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By
Fibre2Fashion
Published
May 8, 2018
Reading time
2 minutes
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Special package has increased investments & jobs: AEPC

By
Fibre2Fashion
Published
May 8, 2018

The ₹6,000 crore special package announced in 2016 by the Indian government for the textiles and apparel sector has not only boosted exports but has also helped in increasing investments, a survey conducted by the Apparel Export Promotion Council (AEPC) has found.

The survey conducted to gauge the package’s impact, terms it as a step in the right direction.


 
In the first twelve months of the roll out, the package had generated additional investment of around ₹2,500 crore and additional employment of around 1,00,000, the survey found. 
 
The findings of the survey suggest that Rebate of State Levies (ROSL) had a positive impact on garment industry. After the implementation of the ROSL in September 2016, India’s apparel exports increased by 2.7 per cent in value terms and grown by 6.4 per cent in volume terms, AEPC said in a press release.

In the months of announcement and implementation of ROSL -- August, September and October 2016 -- India’s apparel exports grew 3.9 per cent, 12.9 per cent and 10.97 per cent, respectively. Similarly, in the months of disbursal of ROSL --  March and April 2017 -- apparel exports increased 20.3 per cent and 31.7 per cent, respectively.
 
“ROSL has been a well-thought-out scheme, which had a positive impact on garment industry. There is a direct correlation between the release of ROSL to exporters vis-a-vis increase of India’s RMG exports. Though demonetisation and GST rollout has temporarily slowed down the industry, the positive impact of ROSL is expected to bring results in 2018-19, as the industry settles down post GST rollout,” said AEPC chairman HKL Magu.
 
“AEPC would like to thank the ministry of textiles for looking into embedded/blocked Central and state taxes after the implementation of GST, while considering the new drawback and ROSL rates,” he added.
 
Based on the survey findings, AEPC has informed the concerned ministries about the positive impact of ROSL on apparel exports and has requested the policymakers for increasing the ROSL rates.

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