Govt Restores Export Incentives to Support Trade Amid West Asia Crisis

New Delhi— In a move aimed at cushioning exporters from the impact of ongoing tensions in West Asia, the Centre has reinstated benefits under the Remission of Duties and Taxes on Exported Products for all eligible export items with effect from March 23.

The decision, announced by the Ministry of Commerce and Industry, comes against the backdrop of disruptions caused by the Iran war, which has affected maritime trade routes and increased logistical challenges for Indian exporters.

Under the revised policy, the government has restored the RoDTEP rates and value caps to the levels that were in place on February 22, rolling back the earlier 50 per cent cap introduced a day later. The latest notification replaces the February 23 order and its subsequent corrigendum issued on February 24.

The move is expected to provide immediate relief to exporters dealing with rising freight costs, delays, and uncertainties in shipping due to altered maritime routes across the Gulf and the broader West Asia region.

Officials noted that recent geopolitical developments have disrupted shipping schedules and increased transit times, directly impacting export consignments moving through these corridors.

The government said the step reflects its commitment to maintaining a stable and responsive policy framework, ensuring that Indian exporters remain competitive despite global uncertainties.

The announcement follows closely on the government’s RELIEF initiative, which focuses on easing logistical, insurance, and cost-related pressures faced by exporters in a volatile environment.

Welcoming the move, Confederation of Indian Industry President-designate R. Mukundan said the RELIEF package would serve as a crucial buffer, particularly for sectors like manufacturing and chemicals, helping them manage rising costs while sustaining production and export momentum.

With inputs from IANS