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FIEO introduced on Saturday (March 7, 2026) that the Ministry of Commerce has assured that advantages below the export assist scheme RoDTEP can be totally reinstated from April 1 this yr, offering vital aid to exporters going through hardship as a result of West Asian disaster.
Excluding agricultural merchandise and processed meals, the federal government on February 23 halved the preferential tariff charge below the Reduction of Duties and Taxes on Export Merchandise (RoDTEP) scheme.
“Excellent news for exporters. The present 50% RoDTEP tax charge can be relevant solely until March 31, 2026. The total reinstatement of RoDTEP tax charge will come into impact from April 1, 2026 and may present much-needed assist to the export neighborhood,” mentioned SC Ralhan, Chairman, Federation of Indian Export Organizations (FIEO).
This assurance was given by the Directorate Basic of Overseas Commerce (DGFT) in a gathering with FIEO.
The export trade had expressed disappointment with the speed minimize and urged the Commerce Division to rethink its resolution.
The RoDTEP scheme, launched in 2021, offers for refund of taxes, duties and surcharges incurred by exporters within the course of of producing and distribution of products, which aren’t refunded below different mechanisms on the Centre, state and native ranges.
Refunds below this scheme vary from 0.3% to three.9%.
The price range allocation below this scheme for 2025-2026 was Rs 18,232 crore. It was proposed to be elevated to Rs 21,709 crore in 2026-27. Nevertheless, the allotted price range was Rs 10,000 crore.
Officers mentioned a memo to the Expenditure and Finance Committee (EFC) was despatched to the Ministry of Expenditure by the Ministry of Commerce looking for enhanced allocation.
The export neighborhood has been grappling with excessive U.S. tariffs for a while, however now faces the problem of the West Asia disaster sparked by final month’s joint U.S.-Israel assault on Iran.
Conflicts have elevated sea and air freight charges and elevated insurance coverage premiums. If this case continues, it could have an effect on the worth competitiveness of Indian merchandise within the world market.
In price-sensitive areas, even a 1-2% improve in prices could be the distinction between successful or shedding an order.
The nation’s exports elevated barely in January by 0.61% to $36.56 billion, however the commerce deficit widened to $34.68 billion, the best degree in three months.
