India Restarts Export Tax Refund Scheme from June 1

India has reinstated the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme from June 1, 2025, to enhance export competitiveness by reimbursing embedded duties, taxes, and levies not covered by other refund programs. The scheme, which had been paused since February 5, 2025, applies to all eligible exports including those from Advance Authorisation holders, Export-Oriented Units, and Special Economic Zones, covering diverse sectors such as textiles, chemicals, pharmaceuticals, automobiles, agriculture, and food processing. India has allocated Rs 18,233 crore for the fiscal year 2025–26 under RoDTEP, with coverage spanning over 10,700 HS lines for both Domestic Tariff Area and AA/EOU/SEZ exports, aiming to provide a level playing field and boost price competitiveness internationally. The scheme operates on a comprehensive digital platform to ensure transparency, efficiency, and faster disbursements, having already distributed over Rs 57,976 crore as of March 31, 2025. This reinstatement coincides with India's recent trade agreement with the UK and ongoing efforts to finalize a deal with the United States, reflecting a strategic effort to strengthen India's position amid global trade challenges. Industry groups have welcomed the move but have requested the government to consider making the scheme effective from February 7, to avoid disruption in export planning.