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How much do Indian exporters leave on the table in unclaimed incentives?
India disbursed Rs 57,976 crore under RoDTEP by March 2025, but thousands of eligible exporters never filed. How to check what you're missing across RoDTEP, Advance Authorisation, EPCG, and Duty Drawback.
By Aaryan Kakani · · 3 min read
Key takeaways
India's government disbursed Rs 57,976 crore under RoDTEP alone by March 2025, according to DGFT data. The FY 2024-25 budget earmarked another Rs 23,922 crore for the scheme. Yet thousands of eligible exporters (particularly MSMEs) never filed a single claim. Across RoDTEP, Advance Authorisation, EPCG, and Duty Drawback, the leakage adds up to real margin left on the table.
Rs 57,976 Cr RoDTEP disbursed by March 2025 (DGFT Annual Report)
$824.9B India total exports FY 2024-25 (PIB / Ministry of Commerce)
0.3–4.3% RoDTEP rate range (FOB value) (DGFT Notification No. 32/2024)
What incentives are available to Indian exporters?
India runs four major export incentive schemes under the Foreign Trade Policy 2023. Each one reimburses a different cost. Embedded taxes, input duties, or capital goods duty.
| Scheme | What it reimburses | Typical value | Pre-requisite |
|---|---|---|---|
| RoDTEP | Embedded central/state/local taxes not refunded elsewhere | 0.3. 4.3% of FOB | IEC + RCMC |
| Duty Drawback | Customs + central excise on imported/domestic inputs | 1. 7% of FOB | IEC |
| Advance Authorisation | Full customs duty on imported inputs for export production | 10. 30% of input CIF | IEC + RCMC + export order |
| EPCG | Full customs duty on imported capital goods | 20. 30% of machine CIF | IEC + RCMC + 6x EO |
Why are exporters not claiming what they're owed?
MSMEs contribute 45% of India's total exports (FIEO data), but a disproportionate share of incentive claims come from large exporters. The barriers are structural, not financial:
No RCMC = no RoDTEP, AA, or EPCG
Many small exporters have an IEC but never got an RCMC from their Export Promotion Council. Without RCMC, the three biggest schemes are locked. The fee is Rs 5,000. 25,000 for five years.
Don't know their HS codes qualify
RoDTEP rates are HS code-specific. An exporter shipping cotton garments may not know that HS 6109 carries a RoDTEP rate, because they've never checked the DGFT notification schedule.
EDPMS/eBRC not in order
Claiming RoDTEP requires a clean EDPMS record. Shipping bill matched with bank realisation. Exporters with unmatched EDPMS entries can't file incentive claims until they fix their compliance.
Process complexity deters first-timers
DGFT has introduced annual return requirements for RoDTEP claims above Rs 1 crore (Business Standard, Nov 2024). For small exporters without a dedicated compliance team, the filing effort feels disproportionate to the claim value.
What does this look like in real numbers?
Example. Spice exporter, Rs 5 crore annual FOB
| Scheme | Rate | Annual value |
|---|---|---|
| RoDTEP (HS 0904. Pepper) | 0.9% of FOB | Rs 4.5 lakh |
| Duty Drawback | ~1.5% of FOB | Rs 7.5 lakh |
| Advance Auth (packaging, consumables) | Duty saved on imports | Rs 3-5 lakh |
| Total unclaimed if not filing | Rs 15-17 lakh / year |
That's 3% of turnover going uncollected. Pure margin for a business that already did the hard work of exporting. Over five years, it compounds to Rs 75-85 lakh.
What should you do first?
Start with the free check: look up your HS codes in the RoDTEP calculator and the export incentive finder. If you see rates next to your codes, you have money waiting.
Then read the deep guides: RCMC registration (5 minutes to understand, 1 week to complete), Advance Authorisation for duty-free inputs, and EPCG if you're importing machinery. The compliance work pays for itself on the first shipment.
Sources & citations
- DGFT RoDTEP disbursement data (Rs 57,976 crore by March 2025)..
- PIB. India total exports FY 2024-25 ($824.9 billion)..
- DGFT Notification No. 32, dated 30.09.2024 (RoDTEP Appendix 4R rates)..
- FIEO. MSME contribution to exports (45%). Business Standard, November 2024 (DGFT annual return requirement for RoDTEP)..
- Foreign Trade Policy 2023, Chapters 4 & 5..
Update history
- First published.