The Indian Textiles & Clothing (T&C) sector, a significant contributor to the country's exports, is poised for further growth with the extension of export promotion schemes. Despite challenges, including the recent Covid-19 pandemic, the sector maintained its position, contributing approximately 8.0 per cent to India's overall exports.
During the fiscal year 2021-22, the sector experienced a notable surge in exports, attributed to pent-up demand following the second wave of the pandemic. To sustain this momentum and enhance global competitiveness, the government has implemented various measures, including revising existing export schemes such as Duty Drawback, IES, RoSCTL, and RoDTEP.
A key initiative is the Rebate of State and Central Taxes and Levies (RoSCTL) Scheme, which aims to refund blocked duties and levies on export products, ensuring a level playing field for Indian exporters in international markets. Originally set to expire on March 31, 2020, the scheme has been extended multiple times and is now valid until March 31, 2026, following approval by the Union Cabinet.
SK Sundararaman, Chairman of The Southern India Mills’ Association (SIMA), commended the government's decision, emphasizing its importance in sustaining the competitiveness of Indian textile exporters. He highlighted the scheme's role in facilitating long-term export contracts and supporting exporters amidst challenges such as declining foreign buyer orders due to economic recessions in key markets like the EU.
Furthermore, Sundararaman noted the scheme's benefits for exporters importing fabric, a major raw material, through the Advance Authorization Scheme. He underscored the significant enhancements under the RoSCTL scheme, which provide increased refunds for various textile products, fostering growth and enabling the sector to work towards the government's ambitious export target of USD 100 billion by 2030.
The extension of the export supportive scheme not only bolsters the textile industry but also signals a visionary approach to attract investment and generate employment opportunities, reinforcing India's position as a global textile hub.
