Textile sector hails extension of RoSCTL scheme

Coimbatore: The Southern India Mills Association (Sima) and Apparel Export Promotion Council (AEPC) have thanked the Centre for extending the rebate of state and central taxes and levies (RoSCTL) on export of apparel and garments for another three years.
The struggling textile industry, which had seen exports stagnate for the past four years, has now begun seeing good marketing opportunities for post-Covid and this move would make pricing of Indian apparels competitive in the global market, the associations said.
The Union cabinet, chaired by Prime Minister Narendra Modi, recently approved RoSCTL with the same rates on exports of apparel and garments till March 31, 2024. The move critically reduces price of Indian products in the global market, because manufacturers don’t have to add the cost of state and central taxes on it.
Sima chairman Ashwin Chandran said that the industry could not stick to their earlier commitments and complete orders without the rebate benefit for the past couple of months. “This announcement has now given textile and garment exporters confidence and provided a level-playing field to help them increase exports and create new jobs for several lakhs of people,” he said.
AEPC chairman A Sakthivel said the scheme will go a long way in bringing back positive sentiments and help the Indian textile value chain attain $100 billion annual exports in next three years. “The scheme will help generate lakhs of new employment, particularly for the vulnerable sections including semi-skilled, rural youth, migrants and women in the MSME segment. It will also help in achieving the envisioned goal of Aatmanirbhar Bharat. RoSCTL scheme will make Indian textile and apparel industry more competitive in the global market,” he added.
Sima also welcomed the cabinet committee’s decision to cover all remaining textile products in the value chain in the remission of duties and taxes on export products (RoDTEP) scheme, further improving global competitiveness of yarns and fabrics.