Nod to subsidy scheme to boost garment exports

NEW DELHI:  In a major relief for exporters of garments, the Union Cabinet has approved the continuation of Rebate of State and Central taxes and Levies (RoSCTL) scheme till March 31, 2024 with the same rates as notified earlier by the Ministry of Textiles.

“The other textiles products (excluding Chapters-61, 62 & 63) which are not covered under the RoSCTL shall be eligible to avail the benefits, if any, under RoDTEP along with other products as finalised by the department of commerce from the dates which shall be notified in this regard,” an official release said.

The cabinet also approved a subsidy scheme for shipping companies during global tenders for import of government cargo, with an outlay of Rs 1,624 crore over five years, which will help in adding number of fleets to boost exports.

Exporters welcomed the decision and said the move will boost investment, improve the competitiveness of domestic firms in the textiles sector. “The extension of the scheme for almost three years provides stability and predictability, which augurs very well for the long-term contracts thereby ensuring additional investment in the segment creating new employment opportunities in the sector,” said A Sakthivel, President, FIEO.