The Central government has made a significant move by extending the Rebate of State and Central Taxes and Levies (RoSCTL) scheme for exporters of apparel and made ups. This decision has garnered positive feedback from the Southern India Mills Association, which believes that it will provide a much-needed impetus to the industry. With the extension of the scheme, manufacturers will now have the opportunity to secure long-term contracts with buyers.
S. K. Sundararaman, Chairman of the Association, highlighted the importance of this scheme for the growth of Indian textile and clothing exports. Currently stagnant at $35-37 billion, these exports make up 8% of the country’s total exports. By refunding blocked duties and levies on export products, the government is ensuring that Indian players have a level playing field in the international market.
Originally set to expire in March 2020, the RoSCTL scheme has now been extended until March 2026 with a dedicated budgetary allocation for this year. This move is expected to sustain the competitiveness of Indian textile exporters in the global arena, according to Sundararaman. It is a significant step towards realising the vision of making India a leading player in the textile and apparel sector.
