India Halves RoDTEP Export Rebates, Excludes Agriculture and Processed Food Sectors

The Indian government has halved the Remission of Duties and Taxes on Exported Products (RoDTEP) rebate rates and value caps across most sectors, effective immediately, reducing export incentives by 50%. This move aims to rationalize budget allocations but has raised concerns among exporters, especially in textiles and autos, about increased costs and competitiveness amid global demand challenges. However, the cut does not apply to agricultural and processed food exports, for which full benefits were restored shortly after. Exporters and industry bodies have urged the government to reconsider the decision, citing timing and margin pressures.