AIR Spotlight - Cabinet Decision to Boost Garment Exports

Featured daily on All India Radio Newsonair, AIR Spotlight holds insightful discussions on pertinent issues with esteemed panelists. These discussions could prove to be beneficial for those preparing for the IAS exam . This article delves into the recent cabinet decision aimed at enhancing exports in the garment sector.

Participants:

• Upendra Prasad Singh, Secretary, Ministry of Textiles.
• Ruchika Chitravansi, Journalist.

Background:

The government has decided to extend the RoSCTL scheme for garments and made-ups until March 2024.

Overview:

• The garment sector in India is the second largest employer after agriculture, offering numerous job opportunities. It is also a treasure trove of tradition, culture, and age-old skills.
• The Cabinet has chosen to extend the RoSCTL scheme for garments and made-ups until March 2024, offering tax exemptions to garment exporters.
• This decision is expected to provide stability to the sector and make it more competitive by levelling the playing field for exporters.
• The textile sector constitutes 12-13% of India's total exports. For the benefits of exports, goods should be zero-rated, meaning the goods should be exported, not the taxes.
• The RoSCTL (Rebate of State and Central Taxes and Levies) Scheme is an export incentive scheme introduced from March 2019 to March 2020 for those who export apparel and made-ups from India.

The RoSCTL Scheme:

• The RoSCTL Scheme provides duty-credit transferable and sellable scrips based on the FOB value of export.
• Despite initial expectations of the scheme being subsumed under the RoDTEP , the Government later decided to keep the RoSCTL scheme separate.
• The RoSCTL scheme primarily targets three products: apparel, garments, and made-up textiles.

Initiatives to Enhance Textile Exports:

• Several initiatives are in the pipeline awaiting cabinet approval to boost exports, including performance-linked incentives.
• The government has announced the establishment of 7 mega textile parks to streamline the sector.
• The performance-linked incentive (PLI) is targeted towards the promotion of man-made textiles and technical textiles.
• The Technical Textiles Mission was launched to promote exports of technical textiles.

Focus on Silk and Jute:

• India is the second-largest producer of Silk but still imports silk from China to meet domestic demand. However, the dependency is reducing.
• Another area of focus is Jutes. The utilization of jute can be increased by using it for the production of Jute bags.

Future Prospects:

• The Ministry of Textiles is focusing on startups for innovations in the textile sector and the adoption of advanced technology.
• The Ministry has initiated an e-commerce platform to facilitate marketing and sales, encouraging artisan and handloom weavers.

You can read more Gist of AIR Spotlight here .