19th July 2021,Mumbai:

Piyush Goyal, the new textiles minister, has set eyes on lofty target of shoring up the Sector's capacity by 10 times (YES YOU READ IT RIGHT), giving hopes that the government is seriously looking at taking more steps to give a leg up to investment and resultant boost in employment in this 2nd largest employer.

Though giving no road-map and indicating timeline at this stage. But given the resolute indications it is not unrealistic view.

 

What has been identified as thrust areas

 

Focus on improving the quality of handloom, handicrafts and standardising realising that; there is a vast potential in a burgeoning local market besides exports market, Man-made fibre along with Technical Textiles 

 

Current Sector status

 

Textile Sector size 140$ Bn & 50% comes from Apparel trade (GDP share 2.3%), employing 45 million workers or thereabouts.

Approx 25% of sector gets exported.

 

                                                                                                             

 

Recent Initiatives

The extension of Rebate of State and Central Taxes & Levies (RoSCTL) to provide 'Predictability & Visibility' to exporters when they negotiate contracts & investors 

Integrated textiles parks

The proposed free trade agreements with the UK & EU being our one of the largest trade partners expected to provide required impetus to Indian exporters

Mudra loans for startups to buy cotton-plucking machines to rent to farmers are proposed in the earnest to create jobs and employment supporting income for SMBs

 

 

Watch: https://www.youtube.com/watch?v=rEfD2nWfjvQ

 

Existing competitive landscape

 

Competing countries having to pay lower duties in these crucial markets thus they outdo Indian Exporters hands-down.

 

 

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With slew of measures the textiles industry is optimistic to compete more competitively with rivals such as Bangladesh/ Vietnams of the world, which enjoy unfair wage and tariff advantages.

 

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AEPC welcomes extension of RoSCTL scheme till March 31, 2024

Extension of RoSCTL scheme till 2024 for textiles exporters

 

 

 

 

 

 

 

ReplyForward

 

 

 

GST  (Goods & Services) there are issues which still that bog & disrupt several industrial sectors in India. In some sense it is still work in progress.

But Unquestionably gst still remains post independence India's the boldest reform. 

A quick low down on the GST journey now that it has covered 4 years yesterday.

 Watch: https://www.youtube.com/watch?v=r5Ld6110rPM

Beneficiary Segments: Textile, Garment & footwear sectors in more than one ways.

Hits & Misses

Upside:

• GST reduced compliance burden unambiguously
• GST reduced input costs of the garment industry by subsuming complicated taxes
• What it has facilitated is such as streamlining payments, minimising multiplicity in taxes, reducing/ doing away with overlap & easing documentation resulting in targeted record keeping
• It has also resulted in integration of manufacturing activities in the units and across units in this fragmented sector

Downside:

What it is not as demanded that all indirect taxes must be brought under GST, so that exporters only need to claim a refund of the input taxes paid, making the system more efficient than separate reimbursement schemes

Issues that need redressal :

Reduction of GST slabs,

Inverted duty structure etc.

As per AEPC (APPAREL EXPORT PROMOTION COUNCIL),Chairman Dr A Sakthivel,"Though GST initially posed a lot of problems, over time GST has achieved it objective"

 

Politics is a set of activities associated with the governance of a country or an area. It involves making decisions that apply to group of members. I would have realized that technology is an accessible field at a younger age. I really got interested in technology when I took a role on President Obama’s Technology, Innovation, and Government Reform transition team in 2008 to make recommendations.

14th July 2021, Mumbai:

Garment exporters will continue to get a rebate on central and state taxes on their outward shipments as the government on Wednesday approved extension of RoSCTL scheme till March 2024.

The timing is apt as it coincides with the new Textile Minister taking charge & hitting ground running.

Enhancing competitiveness of the labour-intensive textiles sector at the core of this move.

The momentous cabinet approval comes in effect by none other than H'ble PM chairing the same for continuation of 'Rebate of State and Central Taxes and Levies (RoSCTL)' with the same rates as notified by the Ministry of Textiles (MOT) for exports of Apparel/ Garments & including made-ups.

"The best part is that scheme will be up until March 31, 2024. It will give +ve impetus to exports and creating meaningful job creation," Information & Broadcasting (I&B) Minister Anurag Thakur announced empathically this afternoon.

Fact Sheet

The sectors covered under this scheme (apparel/garments and made-ups) would not get benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme.

However, textiles products which are not covered under the RoSCTL would be eligible to avail the benefits, if any, under RoDTEP along with other products as finalised by the Department of Commerce.

The scheme will be implemented by the Department of Revenue with end-to-end digitisation for issuance of transferable Duty Credit Scrip, which will be maintained in an electronic ledger in the customs system.

Revised guidelines for continuation and implementation of the RoSCTL scheme will be prepared by the Ministry of Textiles (MOT) in consultation with the Department of Revenue with necessary flexibilities to fine tune the operational details, implementation modalities and scheduling.

"Continuation of RoSCTL for apparel/garments and made-ups is expected to make these products globally competitive by rebating all embedded taxes/levies which are currently not being rebated under any other mechanism"

Under this scheme, exporters are issued a Duty Credit Scrip for the value of embedded taxes and levies contained in the exported product. Exporters can use this scrip to pay basic customs duty for the import of equipment, machinery or any other input.

These scrips are tradeable. So, if the exporter does not need this for his personal use, he can transfer the same to any other importer.

Earlier, under the RoSCTL scheme, maximum rate of rebate for apparel was 6.05% while for made-ups, this was up to 8.2%.

Watch: https://www.youtube.com/watch?v=as1ftbDaIgQ

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What AEPC had to say

Apparel Export Promotion Council (AEPC) Chairman, Dr A Sakthivel said," the extension will help exporters get all embedded taxes and make products globally competitive".

"The scheme will go a long way in bringing back positive sentiments and helping the Indian textile value chain attain USD 100 billion annual exports in next three years," alludes AEPC Chairman. 

Dr Sakthivel also was generous in appreciating on the back of the fact that scheme will prove to be a momentous strategic decision towards generating several lakhs of new jobs, more importantly for the vulnerable sections, including semi-skilled, rural youth, migrants and women in the MSME segment. He also opines that quantum incremental exports in coming seasons is a natural corollary to this welcome sops and incentives.

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The Federation of Indian Export Organisations (FIEO) will focus & exhort its worthy members for persuing seriously the export promotion side of business, as the government aims to targets lofty $ 400 billion worth exports during the FY21, alluded A. Sakthivel, who assumed office as chairman of FIEO on Monday. The target is doable asserts new incumbant with the concerted efforts of the government and the industry.

Watch: https://www.youtube.com/watch?v=l3KF2NZTR5c

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Politics is a set of activities associated with the governance of a country or an area. It involves making decisions that apply to group of members. I would have realized that technology is an accessible field at a younger age. I really got interested in technology when I took a role on President Obama’s Technology, Innovation, and Government Reform transition team in 2008 to make recommendations.

Politics is a set of activities associated with the governance of a country or an area. It involves making decisions that apply to group of members. I would have realized that technology is an accessible field at a younger age. I really got interested in technology when I took a role on President Obama’s Technology, Innovation, and Government Reform transition team in 2008 to make recommendations.

Politics is a set of activities associated with the governance of a country or an area. It involves making decisions that apply to group of members. I would have realized that technology is an accessible field at a younger age. I really got interested in technology when I took a role on President Obama’s Technology, Innovation, and Government Reform transition team in 2008 to make recommendations.

Apparel Export Promotion Council (AEPC) has lauded the government and exporters for achieving the highest ever merchandise exports of $95 billion in Q1 (April-June quarter) FY 2021-22. As per recent reports, the export of cotton yarn/ fabrics/made-ups grew by 50.86 per cent in June 2021 over June 2019.

Dr A Sakthivel, Chairman, AEPC said, the $400 billion merchandise export target of FY22 is doable.

However, apparel exports could not benefit much from the resurgence in global demand despite a good order book due to lock-downs in many important states, Sakthivel added. He said while overall global demand has remained buoyant, the lock-downs in different parts of the country had kept factories in a partial shutdown.

With decline in daily cases of infection and resumption of economic activities, India is now set to achieve unprecedented export figures this year, he said. 

Watch: https://www.youtube.com/watch?v=KOcERGKODhQ

Dr A Sakthivel, Chairman, AEPC requested & appealed the government to ensure personalized management of MSME exports and early clearance of Rebate of State and Central Taxes and Levies (RoSTCL) cases pending since January 2021.

Politics is a set of activities associated with the governance of a country or an area. It involves making decisions that apply to group of members. I would have realized that technology is an accessible field at a younger age. I really got interested in technology when I took a role on President Obama’s Technology, Innovation, and Government Reform transition team in 2008 to make recommendations.

Politics is a set of activities associated with the governance of a country or an area. It involves making decisions that apply to group of members. I would have realized that technology is an accessible field at a younger age. I really got interested in technology when I took a role on President Obama’s Technology, Innovation, and Government Reform transition team in 2008 to make recommendations.