India Considers Extending Textile Export Incentive Scheme Beyond September

India's textile sector has mounted a push to keep the RoSCTL incentive programme alive, citing its importance in maintaining export competitiveness. Industry representatives have formally sought an extension lasting five years, coupled with increased budgetary support to double the scheme's current outlay, according to sources familiar with the matter.

The RoSCTL scheme, which provides rebates on various state and central levies, is set to expire on September 30. The textile industry argues that an abrupt termination would undermine export momentum and place Indian manufacturers at a disadvantage relative to competitors in neighbouring countries offering similar support mechanisms.

The decision on whether to extend the programme now rests with the Department of Expenditure under the Ministry of Finance, which must weigh the sector's demands against budgetary constraints and fiscal policy considerations. Government officials are expected to announce their position before the current deadline approaches.

Textile exports have remained a significant revenue generator for India, with the sector employing millions of workers across spinning, weaving, and apparel manufacturing. Industry bodies have previously noted that export incentives play a crucial role in offsetting input costs and supporting the sector's competitiveness in global markets.