Government Benefits & Incentives for Exporters

By | December 8, 2025
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Government Benefits for Exporters

The Government of India offers various schemes and incentives to exporters to boost exports, enhance competitiveness, and compensate for the duties and taxes incurred in the export process.

Here are some of the major government benefits for exporters in India, with a short explanation:

  1. Duty Drawback Scheme (DBK)

What it is: Refund of customs duty paid on imported inputs used in making export goods.
Example: If you import fabric, pay duty, and export shirts, the duty paid on fabric is refunded.

  1. Remission of Duties & Taxes on Exported Products (RoDTEP)

What it is: Refund of hidden taxes (electricity duty, mandi tax, fuel tax, etc.) that are not otherwise refunded.
Example: Exporter of leather wallets gets a small amount per piece as rebate credited to the electronic ledger.

  1. Rebate of State & Central Taxes and Levies (RoSCTL)

(for garments & made-ups)

What it is: Refund of state and central embedded taxes for textile exports.
Example: Exporter of cotton T-shirts gets a rebate percentage on FOB value.

4. Interest Equalization Scheme (IES)

What it is: Government gives interest subsidy (3%–5%) on pre- and post-shipment export loans.
Example: If bank interest is 9%, you may pay only 6% after subsidy.

5. Free Trade Agreements (FTAs) – Duty Benefits to Buyers (Importers)

What it is: Buyers in FTA partner countries get reduced or zero import duty, making Indian goods more competitive.

What this means for Exporter: Buyers may continue to buy their requirements from your country as they do not have to pay import duty.
Example: Indian textiles exported to UAE under the CEPA have zero duty, increasing demand.

General Schemes for all Exporters (as applicable)

1.     Export Oriented Unit (EOU) Scheme / SEZ Benefits

What it is: Units in EOUs or SEZs get major tax & duty benefits.
Key benefits:

  • Duty-free imports
  • GST exemptions
  • Faster clearances
    Example: A pharmaceutical exporter in an SEZ imports chemicals duty-free and exports medicines without paying GST.

  1. Market Access Initiative (MAI) Scheme

What it is: Financial assistance for marketing abroad—trade fairs, buyer–seller meets, branding.
Example: Handicraft exporters get reimbursement for participating in international exhibitions.

  1. Market Development Assistance (MDA) Scheme

What it is: Small exporters (< ₹50 crore turnover) get support for foreign travel, fairs & delegations.
Example: A small textile exporter gets a subsidy for visiting a B2B exhibition in Dubai.

  1. GST Refunds on Exports

What it is: Exports are considered zero-rated, so GST paid on inputs is refunded.
Example: If you pay GST on packing material, you get that amount back after exporting.

  1. State Government Export Incentives (ODOP, Logistic Support, etc.)

Every state gives additional support like:

  • Export subsidies
  • Logistics assistance
  • Interest subsidies
  • Capital subsidies
    Example: Gujarat gives power tariff subsidy and reimbursement of SGSY testing charges for exporters.

6.     Export Credit Guarantee Corporation (ECGC) – Risk Insurance

What it is: Government-backed insurance covering non-payment risk from foreign buyers.
Example: If a buyer in Africa defaults, ECGC compensates the exporter for the loss.

 Government Benefits can be claimed after the Export proceeds are received in the bank. 

Once needs to have the e-BRC to claim the Government benefits.