Mumbai, Feb. 24 -- India has reduced the benefits available to exporters under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme by 50 per cent, a move that is expected to impact operating margins across sectors. In a recent notification, the government said that RoDTEP benefits will now be limited to half of the earlier notified rates and value caps with immediate effect.

RoDTEP is designed to refund various duties, taxes and levies paid at the central, state and local levels on exported goods. It covers 8,555 tariff lines, with rebate rates ranging from 0.01 per cent for some gems and jewellery items to 4.3 per cent for woven fabrics. Following the revision, both the rebate rates and the maximum value caps have bee...