Government Prolongs Support for Textile Exporters as Global Risks Remain
April 02, 2026 | By Textile Sphere India
In a notification, the ministry of textiles said the scheme will continue without any changes to its scope, structure, coverage, rates or eligibility criteria.
The government extended a major export incentive scheme for apparel, garments and made-ups until 30 September, seeking to support the labour-intensive textile sector amid global uncertainties linked to the West Asia conflict.
The Rebate of State and Central Taxes and Levies (RoSCTL) scheme has been extended with effect from 1 April, following directions from the finance ministry’s Department of Expenditure. The scheme’s earlier validity had ended on 31 March.
In a notification, the ministry of textiles said the scheme will continue without any changes to its scope, structure, coverage, rates or eligibility criteria. All provisions applicable during the 15th Finance Commission period (FY21–FY26) will remain unchanged, and the implementation guidelines issued in August 2021 will continue to apply.
Under RoSCTL, the government refunds certain embedded taxes and levies to textile exporters to improve their competitiveness in global markets. Made-ups refer to ready-to-use textile products such as bed sheets, towels and curtains.
The extension comes at a time when India’s readymade garment (RMG) exports rose from about $14.55 billion in FY24 to around $16.01 billion in FY25, reflecting a steady recovery even as exporters continue to face pricing pressures and strong competition in key overseas markets.
As per the notification, RoSCTL benefits will continue to be issued through duty credit scrips or e-scrips via a fully digitised customs ledger system. Scrips will be issued without insisting on the realisation of export proceeds.
To ensure expenditure remains within budgeted limits, a committee led by the Department of Expenditure, with representatives from the Departments of Revenue and Commerce and the ministry of textiles, will review the scheme on a quarterly basis. The government has also retained the option to revise rates and caps depending on underlying conditions, while keeping eligibility norms unchanged.
According to an ICRIER policy brief titled “Stitching India’s Apparel Export Competitiveness” released in December 2025, India’s share in global apparel exports stands at around 3%, well below Bangladesh at about 7% and Vietnam at nearly 6%. The report noted that India’s apparel exports have grown at a slower pace than these competitors, leading to a gradual decline in its relative global standing.
The brief also highlighted that Bangladesh benefits from duty-free access to key markets such as the European Union, while Indian exporters face tariff disadvantages in several destinations. It further pointed out that delays in tax remission schemes such as RoSCTL and RoDTEP can create liquidity challenges for exporters, affecting their ability to price products competitively.
RoSCTL was introduced in 2019 to refund embedded state and central taxes and levies not otherwise reimbursed under any mechanism, specifically for exports of apparel, garments and made-ups. These include state-level taxes such as VAT on fuel used in transportation, mandi taxes, electricity duties and certain central levies outside the GST framework.
Under the scheme, exporters receive transferable duty credit scrips or e-scrips that can be used to pay basic customs duty or sold in the market.
#TAGS textile exporters, West Asia conflict, apparel, garments, Rebate of State and Central Taxes and Levies, RoSCTL, Department of Expenditure, finance ministry, Finance Commission, India’s readymade garment, RMG, ICRIER policy,