marches towards becoming a global manufacturing hub, RoDTEP could be a game-changer in realising the vision of Viksit Bharat 2047.