The extension of rebate on taxes for exports of garments till March 2024 will allow the industry to conduct more extensive evaluations of investment proposals with longer gestation periods, says Welspun India. The extension of the Rebate of State and Central Taxes and Levies (RoSCTL) scheme for exports of apparel/garments and made-ups was approved by the Centre on Wednesday.
Dipali Goenka, Joint Managing Director and CEO, Welspun India, said this will position India as a reliable and competitive textile manufacturing hub in the international arena. “It is a transformational decision to extend the RoSCTL up to 2024. The move along with production linked incentive (PLI) schemes announced in April, will be a game-changer for the entire value chain and will drive benefits for all stakeholders.
She said the extension will also allow industry leaders to conduct more extensive evaluations of CAPEX proposals with longer gestation periods. “Such undertakings will generate more valuable direct and indirect employment opportunities, particularly for women – something that will have a multigenerational socio-economic impact over a broader base of the country’s populace and will lead to greater involvement of female professionals in the workforce.”
Goenka also highlighted that the textile and apparel industry is one of the biggest growth drivers of India’s economy. It accounts for around 5% of its GDP and 12% of its export earnings. “The sector will continue to play an integral role in the country’s economic revival, helping it recuperate from the devastating impact of the second COVID-19 wave,” she said. “The steps taken by the government will provide a level playing field for Indian textile manufacturers and exporters while enabling them to capitalize on the recent shift in the global retail sourcing strategies.”
Welspun CEO believes the policy change will position India as a reliable and competitive textile manufacturing hub in the international arena. Goenka said it will strengthen foreign trade and provide the necessary stimulus to revive domestic activity. “The move will also help in the recovery of textile export, which fell to USD 29 billion in FY21 from USD 34 billion in FY20, reversing the trend to generate employment, drive growth Capex and earn foreign exchange for the country.”