19th August 2021, Mumbai:
Textile exporters predict an increase in order volumes as a result of the revised rates announced by the Centre under the Rebate on Duties and Taxes on Export Products (RoDTEP) program. According to the revised rates, RoDTEP offers a 2.5 percent to 4.5 percent incentive on the export of various types of yarn and textiles.
Despite the fact that procurement price limitations have been set in order to qualify for the benefit, textile exporters claim the refund will significantly boost their cost competitiveness.
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“One of the biggest problems Indian exporters confront is price competition from textile manufacturers in Vietnam and Bangladesh. Both of these nations have FTAs with European and other markets, providing them a significant advantage over Indian manufacturing. This is especially true for garments and made-ups, where the government's withdrawal of the Merchandise Export Incentive Scheme (MEIS) made it impossible for Indian textile manufacturers to remain cost-competitive, according to Chintan Thaker, head of Assocham – Gujarat state council.
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