RoDTEP Rates Slashed by 50%: Exporters Face Immediate Margin Pressure

The Directorate General of Foreign Trade (DGFT) has issued a notification announcing a sharp rationalisation of benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme.

With immediate effect, RoDTEP rates across all HS Codes have been reduced to 50 percent of the existing notified rates. In cases where value caps were applicable, these too have been restricted to 50 percent.

The decision is set to directly affect exporters across multiple sectors, including cotton, yarn, textiles, engineering goods, chemicals and various manufacturing categories. Given that RoDTEP benefits are factored into export pricing and profitability calculations, the sudden reduction is expected to tighten margins across the board.

As global competition intensifies, particularly from low-cost manufacturing hubs, the halving of RoDTEP benefits could test the resilience of Indian exporters in price-sensitive markets. Industry bodies are expected to engage with policymakers to seek further clarification and potential corrective measures in the coming weeks.