Indian Garment Exporters Seek Three Year Rebate Extension
Apparel Export Promotion Council (AEPC) has sought a three year extension of RoSCTL, a rebate scheme, stating that it has become a dire necessity, given the current global economic uncertainties.
In a statement, AEPC Chairman Naren Goenka said market sentiments have touched an all-time low and the traditional markets of the US and EU are facing unprecedented recessionary trends.
In this backdrop, the extension of Rebate of State and Central Taxes and Levies scheme (RoSCTL) beyond March 31, 2024 is necessary and important.
“The RoSCTL has helped the apparel industry immensely to plan their business on a consistent basis while staying competitive,” he added.
According to Goenka, the industry should focus on innovation and attracting foreign direct investments (FDI).
“At present, the apparel industry receives a very low level of FDI, although 100 percent overseas investment is allowed in the textile sector under the automatic route,” Goenka stated.
“Enhancing FDI to increase economies of scale is very important for export competitiveness. Bringing investment in the garment sector to realise its full potential is our focus,” he added.
He further said that to reach the target of US $40 billion by 2030, there is a need to focus on innovation, cut costs, expand market and product basket, adopt cluster-based model and enhance branding efforts.
