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Guide22 Jul 2026

Top 10 Government Schemes Every Indian Exporter Should Know in 2026

A 2026 guide to the top 10 government schemes for Indian exporters — RoDTEP, RoSCTL, Advance Authorisation, EPCG, Duty Drawback, the Export Promotion Mission (which now houses interest subvention and market access support), TMA, SEZ/EOU and PLI. Covers what each scheme does, eligibility, benefits and how to claim.

Top 10 Government Schemes Every Indian Exporter Should Know in 2026

Indian exporters operate on thin margins in a fiercely competitive global market. The good news: the government runs a stack of export promotion schemes that can improve your net realisation by anywhere from 5% to 12% — but only if you know they exist and claim them correctly. Many first-time and even seasoned exporters leave money on the table simply because a single declaration was missed on a shipping bill.

This 2026 guide breaks down the ten most important government schemes for Indian exporters, what each one does, who qualifies, and how to claim it. Whether you are an MSME making your first shipment or a Star Export House scaling up, this is your starting checklist.

Quick note on the 2026 policy direction: India's export incentives have shifted away from cash-style subsidies toward duty neutralisation — the principle of "export the goods, not the taxes." Older schemes like MEIS and SEIS have been retired for being non-compliant with WTO rules, and the current framework sits under the Foreign Trade Policy (FTP) 2023.

⚠️ Important 2026 change — the Export Promotion Mission. Launched on 20 February 2026 with an outlay of ₹25,060 crore, the Export Promotion Mission (EPM) consolidates several previously standalone schemes — including the Interest Equalisation Scheme (IES) and the Market Access Initiative (MAI) — into a single framework administered by DGFT. Sections 6 and 7 below reflect this. If you are working from older guidance, verify how these benefits now operate under EPM before relying on the previous terms.


1. RoDTEP — Remission of Duties and Taxes on Exported Products

What it is: RoDTEP refunds the embedded central, state and local taxes that are not covered by GST — think electricity duty, mandi tax, coal cess, fuel levies, toll and stamp duty on trade documents. It replaced the MEIS scheme from January 2021 after MEIS was found non-compliant with WTO rules.

How the benefit works: You receive transferable electronic duty credit scrips (e-scrips) calculated as a percentage of the FOB value of your exports. Scrips can be used to pay Basic Customs Duty or sold to other importers.

Who can claim it: Merchant and manufacturer exporters across a very wide range of tariff lines. Coverage now extends to Advance Authorisation holders, EOUs and SEZ units.

How to apply: Declare your intent to claim RoDTEP on the shipping bill itself at the time of export, then generate scrips through your credit ledger on the ICEGATE portal.

⚠️ Don't miss this: A missing RoDTEP declaration on the shipping bill can mean a permanent loss of the benefit for that shipment. Always tick the claim box.

See our full RoDTEP Scheme (India): Complete Guide for Exporters for rates, e-scrips and the step-by-step claim process.


2. RoSCTL — Rebate of State and Central Taxes and Levies

What it is: A remission scheme designed specifically for the apparel and made-ups sector — garments under Chapters 61 and 62, and made-ups under Chapter 63 of the ITC-HS classification.

How the benefit works: Transferable e-scrips rebating embedded state and central taxes, typically ranging from around 1.7% to 6% of FOB value depending on the product.

Who can claim it: Exporters of apparel and made-ups (garments, curtains, home textiles, and similar items).

How to apply: Through the DGFT portal, within one year of the shipping bill. You need a valid IEC and GSTIN.

Important: You cannot claim RoSCTL and RoDTEP on the same export. Textile exporters should compare which gives the higher rebate for their product.


3. Advance Authorisation Scheme (AAS)

What it is: A duty-exemption scheme that lets you import raw materials and inputs without paying customs duty, provided those inputs are physically incorporated into your export product (with a normal allowance for wastage).

How the benefit works: Instead of paying duty upfront and claiming it back later, you skip the duty altogether — a major cash-flow advantage. Packaging materials, fuel, oil and catalysts consumed in production can also be covered.

Who can claim it: Manufacturer exporters (and merchant exporters tied to a supporting manufacturer) who can meet an Export Obligation (EO).

How to apply: Apply online on the DGFT website before importing. Input quantities are governed by SION (Standard Input Output Norms) or self-declared norms.

2026 update: In view of global shipping and supply-chain disruptions, DGFT extended the Export Obligation period for Advance Authorisations expiring between March and May 2026 up to 31 August 2026, granted automatically with no separate application or composition fee.

See our full Advance Authorisation Scheme (India): Complete Guide for Exporters for eligibility, SION norms and closure.


4. EPCG — Export Promotion Capital Goods Scheme

What it is: EPCG lets you import capital goods and machinery at zero customs duty, so you can modernise production without a heavy upfront duty burden.

How the benefit works: Duty-free import of machinery in exchange for an Export Obligation — typically you must export a multiple of the duty saved over a fixed period.

Who can claim it: Manufacturer exporters and merchant exporters linked to supporting manufacturers, plus service providers.

How to apply: Apply online on the DGFT portal before importing the capital goods.

2026 update: The same DGFT extension applied to EPCG — Export Obligation periods expiring between March and May 2026 were automatically extended to 31 August 2026. EPCG is also currently under a broader government review of export-promotion scheme harmonisation, so watch for reforms.


5. Duty Drawback (DBK)

What it is: One of the oldest and simplest schemes — a rebate of customs duties (and certain other duties) paid on imported inputs used to manufacture exported goods.

How the benefit works: You claim a drawback rate, either the standardised All Industry Rate (AIR) or a brand rate specific to your product, credited directly to your bank account.

Who can claim it: Almost all exporters. It is especially useful where inputs carried customs duty that other schemes don't neutralise.

How to apply: Claimed through the shipping bill and processed by Customs.

Tip: In most cases you can claim AIR Duty Drawback and RoDTEP together — provided the drawback rate doesn't already account for the same taxes RoDTEP covers.


6. Interest Subvention on Export Credit (now under EPM — Niryat Protsahan)

What it is: A working-capital benefit that reduces the interest cost on pre- and post-shipment export credit, helping Indian exporters compete with rivals in countries where borrowing is far cheaper.

This was historically delivered through the Interest Equalisation Scheme (IES). Interest subvention now operates under the Export Promotion Mission's financial-enablers sub-scheme, Niryat Protsahan, effective 2 January 2026.

The current terms:

  • 2.75% per annum subvention on pre-shipment and post-shipment rupee export credit
  • Maximum benefit of ₹50 lakh per exporter per financial year
  • Open to MSME manufacturer and merchant exporters
  • Applies only to export credit sanctioned on or after 2 January 2026

What you need: an active IEC (not suspended, cancelled or on the Denied Entity List) and a valid Udyam Registration Number.

How the benefit works: Your lending institution passes the subvention to you upfront as a reduced interest rate, then claims reimbursement from the RBI. You do not file a claim with any government department.

The step most exporters miss: file an online declaration of intent on the DGFT portal to generate a Unique Identification Number (UIN) linked to your lending bank. Without the UIN, your bank cannot process the benefit.

⚠️ Check your HS code against the positive list. The subvention covers a notified positive list of roughly 4,139 HS six-digit tariff lines — not all tariff lines. The list prioritised labour-intensive sectors, MSME concentration and value addition, while excluding restricted and prohibited items, waste and scrap, and products already covered by overlapping incentive schemes. It was expanded in April 2026 (Trade Notice No. 01/2026-27), so if your code was excluded in January, check again — though the additions apply prospectively and, for the newly added lines, to micro and small enterprises only.

Related support under Niryat Protsahan: the same 2.75% subvention and ₹50 lakh cap extend to export factoring costs with RBI or IFSCA-regulated entities. The sub-scheme also covers collateral support, credit for e-commerce exporters, and credit enhancement for new markets. Separately, the Credit Guarantee Scheme for Exporters provides up to ₹20,000 crore in export credit with 100% guarantee cover through NCGTC, enabling collateral-free lending.

Note: these interventions are operating on a pilot basis, with guidelines being refined through stakeholder consultation. Confirm current terms with your bank or on the DGFT portal.


7. Market Access and Export Readiness Support (now under EPM — Niryat Disha)

What it is: Support for market development activities — participation in international trade fairs, buyer-seller meets, market studies, and branding of Indian products abroad.

This was historically delivered through the Market Access Initiative (MAI). Since February 2026, MAI has been consolidated into the Export Promotion Mission under its non-financial-enablers sub-scheme, Niryat Disha.

What Niryat Disha covers: Export quality, testing and technical compliance support (including certification costs); international branding, labelling and packaging assistance; participation in trade fairs, exhibitions and buyer-seller meets; export warehousing and logistics support; inland transport reimbursement for exporters in remote and low-export-intensity districts; and trade intelligence and capacity building at cluster, association and district level.

Who can claim it: Exporters and export bodies, generally channelled through your relevant Export Promotion Council (EPC) or commodity board.

How to apply: Through your EPC or commodity board, which coordinates supported events and reimbursements, with DGFT operating a unified digital platform for applications, approvals and disbursals.

Best for: Exporters trying to break into a new geography, and MSMEs in interior districts who need help covering certification, branding, exhibition and inland freight costs.


8. Transport and Marketing Assistance (TMA)

What it is: A scheme that partially offsets the freight and marketing cost of exporting specified agricultural products, which are often uncompetitive purely because of high logistics costs.

How the benefit works: Assistance on the freight component for eligible agri exports by sea and air to specified destinations.

Who can claim it: Exporters of eligible agricultural and allied products.

How to apply: Through the DGFT framework for TMA, with supporting shipment and freight documentation.

Best for: Agri and food exporters where ocean/air freight is a big share of landed cost.


9. SEZ and EOU Schemes

What it is: Two related frameworks — Special Economic Zones (SEZs) and Export Oriented Units (EOUs) — that give exporters a duty-favourable, single-window operating environment geared entirely toward exports.

How the benefit works: Duty-free or duty-deferred import of inputs and capital goods, streamlined compliance, and various operational benefits for units that primarily export. RoDTEP coverage now extends to SEZ and EOU exports too.

Who can claim it: Manufacturers and service providers willing to set up (or operate) inside an SEZ or as an EOU with export commitments.

How to apply: Through the SEZ/EOU approval framework under the Department of Commerce.

2026 update: SEZ, EOU, MOOWR, DFIA and related schemes are all part of an active government consultation on harmonising export-promotion schemes. Reforms are expected, so factor policy change into long-term setup decisions.


10. Production Linked Incentive (PLI) Scheme

What it is: Not a traditional trade scheme but a manufacturing subsidy that rewards incremental production and sales — a powerful lever for export-oriented manufacturers in priority sectors.

How the benefit works: Incentives typically in the range of about 4% to 6% on incremental sales, aimed at building globally competitive manufacturing at scale.

Who can claim it: Manufacturers in covered sectors such as electronics, pharmaceuticals, man-made-fibre textiles, and auto components.

How to apply: Through the nodal ministry administering the specific PLI sector scheme.

Best for: Larger manufacturers building export capacity in a PLI-covered sector — often layered on top of RoDTEP and EPCG.


Quick Comparison: Which Scheme Fits Your Need?

Your goal Scheme to look at
Refund embedded taxes on the final export RoDTEP
Rebate for apparel / made-ups RoSCTL
Import raw materials duty-free Advance Authorisation
Import machinery duty-free EPCG
Recover customs duty on inputs Duty Drawback
Cheaper working-capital finance EPM — Niryat Protsahan (formerly IES)
Enter new overseas markets EPM — Niryat Disha (formerly MAI)
Offset agri export freight cost Transport & Marketing Assistance
Duty-favourable export-only setup SEZ / EOU
Reward large-scale manufacturing PLI

How to Actually Claim These Benefits (Without Losing Them)

The single biggest reason exporters miss out isn't eligibility — it's process. A few essentials:

  • Get your paperwork right. A valid IEC, GSTIN, RCMC (Registration-cum-Membership Certificate from your EPC), e-BRC, and a Digital Signature Certificate unlock most schemes. MSMEs claiming EPM benefits also need a valid Udyam Registration Number.
  • Know the portal for each scheme. RoDTEP and RoSCTL run through ICEGATE (declared on the shipping bill); Advance Authorisation and EPCG are applied for on the DGFT website before import; EPM benefits run through DGFT's unified digital platform; GST refunds go through the GSTN portal, ideally under the LUT route.
  • Declare at the right moment. Remission schemes must be claimed on the shipping bill at the time of export — you cannot add them later. For interest subvention, file your declaration of intent and get your UIN before the credit is sanctioned.
  • Layer, don't duplicate. The smart approach is to combine schemes — EPCG for machinery, Advance Authorisation for inputs, RoDTEP for the final product exit — while respecting rules that bar double-claiming the same benefit (for example, RoDTEP and RoSCTL on the same export).
  • Watch the Export Obligation. For EPCG and Advance Authorisation, failing to meet your EO can trigger recovery notices with interest, so track your obligations closely.

Frequently Asked Questions

Which export scheme is best for a first-time MSME exporter? Start with RoDTEP (claimed on the shipping bill) and interest subvention on export credit under EPM's Niryat Protsahan. Both are broadly accessible and don't require heavy upfront setup.

What is the interest subvention rate for exporters in 2026? 2.75% per annum on pre- and post-shipment rupee export credit, capped at ₹50 lakh per exporter per financial year, for MSME exporters whose products fall on the notified positive list of HS six-digit tariff lines.

What happened to the Interest Equalisation Scheme and Market Access Initiative? Both were consolidated into the Export Promotion Mission, launched in February 2026. Interest subvention now sits under Niryat Protsahan and market access support under Niryat Disha. The underlying benefits continue, but the framework, guidelines and application route have changed — check current terms rather than relying on pre-2026 guidance.

Why might my product not qualify for interest subvention? The scheme covers a positive list of roughly 4,139 HS six-digit lines rather than all tariff lines. Restricted and prohibited items, waste and scrap, and products under overlapping incentive schemes were excluded. The list is reviewed periodically and was expanded in April 2026.

Can I claim more than one scheme on the same export? Often yes — for example RoDTEP plus Duty Drawback — but some combinations are barred, such as claiming RoDTEP and RoSCTL on the same shipment. Always check the specific rule.

Do sole proprietors qualify, or do I need a private limited company? Sole proprietors are eligible for these schemes. You do not need a private limited company to export or to claim benefits.

Is SEIS still available for service exporters? No. SEIS was discontinued under FTP 2023 and there is currently no direct scrip-based replacement, though service exporters still benefit from GST exemptions (LUT) and SEZ/EOU status.


The Bottom Line

For Indian exporters in 2026, these ten schemes are the difference between merely breaking even and building a genuinely competitive export business. The framework rewards those who understand it — declare benefits at the right moment, keep documentation clean, and layer schemes intelligently.

The Export Promotion Mission's consolidation of IES and MAI in early 2026 is a useful reminder that this landscape moves: schemes get restructured, rates get revised, and deadlines shift. Always verify the current status on the DGFT and ICEGATE portals (or with a qualified consultant) before you ship.

This article is for general information and reflects the position as of July 2026. Scheme rates, eligibility and validity are revised periodically — confirm current details on official DGFT/ICEGATE sources before acting.

Sources

  1. 1.About the Export Promotion Mission (EPM) — DGFT — DGFT (retrieved 24 Jul 2026)
  2. 2.Launch of Interest Subvention for Pre- and Post-Shipment Export Credit under EPM (Trade Notice No. 20/2025-26) — DGFT (retrieved 24 Jul 2026)
  3. 3.Interest Subvention Scheme Boosts MSME Export Credit — scheme terms and eligibility (retrieved 24 Jul 2026)
  4. 4.Interest Subvention Scheme for MSME Exporters — lender guidance (retrieved 24 Jul 2026)
  5. 5.DGFT Launches 2.75% Interest Subvention on Export Factoring (Trade Notice No. 25/2025-26) (retrieved 24 Jul 2026)
  6. 6.Cabinet approves Export Promotion Mission with an outlay of Rs 25,060 crore (retrieved 24 Jul 2026)
  7. 7.Export Promotion Mission — scheme overview (Vikaspedia) (retrieved 24 Jul 2026)
  8. 8.DGFT extends Export Obligation period for Advance and EPCG Authorisations until 31 August (retrieved 24 Jul 2026)

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