Export Incentives India 2026 | RoDTEP, Duty Drawback & EPCG Guide

India offers one of the most comprehensive export incentive frameworks in Asia. Exporters who understand and claim all applicable incentives can significantly improve margins and competitiveness. This pillar guide covers every major scheme available in 2026.

Overview of India's Export Incentive Framework

India's export incentives are governed by the Foreign Trade Policy (FTP) 2023, administered by DGFT, and supplemented by Customs and Central Excise notifications. The key principle: taxes and duties embedded in exported goods should be refunded to make Indian exports globally competitive.

1. RoDTEP — Remission of Duties and Taxes on Exported Products

RoDTEP replaced MEIS in January 2021 and is WTO-compliant. It refunds central, state, and local taxes/duties embedded in the export product that are not otherwise refunded.

• Coverage: Most manufactured and agricultural export products
• Benefit: Issued as transferable electronic scrips credited to the exporter's ICEGATE ledger
• Rates: 0.5% to 4.3% of FOB value depending on product (HS code-specific)
• How to Claim: Declared in the Shipping Bill at the time of export; auto-credited post LEO
• Use of Scrips: Can be used to pay Basic Customs Duty on imports or transferred/sold to other importers

2. Duty Drawback Scheme

Refunds customs duties paid on imported inputs used in the manufacture of exported goods. Two components:

• All Industry Rate (AIR) Drawback: Fixed rates notified by CBIC based on product category. Claimed via Shipping Bill.
• Brand Rate Drawback: For exporters whose actual duty incidence exceeds AIR. Requires application to Customs with cost data.
• Timeline: Credited to exporter's bank account within 7–10 working days of LEO

3. EPCG — Export Promotion Capital Goods Scheme

Allows import of capital goods (machinery, equipment, spares) at zero customs duty for use in export production.

• Obligation: Export 6x the duty saved within 6 years
• Eligible Goods: Plant, machinery, equipment, spares, tools, jigs, fixtures, dies, moulds
• Benefit: Saves 5–25% customs duty on capital goods imports
• Licence: Issued by DGFT Regional Authority

4. Advance Authorisation Scheme

Allows duty-free import of inputs physically incorporated in the export product (plus standard input-output norms).

• Eligible: Physical exports, deemed exports, intermediate supplies
• Norms: SION (Standard Input Output Norms) or self-declared norms
• Export Obligation: Must be fulfilled within 18 months

5. Interest Equalisation Scheme (IES)

Government subsidises interest on pre/post-shipment rupee export credit for eligible exporters.

• MSME Exporters (all sectors): 3% interest subvention
• Non-MSME exporters (specified sectors): 2% interest subvention
• Administered through: Banks — automatically applied to eligible export credit accounts

6. NIRVIK Scheme (Enhanced ECGC Cover)

Provides enhanced export credit insurance cover of up to 90% for MSME exporters, enabling banks to offer higher credit limits at lower risk.

7. Towns of Export Excellence (TEE)

Exporters in designated TEE clusters get priority access to export promotion schemes, common facility centres, and infrastructure support.

How to Maximise Your Export Incentives

1. Correctly classify your product under the right HS code
2. Declare RoDTEP and Drawback claims on every Shipping Bill
3. File eBRC promptly after payment realisation
4. Apply for EPCG if importing capital goods
5. Register with ECGC for credit insurance
6. Ensure RCMC is current with the relevant EPC

Related Pillar Guides

• How to Start Exporting from India
• Export Finance India — Pre & Post Shipment
• Export Documentation India
• Export Compliance India — DGFT & Customs