DGFT extends RoDTEP scheme till March 2026 as US tariffs weigh on exports

The Directorate General of Foreign Trade (DGFT) has extended the Remission of Duties and Taxes on Export Products (RoDTEP) scheme by six months, keeping it in force until March 31, 2026, in a move aimed at cushioning exporters against steep tariff headwinds from the United States.

In a notification, DGFT confirmed that the scheme will continue to apply to shipments from Domestic Tariff Area units, Advance Authorisation holders, Special Economic Zone units, and Export Oriented Units. The extension comes at a time when the US has imposed a 50% tariff on Indian imports through two rounds of reciprocal duties in August, linked to India’s crude oil trade with Russia.

Launched in 2021, the RoDTEP scheme reimburses exporters for embedded non-creditable central, state, and local levies on inputs, ensuring that domestic taxes are not exported and keeping Indian goods competitive in global markets. The Union Budget earmarked ₹18,232 crore for FY26, up from ₹16,000 crore in FY25, to support the program.

India’s merchandise exports grew 2.5% year-on-year to $184 billion in April–August FY26, with shipments to the US rising 18% to over $40 billion on account of frontloading. However, industry analysts warn that exports to the US are likely to decline in the coming months as higher tariffs take full effect.

Federation of Indian Export Organisations (FIEO) President Ashwani Kumar Ralhan welcomed the move, stating: “The scheme has been instrumental in neutralising the burden of non-creditable taxes, making exports competitive. Its continuation will help Indian exporters maintain momentum in a difficult global trade environment.” He added that such measures also encourage exporters to explore new markets and diversify their product portfolios.