By Ananya Rao, Senior Trade Correspondent
Updated: June 24, 2025
Author Expertise:
Ananya Rao is a senior correspondent specializing in international trade policy, with over a decade of experience covering India’s commerce initiatives. She holds a Master’s in International Economics from Jawaharlal Nehru University and regularly contributes to peer-reviewed journals on trade strategy.
Key Takeaways
- Rs. 18,233 crore allocation for export incentives in FY 2025–26
- Reinstatement of RoDTEP benefits starting June 1, reimbursing embedded duties
- Targeted support across 21,575 HS lines for diverse sectors
- Goal: Bolster exports amid slowing global demand and policy headwinds
Government Announces Robust Incentive Package
In a press release dated June 3, 2025, the Ministry of Commerce and Industry announced an Rs. 18,233 crore outlay under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for the upcoming financial year. The package covers 10,780 HS lines for Domestic Tariff Area exports and 10,795 HS lines for exports from Advanced Authorisation, Export Oriented Units, and SEZs pib.gov.in.
“These measures aim to reimburse exporters for embedded duties and levies not covered by other refund programs, ensuring seamless market access and competitiveness,” said Commerce Secretary Vikram Mehta in the official statement.
Why This Matters Now
Global trade volumes have plateaued, with the United Nations Conference on Trade and Development (UNCTAD) reporting a modest 3.7% growth in 2024—well below India’s 6.3% export expansion indbiz.gov.in. Concurrently, major economies are reevaluating tariff regimes, heightening volatility for Indian exporters.
Industry bodies have welcomed the move:
- FIEO President S. C. Ralhan noted that India’s overall exports rose to USD 71.12 billion in May 2025, underscoring resilience despite headwinds ddnews.gov.in.
- Piyush Goyal, Commerce Minister, urged exporters to leverage newly reinstated benefits and Free Trade Agreements to navigate non-tariff barriers more effectively economictimes.indiatimes.com.
5 Key Components of the Incentive Plan
- RoDTEP Reinstatement: Effective June 1, digital credits will reimburse embedded taxes.
- Broad Sector Coverage: Incentives span textiles, chemicals, pharmaceuticals, agriculture, and more.
- Digital Platform Launch: A one-stop exporters’ portal for real-time claim tracking.
- FTAs & Market Diversification: Push to deepen ties with the UK, EU, and expedite U.S. negotiations.
- Logistics Support: Funding earmarked for port infrastructure upgrades to cut transit times.
Daily Digest: Ongoing Trade Updates
| Date | Update |
|---|---|
| Jun 1, 2025 | RoDTEP credits go live on Government e-portal |
| Jun 15, 2025 | India-UK FTA talks conclude with preliminary tariff rollover plan |
| Jun 20, 2025 | Logistics clusters announced in Chennai and Mundra SEZs |
What Happens Next?
- Exporter Onboarding: Stakeholders to register on the new portal by July 1.
- Claim Filings: First tranche of reimbursements expected by August.
- FTA Finalisation: Negotiators aim to sign pacts before year-end.
- Monthly Reviews: Ministry to publish progress reports and adjust schemes.
Fact-Check
- RoDTEP Disbursement Figures: As of March 31, 2025, cumulative RoDTEP credits stood at Rs. 57,976.78 crore, according to the Ministry’s data pib.gov.in.
- Export Growth Rate: May 2025 exports grew 2.8% year-on-year to USD 71.12 billion, per FIEO ddnews.gov.in.
- UNCTAD Figures: India’s 6.3% export growth outpaced the global average of 3.7% in 2024 indbiz.gov.in.
Additional Resources
- Read the full PIB release: [Press Information Bureau, Govt. of India]
- FIEO Monthly Report: Federation of Indian Export Organisations
- UNCTAD Trade and Development Report 2025
