Overview
- DGFT Notification No. 60 dated February 23 restricts RoDTEP benefits to 50% of notified rates and value caps across eligible lines with immediate effect.
- A follow-up DGFT notice says the reduced rates and caps do not apply to products under ITC HS Chapters 01–24, covering agricultural and processed foods.
- Exporter groups have sought a review, while GTRI cautions that cutting remission raises unrecoverable domestic tax costs and that even 1–2% cost shifts can decide orders, especially versus Vietnam and Bangladesh.
- Government data show January goods exports up 0.61% to $36.56 billion with a trade deficit of $34.68 billion, underscoring worries about the timing of the cut.
- For 2026–27 the scheme’s allocation stands at ₹10,000 crore versus a proposed ₹21,709 crore, and the Commerce Ministry has moved an EFC note seeking higher funds as experts press for a predictable multi-year framework.