At a time when West Asia crisis disrupting global trade, the government of India has restored full benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme to exporters till March 31. The Directorate General of Foreign Trade (DGFT) in a notification informed that RoDTEP rates and value caps have been restored with effect from February 23, 2026, to March 31, 2026, for all eligible export products. Last month, the government had halved the rate of duty benefits under the RoDTEP Scheme, after which the exporting community expressed disappointment and had sought reconsideration of the decision. RoDTEP Scheme, launched in 2021, provides for a refund of taxes, duties and levies that are incurred by exporters in the process of manufacturing and distribution of goods, and not being reimbursed under any other mechanism at the Centre, state or local level. Refunds under the scheme range from 0.3% to 3.9%. 

In 2025-26, the budget allocation under the scheme was Rs 18,232 crore, while it was proposed to increase to Rs 21,709 crore in 2026-27, but was allocated Rs 10,000 crore. Last year, the exporting community was struggling with the high US tariffs and is now facing challenges from the West Asian crisis triggered by the joint attack of the US and Israel on Iran last month. The conflict has drove up the sea and air freight rates as well as the insurance premiums. The conflict has posed challenges for maritime logistics, including shifts in routing and transit patterns. These have affected logistics costs and shipping schedules for export consignments moving to or through the region. 

In February, the country’s merchandise exports declined marginally by 0.81% year-on-year to $36.61 billion, while the trade deficit narrowed to $7.1 billion from the previous month. Though, India’s merchandise exports declined marginally in February, the real impact of the conflict will be reflected in the March data as the war began on February 28. Considering the evolving geopolitical situation and its implications for maritime trade, the commerce ministry said that the government has decided to restore the rates and value caps under the scheme. The move is aimed at providing timely support to Indian exporters facing elevated freight costs and war-related trade risks arising from disruptions in the Gulf and the wider West Asia maritime corridor.