A. Sakthivel, chairman of the Apparel Export Promotion Council and president of Federation of Indian Export Organisations, said the extension of the Rebate of State and Central Taxes and Levies on export of garments and made-ups with effect from January 1, 2021 is a step by the Union government towards achieving the vision of $400 billion merchandise exports.
Prime Minister Narendra Modi, during a recent interaction with heads of Indian Missions abroad and key stakeholders of trade and commerce sector, including AEPC, had set an aspirational target of $400 billion in merchandise exports for the ongoing fiscal.
The extension of RoSCTL till 31 March 2024, which was notified on Friday, was approved by the Union Cabinet on July 14, 2021 to make Indian textiles internationally competitive.
Mr. Sakthivel said the scheme would ensure refund of embedded taxes, cesses and duties. It would help increase exports of textiles and apparels, attract additional investment and provide direct and indirect jobs to lakhs of people, especially women, he said.
“The decision adds to the stability of the export policy of textiles. We now look forward to being a stronger global player with this continued RoSCTL support. The scheme will promote start-ups and entrepreneurs to start exporting their products. It will rejuvenate the textiles sector and, in three years, the Indian textile value chain can attain annual exports of $100 billion,” Mr. Sakthivel said.
Tiruppur Exporters’ Association president Raja M. Shanmugham said the notification for implementation of the Rebate of State and Central Taxes and Levies on Export of garments and made-ups and implementation of the scheme with effect from January 1, 2021 would help the liquidity-starved garment export industry. Speedy release of the scrips would enable the industry to recoup and become fully operational.
Manoj Patodia, chairman of Cotton Textiles Export Promotion Council, said continuation of the scheme for four years lays down the foundation for reaching the target of $100 billion exports in the textile and apparel sector. The exporters would also be encouraged to enter into long term contracts with their buyers in view of the stable policy which will lead to higher export growth.
T. Rajkumar, chairman of Confederation of Indian Textile Industry, welcomed the announcement of RoSCTL guidelines for the garments and made-ups segments. However, the rest of the textile value chain was still waiting for the Government’s decision for the announcement of the RoDTEP Scheme to enable them to be fully competitive.
Source : The Hindu
