The Department of Commerce has asked the finance ministry’s Department of Expenditure to increase the allocation of funds under the scheme for 2026-27 (FY27) to Rs 23,000 crore from the Rs 10,000 crore estimated for it in the Union Budget for FY27, the official said, requesting anonymity.
Under RoDTEP, the government reimburses exporters for embedded non-creditable central, state and local levies paid on inputs. It is based on the principle that taxes should not be exported. The scheme ensures the zero-rating of exports, which makes them competitive.
The Department of Expenditure will take a final call on the extension of the scheme and its allocation. The Department of Commerce expects clarity on the matter by September 30, the official said.
“We are already in discussion with the expenditure department,” the official said. “I am sure the department is examining it and we will ensure there will be predictability to it.”
The government likely spent Rs 18,233 crore on the scheme in FY26, according to the revised estimate in the FY27 Budget.
The government launched the flagship scheme in January 2021 to replace the Merchandise Exports from India Scheme (MEIS) and ensure that India’s export incentives complied with World Trade Organization (WTO) guidelines.
It was initially launched for a 27-month period ending in March 2023, with an allocation of Rs 27,018 crore. Since March 2023, the government has extended the scheme at least five times for periods ranging from six months to one year.
The government last extended RoDTEP in April by six months to support exporters amid the conflict in West Asia.
Meanwhile, predictability in the RoDTEP scheme is a long-standing demand of exporters. “The government has extended the scheme so many times but it has always been only for a short six month to one year period, which leaves some degree of uncertainty,” an export association representative said, requesting anonymity.
Year Expenditure on RoDTEP in INR crore
Q4 FY21+FY22*13,843
FY27 (BE)10,000 Source: India Budget and PIB *Separate annual allocation for Q4FY21, FY22 not available
