RoDTEP benefit restoration to help MSMEs grow

RoDTEP benefit restoration to help MSMEs grow

RoDTEP disbursements reached ₹57,976.78 crore; ₹18,233 crore allocated for 2025–26 scheme
Published on

New Delhi

The restoration of RoDTEP scheme benefits by the Indian government is expected to support micro, small, and medium enterprises (MSMEs), boost export efficiency, and improve investor confidence, according to industry body Assocham.

The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme helps exporters recover taxes not refunded through other programs. From June 1, 2025, the benefits will again apply to Advance Authorisation (AA) holders, Export-Oriented Units (EOUs), and Special Economic Zones (SEZs). These groups were excluded from February 5, creating financial stress and uncertainty.

Assocham praised the government’s decision, saying it corrects a cost imbalance faced by exporters working in SEZs and under AA and EOU frameworks. Secretary General Manish Singhal said the move aligns with India’s global trade commitments and boosts confidence in its export policies.

By March 31, 2025, disbursements under RoDTEP crossed ₹57,976.78 crore. For 2025–26, the government has set aside ₹18,233 crore for the scheme. Assocham believes the restoration will enhance India’s export competitiveness, especially in sectors like engineering, electronics, pharmaceuticals, and textiles.

The restored scheme will now apply to over 10,795 tariff lines linked to AA, SEZ, and EOU exports. It promotes fair export pricing by refunding hidden taxes and duties, ensuring Indian products remain competitive globally.

Implemented through a digital platform, RoDTEP ensures transparency and efficient processing. It is fully aligned with World Trade Organisation (WTO) rules.

The industry sees this step as vital for export growth and strengthening India’s position in global trade while aiding MSMEs and reducing cost burdens.

logo
IBC World News
ibcworldnews.com