India’s export ecosystem has undergone a massive transformation in the past decade. The government’s proactive approach to promote exports has played a pivotal role in making India one of the top emerging export hubs in the world. Export Incentives & Schemes by Indian Government are designed to enhance competitiveness, reward exporters, and ensure that Indian products gain strong visibility in global markets.
From traditional goods like textiles and agriculture to modern sectors such as IT, pharmaceuticals, and engineering, these incentives help Indian exporters reduce costs, improve margins, and remain globally competitive. Let’s explore the details of every major export incentive and scheme available in India as of 2026.
Introduction: Understanding India’s Export Promotion Ecosystem
India’s export policy framework is guided by the Foreign Trade Policy (FTP), formulated by the Ministry of Commerce and Industry through the Directorate General of Foreign Trade (DGFT). The FTP outlines strategic goals to increase exports, reduce trade deficits, and create employment through international trade.
Export incentives are financial or regulatory advantages offered to exporters to make their goods and services more affordable and competitive in global markets. These incentives can include tax rebates, duty exemptions, capital subsidies, or credit support.
Importance of Export Incentives for Economic Growth
Boosting Trade Competitiveness
Export incentives allow Indian businesses to sell products abroad at competitive prices by reducing their input costs through tax reliefs and duty reimbursements. This makes Indian goods attractive in global markets, driving higher demand and greater production efficiency.
Strengthening India’s Global Market Presence
By supporting exporters through structured schemes, India strengthens its trade partnerships and expands its global reach. This not only helps in improving the balance of trade but also positions India as a reliable exporter of quality goods and services.
Overview of Export Incentive Framework in India
Objectives of Export Promotion Policies
- Increase India’s share in global exports
- Simplify compliance and encourage MSME participation
- Diversify export products and markets
- Promote value-added exports over raw material exports
Evolution of Export Schemes Post-Liberalization
Since India’s liberalization in 1991, export promotion has shifted from protectionism to global competitiveness. Earlier schemes like DEPB and Focus Product Schemes have been gradually replaced by modern, WTO-compliant policies such as RoDTEP and RoSCTL.
Major Export Incentive Schemes by the Indian Government
1. Merchandise Exports from India Scheme (MEIS)
Introduced under FTP 2015–2020, MEIS aimed to reward exporters of goods by offering duty credit scrips ranging from 2% to 5% of the export value. However, due to WTO compliance issues, MEIS has been phased out and replaced by RoDTEP.
2. Service Exports from India Scheme (SEIS)
SEIS incentivized service exporters in sectors like IT, consulting, tourism, and education. Eligible service providers received duty credit scrips (3%–5%) for their net foreign exchange earnings. Like MEIS, SEIS is also being gradually phased out in favor of a WTO-compliant mechanism.
3. Remission of Duties and Taxes on Exported Products (RoDTEP)
RoDTEP, introduced in January 2021, is now the primary export incentive scheme for goods exporters. It reimburses embedded taxes and duties (such as electricity, fuel, or toll charges) that are not refunded under any other scheme. Rates are product-specific and notified regularly by DGFT.
4. Rebate of State and Central Taxes and Levies (RoSCTL)
RoSCTL focuses on textile and apparel exports, offering rebates on state and central taxes not included under GST. It’s a significant support mechanism for textile exporters facing global price competition.
5. Export Promotion Capital Goods (EPCG) Scheme
The EPCG Scheme enables exporters to import capital goods for production at zero customs duty, provided they meet specific export obligations. This is particularly beneficial for manufacturing units seeking to upgrade technology and capacity.
6. Advance Authorization Scheme
Exporters can import raw materials and inputs without paying customs duty under this scheme, provided these inputs are used in the manufacturing of export products. It helps maintain cost efficiency in production.
7. Duty Drawback Scheme
One of the oldest export incentives, this scheme refunds customs and central excise duties paid on inputs used in exported goods. The rate of drawback varies by product category.
Key Sector-Specific Incentives and Policies
Textile Sector Export Incentives
The textile industry enjoys RoSCTL and Production Linked Incentive (PLI) support. Exporters benefit from technology upgradation funds and refund schemes that promote fabric and garment exports.
Agricultural and Food Processing Export Schemes
Schemes like APEDA assistance, Transport and Marketing Assistance (TMA), and Agri-Infrastructure Fund encourage the export of processed foods, fruits, and vegetables.
IT & Services Export Support Programs
For IT and service-based exporters, incentives include Software Technology Parks (STPI), Special Economic Zones (SEZ), and tax holidays on export income under Section 10AA of the Income Tax Act.
Role of DGFT (Directorate General of Foreign Trade)
Policy Implementation and Licensing
DGFT is the nodal authority responsible for implementing export policies, issuing authorizations, and monitoring scheme compliance. It provides all necessary licenses for exporters under various schemes.
DGFT Online Platforms and Simplifications
DGFT’s digital portal offers online application filing, e-certificates, and export tracking facilities. As of 2026, the DGFT 2.0 portal allows exporters to manage all benefits through a single interface.
Financial Institutions Supporting Exporters
EXIM Bank of India
EXIM Bank provides concessional export credit, buyer’s credit, and overseas investment finance. It plays a key role in funding large-scale export projects.
ECGC (Export Credit Guarantee Corporation)
ECGC protects exporters from payment defaults and political risks through comprehensive insurance coverage.
Role of Commercial Banks in Export Finance
Banks like SBI, HDFC, and Axis offer pre-shipment and post-shipment finance, factoring services, and foreign currency loans to exporters.
How to Avail Export Incentives in India
Step-by-Step Application Process
- Register your business with DGFT and obtain an IEC (Import Export Code).
- Identify the eligible scheme (e.g., RoDTEP, EPCG).
- File the application online through the DGFT portal.
- Upload required documents (shipping bills, invoices, bank realization certificates).
- Track status and claim the benefit through your DGFT dashboard.
Documentation Requirements
- IEC Certificate
- Export Invoices
- Bank Realization Certificate (BRC)
- Bill of Lading / Airway Bill
- Export Declaration Form
Common Mistakes to Avoid
- Delayed submission of claims
- Incorrect product classification under HS codes
- Non-compliance with export obligation timelines
Impact of Export Schemes on MSMEs and Startups
Export schemes have transformed the MSME sector by reducing compliance costs and offering digital access to incentives. The One District One Product (ODOP) initiative and Trade Connect Programs have empowered smaller exporters to reach global buyers.
India’s Free Trade Agreements (FTAs) and Global Trade Benefits
Bilateral and Multilateral FTAs
India has strategically signed Free Trade Agreements (FTAs) and Comprehensive Economic Partnership Agreements (CEPAs) with countries like UAE, Australia, Japan, and South Korea, along with negotiations underway with UK, EU, and Canada. These FTAs reduce import duties, enhance market access, and complement export incentive schemes.
For instance, the India-UAE CEPA, implemented in 2022, has significantly boosted trade in textiles, gems, and engineering goods by allowing duty-free access to key markets. Similarly, India’s trade with Australia under the ECTA (Economic Cooperation and Trade Agreement) offers preferential tariffs for over 85% of Indian exports.
Leveraging FTAs for Export Growth
Indian exporters can combine FTA benefits with government schemes like RoDTEP and EPCG to maximize cost efficiency. By analyzing Rules of Origin (ROO) and product-specific concessions, exporters can strategically target high-demand international markets while ensuring compliance with bilateral agreements.
Challenges and Reforms in Export Incentive Policies
WTO Compliance Issues
One of the major challenges India faces is aligning export incentives with World Trade Organization (WTO) regulations. Schemes like MEIS and SEIS were found to violate WTO’s “prohibited subsidies” clause since they directly rewarded export performance. Consequently, the government introduced RoDTEP and RoSCTL, both designed to comply with WTO standards by reimbursing unrefunded taxes rather than providing direct rewards.
Need for Sustainable Export Growth Models
The focus is now shifting from short-term incentives to long-term competitiveness. The government is promoting green exports, innovation-driven manufacturing, and digital trade enablement. Initiatives like PLI (Production Linked Incentive) schemes for electronics, pharmaceuticals, and textiles encourage domestic value addition while improving export readiness.
Moreover, India’s National Logistics Policy (NLP) aims to reduce logistics costs from 13–14% of GDP to below 8% by 2030 — an essential factor for export competitiveness.
Future of Export Incentives in India: 2026 and Beyond
Transition from MEIS/SEIS to RoDTEP
As India aligns its trade incentives with WTO norms, the RoDTEP scheme is expected to expand across all export sectors, including previously excluded segments like steel, chemicals, and engineering goods. Digital automation will further simplify rebate calculations and faster disbursals through DGFT systems integrated with ICEGATE.
Green Exports and Digital Trade Incentives
In 2026, the focus is also on sustainable trade. New policy proposals encourage exporters of renewable energy products, electric vehicles, and recycled materials through preferential tax rebates. Similarly, digital exporters in software, SaaS, and creative industries will benefit from dedicated Digital Export Incentive Policies (DEIP) to boost India’s position in the global digital economy.
The Make in India 2.0 initiative and Brand India Global Campaign are also being expanded to enhance the visibility of Indian products worldwide, supported by Trade Promotion Councils (TPCs).
Frequently Asked Questions (FAQs)
1. What are Export Incentives & Schemes by Indian Government?
Export incentives are government-backed programs that offer tax benefits, duty rebates, or financial assistance to exporters. These schemes help Indian businesses compete globally by reducing production costs and promoting exports.
2. Which are the major export incentive schemes available in India in 2026?
As of 2026, the key schemes include RoDTEP, RoSCTL, EPCG, Advance Authorization, and the Duty Drawback Scheme. Sector-specific programs like PLI and TMA also provide targeted support.
3. What is the difference between MEIS and RoDTEP?
MEIS offered direct export rewards through duty credit scrips (2–5%), while RoDTEP reimburses embedded, non-recoverable taxes. RoDTEP is WTO-compliant, whereas MEIS was phased out due to WTO objections.
4. Can MSMEs avail export incentives easily?
Yes, MSMEs are the biggest beneficiaries of export schemes. The DGFT online portal provides simplified registration, faster claim processing, and support via TReDS platforms for export financing.
5. How can exporters apply for these incentives?
Exporters must register on the DGFT website, obtain an Import Export Code (IEC), and submit their export documents (invoices, shipping bills, and BRCs) online. Once verified, benefits like RoDTEP credits are automatically credited to their account.
6. Are these incentives available to service exporters?
Yes. Service exporters in IT, tourism, finance, and consulting can avail incentives under specialized programs like SEIS (until phased out), SEZ benefits, and emerging Digital Export Incentives.
Conclusion: Strengthening India’s Export Growth Trajectory
India’s export landscape is on a strong upward trajectory, backed by robust policies, digital transformation, and proactive reforms. Export Incentives & Schemes by Indian Government play a pivotal role in helping businesses expand globally, improve profitability, and contribute to the national economy.
The move towards WTO-compliant schemes like RoDTEP, digital enablement through DGFT 2.0, and initiatives like PLI ensure that exporters remain globally competitive while promoting sustainability. With India’s trade agreements and logistics reforms aligning toward efficiency, the future of exports looks brighter than ever.
For Indian exporters, the key to success lies in staying updated with policy changes, maintaining compliance, and leveraging these incentives strategically. Together, these initiatives are not just boosting trade — they are shaping India’s identity as a global export powerhouse.
