RoDTEP Rate Rationalisation 2026: What Export Businesses Need to Know

The Directorate General of Foreign Trade (DGFT) recently issued a notification (No. 6O/2025-26) on February 23, 2026, regarding the rationalisation of RoDTEP rates.

The Government of India has cut the Remission of Duties and Taxes on Exported Products (RoDTEP) benefits by 50% for several export goods with immediate effect.

The amendment has been made to control spending and match the incentives with the available budget. At the same time, the aim is to continue supporting important export sectors so they can remain competitive in global markets. Many exporters will now get fewer incentives than those previously announced.

What Exporters Should Know

Exporters should carefully review the new RoDTEP rates and understand how the changes will affect their export pricing, costs, and competitiveness in the coming financial year.

Consequences of Tax Rate Rationalisation for Export Businesses

The rationalisation of tax and duty rates can have significant implications for exporters. The following are some impacts:

• Exporters may receive lower refunds on the taxes and duties embedded in their products
• Sectors operating with low profit margins are likely to feel the impact more intensely.
• Exporters may need to reassess their pricing models, optimise operational costs, and strengthen cash flow planning.