HEWA Seeks 5-Year RoSCTL Extension as Ministry of Textiles Reviews Proposal

HEWA has called on the Government of India to extend the WTO-compliant RoSCTL scheme beyond 31 March 2026 to provide long-term stability for MSME textile and garment exporters. The Association stated that RoSCTL functions as a tax neutralisation mechanism by refunding embedded and non-creditable taxes, thereby preventing the export of domestic taxes and supporting international competitiveness.

In an official communication dated 25 February 2026, the Ministry of Textiles noted that any decision on continuation or extension of the scheme falls under policy formulation and confirmed that HEWA’s proposal has been taken on record for examination at the appropriate level.

The Association also acknowledged progress made by the Government in advancing multiple trade agreements, including developments related to the India–EU and India–UK FTAs, as well as existing agreements with Australia and the UAE. HEWA highlighted that continuity in domestic policy is required for exporters to make effective use of these opportunities, particularly in the context of high US tariffs, increased sea freight rates, post-COVID cost escalation, and geopolitical disruptions.

Mr. Anant Srivastava, President, HEWA, stated:
“We are extremely thankful to the Government of India for negotiating multiple trade agreements that create significant opportunities for Indian textile exporters. To capitalize on these developments, exporters require stability and predictability in domestic policy. RoSCTL plays a vital role in sustaining competitiveness during this expansion phase.”

Mr. Vikas Singh Chauhan, Director, HEWA, added:
“India is well positioned to benefit from global supply chain realignments. However, this is not the appropriate time to alter the refund mechanism of embedded taxes under RoSCTL. MSME exporters require policy continuity to sustain employment, strengthen capacity, and plan long-term investments.”