Indian textile exporters have urged the government to restore benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme, warning that the sector’s global competitiveness could suffer without continued fiscal support.
Industry bodies representing apparel and home textile manufacturers said the withdrawal or reduction of RoDTEP rates for certain textile categories has increased cost pressures at a time when global demand remains uneven. Exporters argue that the scheme plays a critical role in refunding embedded taxes and duties that are not otherwise reimbursed, thereby ensuring a level playing field in international markets.
The textile sector, one of India’s largest employment generators, has been facing rising input costs, including cotton prices, logistics expenses, and compliance requirements in key markets such as the European Union and the United States. Exporters say restoring RoDTEP benefits would help offset these pressures and prevent loss of orders to competing countries like Bangladesh and Vietnam.
According to trade representatives, India’s textile exports have shown mixed trends in recent months, with some segments witnessing slower growth due to subdued retail demand overseas. Industry leaders emphasized that policy stability and predictable incentive structures are crucial for long-term export planning and capacity utilization.
RoDTEP, introduced in 2021 to replace the earlier MEIS scheme, aims to refund taxes and duties incurred during the manufacturing and distribution process that are not covered under other mechanisms. Exporters contend that continued support under the program is essential to sustain export momentum and safeguard jobs in labor-intensive segments such as garments and made-ups.
The government has yet to announce any formal decision on the matter, but discussions between industry stakeholders and officials are reportedly ongoing. Exporters remain hopeful that the upcoming policy review will address their concerns and provide clarity on the future of RoDTEP benefits for the textile sector.