India's commerce ministry on Monday restored full duty benefits under the RoDTEP scheme for exporters affected by West Asia war disruptions, effective March 23, 2026. This reverses a February decision halving rebate rates amid fiscal constraints. The step supports exporters facing maritime trade volatility.
India's government on Monday withdrew its February 22 decision halving rebate rates and imposing value caps under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme. The move responds to the evolving geopolitical situation in West Asia and its impact on maritime trade. “In view of the evolving geopolitical situation and its implications for maritime trade, the Government of India has decided to restore the rates and value caps under RoDTEP scheme for all eligible export products with effect from March 23, 2026,” the commerce ministry stated. The restored rates match those in force on February 22, superseding the February 23 notification and February 24 corrigendum, except for actions already taken. Launched in 2021, RoDTEP refunds central, state, and local taxes and duties not reimbursed elsewhere, calculated as a percentage of FOB value up to caps. Exporters had criticized the earlier curbs amid global trade volatility and surging freight costs from key route disruptions. Agriculture and food processing exports under ITC HS Chapters 01 to 24 were previously exempted. The cuts were linked to fiscal pressures, with the 2026-27 Union Budget reducing the scheme's allocation from ₹18,232.50 crore to ₹10,000 crore, proposing subsumption into a ₹25,060 crore export mission. Officials indicated the allocation may now be reviewed based on stakeholder feedback and uncertain global conditions. “The decision is intended to provide timely support to Indian exporters facing elevated freight costs and war-related trade risks arising from disruptions in the Gulf and the wider West Asia maritime corridor,” the ministry added, emphasizing export competitiveness.
