Will India's Restored RoDTEP Benefits Reshape Export Growth? Check Now

When India's exports ecosystem was hit with rising costs, stiff global competition, and patchy policy support, exporters — particularly from Special Economic Zones (SEZs), Export-Oriented Units (EOUs), and those operating under the Advance Authorization (AA) scheme — found themselves grappling with an uneven playing field.

Now, in a policy decision that’s sparking optimism across trade corridors, the Indian government has flipped the switch back on — reinstating RoDTEP benefits for these very exporters starting June 1, 2025.

This announcement doesn’t just change policy — it signals a strong return to continuity, competitiveness, and clarity for a significant chunk of India’s export-driven economy, including emerging sectors like electronics, pharmaceuticals, and food tech — many of which are home to fast-growing startups.

Let’s unpack what this really means, why it matters, and how it could shape India’s global trade ambitions.

Rewriting the Export Playbook: Why This Matters Now

The restoration of RoDTEP (Remission of Duties and Taxes on Exported Products) for SEZs, EOUs, and AA holders isn’t just another administrative tweak. It’s a reversal of a decision that had created considerable anxiety for exporters earlier this year when these entities were temporarily excluded from the scheme post-February 5, 2025.

For India's startup-driven and MSME-heavy export sectors, many of which operate out of SEZs and under AA licenses to reduce input costs, the exclusion felt like a jolt. Several industry players had voiced concern over this fragmented policy framework — one that gave incentives to some exporters while leaving others out.

By restoring parity, the Ministry of Commerce & Industry is signaling that no export segment should be left behind, especially not the ones fuelling innovation, job creation, and industrial growth.

“The reinstatement of RoDTEP benefits for special export categories reflects the government's continued commitment to creating a conducive, competitive, and compliant export ecosystem that drives India's long-term trade growth,” the Ministry noted in its official communication.

What Exactly is RoDTEP – And Why Should Startups Care?

RoDTEP is not a cash grant — it's more like a lifeline. It offsets a range of hidden costs exporters incur — duties and taxes that aren’t reimbursed by any other scheme.

These include:

• Mandi taxes on agricultural procurement

• Electricity duties (yes, even for clean energy startups!)

• Fuel costs used for transporting and manufacturing goods

These seemingly invisible levies quietly inflate export prices and reduce global competitiveness. Especially for bootstrapped exporters — including D2C startups entering global markets — every paisa counts. RoDTEP ensures that Indian exporters don’t pay out of pocket for inefficiencies in domestic policy.

What makes RoDTEP globally accepted? It's fully compliant with WTO norms — something earlier incentive schemes struggled with. This gives India a clean, rule-abiding edge on the world stage.

The Numbers Tell the Story: RoDTEP’s Growing Footprint

The RoDTEP scheme isn't just impactful — it's massive in scale.

By the end of FY 2024–25, over ₹57,976 crore had been disbursed under this scheme. That’s not just support — it’s a giant cushion keeping exporters afloat amid global slowdowns, rising input costs, and shipping disruptions.

For the upcoming fiscal year (2025–26), the government has set aside ₹18,233 crore under RoDTEP — a clear sign of its renewed policy push.

Here's where it gets granular:

• 10,780 HS lines (product categories) are covered for regular exporters in Domestic Tariff Areas (DTA)
• 10,795 HS lines will now be eligible again for exporters in AA, EOU, and SEZ categories

From engineering and textiles to pharma and electronics — virtually every export-facing sector stands to benefit. Startups in EV components, sustainable packaging, agritech, and wearable health tech operating from SEZs could particularly feel the tailwind.

From Policy Patchwork to Level Playing Field

The move also addresses a long-standing criticism: India's incentive structure often felt fragmented, with different rules for different types of exporters.

This restoration puts DTA, AA, SEZ, and EOU exporters on equal footing — a move that has been welcomed by industry associations, chambers of commerce, and trade advisory groups.

For founders and startup leaders exporting from SEZs or under the AA scheme, this provides:

• Policy certainty to plan growth

• Operational cost clarity to price products better

• Investor confidence for export-heavy business models

Digitising Trade: A Parallel Revolution

In a complementary move, the government also launched the Trade Connect e-Platform — a digital bridge between Indian exporters, global markets, and policy stakeholders.

Built as a one-stop digital solution, the platform promises:

• Quick query resolution

• On-demand market intelligence

• Smart matchmaking with global buyers

• Real-time regulatory guidance via Indian Missions abroad

For digital-first exporters, including tech and e-commerce startups, Trade Connect could mean fewer dependencies on intermediaries, smoother international onboarding, and faster decision-making.

What This Means for India’s Export Future

The double shot of RoDTEP restoration and digital facilitation is being seen as more than a tactical move — it’s a strategic recalibration.

With the global trade landscape shifting — rising tariffs, friend-shoring, and supply chain realignments — India's export economy needs to stay nimble. By fixing internal leakages (like unreimbursed duties) and simplifying the compliance maze, the government is helping exporters, especially small and medium players, compete with global giants.

“This kind of policy clarity is essential for MSMEs and export startups — it helps us plan, price, and pitch better,” says a Delhi-based textile startup founder operating in an SEZ.

Exporters have received the message loud and clear: the government is ready to back their global ambitions.

Now, the onus is on industry players — especially startups — to leverage these benefits smartly, explore new markets, and drive India’s brand abroad. With RoDTEP benefits back in the fold and digital support via Trade Connect, India’s export engine might just be revving up for its next big leap.

The global market is watching. Indian exporters — from legacy industries to lean, new-age startups — now have more wind in their sails.