The Indian Cabinet has decided to extend the current textile “Export Tax Rebate Scheme (RoSCTL)” for three years until March 31, 2024. The RoSCTL plan was first announced and implemented on March 7, 2019, providing export tax rebates for garments (Apparel) and home textiles (Madeups, such as towels, curtains, carpets, pillows, bed sheets, etc.). For those who cannot apply the Goods and Services Tax (GST) The products are given an export tax rebate of up to 6.05% by the central government and 8.2% by the state.
According to statistical data, India’s exports of knitted garments (KnittedApparel), plain woven garments (WovenApparel), and home textiles totaled US$17 billion in 2020, which is equivalent to that of Vietnam and Bangladesh. The export value of China and other countries was US$30.2 billion and US$36.9 billion, showing that India’s textile competitiveness is still insufficient. India’s Ministry of Commerce and Industry stated that the extension of the program will help enhance the competitiveness of India’s textile exports and create jobs, and that the program is different from the products covered by the “Export Commodity Tax Reduction and Duties Program (RoDTEP)”. According to the RoSCTL plan, exporters will receive a tax rebate voucher (DutyACreditScrip) after exporting their products, which can be used to pay basic tariffs on imported machinery, equipment or raw materials in the future.
India’s Ministry of Textiles stated that the RoSCTL plan has been implemented for one year at a time when the epidemic is severe. In order to provide exporters with a stable policy environment, the plan must be extended. ArSakthivel, President of the Federation of Indian Export Organizations (FIEO) and Chairman of the Ready-made Garment Export Promotion Council (AEPC), said that the Indian textile industry has a population of 45 million, and the value of ready-made garment exports in 2020/21 is US$12.28 billion, compared with US$15.5 billion in 2019/20 ) has declined by 20.8%. The extension of the plan will restore the confidence of exporters, allowing India’s textile exports to reach US$100 billion in the next three years.
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