India Restores Export Benefits Amid West Asia Trade Turmoil

Facing disruptions due to the West Asia crisis, the Indian government has reinstated full benefits of the RoDTEP Scheme for exporters. Initially reduced last month, these benefits will now aid exporters amid increased freight costs and trade uncertainties, offering tax refunds to enhance cost competitiveness.

The Indian government has reinstated the full benefits of the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme. This comes in response to the current West Asia crisis, which has severely disrupted global trade routes.

Originally, the RoDTEP benefits were halved last month, causing distress in the exporting community. After reconsideration, the Directorate General of Foreign Trade announced the restoration of rates and value caps, effective from February 23, 2026, to March 31, 2026, for all eligible export products. The scheme, launched in 2021, provides tax and duty refunds that enhance the global cost competitiveness of Indian goods.

The move aims to support exporters who are grappling with increased sea and air freight rates as well as rising insurance premiums due to the geopolitical conflict. In addition, the government rolled out a Rs 487 crore RELIEF scheme to bolster resilience and facilitate export logistics amidst these challenges.

(With inputs from agencies.)