Export Incentives India 2026
Export Incentives in India 2026: The Complete Guide to MEIS, RoDTEP & Advance Authorisation Scheme Why Export Incentives Matter for Indian Businesses India’s export ecosystem is one of the most dynamic in the world, supported by a robust framework of government-backed incentive schemes. If you are an exporter, manufacturer, or trade professional operating in India in 2026, understanding these incentive programmes is not just beneficial — it is essential to your business profitability and global competitiveness. The Indian government, through the Ministry of Commerce and Industry and the Directorate General of Foreign Trade (DGFT), has established multiple schemes to help exporters reduce the cost of production, recover taxes paid on inputs, and boost the country’s overall export performance. The three most critical and widely used schemes in 2026 are: MEIS — Merchandise Exports from India Scheme (now largely transitioned to RoDTEP) RoDTEP — Remission of Duties and Taxes on Exported Products Advance Authorisation Scheme — Duty-free import of inputs for export production This comprehensive guide will walk you through each scheme in detail — their purpose, eligibility criteria, benefits, rate structures (updated for 2026), claim procedures, and how to maximise your returns as an Indian exporter. India’s merchandise exports crossed USD 437 Billion in FY 2024-25. Export incentive schemes play a pivotal role in maintaining India’s price competitiveness in global markets. CHAPTER 1: MEIS — Merchandise Exports from India Scheme 1.1 What is MEIS? The Merchandise Exports from India Scheme (MEIS) was introduced under the Foreign Trade Policy (FTP) 2015-20 by the Government of India. The scheme was designed to offset infrastructural inefficiencies and associated costs involved in exporting products from India, making Indian goods more competitive in the global market. MEIS replaced five earlier schemes — Focal Point Rebate Scheme, Vishesh Krishi and Gram Udyog Yojana (VKGUY), Market Linked Focus Product Scheme (MLFPS), Focus Product Scheme (FPS), and the Agri Infrastructure Incentive Scrip (AIIS). IMPORTANT NOTE (2026): The WTO Dispute Settlement Body ruled against MEIS in 2019, as it violated WTO’s Agreement on Subsidies and Countervailing Measures (ASCM). The Government of India subsequently phased out MEIS and replaced it with the RoDTEP Scheme (effective from January 2021). However, exporters may still have pending MEIS scrip claims for exports made before the scheme’s closure, and understanding MEIS remains critical for claim resolution. 1.2 MEIS — Benefits & Incentive Structure Under MEIS, exporters received transferable duty credit scrips equivalent to 2%, 3%, or 5% of the FOB (Free on Board) value of exports, depending on the product category and destination country. These scrips could be used to: Pay Basic Customs Duty (BCD) on imports Pay Central Excise Duty on domestic procurement Pay Service Tax (before GST implementation) MEIS Incentive Rate Product Category Example Sectors 2% of FOB Value Category A Products General manufactured goods 3% of FOB Value Category B Products Textiles, handicrafts, leather 5% of FOB Value Category C Products Agriculture, marine, electronics 1.3 MEIS — Eligibility Criteria To claim MEIS benefits (for pending claims under old exports), the following conditions must be met: Exports must be of products specified in the MEIS Schedule (Appendix 3B of FTP) Exports must be made from EDI (Electronic Data Interchange) enabled ports or notified ports The shipping bill must be filed through ICES (Indian Customs EDI System) Exports should be in Free Foreign Exchange (not barter, counter trade, or re-export of imported goods) The entity must hold a valid Import Export Code (IEC) 1.4 MEIS — Pending Claim Procedure (2026) If you have unclaimed MEIS scrips for exports made before December 31, 2020, you can still file claims. Here is the step-by-step process: Login to the DGFT portal: dgft.gov.in using your IEC credentials Navigate to Services > MEIS > Online Application Upload the required documents: Shipping Bills (EDI), Bank Realisation Certificate (BRC/e-BRC), RCMC, and IEC Submit application along with applicable fees The Regional Authority (RA) of DGFT will process and issue the scrip Use the e-scrip on the ICEGATE portal for customs duty payment CHAPTER 2: RoDTEP — Remission of Duties and Taxes on Exported Products 2.1 What is RoDTEP? The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme is the successor to MEIS and is fully WTO-compliant. Launched on January 1, 2021, and significantly expanded in subsequent years, RoDTEP aims to refund all previously unrebated taxes, duties, and levies borne by exporters at the Central, State, and local level during the manufacturing and distribution of export goods. Unlike MEIS (which was a subsidy-like incentive), RoDTEP strictly remits only the actual taxes paid by the exporter which were embedded in the cost of production but not otherwise refunded. This makes it WTO-compliant and sustainable in the long run. RoDTEP is NOT a subsidy. It is a remission of actual taxes paid. This includes State taxes on power, fuel, mandi fees, local body levies, and other costs that were embedded in the product price but not refunded under GST or Duty Drawback. 2.2 RoDTEP Rates — Updated 2026 The Government of India has released and revised RoDTEP rates through DGFT Notifications. The rates are expressed as a percentage of the FOB value of exports and are product-specific based on ITC-HS codes. In Budget 2025-26 (Union Budget presented in February 2026), the government continued extending RoDTEP benefits with revised rate schedules. Sector Typical RoDTEP Rate Range (% of FOB) Key ITC-HS Chapters Textiles & Apparel 0.5% – 4.3% HS 50–63 Engineering Goods 0.3% – 3.9% HS 72–84, 86–89 Chemicals & Pharma 0.1% – 2.5% HS 28–38 Marine Products 0.5% – 4.0% HS 03 Agriculture & Allied 0.5% – 5.0% HS 01–24 Plastics & Rubber 0.3% – 2.8% HS 39–40 Leather & Footwear 0.4% – 3.2% HS 41–64 Electronics 0.1% – 1.5% HS 84–85 Note: RoDTEP rates are updated periodically. Exporters must refer to the latest DGFT notification and the RoDTEP rate schedule annexed to each notification for exact rates applicable to their ITC-HS code. 2.3 RoDTEP — How it Works (Mechanism) RoDTEP benefits are issued as electronic transferable scrips (e-scrips) credited directly
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