India's DFIA Exporters Face RoDTEP Recovery Risk

The association argues DFIA exporters face unequal treatment compared to those operating under Advance Authorisation and SEZ schemes. All three groups incur unreimbursed costs during manufacturing, Bochu said. Denying the benefits undermines the scheme's objective of refunding embedded duties and taxes to make Indian exports globally competitive, a goal that aligns with broader efforts to manage the trade deficit.

The total RoDTEP benefits claimed by DFIA exporters over the last two fiscal years was roughly ₹52 crore. That compares with ₹34,808 crore disbursed under the entire scheme. Recovery would barely dent government finances. It would strain the cash flow of MSME exporters, many of whom operate with limited working capital, the association said.

AIIEA has submitted detailed representations to the Prime Minister's Office and the Finance Ministry seeking a resolution. No timeline for a decision has been set.