India is preparing for a detailed review of two important export support schemes as global trade conditions continue to change. Government think-tank NITI Aayog is expected to examine the Rebate of State and Central Taxes and Levies, known as RoSCTL, and the Remission of Duties and Taxes on Exported Products, or RoDTEP. The review comes at a time when India is entering new free trade agreements and facing changes in global demand, supply chains, trade rules and production costs.
The central question behind the exercise is simple but important: are these schemes still helping Indian exporters remain competitive in international markets? The government also wants to understand what could happen to exports, employment and different industries if the schemes are reduced, changed or withdrawn. The final decision may involve modifying the existing schemes, replacing them with a new system or continuing them in their present form.
RoSCTL was introduced in 2019 mainly for the apparel, garments and made-ups sectors. The scheme provides remission of state and central taxes and levies that are not refunded through other channels. Since clothing and textile exports create large-scale employment, especially in manufacturing and labour-intensive units, any change in this support could influence production costs, export prices and hiring in the sector.
RoDTEP became operational for exports from January 2021. Its purpose is to refund taxes and duties that remain embedded in exported products and are not already reimbursed under another government scheme. The support is designed to make exports tax-neutral, meaning that Indian exporters should not carry domestic taxes in the price of goods sold abroad. Benefits are generally provided through transferable electronic duty credit scrips. The scheme covers thousands of tariff lines across sectors such as textiles, engineering goods, chemicals, plastics, automobiles and electronics.
The proposed assessment will go beyond checking the number of exporters receiving benefits. NITI Aayog is expected to study the effect of the schemes on investment, employment generation, production costs, productivity, input efficiency, value addition, export pricing, profitability, capacity utilisation and overall industrial growth. The review may also examine whether the schemes influence domestic demand, supply and prices of goods covered under them.
Global conditions have made this evaluation increasingly relevant. Exporters are dealing with uncertain demand, higher costs, stricter sustainability requirements, changing trade regulations, supply-chain restructuring and faster digitalisation of trade procedures. India’s export support system will therefore need to remain effective while also matching international rules and practices.
The government is also likely to compare RoSCTL and RoDTEP with similar mechanisms used by other countries to neutralise embedded taxes and levies. The objective is to protect export competitiveness without creating unnecessary financial pressure or policy distortions. RoSCTL has been extended for apparel and made-ups until September 30, 2026, while RoDTEP has also continued during the current transition period.
The review could become an important turning point for India’s export policy. A well-designed support system may help Indian products compete globally, protect employment and encourage investment. At the same time, clearer rules, faster refunds and lower logistics and production costs will remain essential for building long-term export strength.
