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Picture Courtesy:  THE HINDU

Context:

The Ministry of Commerce and Industry reinstates RoDTEP benefits and lifts leather export restrictions to strengthen export competitiveness.

RoDTEP Scheme

The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme was launched in January 2021, supports Indian exporters by refunding taxes and duties they pay during production and distribution. These taxes include things like mandi tax, value-added tax (VAT), coal cess, and central excise duty on fuel, which aren’t covered by other schemes like GST refunds.

The objective is to make Indian products cheaper and more competitive in international markets by ensuring exporters don’t bear these extra costs.

The scheme replaced the earlier Merchandise Exports from India Scheme (MEIS), which the World Trade Organization (WTO) ruled against in 2019 after the U.S. claimed it unfairly helped Indian exporters. RoDTEP is WTO-compliant, meaning it follows global trade rules, making it a fair way to support Indian businesses.

All exporters, including manufacturers, traders, Export-Oriented Units (EOUs), Special Economic Zones (SEZs), and Advance Authorization (AA) holders, can claim benefits if their products are made in India. There’s no minimum turnover limit, and even e-commerce exports via couriers qualify. However, re-exported goods don’t count.

Restoration of RoDTEP Benefits in 2025

The RoDTEP scheme was active until February 5, 2025, but its benefits for certain exporters—like those under Advance Authorization, EOUs, and SEZs—were paused. On May 26, 2025, the government announced that RoDTEP benefits for these groups will restart from June 1, 2025.

This move levels the playing field for exporters in SEZs and EOUs, who were at a disadvantage without these refunds.

With India’s merchandise exports rising 9.03% to $38.49 billion in April 2025 and free trade agreements (FTAs) with the U.S., EU, and UK in progress, RoDTEP’s restoration comes at a crucial time to keep exports growing.

This decision shows the government’s commitment to supporting exporters, especially in a competitive global market where countries like China and Vietnam are strong players. 

Must Read Articles: 

Government extended the benefits of the RoDTEP scheme 

Remission of Duties and Taxes on Exported Products 

Refund of Duties and Taxes on Exported Products (RoDTEP)

Source: 

THE HINDU