Indian exports have been rising steadily. In FY 2024–25, India’s total exports touched $824.9 billion, marking a growth of 6.01% over the previous year. With global demand shifting and supply chains evolving, the government’s export promotion schemes play a crucial role in helping small and mid-sized exporters go global.
Whether you run a SaaS startup, work as a freelancer or agency serving overseas clients, or sell goods to customers abroad, these export incentives can make a clear difference to your bottom line. When you understand how each export promotion scheme works, you can reduce financial pressure, speed up payments, and unlock markets that may otherwise feel out of reach.
This guide breaks down these export schemes in simple, practical terms so you can use them confidently and boost your profitability.
Key Takeaways
Export promotion schemes help businesses reduce costs, stay competitive, and grow their global presence.
Knowing the top schemes helps exporters improve margins and manage compliance better.
Clean documentation, especially IEC, RCMC, and e-BRCs, is essential for claiming incentives.
The biggest reason exporters lose benefits is missing e-BRCs, and Razorpay solves this with automatic e-BRC generation and organised compliance.
What Are Export Promotion Schemes?
Export promotion schemes are government-backed programmes designed to make it easier and more profitable for you to sell goods or services outside India. These schemes are not just about giving “benefits”. They exist to solve real challenges exporters face — high input costs, global competition, long payment cycles, and complex compliance requirements.
When more Indian businesses sell to other countries, India earns more foreign currency, which strengthens the economy. Higher exports also create more jobs as companies need more people to produce goods and deliver services. Together, this helps India build a stronger presence in global trade.
Export promotion schemes aim to make Indian exporters more competitive and financially stable. They do this by:
- Boosting competitiveness through lower costs and simpler processes
- Improving the trade balance by helping India export more than it imports
- Supporting exporters with practical benefits like fiscal incentives, duty relief, and easier procedures
India’s Top 5 Export Promotion Schemes You Must Know
This section is the core of the guide because these five export promotion schemes directly impact your costs, compliance process, and global competitiveness. Whether you export services, digital products, or physical goods, understanding how these schemes work helps you reduce expenses, improve margins, and make smarter decisions when selling to international markets.
Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme
RoDTEP helps you recover the hidden taxes and duties built into the production of export goods — the ones that don’t get refunded through GST or customs processes. These embedded costs are returned to you as e-scrips, reducing your overall export cost and improving your price competitiveness in global markets. This scheme is most useful for MSMEs, manufacturers, and e-commerce sellers exporting physical products, where every cost saving matters.
Export Promotion Capital Goods (EPCG) Scheme
EPCG lets you import machinery and equipment at zero or significantly reduced customs duty, provided you commit to meeting a set export target over a few years. This reduces your investment cost when upgrading or expanding production capacity. The scheme is ideal for manufacturers, engineering firms, textile units, and large e-commerce exporters looking to scale without heavy upfront expenditure.
Service Exports from India Scheme (SEIS)
SEIS was introduced under the 2015–2020 Foreign Trade Policy to strengthen India’s service sector and increase foreign exchange earnings. When active, SEIS rewards eligible service exporters with duty credit incentives based on the foreign currency they bring into the country. These credits help improve cash flow and make international expansion easier.
SEIS is most useful for SaaS companies, IT service firms, consultants, designers, marketing agencies, and other service-based businesses that earn directly from overseas clients.
Advance Authorisation (AA) Scheme
Under the AA scheme, you can import raw materials and components without paying customs duty, as long as those inputs are used to produce export goods. This means you spend less on your inputs from the very beginning, which helps you keep your final product prices competitive in international markets. It works well for manufacturers, D2C exporters, and MSMEs that depend on imported materials for their finished products.
Duty Drawback (DBK) Scheme
Under the DBK scheme, the government refunds the customs and excise duties you’ve already paid on imported inputs used to manufacture your export goods. The idea is simple: materials meant for export shouldn’t carry extra taxes or duties. This refund helps reduce your overall cost of production and improves your profit margins when selling globally. The scheme is particularly useful for manufacturers and traders whose export goods depend heavily on imported components.
Comparison Table: India’s Key Export Incentive Schemes
| Scheme Name | Full Form | Core Benefit | Ideal For | Key Eligibility Requirement |
|---|---|---|---|---|
| RoDTEP | Remission of Duties and Taxes on Exported Products | Refund of embedded taxes on exported goods | Goods exporters, MSMEs, D2C brands | Export goods must be on the government’s notified list; exporters must hold a valid Import Export Code (IEC). |
| EPCG | Export Promotion Capital Goods | Zero/reduced duty on machinery imports | Manufacturers, engineering units, large e-commerce exporters | Import eligible capital goods and meet the mandated export obligation. |
| SEIS | Service Exports from India Scheme | Duty credit rewards for service exports | SaaS, IT services, consultants, agencies | Export of eligible services and earning foreign exchange as per notified categories. |
| AA | Advance Authorisation | Duty-free import of raw materials | Manufacturers using imported inputs | Import inputs duty-free and use them to produce export goods. |
| DBK | Duty Drawback | Refund of customs/excise duties on inputs | Goods exporters using imported components | Use duty-paid inputs for exports and file a valid drawback claim with IEC. |
How to Apply for Export Promotion Schemes
Most export promotion schemes in India follow a similar application process. If you understand the basic steps, you can apply for almost any scheme.
Step 1: The Foundation — Get Your IEC and RCMC
Before applying for any export incentive, you need two basic registrations:
1. Importer Exporter Code (IEC)
This is your official ID as an exporter.
- You can apply for it on the Directorate General of Foreign Trade (DGFT) portal.
- You only need your PAN card, address proof, and bank account details.
- Once approved, your IEC becomes active immediately.
- You do not need to renew it unless your details change.
2. Registration-Cum-Membership Certificate (RCMC)
This is issued by an Export Promotion Council.
- Choose the council based on what you export.
- Example: IT and service exporters register under SEPC.
- Goods exporters choose their sector-specific council.
- Apply online through the DGFT portal.
- Keep your IEC and basic business documents ready.
Pro Tip: Update your IEC profile every time you change your address, director details, or bank account. An outdated profile is one of the most common reasons applications get rejected.
Step 2: Navigate the DGFT Portal
Once your IEC and RCMC are ready, your next step is to learn how to use the DGFT portal. This portal is where you apply for most export schemes in India.
Here’s what you need to do:
- Create a DGFT account and link your IEC to your login.
- Complete your profile with correct business details, bank account, and contact information.
- From your dashboard, you can access different modules like RoDTEP, EPCG, AA, and more.
- For some benefits, you also need to link your export bank account and Authorised Dealer (AD) Code on ICEGATE (Customs portal) to receive credits or e-scrips.
The portal may look complex at first, but once your basic setup is done, most applications follow a similar pattern.
Step 3: The Critical Role of Documentation
Documentation matters a lot in export incentives. Even a small mismatch can delay your approval.
Here’s what you must keep ready and consistent:
Basic Registrations
- IEC
- RCMC
- GST details (if applicable)
Export Transaction Documents
- Commercial invoice
- Packing list (for goods)
- Shipping bill or airway bill
- Electronic Bank Realisation Certificate (e-BRC), which shows you received the payment for export
Banking Setup
- Export current account
- AD Code registered on ICEGATE
- Same bank details updated in your IEC profile
Did You Know?
DGFT has made most processes online and paperless, so you rarely need physical submissions now.
The #1 Bottleneck: Why Exporters Lose Money on Unclaimed Benefits
Most exporters don’t miss out on export promotion schemes because the rules are difficult. They miss out because they cannot prove they received their export payments. Every major export incentive scheme in India needs one critical document: the e-BRC.
If the e-BRC is missing, delayed, or linked to the wrong invoice, you simply cannot claim your benefit. This is where exporters lose the most money.
Generating e-BRC becomes a nightmare because:
- Different banks have different formats and timelines
- Remittances often arrive with missing or incorrect invoice details
- Exporters must constantly follow up with bank branches
- Even small mismatches between invoices, bank credits, and IEC details lead to rejections
So even if you qualify for export incentives, you can’t claim them without the right paperwork.
Razorpay acts as the enabler that removes this bottleneck. Instead of chasing banks or struggling with mismatched details, Razorpay automates the process so you can claim your benefits without stress.
- Automatic e-BRC Generation for Every Export Payment
Razorpay coordinates directly with partner banks, so the e-BRC is created without manual visits or follow-ups. This ensures you always have the document needed to claim your incentive on time. - Accurate Mapping of Payments to Invoices
Razorpay captures invoice numbers, purpose codes, customer details, and currency information at the time of payment. This reduces mismatches and helps your claims pass DGFT checks smoothly. - A Single Dashboard for Payments and Compliance
You can view inward remittances, e-BRC availability, and export documentation in one place, making the process organised and stress-free.
Ready to streamline your payments?
FAQs
What is the difference between RoDTEP and Duty Drawback?
RoDTEP refunds hidden taxes and duties that are not covered under other systems, while Duty Drawback refunds duties you already paid on imported inputs used for export goods.
Are export promotion schemes available for service exporters?
Yes. Service exporters can also get benefits under export promotion schemes, depending on the government rules for that year.
What is an e-BRC and why is it important for export schemes?
An e-BRC is proof that you received payment in foreign currency. Most export schemes require this as proof that you actually earned money from exports.
Can I combine multiple export promotion schemes?
Yes, you can use more than one scheme at the same time, as long as they do not give you the same benefit twice. Many exporters combine schemes to save more money and reduce costs.
What is the Export Obligation under the EPCG scheme?
Under the EPCG scheme, the export obligation is the requirement to export goods or services worth six times the value of the duty saved on imported capital goods. This must be fulfilled within six years from the authorisation date.
How do export incentives affect taxation or GST refunds?
Export incentives do not count as taxable income under GST, and they do not reduce your eligibility for GST refunds. You can claim GST refunds on exports and still receive incentives without any conflict.
