FICCI Joins to Urge for Extension of RoDTEP Scheme to AA/EOU/SEZ Units

08 May 2025 CW Team

In a letter to the Commerce Ministry, FICCI has voiced concerns over the lapse of RoDTEP benefits for the units based in these export-oriented zones beyond February 5, 2025 and has urged the Ministry to expedite the notification of an extension at least till September 30, 2025. In view of the prevailing global uncertainties, FICCI underscored the need to continue including AA/EOU/SEZ units under the scheme to maintain the cost competitiveness of Indian manufacturing and ensure a level playing field for Indian exporters in international markets.

FICCI’s representation follows similar submissions made recently by top industry bodies such as the Federation of Indian Mineral Industries (FIMI) and the Aluminium Association of India (AAI), reflecting broader industry apprehensions about global trade. Aluminium is a key driver in India’s industry landscape with over $20 billion invested, making India the world’s 2nd largest aluminium producer.

Earlier, in its representation, FIMI highlighted that nearly 45% of India’s aluminium exports come from units based in AA/EOU/SEZ locations. It pointed out that the withdrawal of RoDTEP support significantly undermines the ability of Indian manufacturers to compete with their global peers since embedded taxes and duties, which comprise up to 10% of aluminium production costs, would remain unrebated and unaddressed.

While commending the Commerce Ministry’s progressive measures, FICCI cautioned that any delay in extending RoDTEP coverage to restore export competitiveness in a severely stressed business environment would be detrimental. It may be recalled that FIMI, in its representation, explained that this could result in production cuts, job losses, and setbacks to domestic value addition within the Indian aluminium sector, which currently has an annual capacity of 4.1 million tonnes. Fresh investments in expanding domestic capacity would be critical for sustaining the industry’s growth trajectory.

Given the ongoing global trade headwinds, FICCI said that an extension for AA/EOU/SEZ exporters would provide much-needed certainty and stability to the wider industry. The chamber emphasised that the government’s swift action will be pivotal in restoring parity and supporting India’s ambition to emerge as a global manufacturing hub.

In a progressive step, the Ministry of Finance has already approved the budget for RoDTEP scheme as Rs 180 billion for FY26, as opposed to Rs 165.75 billion in the previous fiscal. Now, with successive leading industry bodies, including AAI, FIMI and FICCI pleading the cause for extension of the RoDTEP scheme for AA/EOU/SEZ units from February 5, 2025 onwards at least till September 30, 2025 in line with the DTAs, the industry is optimistic that the government will act promptly to formally notify the RoDTEP extension. While the geopolitical crisis and the global slowdown has made the going difficult, the extension of RoDTEP for AA/EOU/SEZs would help the industry to be globally competitive and also ensure the continued growth of Indian exports amid the uncertain global scenario.

In a decisive move underscoring the growing uncertainty related to the future ambit of the RoDTEP scheme, the Federation of Indian Chambers of Commerce and Industry (FICCI) has formally written to the Ministry of Commerce and Industry’s Directorate General of Foreign Trade with an appeal seeking the immediate extension of the Remission of Duties or Taxes on Export Products (RoDTEP) Scheme for units operating under Advance Authorisation (AA), Export Oriented Units (EOUs), and Special Economic Zones (SEZs).In a letter to the Commerce Ministry, FICCI has voiced concerns over the lapse of RoDTEP benefits for the units based in these export-oriented zones beyond February 5, 2025 and has urged the Ministry to expedite the notification of an extension at least till September 30, 2025. In view of the prevailing global uncertainties, FICCI underscored the need to continue including AA/EOU/SEZ units under the scheme to maintain the cost competitiveness of Indian manufacturing and ensure a level playing field for Indian exporters in international markets.FICCI’s representation follows similar submissions made recently by top industry bodies such as the Federation of Indian Mineral Industries (FIMI) and the Aluminium Association of India (AAI), reflecting broader industry apprehensions about global trade. Aluminium is a key driver in India’s industry landscape with over $20 billion invested, making India the world’s 2nd largest aluminium producer.Earlier, in its representation, FIMI highlighted that nearly 45% of India’s aluminium exports come from units based in AA/EOU/SEZ locations. It pointed out that the withdrawal of RoDTEP support significantly undermines the ability of Indian manufacturers to compete with their global peers since embedded taxes and duties, which comprise up to 10% of aluminium production costs, would remain unrebated and unaddressed.While commending the Commerce Ministry’s progressive measures, FICCI cautioned that any delay in extending RoDTEP coverage to restore export competitiveness in a severely stressed business environment would be detrimental. It may be recalled that FIMI, in its representation, explained that this could result in production cuts, job losses, and setbacks to domestic value addition within the Indian aluminium sector, which currently has an annual capacity of 4.1 million tonnes. Fresh investments in expanding domestic capacity would be critical for sustaining the industry’s growth trajectory.Given the ongoing global trade headwinds, FICCI said that an extension for AA/EOU/SEZ exporters would provide much-needed certainty and stability to the wider industry. The chamber emphasised that the government’s swift action will be pivotal in restoring parity and supporting India’s ambition to emerge as a global manufacturing hub.In a progressive step, the Ministry of Finance has already approved the budget for RoDTEP scheme as Rs 180 billion for FY26, as opposed to Rs 165.75 billion in the previous fiscal. Now, with successive leading industry bodies, including AAI, FIMI and FICCI pleading the cause for extension of the RoDTEP scheme for AA/EOU/SEZ units from February 5, 2025 onwards at least till September 30, 2025 in line with the DTAs, the industry is optimistic that the government will act promptly to formally notify the RoDTEP extension. While the geopolitical crisis and the global slowdown has made the going difficult, the extension of RoDTEP for AA/EOU/SEZs would help the industry to be globally competitive and also ensure the continued growth of Indian exports amid the uncertain global scenario.

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