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In a major relief for pharma exporters, the Union ministry of commerce and industry has announced the restoration of benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme for holders of Advance Authorisations (AAs), Special Economic Zones (SEZs), and Export-Oriented Units (EOUs), effective from June 1, 2025.
This move comes in response to sustained pressure from industry stakeholders following the government’s earlier decision to withdraw RoDTEP benefits for these categories from February 6, 2025. Pharma exporters had strongly objected to the exclusion. They had emphasized that AA-manufactured goods involve substantial domestic inputs, and excluding them from RoDTEP contradicted the government’s Make in India initiatives.
Issued through Notification No. 11/2025-26 by the Directorate General of Foreign Trade (DGFT), the decision is backed by Section 5 of the Foreign Trade (Development and Regulation) Act, 1992, and Para 1.02 of the Foreign Trade Policy 2023. The updated rates, which include newly aligned Harmonized System (HS) codes per the Finance Act, 2025, are now available in Appendix 4RE on the DGFT portal.
The RoDTEP scheme, operational since January 1, 2021, is designed to reimburse exporters for hidden taxes and levies not refunded through other schemes. It plays a critical role in making Indian goods price-competitive in international markets and is aligned with World Trade Organization (WTO) norms.
Industry bodies had highlighted that removing these incentives placed pharma exporters at a disadvantage, especially amid global economic volatility. They called for an urgent policy review, arguing that the value added through domestic manufacturing should qualify AA products for continued RoDTEP benefits.
A senior industry representative had noted, “RoDTEP should not have been eliminated for Advance Authorisation products. These are not mere trading transactions as significant local components are involved. Removing the benefit creates a disparity with other manufacturers in the Domestic Tariff Area (DTA) and risks eroding our export competitiveness.”
India’s pharmaceutical exporters, many of whom operate under Advance Authorisation or in SEZs and EOUs, are expected to gain significantly from the reinstatement. The sector had flagged the withdrawal as a potential disruptor in global supply chain participation, especially when the industry is facing pricing pressure from international buyers and increasing compliance costs.
Restoring RoDTEP for these entities ensures a level playing field and enables them to recover unrefunded levies such as electricity duty, VAT on fuel, and Mandi tax, which increase operational costs. With the scheme back in place, pharma exporters can now factor in these benefits when quoting competitive prices to overseas buyers.
By restoring parity across manufacturing and export categories, the government aims to foster greater participation in international trade.
Officials at the DGFT have confirmed that all eligible exporters operating under AAs, SEZs, and EOUs can resume availing RoDTEP credits from June 1, 2025. Exporters are advised to refer to the updated Appendix 4RE on the DGFT portal (www.dgft.gov.in) for detailed rate structures and procedural guidance.
This decision supersedes Notification No. 32/2024-25 dated September 30, 2024, which had initially withdrawn the benefits. The swift restoration signals the government’s willingness to remain responsive to industry feedback and to course-correct policies that could otherwise hinder India’s export momentum.
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