The Commerce Ministry has sought a higher allocation and a five-year extension for the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme, looking to provide greater predictability to exporters.
The scheme, which refunds un-reimbursed taxes, duties and levies incurred in exporting goods, is due to end on Sept. 30. The ministry is holding talks with the Finance Ministry over its extension and additional funding.
The government is also examining a framework to provide exporters with greater certainty over the scheme's continuation and refund rates.
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RoDTEP refund rates currently range from 0.3% to 3.9% of export value, depending on the product.
The scheme's allocation for 2026-27 stands at Rs 10,000 crore, down from Rs 18,232 crore in 2025-26. The Commerce Ministry's request for a higher outlay comes amid efforts to ensure exporters have continued access to the refund mechanism.
This development comes after the Commerce Ministry release data which showed that merchandise exports had risen to $43.8 billion in August from $34.7 billion a year earlier. Merchandise imports, meanwhile, increased 14.1% to $70.6 billion from $61.96 billion.
ALSO READ: India's August Trade Deficit Narrows To $26.86 Billion As Exports Surge 26%
India's merchandise trade deficit narrowed marginally to $26.86 billion in August from $27.2 billion a year ago, as merchandise exports surged 26.1% year-on-year, outpacing the growth in imports.
The Commerce Secretary said India is seeing good momentum in export growth, with overall exports rising 25.4% to $82.7 billion in August from around $66 billion a year earlier. In rupee terms, export growth stood at 37.6%
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