The Directorate General of Foreign Trade (DGFT) has issued Notification No. 66/2025-26, effectively restoring the Remission of Duties and Taxes on Exported Products (RoDTEP) rates to their original levels as of February 22, 2026.
This corrective measure nullifies the previous 50 per cent reduction that had severely strained the liquidity of Indian textile exporters. By reinstating full value caps across key Appendix 4R and 4RE lines, the government is providing a critical fiscal buffer for an industry currently grappling with 11.4 per cent growth in regional clusters but facing rising logistics overheads. The restoration is particularly vital for the woven fabric segment, which historically benefits from rebate rates of up to 4.3 per cent of the Freight on Board (FOB) value.
Mitigating geopolitical volatility in the West Asian Corridor
Alongwith the Confederation of Indian Textile Industry (CITI), other industry leaders emphasize, this reinstatement is a necessary response to the escalating conflict in West Asia. The crisis has triggered a spike in maritime freight rates and insurance premiums, threatening India’s ambitious $100 billion textile export target for 2030. Ashwin Chandran, Chairman, CITI, notes, since textile orders are typically booked three months in advance, the restoration of these tax refunds - which are WTO-compliant neutralizers rather than subsidies - is essential for honoring existing contracts without eroding narrow margins. This move ensures that the Rs 18,233 crore allocated for the scheme in FY26 is utilized to sustain India’s 30 per cent share in global cotton textile shipments amid intensifying competition from Vietnam and Bangladesh.
Institutional framework and export support
The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme serves as a digital-first mechanism to refund embedded central, state, and local levies. It covers over 10,700 HS lines, focusing on labor-intensive sectors such as yarn, fabric, and ready-made garments. The scheme is designed to ensure zero-rating of exports, enhancing the global footprint of Indian MSMEs through transferable e-scrips.
