India increases textiles rates under RoDTEP; industry hails decision

India has increased the rates of textile goods under Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme. Based on recommendations from the RoDTEP committee, the Indian government has introduced changes in 432 HS codes to make the industry more competitive and has increased the rates to refund up to triple the previous rates. 

As per the government notification, the cotton woven fabric is eligible for 4.3 per cent RoDTEP rate while the cotton knitted fabrics are extended by only 1 per cent. The RoDTEP rates for lycra blended knitted fabric have been increased from 1 per cent to 2.5 per cent and for 100 per cent cotton knitted fabric the rates have been increased from 1 per cent to 3 per cent. 

India has increased the rates of textile goods under Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme. Based on recommendations from the RoDTEP committee, the Indian government has introduced changes in 432 HS codes to make the industry more competitive and has increased the rates to refund up to triple the previous rates.

The rate and value cap for viscose rayon spun yarn has been increased from 0.9 per cent to 2.5 per cent with a value cap of ₹6 per kg. RoDTEP for woven fabrics of artificial staple fibre has now gone up from 1.2 per cent to 2.5 per cent. The revised RoDTEP rates will be effective from January 16, 2023, to September 30, 2023. 

The textile industry expects this decision to bring some relief in the bearish market. The new rates will be helpful for the knitted fabric exporters, who are facing crisis owing to various external factors such as the global economic slowdown. 

The enhanced RoDTEP rates will boost exports and align with the Production Linked Incentive Scheme, thereby enhancing the global competitiveness of Indian textiles and clothing products, Ravi Sam, chairman of The Southern India Mills’ Association (SIMA) said in a press release. 

SIMA chief thanked the government for increasing the rates for several products including denim, polyester staple fibre spun yarn and viscose rayon spun yarn. 

RoDTEP benefits have considerably enhanced the global competitiveness of the textiles and clothing products by avoiding export of embedded taxes and levies. The rates declared with effect from January 1, 2021, were on the lower side for certain key textile products such as man-made fibres, yarns, fabrics, cotton knitted fabrics, etc. Now, the government has enhanced the rates for all deserving products, based on the recommendations made by the RoDTEP committee. 

According to industry sources, garments and made-ups exports are getting attractive under another scheme Rebate of State and Central Taxes and Levies (RoSCTL) that came into effect from March 7, 2019 to refund the embedded taxes and levies. The period for this has been extended up to March 31, 2024. 

Fibre2Fashion News Desk (KUL)