Effective June 1, 2025, the Indian government has reinstated RoDTEP (Remission of Duties and Taxes on Exported Products) benefits for Advance Authorization (AA) holders, Export-Oriented Units (EOUs), and Special Economic Zones (SEZs).
Reversing an earlier decision to withdraw these incentives.
But this sudden shift raises a pressing question:
Is policy instability undermining India’s export credibility?
🔍 What Happened?
In a surprising move, RoDTEP benefits were suspended on February 6, 2025, for AA/EOU/SEZ exporters, restricting refunds to Domestic Tariff Area (DTA) exporters only.
➡️ After intense lobbying from FIEO (Federation of Indian Export Organisations) and sector stakeholders, the benefits were restored via DGFT Notification No. 11/2025-26, to take effect from June 1, 2025.
📅 Timeline of the Policy Whiplash
- Until Dec 31, 2024: RoDTEP available to all eligible exporters
- Feb 6, 2025: DGFT suspends benefits for AA/EOU/SEZ units
- Feb–May 2025: Exporters face contract and pricing issues
- June 1, 2025: Benefits reinstated, but with ongoing gaps
💸 Why This Matters to Exporters
RoDTEP refunds 0.3% to 4.3% of export value, covering non-creditable taxes like electricity duty, mandi tax, etc.
Industries like:
- 🧪 Pharmaceuticals
- 👕 Textiles
- ⚙️ Engineering goods
- 🐟 Marine exportsRely on these refunds for margin protection and pricing consistency. The suspension created chaos in planning, negotiations, and cash flow.
⚠️ Key Concerns from the Export Community
1. Policy Volatility
2. Coverage Gaps
3. Competitiveness at Risk
💰 What’s the Benefit for Exporters?
The restoration of RoDTEP benefits is more than a policy correction, it’s a lifeline for exporters navigating global competition and tight margins. Here’s how:
- Cost Relief: Refunds 0.3–4.3% of export value by covering hidden taxes like fuel, electricity, and local levies.
- Cash Flow Boost: Faster refunds ease working capital pressure, especially for SMEs.
- Price Stability: Enables exporters to maintain competitive global pricing despite rising input costs.
- Level Playing Field: Matches incentives offered by competing countries like Vietnam and Bangladesh.
- Confidence to Scale: Restored benefits allow long-term planning, investments, and contract stability.
In sectors like engineering goods or chemicals with long lead times, this assurance is key
➡️ In short: More margin. Less uncertainty. Better global reach.
This move restores momentum for India’s $2 trillion export goal, but exporters need long-term certainty, not just relief.
✅ What Needs to Change?
✅ Long-Term Policy Commitment
- Legislate a 5-year RoDTEP roadmap
- Lock eligibility criteria and refund rates
✅ Harmonization of Schemes
- Merge RoDTEP with SEIS and e-commerce export incentives
- One-window portal, single compliance system
✅ Smart Digital Infrastructure
- AI-powered customs validation
- Reduce processing time from 90 to 30 days
- Blockchain-based documentation
💬 Over to You:
- How did the RoDTEP suspension affect your business?
- What would a “trustworthy” export policy framework look like to you?
Let’s start a dialogue that pushes for predictability over patchwork.
📌 Stay Informed. Stay Competitive.
✅ Contact us for insights on India’s trade ecosystem
✅ Share this with exporters or policy advocates in your network
