The Confederation of Indian Industry on Monday welcomed the extension of the Remission of Duties and Taxes on Exported Products, or RoDTEP, describing it as an important signal of policy continuity for Indian exporters at a time when global trade remains unsettled and domestic manufacturers are seeking greater visibility on costs and incentives.
The industry body said the extension would help sustain export momentum and protect the competitiveness of Indian goods in overseas markets, particularly as the government works toward an ambitious $1 trillion export target for the current fiscal year. The call from industry, however, went beyond the immediate extension. CII urged policymakers to provide a five-year horizon for export support measures, arguing that exporters need longer-term certainty to plan capacity, pricing, and market expansion strategies.
Policy Certainty Push
The RoDTEP scheme refunds embedded taxes and duties that are not otherwise rebated, helping exporters avoid cost disadvantages that can arise from domestic levies not fully neutralised in the export chain. For manufacturers and traders, the scheme has become a key part of the export ecosystem, especially in sectors where margins are thin and international competition is intense.
CII's intervention reflects a broader industry concern that short policy cycles can make it difficult for firms to commit to long-term investments in technology, logistics, and supply-chain upgrades. Exporters often make decisions on production lines, compliance systems, and overseas distribution networks over several years, not quarters. A five-year policy framework, industry leaders argue, would reduce uncertainty and allow firms to align business plans with India's broader trade ambitions.
The timing of the extension is significant. India's merchandise exports have shown strong growth during April-August, offering some support to the government's export strategy even as global demand conditions remain uneven. The improvement has strengthened the case for maintaining export incentives that are seen as essential to sustaining momentum in a competitive international environment.
Export Momentum Builds
The government's $1 trillion export goal for the fiscal year is one of the more ambitious trade targets in recent years and depends not only on goods shipments but also on the resilience of India's manufacturing base. Merchandise exports have been a critical indicator of that resilience, with recent growth suggesting that Indian firms are finding traction in overseas markets despite a challenging external backdrop marked by geopolitical tensions, volatile freight costs, and slower growth in some major economies.
For exporters, the extension of RoDTEP offers immediate relief and reassurance. It signals that the state remains committed to offsetting structural cost disadvantages and preserving market access. For policymakers, it also serves as a reminder that export performance is increasingly tied to the predictability of domestic support measures, not merely to demand conditions abroad.
Industry groups have repeatedly argued that export policy should be designed with a medium-term view, especially as India seeks to deepen its role in global value chains. A stable incentive regime can encourage firms to scale up production, invest in quality upgrades, and diversify destination markets. Without such stability, exporters may hesitate to make the capital commitments needed to move into higher-value segments.
Longer Horizon Needed
CII's demand for a five-year horizon is rooted in the practical realities of export planning. Businesses typically require clarity on duty remission, compliance rules, and incentive structures well before they can justify new investments. Frequent changes, or uncertainty over the duration of schemes, can dilute the impact of otherwise supportive measures.
The organisation's stance also underscores the balancing act facing the government: supporting exporters without creating policy dependence. As India aims to expand its export footprint, the challenge will be to ensure that incentives remain targeted, predictable, and aligned with productivity gains rather than short-term relief alone.
The extension of RoDTEP, coupled with strong merchandise export growth in the April-August period, gives the government a favourable backdrop as it pursues its trade goals. But the industry's message is clear: if India wants exporters to scale up decisively, they will need not just incentives, but a stable policy runway long enough to plan for the next phase of growth.