The Federation of Indian Chambers of Commerce and Industry (FICCI) has formally requested the Ministry of Commerce and Industry’s Directorate General of Foreign Trade to extend the Remission of Duties or Taxes on Export Products (RoDTEP) scheme to include units operating under Advance Authorisation (AA), Export Oriented Units (EOUs), and Special Economic Zones (SEZs). In a letter addressed to the Commerce Ministry, FICCI expressed concern over the scheduled lapse of RoDTEP benefits for these units after February 5, 2025. The chamber urged that the scheme be extended at least until September 30, 2025, citing global trade uncertainties and the need to safeguard India’s export competitiveness.
FICCI’s appeal aligns with similar representations made by other industry associations, including the Federation of Indian Mineral Industries (FIMI) and the Aluminium Association of India (AAI). These groups have warned that discontinuation of RoDTEP support could severely impact export competitiveness, particularly in capital-intensive sectors like aluminium, where India holds the position of the world’s second-largest producer with investments exceeding $20 billion.
According to FIMI, nearly 45% of India’s aluminium exports originate from AA, EOU, and SEZ units. It noted that the absence of RoDTEP support would leave up to 10% of production costs—primarily taxes and duties—unrebated, eroding the global competitiveness of Indian manufacturers.
FICCI commended the Ministry’s past initiatives but cautioned that any delay in the scheme’s extension could result in production disruptions, job losses, and reduced domestic value addition, particularly in sectors with high export intensity. FIMI previously highlighted that such setbacks could undermine India’s aluminium production capacity, which stands at 4.1 million tonnes annually.
Amid persistent global trade challenges, FICCI stressed the importance of providing clarity and continuity in policy for AA, EOU, and SEZ exporters. The chamber emphasized that timely government action is essential for maintaining cost competitiveness and supporting India’s broader objective of becoming a global manufacturing hub.
The Ministry of Finance has already allocated ₹18,000 crore for the RoDTEP scheme for FY26, up from ₹16,575 crore in the previous fiscal year. With consistent appeals from major industry bodies, the business community remains hopeful that the government will issue a formal notification extending RoDTEP coverage to AA, EOU, and SEZ units beyond February 5, 2025. Such a move, industry leaders argue, is critical for sustaining export growth and insulating Indian manufacturers from ongoing geopolitical and economic volatility.
