Government Restores Full RoDTEP Benefits Amid West Asia Crisis

In a significant policy shift, the government has restored full benefits under the RoDTEP scheme, bringing relief to exporters who have faced increased costs due to the ongoing West Asia crisis. Announced on Monday, this move reverses the previously halved rate of duty benefits that sparked disapproval among the exporting community.

The Directorate General of Foreign Trade (DGFT) has confirmed the reinstatement of the RoDTEP rates effective from February 23, 2026, providing support until March 31, 2026. Originally introduced in 2021, the RoDTEP scheme refunds taxes and duties unaddressed by other mechanisms, offering rates between 0.3% and 3.9% on eligible exports.

Amidst heightened US tariffs and the West Asia trade disruption following a joint strike by the US and Israel on Iran, exporters are grappling with escalating shipping costs and insurance premiums. This economic turbulence is reflected in February's trade data, revealing a marginal 0.81% decline in exports, with further impacts anticipated in the upcoming March statistics.