Government extends export incentive scheme until March 2026

The Government on Tuesday announced the extension of fiscal benefits under the RoDTEP scheme for exports for six more months until March 31, 2026, amid a 50% tariff imposed by the United States (US) on Indian imports.  “…The Central Government hereby notifies the extension of the RoDTEP Scheme beyond 30.09.2025.  Accordingly, the RoDTEP Scheme shall remain in force and be applicable to exports made from Domestic Tariff Area units, Advance Authorisation holders, Special Economic Zone units and Export Oriented Units up to 31.03.2026,” a notification by the Directorate General of Foreign Trade (DGFT) said. The flagship export incentive scheme came into effect in 2021 and refunds the embedded non-creditable central, state, and local levies paid on inputs to exporters. It is based on the principle that taxes should not be exported. The scheme ensures zero-rating of exports, which makes them competitive.

The Union Budget allocated nearly ₹18,232 crores in 2025-26 (FY26) for the scheme against ₹16,000 crores in FY25. During the first five months of FY26 (April-August), merchandise exports rose 2.5% to $184 billion. However, exports to the US saw 18% growth, hitting over $40 billion during the period on frontloading. Going ahead, exports are likely to contract due to the US imposition of 25% reciprocal tariff from August 7 and another 25% from August 27 for India’s purchases of Russian crude oil. “The timely extension of RoDTEP has removed the uncertainty that was weighing on the exporting community. This step comes at a critical juncture when exporters are navigating global headwinds, and it provides the much-needed policy continuity to plan exports with greater confidence,” said Federation of Indian Export Organisations (FIEO) President, S C Ralhan.

“The scheme has been instrumental in making Indian exports competitive by neutralising the incidence of non-creditable taxes and duties, and its continuation will help exporters sustain momentum in the current challenging global trade environment,” Ralhan added. He also emphasised that such measures not only strengthen India’s position in global markets but also encourages exporters to explore new destinations and diversify product baskets.

Source : https://www.reuters.com/world/india/india-extends-export-incentive-scheme-until-march-2026-2025-09-30/