The Indian government is considering a major increase in tax refunds for exporters under the RoDTEP and RoSCTL schemes, with the combined outlay potentially reaching nearly Rs 2 trillion over five years.

The proposed increase aims to improve exporters’ liquidity and support their competitiveness amid global economic and geopolitical challenges.

Under the proposal, the Commerce and Industry Ministry is seeking more than Rs 1.3 trillion for the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme. This would represent an increase of more than 70% compared with the allocation over the previous five years through FY26.

The Ministry of Textiles is also seeking a higher allocation for the Rebate of State and Central Taxes and Levies (RoSCTL) scheme. The proposed outlay is around Rs 65,000 crore, nearly 50% higher than the previous five-year period.

Support for Export Competitiveness

RoDTEP and RoSCTL are designed to refund eligible duties, taxes and levies that are not otherwise reimbursed to exporters. The schemes help reduce embedded costs in exported products.

A higher allocation could provide additional support to exporters facing changing global demand, trade disruptions and geopolitical risks.

The proposed increase is particularly relevant for the textile and apparel sector, where RoSCTL plays an important role in offsetting state and central taxes and levies on eligible exports.

The final allocation and structure of the schemes will depend on government decisions during the upcoming budget and policy process.