The Indian government has signaled its continued commitment to the nation’s trade resilience by extending the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme through September 2026. Announced amid a volatile global economic climate, this six-month reprieve aims to shield the export community from the immediate impact of non-refundable taxes and duties. While the Apparel Export Promotion Council (AEPC) and broader industry stakeholders have formally expressed their gratitude to the Ministry of Finance and the Ministry of Commerce for this intervention, the move is being characterized as a vital bridge rather than a final solution for a sector grappling with high input costs and logistical bottlenecks.

Safeguarding competitiveness amidst global trade headwinds

The extension arrives at a critical juncture for Indian exporters who are currently navigating a landscape defined by fluctuating demand and rising operational expenses. By offsetting the burden of local taxes that are not otherwise channeled through rebate mechanisms, the RoDTEP scheme functions as a stabilizer for the price competitiveness of Indian goods in international markets. Industry leaders, including Dr A Sakthivel, Chairman, AEPC, noted, this policy continuity is essential for maintaining export momentum. However, the council has already begun engaging with high-level government officials -including the Finance and Textiles Secretaries -to advocate for a transition toward a more permanent fiscal framework.

The Strategic push for a five-year policy horizon

Despite the immediate benefits of the extension, the exporting community is intensifying its call for a long-term commitment, specifically requesting a five-year fixed duration for the scheme. The industry argues,the current cycle of short-term renewals creates a climate of unpredictability that hinders large-scale capital investment and capacity expansion. A multi-year roadmap would allow apparel manufacturers to better forecast margins and commit to the long-term trade agreements necessary to strengthen India’s market share. For a sector eyeing aggressive growth targets, the AEPC maintains that policy stability is the primary lever required to transform temporary relief into sustained global trade dominance.