In a setback for exporters, the government has restricted benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) to 50% of the notified rates and value caps with immediate effect, as per a notification from the Directorate General of Foreign Trade. The move follows a sharp reduction in RoDTEP’s FY27 budgetary allocation to Rs 10,000 crore from Rs 18,232.5 crore in the previous fiscal. Trade experts warn the cut will raise export costs by curtailing refunds of embedded taxes, undermining price competitiveness amid slowing global demand and tariff volatility, particularly in the United States. The timing was seen as highly challenging, while analysts cautioned that even a 1-2% cost rise could affect order flows in price-sensitive sectors. India’s goods exports in January 2026 grew a marginal 0.61% to $36.56 billion, with the trade deficit widening to a three-month high of $34.68 billion, as per a report.
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