The Indian government has approved the extension of the RoSCTL scheme for apparel and made-ups sectors till March 2026. The scheme aims to boost the export competitiveness of these sectors by refunding the taxes and levies incurred in the production and distribution process.
What is RoSCTL?
RoSCTL stands for Rebate of State and Central Taxes and Levies. It is an export incentive scheme launched in 2020 to compensate for the state and central taxes and levies that are not refunded under any other mechanism at the Centre, state or local level. The scheme covers apparel, garments and made-ups products, which are among the major export items from India.
Why is it important?
The RoSCTL scheme is important for enhancing the export competitiveness of the apparel and made-ups sectors, which employ a large number of workers, especially women, and contribute significantly to India’s foreign exchange earnings. The scheme helps in making these products cost-competitive in the global market by removing the burden of taxes and levies. The scheme also provides a stable and predictable policy regime for long-term trade planning, which is essential for the textiles sector where orders can be placed in advance for long-term delivery.
What are the benefits?
The continuation of the RoSCTL scheme till March 2026 will provide a boost to the apparel and made-ups sectors, which have been facing challenges due to the COVID-19 pandemic, global trade tensions and rising input costs. The extension of the scheme will help in sustaining and increasing the exports of these sectors, which have shown a recovery in recent months. The scheme will also support the employment generation and income augmentation of millions of workers in these sectors, especially women.