NITI Aayog’s proposed study will examine whether the two tax remission schemes are helping Indian exporters remain competitive, and what their modification or withdrawal could mean for jobs, production and prices.
The government is preparing to evaluate two major export support schemes, the Rebate of State and Central Taxes and Levies (RoSCTL) and the Remission of Duties and Taxes on Exported Products (RoDTEP), as India adjusts to changing global trade conditions and new free trade agreements.
NITI Aayog will undertake the evaluation, according to a senior government official cited by The Economic Times. The review is expected to assess how effectively the schemes support exports and what consequences their withdrawal could have for exporters, employment and the industries they serve. No decision to withdraw either scheme has been announced.
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What the Two Schemes Do
RoSCTL, introduced in 2019, covers exports of apparel, garments and made-ups. It is intended to rebate State and Central taxes and levies embedded in those products that are not refunded through other mechanisms. RoDTEP, operational since 2021, serves a similar purpose across eligible exported products by remitting otherwise unrefunded duties and taxes. The schemes seek to prevent these costs from being built into the prices Indian exporters quote overseas.
The distinction matters for the textile sector: apparel and made-ups covered by RoSCTL are excluded from RoDTEP for those tariff chapters, while eligible textile products outside RoSCTL may receive RoDTEP benefits. The Ministry of Textiles said in April 2026 that RoSCTL had been extended under its existing guidelines up to September 30, 2026, or until approval for the next Finance Commission cycle, whichever was earlier. It also noted the continuation of RoDTEP from April 1 to September 30, 2026.
Review to Examine Costs, Jobs and Domestic Prices
The proposed study will look beyond export figures. According to the official cited in the report, it will examine the schemes’ effects on investment, employment, production costs, productivity, use of inputs, value addition, export pricing, profitability, capacity utilisation and sectoral growth. It will also assess possible positive and negative effects on domestic demand, supply and prices of the goods covered.
A central question will be what happens if remission support is reduced or removed. For exporters, an unrefunded tax or levy can become a cost in the final product. Whether that cost can be passed on to overseas buyers may vary by product and market; the proposed evaluation is intended to test the wider implications rather than assume a uniform outcome.
Why the Government Is Reviewing Them
The review comes as exporters face fluctuations in global demand, pressure on costs, changing trade rules, sustainability requirements, shifts in supply chains and increasingly digital trade processes. Recent and prospective FTAs add another reason to examine whether the existing schemes meet exporters’ needs.
NITI Aayog is also expected to compare RoSCTL and RoDTEP with mechanisms used by other countries to neutralise embedded taxes and keep exports free of domestic tax costs. The findings could inform a decision to retain the schemes, revise them or develop a replacement, the official said. For now, those remain possible outcomes of the evaluation, not announced policy changes.
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