The Union Cabinet has greenlit the extension of key schemes aimed at fostering various sectors. The schemes include the Rebate of State and Central Taxes and Levies (RoSCTL) for apparel exports, a sugar subsidy scheme for Antyodya Anna Yojna (AAY) families, and
the Animal Husbandry Infrastructure Development Fund (AHIDF). Additionally, the approval came after the signing and ratification of a bilateral investment treaty with the UAE.
The RoSCTL scheme, crucial for the textile industry, secures a stable policy regime for exporters, facilitating longterm trade planning. It compensates exporters through rebates on state and central taxes, including levies on fuel, electricity, and various inputs in the production chain. The extension until March 31, 2026, ensures continuity and support for the textile sector.
Sugar subsidy scheme
Simultaneously, the sugar subsidy scheme for AAY families receives an extension until March 2026, bringing relief to beneficiaries. The Centre’s subsidy of Rs 18.50 per kg per month aims to benefit AAY families in participating states, projecting total benefits exceeding Rs 1,850 crore during the 15th Finance Commission period (2020–21 to
2025–26).
Furthermore, the extension of the AHIDF, with an outlay of Rs 29,610 crore, will stimulate investments in vital areas such as dairy and meat processing, animal feed plants, and veterinary facilities. This three-year extension until March 31, 2026, reflects the government’s commitment to fostering growth in the animal husbandry sector.
In a move to bolster international economic ties, the Union Cabinet’s approval of the bilateral investment treaty with the UAE is poised to enhance investor confidence. This strategic treaty is anticipated to attract foreign investments and create opportunities for overseas direct investment (ODI), particularly from large investors. The decision underscores the government’s proactive approach to economic diplomacy and fostering a conducive environment for investments.
