India Cuts RoDTEP Export Rebates by 50%, Prompting Exporters' Concerns

The Indian government has halved the benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme, reducing rebate rates and value caps by 50% with immediate effect. This move aims to rationalize export rebates amid budget cuts but has raised concerns among exporters and trade bodies like FIEO, who warn it will increase export costs during a period of global demand slowdown and heightened uncertainties. Textile stocks notably declined following the announcement, reflecting market apprehension. The government is reviewing export rebate schemes, but exporters urge reconsideration to maintain competitiveness.