If you are an exporter from India, this is something you cannot ignore.

RoDTEP benefits have been changing frequently, and these changes directly impact your profits, pricing, and business decisions.

In this blog, let’s quickly understand what happened recently and what it means for you. 

First Announcement for Rationalization of RoDTEP rate

As per Notification No. 6O /2025-26 Dated 23rd Feb 2026, the central government of India has announced a reduction of 50% in the existing RoDTEP Benefit on all HSN Codes of goods for export.

This revised rate has been made effective immediately and applied to all export shipments from 23rd February 2026 onwards.

What impact will the export face due to this policy announcement?

The benefits of the RoDTEP were immediately reduced by 50%, and the exports started facing the price challenge compared to other countries, and there was a fear of losing clients

Now Indian Exporters are forced to think about what impact this policy will have on their export business due to this policy and the benefit in RoDTEP Change.

The reduction in RoDTEP benefits has various direct and indirect impacts on Indian exporters:

1. Increase in Export Cost

RoDTEP benefits are designed to help Indian exporters to be competitive in price to get more deals from buyers as it is either sold and exchanged or used to pay import duties on goods imported. A 50% cut means exporters now bear a higher portion of these costs, increasing overall export expenses.

2. Reduced Profit Margins

Exporters who are considering RoDTEP benefits to calculate the overall cost and margin to give the best quote to the buyers to maintain competitive pricing will see a significant drop in margins, especially in price-sensitive markets.

3. Loss of Price Competitiveness

Indian exporters may increase the price to the buyer, thus the exporter may find it harder to compete globally, as buyers could shift to suppliers from countries offering better and lower prices.

4. Pressure on Contract Pricing

Exporters with long-term contracts may face challenges, as prices agreed earlier did not consider this reduction, resulting in financial strain or renegotiation needs.

5. Cash Flow Impact

Lower RoDTEP Benefits mean reduced inflow of funds, which can affect working capital cycles, particularly for MSME exporters.

MSMEs and small exporters will be more affected, as they are more dependent on government Schemes and benefits to grow their business to be part of the exporters community 

Corrections on RoDTEP Notification No. 6O /2025-26 Dated 23rd Feb 2026 was announced on 24th February, 2026

The Government of India announced a few corrections the very next day regarding the 50% reduction in RoDTEP benefits.

It clarified that this 50% reduction will not apply to goods exported under ITC HS Chapters 01 to 24.

In simple terms, products falling under Chapters 01 to 24 are excluded from this reduction.

The RoDTEP rates for these products will remain the same as earlier, without any reduction.

Do You Know Which Products Fall Under ITC HS Chapters 01–24?

Let us look at those products in brief 

Chapter from 01to 05 comes under section I, and the product listed under this section is Animal & Animal Products

Chapters from 06 to14 comes under section II, and the product listed under this section is Vegetable Product

Chapter 15, which comes under section III, lists Fats & Oils

Chapter from 16 to 24, which come under section IV lists products of Food Products, Beverages, and Tobacco.

You need to check your products under these chapters and the relevant sections, whether they are included and excluded for 50% reduced RoDTEP Benefits.

Please note that there are 21 sections and 98 Chapters for ITC HS Code that we can discuss in detail in some other blog.

In Brief you may check the tables below:

Let’s quickly understand what products are covered under these chapters.

Chapters 01 to 05 that fall under Section I list out Animal & Animal Products.

Chapters 06 to 14 that come under Section II cover Vegetable Products.

Chapter 15, which falls under Section III, includes Fats & Oils.

Chapters 16 to 24, which are part of Section IV, include Food Products, Beverages, and Tobacco.

You need to check whether your export products fall under these chapters.

This will help you understand whether your exports are included or excluded from the 50% RoDTEP reduction.

You must keep in mind that the ITC HS system has 21 sections and 98 chapters in total.

We can cover this in detail in another separate blog.

Third Announcement for Restoration of RoDTEP rates

The government of India revised its decision and cancelled the 50% reduction in RoDTEP Benefit, and this move was welcomed by the Indian Exporter Community as the exporters working on small margins got big relief.

As per the Notification No. 66/2025-26 dated 23 March 2026, the government of India announced to withdraw the 50% limit of RodTEP and restored the same benefit which was applicable before 23 Feb 2026.

The withdrawal of the 50% reduction policy in RoDTEP was made applicable from February 23, 2026, to March 31, 2026, for all eligible export products.

This restoration came as big news for the export community, and it was a big welcome move.

The fear of loss of margin and previous contracts for prices with buyers for a long-term basis was gone, and this move gave confidence to the Indian Exporter to carry on their export business with no worry and without loss of margins.

As an exporter, we are very happy that the 50% reduction in RoDTEP is restored, as we have also faced some loss of benefits in our recent export shipments.

Such frequent revision affects exporters directly and immediately, resulting in loss of benefits and or some time in gains of benefits if the policy is made in favour of exporters.

The Government of India later revised its decision and cancelled the 50% reduction in RoDTEP benefits.

This came as a big relief for Indian exporters, especially those working on small margins.

As per Notification No. 66/2025-26 dated 23rd March 2026, the government withdrew the 50% reduction.

The RoDTEP benefits were restored to the same rates that were applicable before 23rd February 2026.

This restoration was made applicable for the period from 23rd February 2026 to 31st March 2026.

This means exporters became eligible for full benefits even during this period.

This announcement was a very positive and welcome move for the export community.

The fear of losing margins and challenges in long-term pricing with buyers reduced significantly.

Exporters could now continue their business with more confidence and without worrying about losses.

It also helped in maintaining trust with international buyers.

As an exporter, we are very happy with this decision on withdrawal of 50% reduction and restoration of 1005 % benefit for RoDTEP as we had also faced some loss of benefits in recent shipments, so this restoration is a big relief.

As we can see the validity for the withdrawal of 50% reduction on RodTEP Benefit was from February 23, 2026 to March 31, 2026 so the question should arise what will happen after 31st March 2026 either the 50% reduction on RoDTEP will again be applicable or it will continue.

To remove this confusion, the government announced the extension of the date for 100% RodTEP Benefit as earlier will continue and it is extended from 31st March 2026 till 30.09.2026.

All eligible exports done from the period of 01-04-2026 to 30-09-2026 will get benefitted for the same RoDTEP and no reduction will be applied till the date of 30-09-2026.

Hope you might have read this blog minutely and found it beneficial for your export business.

If you have any concern on this post and any questions, please comment, we will answer you directly in the same comment box and will write another blog in detail answering your questions for better understanding

As per the previous announcement, the withdrawal of the 50% reduction in RoDTEP benefits was valid from 23rd February 2026 to 31st March 2026.

So, the obvious question for exporters is what will happen after 31st March 2026?

Will the 50% reduction be applied again, or will the full benefit continue?

To remove this confusion, the Government of India made a clear announcement.

As per Notification No. 74/2025-26 dated 31st March 2026, the RoDTEP Scheme has been extended for another 6 months.

The RoDTEP scheme will continue from 1st April 2026 to 30th September 2026.

During this period, full benefits will be available, just like before.

There will be no 50% reduction applied.

The government has also clarified one important point.

The rates and value caps will remain the same as applicable on 31st March 2026.

This means there is no change in benefit structure.

All eligible exports made between 01-04-2026 and 30-09-2026 will continue to receive RoDTEP benefits.

These benefits will be given at the same rates and conditions already in force.

This announcement brings much-needed clarity and stability.

Exporters can now plan pricing, contracts, and shipments without fear of sudden changes.

It also helps in maintaining competitiveness in global markets.

RoDTEP changes from these periods created a little bit of confusion in the exporter`s mind but the final decision brought a big relief to Indian exporters.

Overall, this is a positive and reassuring move for the export community.

If you are an exporter, this gives you a clear window to plan your business with confidence.

Staying updated with such policy changes is key to protecting margins and growing in global markets.

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In addition, if you have any questions, drop them in the comments, we will be happy to help and even cover them in our next blog.

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