How India’s Export Incentives Are Changing in 2025

As India targets a $2-trillion export economy by 2030, the government has revamped its export incentive framework in 2025 to boost competitiveness, simplify procedures, and align with global trade norms. From overhauling duty remission schemes to expanding production‐linked incentives (PLIs), these changes carry profound implications for exporters, trade agents, and global buyers.

1. RoDTEP Rate Rationalization

The Remission of Duties and Taxes on Export Products (RoDTEP) scheme, introduced in 2020 to replace MEIS, has undergone its first major rate rationalization:

• Higher rates for labour‐intensive sectors: Textiles (+0.5%), leather (+0.7%), gems & jewellery (+0.3%)

• New inclusion of logistical charges: Cold chain, handling charges now eligible

• Cap on annual credits: ₹2 crore per exporter, up from ₹1.5 crore

Source: DGFT Public Notice No. 11/2025 – 2029 (DGFT) https://dgft.gov.in

These adjustments aim to bring RoDTEP benefits closer to actual tax incidence and help labour‐intensive sectors compete against ASEAN peers.

2. Rationalizing EPCG Obligations

Under the Export Promotion Capital Goods (EPCG) scheme, exporters can import capital goods at zero duty against a specified export obligation. Key 2025 updates include:

• Reduced export obligations: From 6X to 5X the duty saved, for MSME and green technology sectors

• Extended fulfillment period: 8 years (up from 6) to encourage heavy machinery imports

• Digital performance bonds: Online bonds via the ICEGATE portal replacing bank guarantees

Source: EPCG Scheme Handbook (Ministry of Commerce) https://commerce.gov.in

These changes reduce working‐capital pressure and expedite clearances, especially for small exporters.

3. Sunset of SEIS & Introduction of “Services RoDTEP”

The Service Exports from India Scheme (SEIS) was withdrawn in March 2025. In its place:

• Services RoDTEP reimburses embedded taxes and levies for select services exports (IT/BPM, engineering, and healthcare).

• Flat rebate of 3% of realized foreign exchange earnings, subject to ₹1 crore cap.

• Quarterly credits via DGFT portal, boosting cash flows.

Source: DGFT Notification No. 17/2025 – 2029

4. Expansion of Production‐Linked Incentives (PLIs)

Launched in 2021, PLIs have expanded in 2025 with four new schemes:

Source: Invest India PLI Portal https://www.investindia.gov.in/pli-schemes

Global buyers and their sourcing agents can leverage these incentives to secure reliable, cost‐competitive supply chains.

5. Rationalization of Textile Schemes

To streamline multiple textile incentives, the government has:

• Merged RoSCTL & RoSBT into a single Textiles RoDTEP scheme

• Uniform rebate rate of 6% on garment and made‐ups exports

• Automated claims in the DGFT portal, reducing manual paperwork

Source: Ministry of Textiles Press Release, April 2025

This simplification reduces compliance burden on apparel exporters and their local agents.

6. Navigating Free Trade Agreements (FTAs)

India’s network of FTAs continues to grow, with notable 2025 milestones:

• India-EU Broad-Based Trade & Investment Agreement (BTIA): Early harvest items (chemicals, leather) now duty‐free.

• India-Australia Economic Cooperation and Trade Agreement (Ind-AUS ECTA): Rice, spices granted preferential access.

• Early dialogue with Mercosur targeting agriexports.

Exporters and their global partners must stay updated on preferential tariff schedules via the India-Agent.com FTA Tracker.

7. Digitalization of Export Procedures

In 2025, India accelerated digital reforms:

• End-to-end e‐BRC issuance on the ICEGATE portal for faster shipment verification.

• AI‐enabled risk profiling by DGFT to facilitate self‐certification for low‐risk exporters.

• One‐click duty drawback claims integrated with customs systems.

These improvements cut turnaround time by an estimated 20%, enhancing competitiveness.

8. Implications for Export Agents

For market‐entry agents and trade facilitators, these shifts mean:

• Updated advisory services on incentive eligibility and claim procedures.

• Training programs on new DGFT portal modules and AI tools.

• Strategic counsel on sectors benefiting most from PLI expansions.

• Filing support to optimize benefit utilization under caps and sunset provisions.

Partnering with experienced agents—vetted through platforms like India-Agent.com—ensures exporters capture every rupee of incentive and maintain compliance.

9. Looking Ahead: Policy Continuity & Global Alignment

As India navigates WTO rules and global trade norms, export incentives will likely:

• Move toward transparent, fiscal‐cost‐neutral schemes like RoDTEP.

• Emphasize value‐addition, automation, and sustainability.

• Integrate further with digital public infrastructure (e.g., e‐LOG for logistics).

Staying agile and informed will be critical for exporters and their agents in 2025 and beyond.

Conclusion
India’s 2025 export incentive reforms—spanning RoDTEP rationalization, EPCG easing, SEIS sunset, PLI expansion, and digitalization—signal a strategic shift toward competitiveness, transparency, and sectoral focus. Exporters and global partners should leverage these changes by engaging knowledgeable local agents and digital tools to unlock growth and resilience in international markets.

Further Reading & Links

• DGFT Public Notices

• Ministry of Commerce Notifications

• India-Agent.com Export Advisory