The authorities’s determination to proceed offering rebate on central and state taxes beneath the RoSCTL scheme to attire and made-up exporters will assist enhance competitiveness and increase outward shipments, the Federation of Indian Export Organisations (FIEO) stated on Wednesday.
The Union Cabinet, chaired by the Prime Minister, has given its approval for continuation of the Rebate of State and Central Taxes and Levies (RoSCTL) on exports of attire, clothes and made-ups.
FIEO President A Sakthivel stated the extension of the scheme until March 2024 supplies stability and predictability, which augur nicely for the long-term contracts, and it could guarantee further investments.
He stated many neighbouring nations have emerged as India’s rivals having tariff benefit both on account of LDC (less-developed nations) standing or owing to efficient free-trade agreements.
‘The extension of RoSCTL profit coupled with free-trade partnership with the US, the UK, the EU, Australia, Canada, and so on, could be a recreation changer for Indian attire and made-ups sectors, and can assist the sector to get its rightful share within the world commerce,’ Sakthivel stated.
According to FIEO, India exported knitted attire, woven attire and made-ups in 2020 value USD 6.1 billion, USD 6 billion and USD 4.8 billion, respectively.
Bangladesh’s exports of those three merchandise stood at USD 19 billion, USD 16.8 billion and USD 1.1 billion in 2020. Similarly, Vietnam exported knitted attire, woven attire and made-ups in 2020 value USD 13.7 billion, USD 13.3 billion and USD 3.2 billion, respectively.
Sakthivel, who can also be chairman of the Apparel Export Promotion Council (AEPC), stated the scheme will refund all embedded taxes and make our merchandise globally aggressive.
‘The scheme will go a great distance in bringing again constructive sentiments and serving to the Indian textile worth chain attain USD 100-billion annual exports in subsequent three years,’ he stated.
Sakthivel added that the RoSCTL scheme will make Indian textile and attire business extra aggressive within the world market.
The scheme may even assist verify the declining development being witnessed in attire exports.
India’s attire exports have been shedding market share to rivals, he stated including that it fell 20.8 per cent in a single yr from USD 15.6 billion in 2019-20 to USD 12.3 billion in 2020-21.
‘This declining development in attire exports is of concern for the nation, given its enormous socio-economic significance. The scheme is all set to reverse the development,’ he stated.