The Commerce and Finance Ministries are holding discussions on the future of two major export support schemes, RoDTEP and RoSCTL. The Commerce Department is seeking a five-year extension to provide exporters with greater policy stability. However, the Finance Ministry remains unconvinced about the schemes' effectiveness in boosting exports.

The current three-month extensions of both schemes are due to expire on December 31, 2026. This uncertainty has raised concerns among Indian exporters, particularly those facing rising costs and global trade disruptions.

Why RoDTEP and RoSCTL Matter

The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme refunds eligible taxes and duties that exporters cannot recover through other mechanisms. It covers a wide range of exported products, subject to specified exclusions.

The Rebate of State and Central Taxes and Levies (RoSCTL) scheme focuses on exports of apparel, garments and made-ups. Both schemes help exporters manage costs and improve their competitiveness in international markets.

Exporters Seek a Five-Year Extension

The Commerce Department has argued that these schemes reimburse embedded taxes rather than provide export incentives. It believes a longer extension would help businesses plan production, pricing and overseas shipments more effectively.

Meanwhile, exporters fear that repeated short-term extensions could create further uncertainty. They have urged the government to provide a five-year policy commitment, especially amid geopolitical tensions and disruptions affecting global trade.

The final decision remains important for India's export sector. A longer extension could provide greater certainty for manufacturers and exporters, particularly small businesses and labour-intensive industries such as textiles and apparel.