The government has reinstated benefits worth ₹18,233 crore ($218.8 million) under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for exports carried out by Advance Authorisation holders, Export-Oriented Units (EOUs) and units located in Special Economic Zones (SEZs). This decision marks a significant boost for the aluminium and mining sectors.
The move follows formal appeals by key industry bodies, including the Federation of Indian Chambers of Commerce & Industry (FICCI), the Federation of Indian Mineral Industries (FIMI), and the Aluminium Association of India, urging the government to restore the benefits under the scheme.
The RoDTEP scheme is aimed at reimbursing exporters for embedded taxes, duties, and levies that are not covered under any other refund mechanism, thereby enhancing the competitiveness of Indian exports.
"A seamless transition would ensure stability and predictability for exporters and avoid any disruption in trade planning or pricing. Although RODTEP is a WTO-compliant way to refund embedded duties paid by exporters, its repeated withdrawal for AA holders, EOUS, and SEZs creates serious uncertainty. Exporters struggle to price products or plan long-term deals when they cannot rely on steady refunds. While the reinstatement of benefits is welcome, it raises a bigger issue: why were they cut off mid-cycle at all? "said FIEO President SC Ralhan.
However, the government has announced that the benefits will apply only to eligible exports made from June 1 onward. This timeline clashes with the industry's appeal to make the restoration effective from February 7, the day after the earlier RoDTEP provisions lapsed on February 6.
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While the Federation of Indian Export Organisations (FIEO) welcomed the reinstatement, it also urged the government to make the benefits retroactive to February 7, 2025, to ensure there is no gap in RoDTEP coverage for exporters.
Ajay Srivastava, founder of the think tank Global Trade Research Initiative, criticised the government's stop-and-start approach to the RoDTEP scheme, stating that it undermines its core objective of providing consistent support to exporters.
As of March 31, 2025, total disbursements under the RoDTEP scheme have exceeded ₹57,976.78 crore ($681.97 billion). For FY26, the government has earmarked ₹18,233 crore ($21.42 million) under the scheme. The support will extend to 10,780 HS lines for exports from the Domestic Tariff Area and 10,795 HS lines for exports by Advance Authorisation holders, Export-Oriented Units, and Special Economic Zone units.
Also Read: Indian aluminium industry: Is the fight for higher import duties justified?
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